Scaling Your Business With Cloud ERP

Scaling Your Business With Cloud ERP

Cloud ERP

Scaling up a business is difficult. New businesses often have successful launches, but encounter difficulties when trying to grow to the next level. In fact, one of the biggest mistakes that small and medium sized businesses make is to think their job is done as soon as they have successfully prototyped a new product or service and are selling it to users. The problem is that they have defined success as developing something customers want and not as fully exploiting the potential of their new offering.

Of course, the launch of a new product should mark the start of a new project, not the end. Many successful companies around the world have failed to take advantage of a good service or a strong market position because of their inability to scale up quickly and effectively.

Failing to properly understand scaling can signal the death of a new business just as it should be entering its most exciting and productive phase. A 2011 report by Startup Genome looked at the most common reasons why start-ups fail, and found the number one cause (70 percent) was scaling too much, too soon.

Startup Genome Report

Premature scaling also afflicts medium size companies. Too often they spend capital on non-critical expenses before they have correctly matched their latest product or service to the market. Such non-critical spending could include hiring a large sales team, using expensive marketing, over-perfecting the product or renting unnecessary office space.

The danger with scaling too soon is two-fold. Firstly, it uses up a new company’s vital cash more quickly, meaning it has less chance to discover small problems that may become huge obstacles further down the road. Secondly, it reduces a company’s agility and flexibility by making it become organisationally, financially and emotionally committed to its current approach. In economics this is known as the sunk cost trap and in psychology it’s known as escalation of commitment. Both cases can quickly kill a project, or even an entire business.

So, we know about the importance and dangers of scaling, but how can cloud-based ERP help?Cloud-ERP

The first part of the answer is how ERP can help. ERP (enterprise resource planning) is a type of business management software that a company can use to collect, store, manage and interpret data from business activities as diverse as product cost and development, manufacturing and service delivery, sales and marketing, inventory management and shipping.

Such an extensive and thorough system that can provide highly-detailed feedback of all aspects of a business ultimately forces a company to get the small things right, which if done properly it can produce impressive holistic results. The catch is that ERP needs to be both properly implemented and sustainable. Without these qualities the system will not give the user the necessary pointers in reports and dashboards to quickly draw their attention to any problems or issues within the business.

The second part of the answer is how the cloud can help. Traditional ERP programs which are installed, used, and edited on local machines have several inherent flaws for modern SMEs. Their biggest drawback is their inflexibility – they do not have the ability to offer deployments that meet specific needs. Earlier in the article we spoke about how one the main problems when companies scale up is that they spend too much capital on non-critical expenses. With regard to ERP software this gives business owners a paradox – ERP is essential to scaling, but an ERP system that is suitable for a company with ten employees will be dramatically different to the ERP system that the same company would need to use if it grows to fifty employees. Does the owner spend on a small system that will need to be replaced when they grow, or spend on a system that is unnecessarily large and expensive until the company grows?

The answer is neither. Acumatica’s cloud-based ERP software negates the issue by offering a cost-effective cloud-based solution for SMEs. Their software provides both the freedom to scale and grow the software as required and the ability to constantly add new features and functions as they become necessary – which when combined reduce the risk of spending on unnecessary expenses and thus directly reduce the chance of business failure. Other benefits – such as high-level security, easily accessibility, and no lock-in – all add to the feeling that Acumatica really cares about helping you grow your business.

Post Sponsored By Acumatica

By Daniel Price

Follow Me!

Daniel Price

Daniel is a Manchester-born UK native who has abandoned cold and wet Northern Europe and currently lives on the Caribbean coast of Mexico. A former Financial Consultant, he now balances his time between writing articles for several industry-leading tech (CloudTweaks.com & MakeUseOf.com), sports, and travel sites and looking after his three dogs.
Follow Me!

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery Preventing a Cloud Disaster is one thing. Recovering from a disaster is a whole other area of concern. Today’s infographic provided by CloudVelox outlines some best practices and safeguards in order to help your business make more informed decisions. About Latest Posts Follow Me!Daniel PriceDaniel is…

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Q&A With Brendan O’Brien, Co-Founder of Aria Systems (Part 1) Monetization of the internet of things (IoT) is one of the most exciting and challenging issues facing the industry today, so we spoke with Brendan O’Brien to learn more. Brendan is the Co-Founder of Aria Systems, who are one of the leading innovators in recurring…

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb About Latest Posts Follow Me!Daniel PriceDaniel is…

Cloud Infographic: Most Used Cloud Apps

Cloud Infographic: Most Used Cloud Apps

Cloud app and analytics company, Netskope released its quarterly Cloud Report. The new report reveals that enterprise employees are using an average of 397 different cloud apps (most of which are unsanctioned), when IT estimated they have 40-50 — that’s a tenfold underestimation. Below is an infographic provided courtesy of the group at Netskope which goes into further detail.…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

Sponsors

Can You Run Your Business Entirely From A Mobile Device?

Can You Run Your Business Entirely From A Mobile Device?

Can You Run Your Business Entirely From A Mobile Device? You know the feeling. It’s 8:00 a.m. Your bus is stuck in traffic, so you pull out your phone and start answering work emails. While you may rely on your mobile device’s apps for everything from an alarm clock to a fitness tracker to a…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter