Advantages of Midsize ERP Solution Over Top tier ERPs

As businesses grow they ultimately reach a "Twilight Zone" of enterprise software hell. That's the point where your business is getting big enough that some enterprise applications such as an Enterprise Resource Planning (ERP) systems could make things work a lot easier, but at the same time, management doesn't believe the company is large enough to absorb all of that complexity and added expense.

So what are you left to do? What about taking a middle road and looking at ways to bring in needed ERP software automation without bringing in the big ERP overhead? Maybe you should think about midsize ERP.

That's just the sort of approach being taken by some cash-strapped enterprises, according to a story in Technology magazine. A "homegrown alternative" to a vendor supplied ERP application, can save millions in the process. Instead of inflating the IT budget for big ERP systems now, when money is still very tight as the recession continues to slowly recede, a smaller but serviceable system can save the day for the enterprises.

Enterprises can do millions worth ERP implementations and still not know whether they are lowering their total cost of ownership or offering better constituent service. What good does it do to automate if you aren't necessarily providing better service or saving money? These are the same types of challenges being faced by many companies of all sizes as well, from small businesses to global enterprises. Big ERP systems may deliver many benefits to businesses, but not every business needs all the bells and whistles. And not every business can afford all of what a big ERP application can potentially deliver.

Big costs and wide footprints aren't the only reasons that businesses hold back from jumping onto the big ERP application bandwagon, according to the Technology article. There's a recognition that these implementations often fail to achieve their objectives, the story warned. "A 2010 survey by Panorama Consulting Group found that 57% of ERP implementations take longer than expected; 54% exceed budget; and 41% of companies surveyed failed to realize at least half of the business benefits they expected from their ERP applications. Squeezed by budget cuts, some company officials are looking for cheaper, faster-to-implement and more customizable ERP solutions."

There are alternatives. There are basic homegrown applications that your IT staff can design to fit your business needs without having to break the bank.

At the same time, it's likely that whatever your business is involved in, there's already a vertically focused ERP system out there that's tailored for what you do. There are customized, industry-focused ERP applications for Contracting Companies, Facilities management businesses, manufacturers and a myriad of other kinds of businesses. None of these have close to the cost and complexity of the huge ERP systems that run Fortune 500 companies, and they can offer your organization the benefits of ERP automation in a much more digestible way.

You don't necessarily need to load your company with huge debt to bring in a monster ERP system with its maintenance and complexity, and then be dragged down by it for years. Instead, you can bring in small ERP with its just-as-needed features to make incremental improvements without diving into a mineshaft of ERP hassles.

As businesses continue to cautiously watch the economy slowly recover from the recent recession, midsize ERP may make a lot of sense.

It's time to move ahead, but stressing a company's resources with big ERP may be too much too soon. At the same time, doing nothing can leave your company at a big disadvantage as the economy gets back to health. Midsize ERP may be a great compromise for today's IT strategy leaders.