SMBs Adoption of ERP is AcceleratingTuesday, July 13, 2010
Posted by John Beagle
Photo: Joey Benadretti, President SYSPRO ERP
by Lauren Tasker
IT business software like ERP can save any business huge amounts of money and manpower hours, still, many smaller and medium businesses stick to their spreadsheets and documents to run their business.
We sat down with Joey Benadretti, president of SYSPRO ERP solutions to ask him about his 30 years of experience in ERP adoption. Here is that interview:
Joey, thanks for taking the time to talk about ERP for SMBs. SYSPRO has been a leader in ERP IT for over 30 years, Thanks for sharing your experience. Why do some SMBs feel the need to adopt more sophisticated software while others stick to their spreadsheet?
Joey Benadretti: The SMB companies that adopt more sophisticated software are those that have both insight and the desire to grow. They are probably characterized by more visionary management who realize that methodologies once effective are no longer applicable if growth is desired.
There are limited strategies that SMB’s can use to compete that deliver exponential ROI. Utilizing technology to improve customer service, delivery, efficiency and overall effectiveness can deliver key differentiation and competitive edge in a marketplace. A sound ERP solution delivers this compounded ROI and gives SMB’s the ability to compete.
What does ERP software offer over standard spreadsheets like Excel?
Joey Benadretti: ERP systems record, manage and control information from source through transaction completion and beyond into historical reporting. While doing so the ERP system manages and controls the business process to ensure operational effectiveness. Spreadsheets deliver views and analysis of static captured data only. They do have their place in the ERP ecosystem and many systems, including SYSPRO, have tight Microsoft Office Integration and have the ability to present information in Excel. However SYSPRO ERP reports are generated using real-time data, providing the most up-to-date insight into current business conditions as opposed to a once of static point-in-time view.
Why is interconnectivity important for small businesses?
Joey Benadretti: Interconnectivity enables greater insight into operations, improves operational effectiveness, saves time and sets the stage for growth. The key for an ERP system is to deliver this interconnectivity without compromising; security, the underlying database integrity, business logic and the ability to apply upgrades. SYSPRO e.Net Solutions delivers just that; an extremely cost effective and feature rich ERP solution for manufacturers and distributors. With the ability to easily create seamless connectivity to disparate systems, while keeping security, business logic, database integrity all intact. This together with the ongoing ability to continue to upgrade the SYSPRO system without breaking this user defined interconnectivity.
In what ways is ERP software user-friendly?
Joey Benadretti: Users are demanding that the software that they use is tailored to meet their unique role based requirements. ERP systems have to account for the user and be able to present the user with a both a user and role specific interface that is tailored to meet their specific personal and operational requirements. SYSPRO advanced Role-Based interface and Power Tailoring deliver just that. User friendliness is about delivering a personalized software interface and the basis of what SYSPRO means when we say, “Simplifying Your Success”.
What does SYSPRO offer for better information management?
Joey Benadretti: This question can be addressed from a number of angles. From a user perspective, a business perspective and an operational perspective.
From a user perspective the user interface has to appeal to the operator and have the ability to deliver relevant information in real-time. The advanced SYSPRO Role-Based interface does just that.
SYSPRO delivers an extremely feature rich solution at a very attractive price performance ratio, great value for money. We do this by concentrating on delivering competitive parity, what everyone else has, as well as differential functionality, what others don’t have. This differential functionality is focused in and around our four core Super Vertical industries we concentrate on. Food, Medical Devices, Electronics and Machinery and Equipment Manufacturing. In doing so the functionality of the system supports the more effective delivery of information that is pertinent to the industry the customers’ operate in.
SYSPRO offers more than 50 integrated modules that provide insight into all aspects of the company as well as the supply chain, enabling greater operational efficiencies throughout. SYSPRO becomes a vital and integral part of the business processes. For example in the Food industry it is critical to be able to track and trace parts and ingredients in order to comply with safety regulations and recalls. SYSPRO enables companies to differentiate their products and be competitive.
How can ERP software help ease the fiscal burdens of SMBs?
Joey Benadretti: An effective ERP solution can save time and reduce labor costs. It enables more efficient processes and increased productivity with fewer employees As noted above, an ERP solution can provide management with a real time “snapshot” of current conditions, enabling management to make efficient and effective decisions both to minimize losses and maximize revenues.
While we climb out of one of the biggest recessions we have faced it is essential foe SMB’s to keep a finger on the pulse of their companies. Many small and medium enterprises go out of business as economies revitalize because they run out of cash. Cash resources have been used during he downturn and there is not enough left to replenish inventory and support the additional production activity as companies grow. Having this 360 degree real-time view of a business is key to easing fiscal burden and allowing SMB’s to compete specifically in difficult economic times.
What kind of ROI should a SMB expect from implementing ERP?
Joey Benadretti: SYSPRO recently won the Termin award for its new BPM solution, an addition to its already award winning implementation methodology. A solid implementation methodology ensures both exponential as well as rapid ROI. While it is difficult to measure the exact monitory ROI because of the inherent operational, efficiency and customer service benefits delivered by a good ERP system, the faster and more effectively a system can be implemented is key to the velocity of the ROI.
How can ERP software facilitate greater success and growth of an SMB?
Joey Benadretti: Technology is the single biggest enabler for SMB’s. Imagine if you could see the buildings that house the millions of e-Commerce web sites on the Internet. They are all supported by technology. How else can a small company compete? Thousands of SMB manufacturers and distributors in over 60 countries, leverage SYSPRO on a daily basis, giving them the ability to compete.
How can help ERP promote sustainability of SMBs?
Joey Benadretti: Yes, by enabling management to make timely business decisions and also by giving management historical perspectives into customer purchases as well as enabling sophisticated forecasting techniques to predict future business and make more effective purchasing decisions.
How has the SMB market changed over the past last ten years, and what can we expect over the next 10 years?
Joey Benadretti: Supply chains now span the globe, necessitating even more stringent supply chain management. Future software will probably reflect this need, plus be more aligned with international regulatory compliance.
The last 10 years have seen a bigger focus on distribution as well. Most manufacturers today are doing some form of distribution as well. SYSPRO has focused on SMB manufacturers and distributors for over 30 years. This dual focus has enabled many manufacturers using SYSPRO to effectively rollout their distribution strategies without having to change their ERP systems. At the same time SYSPRO has enabled these companies to compete successfully in this global market.
indicated, going forward, there will be a stronger focus on the management and
control of the supply chain. Many SMB manufacturers are outsourcing the
manufacture of components while protecting their intellectual property by
managing final assembly and QA. To do this SMB’s need an ERP system that can
control these complex supply chain and production techniques. There will
continue to be a growing reliance on ERP in the SMB market. I feel the SMB
companies that embrace ERP technology will last and those that don’t will not
have the long term means to compete.
Terpin Communications/Social Radius
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