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Navigating ERP Systems: Preparing Your Growing Business For The Future

Dec 04, 2024 - forbes.com
The article discusses the importance of integrating backend tech systems for small to medium-sized businesses (SMBs) to streamline operations and support decision-making. It highlights the role of ERP software in providing flexibility to businesses as they grow, and discusses the choice between a full suite or composable ERP stack. The author notes that while traditional ERP platforms can be complex for small businesses, cloud-based ERP systems are becoming increasingly popular. However, the decision is not as simple as choosing between traditional or cloud-based ERP, as companies must also consider whether to opt for a full suite of integrated tools or assemble a stack of SaaS solutions.

The author advises SMBs to focus on creating a tech stack that fits their specific needs and budget, rather than trying to cover everything. They emphasize the importance of clean, accurate data as the foundation for any ERP system and suggest a phased approach to integration. The article also highlights the importance of scalability in cloud-based, composable ERP tech stacks, and warns of the potential costs if ERP is deployed too quickly. Finally, the author discusses the transformative role of automation and AI in demand forecasting and inventory planning, and stresses that the power of ERP lies in making work simpler and more efficient, rather than having the latest tech.

Key takeaways:

  • Small to medium-sized businesses (SMBs) are increasingly opting for cloud-based ERP systems over traditional ones, as they offer more scalability and flexibility.
  • Companies must decide between a cloud-based ERP with a full suite of integrated tools or a stack of SaaS solutions, with the choice depending on their specific needs and budget.
  • Scalability is a crucial factor to consider when implementing an ERP system, as it allows the system to grow with the business and handle increasing demand.
  • Artificial Intelligence (AI) is set to transform demand forecasting and inventory planning, but its benefits can only be fully realized with an integrated ERP system.
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