Centralised Power

5 Reasons Why SMB’s Should Choose SaaS ERP Over Best-of-Breed Systems for Digital Transformation

SaaS ERP systems are an excellent solution for small and medium-sized businesses (SMBs) to grapple with the complexities of growth and the need to leverage the power of automation and AI.

The IT strategy adopted by many SMB’s, as their business begins, is to pick and choose Best of Breed, or Point Applications, that solve a single problem. Before they know it these growing businesses have got an unofficial IT strategy that revolves around a patchwork of Point Applications that rarely talk to each other.

Whereas SMBs that opted early for comprehensive SaaS ERP platforms over patchworked systems have several advantages. From seamless unification of core business processes to real-time data analytics and improved regulatory compliance. SaaS ERP systems offer a holistic approach that aligns with the strategic vision of most SMBs.

The centralised nature of SaaS ERP provides a single source of truth, facilitating faster and better decision-making, and ultimately drives business transformation. In this article we will unpack the strategic advantages that make SaaS ERP systems the linchpin for modern SMB operations.

1. SaaS ERP Systems are Typically a Lower Cost Option for SMB’s

It’s a common misconception that having a few licenses, here and there, for a few different best of breed solutions (integrated or not) is cheaper than a whole of business ERP solution. However, in many cases this is actually a more expensive way to do things.

A common example that we encounter is a business that has a few CRM licenses for sales & marketing, accounting system licenses for the accounting team, and a custom inventory management system that you maintain, while everything else is done on spreadsheets.

Most of the time the license costs for a SaaS ERP system will cost less per month than the monthly license and maintenance costs for the above scenario. Meanwhile an ERP system reduces the need for multiple software licenses, while also reducing the amount of manual data handling and integration required, further reducing your costs while improving your data management.

2. A SaaS ERP System Can Reduce Your Risk Of Fraud

There are several ways a SaaS ERP system can reduce your risk from various types of fraud, including the, now common, fake email invoice scam.

In this video short taken from our recent webinar, Unlocking Tomorrow’s Success: Streamlining Operations for Future Thinking Businesses, Rob Sheldrick explains how ERP systems protect you from fraudulent activity inside your business, as well as attacks from outside your business.

3. SaaS ERP Systems Simplify RPA and AI Adoption

As businesses of all sizes are trying to figure out how to leverage the power of process automation and AI across their business, its important to understand the additional hurdles that a mesh of point solutions poses. AI models need consistent and complete data for training, the data doesn’t have to come from the same source, but implementing AI across disparate systems may require significant customisation.

Meanwhile ERPs offer standardised workflows that can be easily automated using Robotic Process Automation, enhancing efficiency, while automation efforts can be centralized within the ERP, simplifying management and oversight.

Many modern ERP systems also come with built-in AI and machine learning capabilities, or they can be easily extended with these technologies, plus the centralised data in ERPs provides a rich source of information for training AI models, leading to more accurate and useful insights.

4. SaaS ERP Vendors Secure & Maintain Your Software

While every user is clearly responsible for their own user-name and password security, SaaS ERP customers have the benefit of centralised security management, data backup and recovery all being managed by the Vendor. This further reduces IT management costs for SMB’s as they don’t need to directly employ a team of IT professionals to maintain development of their core business systems.

Also with a single ERP system, businesses can implement standardised security protocols and access controls, reducing the risk of internal breaches.

5. Access Forecasting Tools and Advanced Analytics

With a SaaS ERP’s centralised database providing a single source of truth from every functional area of your business, you can eliminate data silo’s and reduce the risks of data duplication and errors.

This also means that users can access real-time data across different departments, enabling better decision-making and improving responsiveness.
But wait there’s more: Some SaaS ERP’s come with pre-built business reports and Advanced Analytics tools and role specific dashboards, enabling businesses to leverage their own data for predictive analysis and really informed decision-making.

So, an ERP probably costs less, provides a whole of business application solution, supports your use and adoption of new technologies, develops and provides some of those new technologies, manages your security and maintains your critical business systems – and – delivers the reporting and analytics tools you need to make decisions.

If you’d like to learn more about the advantages of a SaaS ERP over patchworked point solutions you could contact us, or if you’re not ready for that then please watch our recent webinar: Unlocking Tomorrows Success