Enterprise Resource Planning (ERP) Systems for SMEs: A Review

This report provides an overview of Enterprise Resource Planning (ERP) systems and their significance for Small and Medium Enterprises (SMEs). It explores the core functionalities of ERP, including its integration of various business processes such as sales, HRM, finance, and marketing. The report delves into the benefits of ERP implementation, such as improved efficiency, better decision-making through data analysis, and enhanced customer relationship management (CRM) and supply chain management (SCM). It also discusses the challenges associated with ERP adoption, including the costs of implementation and the need for employee training. Furthermore, the report analyzes various ERP brands, including NetSuite, Scoro, Sage Intacct, SYSPRO, SAP, Odoo, Oracle, Microsoft Dynamics, Epicor, and Brightpearl, highlighting their specific features and suitability for SMEs. It emphasizes the importance of selecting an ERP system that aligns with the specific needs of a business, considering factors such as industry, size, and operational requirements, while also acknowledging the risks of cyber-attacks on ERP systems and the need for security measures. The report concludes by advocating for ERP adoption by SMEs, emphasizing the long-term benefits and return on investment despite the initial costs.

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ERP System and SME’s

ENTERPRISES RESOURCE PLANNING & SME’S 1
Introduction
ERP (Enterprises resource planning) is kind of business process management software which
allows a company to use a process of integrated application to manage the organization process
at a various level such as sales, HRM, finance, marketing (Chang, 2016). ERP system automates
many business functions such as back office, accounting, and several others. However, nothing
left impacted by cyber-attacks. There is many cyber-attacks are exploiting e-business
transactions, and now are targeting ERP software. This report will evaluate What ERP system is,
how it works, and how an ERP system can improve the organization's performance. It will also
analyze the different types of brand of ERP system (Altamony, 2016).
ERP and Business
Every business needs an ERP system no matter in which field a company operates, a business
requires a method of organization to expand the business and increase performance. ERP or
(Enterprises Recourse Planning Software) is software that integrates and runs all the process and
aspects of any business include everything from traceability of material, management and
optimization of stock (Shaughnessy, 2018). CRM and SCM are basic and very important
elements of a business. There are various types of ERP software such as CRM, SCM, HRM and
several others. ERP (CRM) helps a medium size Manufacturer Company to manage the customer
relationship and gives the overall profile of the company’s customers through data collecting
from their internet activities. ERP (SCM) helps to manage the entire supply chain to create it
adjustable to dynamic market activities (Ince, 2013). Better SCM system manages the overall
flow of all the products starting from the production line to end customer. The manufacturer
company can also utilize an ERP system to increase market potential. It can help in various ways

ENTERPRISES RESOURCE PLANNING & SME’S 2
such improve company’s HRM process, ERP system can create the database with more and
higher quality than those dependable be shown in the screen continuously streamlining and
improving the procedure of HRM (Panayiotou, 2015). HRM functions involve many stages such
as recruiting, training and rewarding and appraising employees by utilizing good ERP system the
manufacturer company can establish an integrated database, track employee credentials, control
overall manufacture process and also ensure the internal and external compliance. Best ERP
leads to an increase in its sales of products and accessories in the market also manage the
company’s domestic and exports. New ERP system will also help to interact inquiries; order
placement, order scheduling and then dispatching and invoicing and will also transfer its travel
accessories to its warehouse. Apart from all these functions this ERP system also analyzes the
process which will help the company to make decisions regarding sales and marketing and its
future planning (Kapp, 2016). ERP will benefit the company’s overall sale and marketing
process: through ERP manufacturer company can have the record of previous sales and also
recent, will also cover the trends that drive the demand of sales in the different period of time in
different countries, provide consolidate data which supports to forecast the sales activities of the
company (Duan, 2013). In overall, the company makes even greater performance and creates
even greater benefits at all level of business process, specifically in a matter of time and access to
data and information.
However there also several limitations of this ERP system and company have to find those
limitations before utilizing the ERP software. It is somewhat costly to earn a license of it and
also it takes more money to maintain and implement it. While the product alone is a noteworthy
speculation, the execution procedure can cost almost four times as much. The company must
consider the expense of labor and time fundamental for a fruitful sending. The company needs to

ENTERPRISES RESOURCE PLANNING & SME’S 3
hire extra IT staff, ERP experts, programming preparing pros, and so forth. Company has to
trend the entire employee so that they can use the system efficiently. New ERP system also
brings inflexibility of the system in the organization, as it is a generic system (Elmonem, 2016).
Hence every company small, medium or large size should invest in this system as this would
provide a sustainable work environment and manage all the process of the company. However it
is important to find the solution for limitations of this system and, makes sure that the company
is ready to face all the challenges; yet it is more beneficial to implement this system, as it is
costly to earn and implement it but this might take bigger cost in not making the investment, and
once the company utilize it easier to see how system can provide an excellent return on
investment. With this database, the company can provide a single source of truth to work from.
This decrease all errors brought on by working with the wrong data, which helps to reduce costs.
This will improve collaboration give better analytics to the company and also improve
productivity makes customers happy and also simplified compliance and risk management
(Fakeeh, 2014).
ERP solution according to business needs
Enterprises resource planning is an important IT solution that a company can use to manage its
daily sales and marketing transaction efficiently and with quality. A typical ERP consists of the
major business processes for finance, accounting, sales, marketing, CRM, human resources and
inventory. Some systems include process-specific components like project management and
manufacturing. While ERP used to be costly and limited to enterprise systems, today, small and
medium companies have access to a plethora of cloud ERP solutions. There are a lot of brands of
ERP for SMB’s; here are some brands of ERP software:

ENTERPRISES RESOURCE PLANNING & SME’S 4
 NetSuite ERP
 Scoro
 Sage Intacct
 SYSPRO
 SAP ERP
 Odoo
 Oracle ERP cloud
 Microsoft Dynamics GP
 Epicor ERP
 Brightpearl (Finance online, 2018)
These are the top brands which provide ERP solutions to small and mid-size enterprises.
NetSuite ERP solution basically automates the company’s back office operations including
management of all the process of finance, revenue, billing, and inventory. This is a no1 brand
with the highest user satisfaction. While Scoro is providing IT solutions and its target is the small
and medium-size business. Scoro is on 4th position with 97% user satisfaction (Finance online,
2018).
Sage Intacct is software with a great combination of Sage and Intacct. This specifically focuses
on providing a solution for computing to finance and accounting which involves cash
management, computing receivables, and payables. Oracle provides end to end business solution
for all size of the organization. This software does not support iPhone and Android system
(Finance online, 2018).

ENTERPRISES RESOURCE PLANNING & SME’S 5
When it comes to SYSPRO, it is a wide business resource planning platform which helps to
design the business this especially provide solutions to manufacture companies, synchronize,
integrate and control the manufacturing procedure. Odoo covers all the basic and important
operations of a company such as HRM, Project management, CRM, and inventory control and
Omnichannel sales. Some researches state that Odoo is complex to use however most researches
prove that Odoo is easy to manage interface and provide extraordinary support.
Brightpearl is high performance and e-commerce and marketplace connectors. This software has
the ability to process around 25000 orders in an hour. Microsoft Dynamics GP provides solutions
for reports and analytics. This software also maintains bookkeeping and creates journal entries
which support around 999 periods and also automates daily accounts tasks with real-time history
(Finance Online, 2018).
Epicor ERP software provides wide-ranging features and functions to operate finance and
accounting, project management, inventory, pre-materials planning, supply chain, global
business management, human capital, and many others, unlike others this software provides a
wide area of solutions while other software gives solution to specific area or process (Finance
Online, 2018).
SAP is one of the most usable software across the globe. The SAP provides the solution for
product lifestyle management, human capital management, supply chain management, and
customer relationship management. This brand brags around 172k customer across the world
(Finance Online, 2018).
These top 10 ERP brand provides a solution with different features to the business. Though it is
important for a business to consider that challenges incurred in using ERP application, there are

ENTERPRISES RESOURCE PLANNING & SME’S 6
many devices such as Mobile and digital transformation are growing the ERP phishing attack
surface. Phishing attacks are fraudulent email or attack to gain sensitive data such as username,
password and credit card information or give access to computers. It is somehow similar
Ransomware attacks, an attack on individual’s computer to gain access and leak sensitive
information. Around 17000 Oracle ERP and SAP software found to be exposed on the digital
platform (Help Net Securty, 2018).
By Analyzing all the ERP software, apart from SAP, SYSPRO would be more beneficial to the
manufacturer company as the brand focuses manufacture companies. It provides the solution for
overall manufacturing process such as integrate, synchronizing and control the inventory.
Provide accurate quotes and keep cost under control. SYSPRO calculate lead elapsed times and
order quantities and increased productivity. The software helps to manufacture process from start
to execution and producing tasks so that the company can do the pre-planning for the expenses
which will help to control the cost. This software helps to decrease scrap and also eliminate
rework and manual handling, thus reducing labor cost. A decrement in scrap will help to increase
the quantity of usable material which will lead to increase useful material, and the cost will be
reduced in turn. In overall SYSPRO ERP would be beneficial for the manufacturing company, an
in the nick of time delivery policy can be acknowledged, decreasing the requirement for keeping
stock. This will free up capital for other use and the expenses of stock keeping will be reduced.
The product demonstrates the company's expected versus real expenses for material and scrap,
just as inside and outside work, fixed and overhead expenses per occupation, or gathering of
employment. Therefore this investment brings benefits for the company and this will take a
bigger cost in not making the investment (SYSPRO, 2018).

ENTERPRISES RESOURCE PLANNING & SME’S 7
Conclusion
It can be concluded that ERP supports business to a done overall business process with quality
and efficiency. There is various brands ERP software and every organization must use ERP
according to their business needs. The administration needs to decide the unwavering quality,
convenience and the advantages that should accumulate from the product. In view of the
examination of the SAP Solution and its advantages for associations that have received it, it is a
dependable arrangement. However, its implementation requires considering the limitations and
disadvantages of the company as this will help to easily adapt in the company’s environment
according to the company’s norms and condition.
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