Beyond Spreadsheets: Why MSMEs Must Shift to Cloud ERP?

For micro, small, and medium enterprises (MSMEs), spreadsheets have been a formative business tool in organizing, tracking, and managing all aspects of their business. As markets become increasingly competitive and customers demand more, traditional processes and workflows utilizing Excel spreadsheets can become extremely limiting due to data silos, inefficiencies, and other issues.

To be more operationally flexible, compliant, and ready for scaling, MSMEs cannot ignore substantive change in business operations and consider a modern-day approach to business with Cloud ERP (Enterprise Resource Planning). Cloud ERP is able to integrate silos of information together, automate core processes, and provide real-time data insights, establishing the opportunity for growth and increasing overall profitability.

Limitations of Spreadsheet-Driven Operations

Many MSMEs continue to rely on spreadsheets for managing finance, inventory, procurement, and even customer data. While this approach may suffice in early stages, it quickly becomes inadequate as complexity increases. The drawbacks are significant:

1. Data Management Issues: Information is everywhere – trapped in files and departments that do not talk to each other, resulting in version control nightmares and inefficiencies.

2. Human Error: Data in multiple spreadsheets means far too many opportunities for human error, which can lead to costly mistakes, from incorrect financial reports to inaccurate inventory counts.

3. Finally, Security and Reliability Issues: Local spreadsheets on a machine or files on a shared drive disappear, are stolen, or accessed without security or protocols.
4. Limited Scalability: As businesses grow, spreadsheet-based systems can struggle with the operational demands placed on them, making adaptation and the ability to grow even harder.

Strategic Benefits of Cloud-Based ERP for MSMEs

Modern cloud-based ERP systems provide an integrated solution for everything that spreadsheets and legacy software aren’t designed for. With cloud-based ERP, all business functions can be integrated – finance, HR, procurement, inventory, and customer relationship management – into one holistic, cloud-accessible platform.

Collaboration and Visibility

Cloud-based ERP allows every department to use one source of data. This enables enhanced cross-functional collaboration and decision-making, faster business processes, and increased accuracy.

Timely Business Intelligence

With the reporting and dashboards accessible within the software, stakeholders have visibility into financial performance, sales trends, stock levels, and customer engagement, enabling timely business decisions to be made.

Scalable and Cost-Predictable Infrastructure

SaaS-based cloud ERP does not require a high upfront capital expenditure to get started. Unlike on-premises ERP systems, cloud-based ERP subscription terms allow MSMEs to start small, add on or scale when needed, and predictably manage IT costs.

Enterprise-Grade Security & Compliance

Top-notch ERP vendors utilize extensive security measures, including data encryption, access controls, automated backups, and compliance tools, to maintain data integrity and ensure compliance with GST, GDPR, and industry-specific regulations.

Process Automation & System Integration

A cloud ERP product will automate the routine, repetitive tasks of order processing, invoicing, payroll, etc., and easily integrate with CRM systems, e-commerce platforms, and payment gateways. This decreases manual workload and quickens service delivery.

How to Approach Cloud ERP Implementation?

For MSMEs that want to migrate to a cloud-based ERP, the implementation should be in a structured and phased way, as follows:

1. Assess Current Systems: How can your MSME improve on existing processes, and what data can enhance the efficiency of operations?

2. Define goals: What does the business expect in return from the investment in ERP – a cost-saving strategy, improved efficiency, improved visibility, etc.

3. Evaluate vendor options: Choose a vendor that has proven experience with MSMEs, flexible offerings that allow for scalability in addition to responsiveness.

4. Plan for data migration: Properly cleanse and map your existing data before you migrate your legacy systems to avoid future data problems.

5. Educate users: Provide training to staff on how the system works and a change management plan to avoid disruption to your users.

6. Measure the performance: Put in place Key Performance Indicators (KPIs) to track improvements to productivity, costs, and service delivery.

Partner with 7 dot 2 IT Consulting for ERP Success

At 7 dot 2 IT Consulting, we specialise in assisting Micro, Small, and Medium Enterprises (MSMEs) to take their operations to the next level with customised ERP implementations. We provide a 360-degree solution that includes assessment, implementation, training, and ongoing support, from strategy to execution, designed for businesses that are looking to grow steadily but surely.

Conclusion

Spreadsheets can no longer manage the demands of a fast-paced, dynamic, and ever-changing environment. Cloud ERP is not a nice-to-have; it’s a necessity! For those MSMEs looking to grow and compete while remaining resilient, cloud ERP provides the backbone of operations.

Get in touch with 7 dot 2 IT Consulting to get started with the transformation of your operations today! Let’s help you break away from cumbersome spreadsheets and move towards faster, smarter, and more secure business operations!