Simple ROI logic for Small and Medium Enterprise

SME being unorganized with limited capital can benefit enormously by using ERP on cloud.

A typical scenario of Inventory in SME is over stocked or underutilized. Just in time inventory can be easily achieved reducing holding cost by around 20%.

 

ROI logic

 

Customer order managed efficiently can bring more repeat orders and build good reputation. Easy email alerts, order status reminders can help. It is an immediate result of ERP implementation.
Outsourcing your payroll, recording your leads manually can be replaced. ERP payroll system linked with incentive formulas can be effective. Mobile based on spot lead recording and tracking can exponentially reduce administration cost and increase sales efficiency.
Operating and maintaining huge server infrastructure vis-à-vis cloud system can reduce IT operational cost by 30%.

Looking at the above even if SME choose to have private setup, they have a profitable preposition.

Contributor – Vineet

 

Reduce cost in Small and Medium Enterprise (SME) with Cloud services

In the early 90’s free email services like Hotmail was a big success. The immediate need of common man to have a personal email address was resolved. People still preferred paid email accounts provided by Internet Service Providers (ISP). The lack of knowledge and credibility of a free hosted service was the bottleneck. Nowadays every individual or SME has an email account on the web.

In fact, it is widely accepted that Email has been the biggest gift by Information Technology to the community. The trend is moving from desktop environment to a managed hosted environment where all technology hassles of organizations are outsourced.

 

For a major section of SME cost has always been the driving factor. By adopting the hosted (cloud model) solutions the capital expenditure is completely eliminated. An SME has limited resources and face challenges in managing IT infrastructure. The view of businesses is changing as it happened with email a decade ago.  

 

Every SME is trying to adopt simplified technology services and focus more on their critical functions of the business. The earlier they move the better (first mover advantage) in competition.  

Contributor – Vineet