Growing companies need ERP (and this is not bookkeeping!)

March 15, 2011

Let’s generalise about the development of a small company:

1. Company is founded.
2. Company needs to send an invoice.
3. We all know that a tax return is going to be needed, sooner or later.
4. Ok lets get that low cost bookkeeping system. – Problem solved?

Well up to a point.

Small bookkeeping systems are designed for, well, doing the books. Because they are designed for the mass market they focus on the lowest common denominators of business. Simple transactions related to bank accounts and maybe buying and selling. Not line of business.

Very quickly, the small company will find that using a simple bookkeeping system to run business processes runs out of steam. So the knee-jerk reaction is to reach for Excel and start doing some spreadsheets to compliment the existing program.

This works so long as: 1. there is only one person doing the spreadsheet. 2. She or he is an Excel expert.

The problem strikes when the company starts to grow. At some point between having one buyer and a purchasing department the spreadsheet system is going to collapse. An ERP system is needed.

So do you want to implement that ERP system when growth is hard on you and the data quantity is multiplying? No of course not.

We have seen this situation so many times over the years. Small companies delay the inevitable ERP project because of the cost, and also the fear of choosing the wrong, expensive, paid-up-front system.

Low cost, online ERP systems have (and will) change everything. That it costs next to nothing to get an ERP system, and there is no long term risk in of commitment, it makes sense to do that ERP project while the company is still small, before things get out of hand.


ERP Workshop

March 1, 2011

Our first UK “Walk-in ERP Workshop” was held in International Digital Labs at Warwick University. This event was a great success and proved the concept of this kind of event.

Attendees were able to create their own online ERP system in the first ½ hour of the lab and we provided the sample data. We then managed to get through all the basic processes of an online ERP system.

We had a “Wow” moment from the audience when someone appreciated that Manu Online will do real time planning of purchase and manufacturing requirements. If you are previously used to waiting until the next morning for the results of an MRP run, then this certainly helps the use of the system. (Not to mention we are on a one day workshop!)

Thanks to Joe Darlington at the Digital Labs for arranging the facilities. If you are interested in attending the next workshop it is April 12th at same location. Register at the Manu Online web site events page.


Follow

Get every new post delivered to your Inbox.