E.R.P. as a straight-jacket

‘Big E.R.P.’ has become a straight-jacket for many big businesses whose business processes have changed significantly since implementation, but their software has not kept up. The result is, it compromises their flexibility and prevents a business from truly thriving. Hence the term 'straight-jacket'.

If you are a small business, you can learn from and take advantage of these restrictions on ‘Big Business’ by installing ‘Small E.R.P.’ that is flexible and expandable. Thereby, allowing your business to grow and truly thrive, while at the same time, the software expands and changes with you and does not act as a restraint on your activities. It is far easier to do this in a small business than in a large business.

To achieve this you must ignore the ‘Big E.R.P.’ systems and look for the ‘Small E.R.P.’ systems and suppliers. Your first task is to select a system whose 'software base' closely matches your current requirements. Having selected such systems out of the multitude available, you then need to ensure that the software supplier is able and willing to form a 'business partnership' with your business.

This 'business partnership' is essential in order that as you grow and your business processes change, they can change and grow the software in partnership with you.

If a supplier is only interested in selling you a system 'straight out of the box', move on and look for a software supplier that can truly support your business. It is the support that is the crucial element and is the part most often overlooked by small businesses.

Flexible systems

With yet another change in VAT Rate looming at the end of the year, the importance of using a flexible accounting/ERP system that allows for the creation of new VAT codes, rates, etc. is brought to the fore.
Many 'older' systems provide little support in making such changes and allowing 'old rate' invoices and be processed at the same time as 'new rate' invoices. With the consequence that considerable effort is required around the time of actual rate change. Invoices being either to customers or from suppliers.

At least this time around many firms will have faced the problem in recent times and should be able to cope without major costs/holdups.

Inflexible systems are those that have codes and rates 'hard coded' into the program so that version upgrades are needed to meet new requirements. Where as flexible systems allow users to create and maintain entries to control it. This not only concerns tax rates, it covers all aspects of program control.
Of course with more sophisticated systems, the day to day requirements placed upon users is increased, as they need to understand more about the system and the interaction between various settings. However, this drawback is more than compensated for by the ease of changing the system when required.

My recommendation is to always look for and install the most flexible system you can find. That way you can be independent of the software supplier and still be comfortable in being able to meet the requirements of changing legislation and the overall business environment.

Backup that data!

In the last week I have rebuilt an entire database from a few key tables over 4 months old!

Why was this necessary?

Because the user; a SME; never made a backup of its key ERP system.

So when somehow the ERP database got deleted from the server. It had no backup to go back to.

Its only recourse was to use a copy of a few files e-mailed to the system developer (yes me); to try and rebuild the entire database based upon those key tables. Yes it was done - but at a not insignificant cost.

So SME's - make sure you take regular backups and copy them to a PC or media that is not the prime server/PC.
This daily/weekly routine could save you embarrassment and money.

Be warned; PCs/Servers do
crash;
get stolen;
get infected by viruses;
deliberately get sabotaged by discontent employees;
lose data through foolish acts by novice users.