{"id":2179,"date":"2019-06-28T13:54:16","date_gmt":"2019-06-28T13:54:16","guid":{"rendered":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/?p=2179"},"modified":"2022-07-08T19:57:25","modified_gmt":"2022-07-08T19:57:25","slug":"can-your-small-business-afford-an-erp","status":"publish","type":"post","link":"https:\/\/solutionsreview.com\/enterprise-resource-planning\/can-your-small-business-afford-an-erp\/","title":{"rendered":"Can Your Small Business Afford an ERP?"},"content":{"rendered":"

\"Can<\/p>\n

Searching for ERP software<\/a> can be a daunting (and expensive) process, one that requires long hours of research and deep pockets. The most popular ERP systems often provide more than what\u2019s necessary for non-enterprise organizations, with advanced functionality relevant to only the most technically savvy users. This makes it very hard for small businesses<\/a> to get an idea of affordability. When you go digging and the rates that pop up way over your budget, it feels like ERP systems are just too out of range for small businesses. Can your small business afford an ERP? Luckily, there are alternatives.<\/p>\n
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Free Open Source ERP Solutions<\/h2>\n

In this article <\/a>we examine free and open source ERP software, first by providing a brief overview of what to expect and also with short blurbs about each of the currently available options in the space. This is the most complete and up-to-date directory on the web.<\/p>\n

Calculating Total Cost of Ownership<\/h2>\n

Nothing has a more significant impact on the long-term success or\u00a0failure of your ERP system<\/a> than the quality of ERP implementation.<\/a> Done well, you\u2019re more likely to experience a greater ROI in a lot less time. If the implementation process was poorly executed, you could waste a lot of time and money without ever seeing any advantages. That being said, you need to evaluate the\u00a0total cost of ownership (TCO) for your chosen ERP<\/a>. It\u2019s this figure that you need to budget for and to measure your ROI against.<\/p>\n

Helen Peatfield, feature writer for ERP Today<\/a>, suggests taking into considerations these four main factors influencing small business ERP costs:<\/p>\n

Deployment Time<\/h3>\n

When it comes time to choosing an ERP system, the most important question to ask yourself is whether to deploy an on-premise system or a cloud ERP solution. Cloud ERP<\/a> is provided as a service that does not have to be managed or serviced by your IT staff. With this type of deployment, a company\u2019s ERP software and its associated data and information are managed centrally (in the Internet \u201ccloud\u201d) by the ERP software vendor and are accessed by customers using a web browser.<\/p>\n

On-premise ERP<\/a> solutions are installed locally on your company\u2019s hardware and servers, then managed by your IT staff. They usually require large upfront and ongoing investments to purchase and manage the software and the related hardware and facilities necessary to run it.<\/p>\n

User Number<\/h3>\n

Peatfield argues<\/a> that on-premise solutions don’t make a lot of sense for small businesses. The cost of buying the infrastructure you\u2019d need to host the ERP would be untenable. Smaller businesses usually go for a cloud-hosted deployment – less initial outlay means a faster return. Cloud ERP solutions tend to be priced per user.<\/p>\n

Features and Modules<\/h3>\n

Not all ERP software solutions are built the same.<\/a> They all have their strengths and weaknesses including what functionality they offer, the type of support provided, available integrations at-the-ready and much more. Like with the numerous models of cars and brands available,\u00a0ERP systems come in all shapes and sizes<\/a>\u00a0from \u201cout of the box basic\u201d to \u201cThe Rolls-Royce of technology\u201d. Every product has its pros and cons depending on the industry and what they need the most help with.<\/p>\n

In this scenario, small businesses can benefit greatly from less complex ERP systems. You probably don\u2019t need all the bells and whistles of a $50k system, so why pay for it? Some of the most common features<\/a> include:<\/p>\n