SAP B1 blog

Moreover, we still remember times when Software on Demand and all types of software hosting were the top topics.   All these currents have the same characteristics: They are based on technology and/or methodological theories.

The typical SME often meets these buzzword bombardments with some incomprehension. When looking for an application, they often have other things in mind than the "latest technology sow" that is being driven through the IT village.

This often causes frustration on both sides, for the reason that is at the root of all frustration: you don't understand each other.

Misconception 1: Technology instead of solutions

I can still remember a Cebit a few years ago, at which SAP aggressively addressed SMEs for the first time. Some members of the audience left a presentation with shaking heads and comments such as "I'm wrong there", where the typical medium-sized company size that SAP had in mind with its offering was mentioned. There was talk of companies with 3,000 employees. At the latest with SAP Business One the target size has moved sharply downwards. Now even companies with just 10 employees can be considered for SAP software.

Other providers have developed in a similar way and everyone is advised to do the same. This is because the German Mittelstand is of a size where the K in the term SME (small and medium-sized enterprises) has its meaning. According to the IFM (Institute for SME Research Bonn) work more than 70% of all employees in companies with fewer than 500 employees.

So far so good: the market has been recognised and is being worked on.

Communicating ERP to SMEs

What unfortunately has not quite kept pace are the Methodsto get the offers to the man. Traditionally, sales staff are still sent into the field, equipped with PowerPoint, a series of sales training courses and more or less talent to sell the products. ERP software to sell to the supposed customer. The prospective customer is then bombarded with buzzwords that often mean nothing to them. In the best-case scenario, those tormented in this way respond accordingly during a presentation. Often, however, there is an awkward silence: Who likes to admit that they didn't understand 5% during a presentation?

Other contacts in the past and today

This behaviour stems from a time when a conversation between a supplier and a prospective customer for ERP software took place on the basis of a similar specialist team. The contact person 20 years ago with whom the topic Business Software was an IT manager with a similar background to the consultant opposite him. And most importantly, these contacts also had a say in the decision. We worked in companies that were simply large enough to afford their own IT department with the appropriate specialists. In addition, everything that had to do with IT was surrounded by the almost magical nibum.

Today the situation is radically different: In 90% of all cases, the management decides whether and which ERP solution is introduced in a company. or the commercial management. The very first requirement for software is that it must pay for itself. If it pays for itself, it is initially irrelevant whether it is provided as Software as a Service (SAAS) or as a On-premise - model is installed.

So if there are specific problems or requirements, the customer wants to have them solved and, above all, wants to know in advance what costs are involved.

Misconception 2: What works at the top also works at the bottom

Recently, a managing director complained about the stubborn medium-sized companies: "...They don't think in ProcessesThey still think in terms of cases...". And this despite the fact that we have long known from large-scale industry that if you want to achieve improvements in the handling of processes, you have to consider and work on the entire process. Regardless of how many departments and positions in the company it passes through. There are now sophisticated software tools that control a process across all applications and tasks. Of course, you have to analyse all processes in the company beforehand. analysis have undergone.

Medium-sized companies at their limits

Nevertheless, one comes up with bpm in the SME sector regularly reaches its limits. Of course, some processes are often rethought and reorganised during an ERP implementation. To be honest, however, this usually happens as a result of a mixture of requirements that the software brings into the company and an actual need for action. In essence, however, processes have often been established in the company in an informal way, which have simply prevailed due to their sustainability. This is often linked to people, not positions. Of course, these people have the disadvantage of being difficult to replace, but often have the huge advantage of simply functioning autonomously from any higher-level control.

Flexibility at the centre

The requirement for ERP software in such an environment is flexibility. New circumstances and changing roles across departments must be quickly understood and implemented in the software.

However, how intuitive software interfaces are to use also plays a special role, i.e. how easy it is for a user who has changed over to adopt a new process.

Misconception 3: Standard software offers standards for everyone

The paradigm of  standard software has now been successfully established in the market for a good 30 years.  The advantages of standardised processes within ERP software are obvious:

• the costs for the purchase are initially lower
• Immediate availability has a positive effect on the time to market
• it is more sophisticated and therefore less error-prone
• the introduction and training process is often standardised
• A large number of users ensures constant further development

Limits of standardisation

The conclusion is that the greater the degree of standardisation, the greater the benefits for the company. However, this has its limits for German SMEs in particular. How often have we been confronted with the statement when once again a special functionality did not correspond to what the customer had in mind, but the standard offered: "...you must have already implemented this function a thousand times ... we don't do it alone..”

In such a case, it is often enough the case that exactly this one special process, as unbelievable as it may seem, is handled by this one company in a very special way. Then there is no other option but to adapt the software accordingly. Of course, at this point the discussion can turn to whether it would not be better to rethink the process. That means the processes to the standard. However, it has to be said that it is precisely this detailed, company-specific implementation of processes that often sets German SMEs apart from their colleagues in other countries. It is precisely because someone here is obsessed with detail that German workmanship is created.

The requirements for a Modern ERP for German SMEs is therefore as much standardisation as possible with as much flexibility as necessary.