They buy cheap accounting or ERP software that meets their business requirements when they generate USD 1 million. Now they want to use the same and make it run because the business has grown to US $ 10 million. Because their business needs change to meet Sales demands or CRM needs, they buy additional software and spend a lot of money to integrate new technology into their old Software. Because they can’t see future growth and don’t buy ERP software ready for the FUTURE.
The challenge they don’t understand is, they spend a lot of money running old software, they maintain personal IT to run and manage their hardware and servers etc. This will cause loss of business opportunities because old solutions are not integrated together. affect customer service.
Recently as part of our ERP cloud software sales, we met a manufacturing company worth US $ 100 million in India. During our discussions with company management, we were sure that they were interested in finding a Cloud ERP Solution. But the challenge is “can we adapt products to fit their business practices and needs?”.
This means, management wants to maintain and follow the practice of those 30 years old where they manually check data, numbers even after this is generated from their current stand-alone ERP. They want control and approval at every stage of documentation.
They are in a dilemma, because their business has grown and operates in 3 large locations. But they want to continue with the old practice because they are afraid that their “old workforce” cannot manage the pressure. They do not want to change the heritage of the founder of the company either.
This gives us the opportunity to think about what happened here and our findings are as below.
- Old practice: When the Founder starts a business, he wants to control every movement of the document and is approved by him. It’s okay because at that time where the tax rules were strict, getting a bank loan was difficult and trade information / secrets must be kept under wraps. But as businesses expand, they add more people to do manual document preparation and build a “verification layer”, but don’t automate the process and delete old practices.
- Unknown Fear: Many senior employees work as assistants for Founders and get their confidence and are promoted. Loyalty and “fear of the unknown” do not allow them to change old practices. They follow the “Boss is always right” model.
- Don’t fix anything unless it’s broken: They don’t try to know what’s happening all over the world and they don’t trust anyone. This is a problem because they have never looked for some of the best practices in the industry and are trying to practice and follow. They have ISO9000 certificates, because it is important to get large company orders. They strongly believe that they are following “world class practices”.
- Low Cost Resources, but now affect the organization because Labor currently does not follow the level of commitment and loyalty shown by senior employees.
- The new generation wants to change current practices, but is rejected by their more “experienced” parents. So many young people are forced to take the old practice, because senior workers never listen to it.
- Duplication and data entry is very high because their current system is a combination of several decentralized solutions.
- Founders and their families cannot punish old workers even though they lose deadlines or lose compliance rules because they are loyal to the business and have grown up with the business.
After analyzing the above, we suggest the following with justification. Because it’s important to be empathetic to customer needs and see how we can help them?
“We are happy to tailor the ERP to fit your needs. However, before doing so, you must run our ERP” as is “for 6 months. Post that we will make decisions about the next steps that must be followed”.
We justify this why they have to automate the ERP and not adjust it to follow their old practices with the points below.
- World-class ERP solutions present several best practices that are used throughout the world. This can help them increase productivity, reduce waste, and increase inventory movements.
- Cloud ERP provides process automation, control, and fulfill compliance needs as they are. There are no more recent moments that are running and missed compliance deadlines and paid penalties.
- This reduces clutter and simplifies the process.
- This brings clarity to the process and Business Owners can see the right details at the right time.
- Competition increases day by day and Business must be prepared with the right process to win customers. Customers are decision makers now because information is freely available to everyone.
- Government regulations and regulations have become strict. Each region cooperates with each other to find tax evaders. So it is not recommended to keep oral notes or miss books.
- Just because they follow the process for years doesn’t mean it’s right now.
In short, we win honest agreements with these prospects and implement our Cloud ERP Software as is.
Before starting http://www.AcTouch.com Cloud ERP Solutions, I worked with the software industry (Enterprise Resource Planning (ERP), Banking products and Treasury Software) for 20 years.
Personally I disagree with the concept of licensing software products where OUR products are licensed to customers to use them and in turn we make it an “IT Expert” to manage OUR software, back up OUR database on the HARDWARE rather than do business for it buy OUR software. Ironically, he PAYS money for TEST and IDENTIFYING Bugs in OUR software and we collect money as an “Annual Maintenance Contract”.
So we developed a cloud solution, AcTouch.com, where customers have the option to use products while we manage all software upgrades, regular DB backups and ensure that it runs its business without problems.
I usually write about MSMEs and pain points that I encountered during my interactions.
Every day I learn from MSME Business Owners.
I am an alumni of INSEAD Business School with a mechanical engineering background and this helps me to understand their business problems and challenges.