Plan for upturn with low-risk, end-to-end solutions

By Khoo Boo Leong | May 15, 2009

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These are tough times for SMBs. While resources, efficiency and access-to-liquidity challenges linger, the importance of thinking strategically for the long-term and investing for future business growth has not diminished. Yet, it's not all doom and gloom.

“[Compared to large enterprises, SMBs’] agility and flexibility in the market as well as their lean and efficient organization are major advantages,” said Eric Duffaut, executive vice-president of Global SME Sales & Channels for SAP. “They are not bogged down by bureaucratic constraints and can adjust more quickly to ever-changing market conditions to capture existing and any future market opportunities.”

Indeed, SMBs have often been touted as the job-creating force that can turn around an economic slowdown.

Still, how should SMBs plan and prioritize their IT spending in the larger context of their business? While many IT vendors are pushing capex to opex spending, it's still about spending within the company's means, be it one-time or over a period.

Prudent investment

Duffault recommends that SMBs seek business solutions that support strategic end-to-end business processes.

“A siloed approach to software solutions will not be able to support a company’s growth strategy in the long term – or even mid-term – and will, on the contrary, cause continuous additional costs and not provide any additional value,” he said.

In short, it is critical for SMBs to have a proactive approach to business solutions, instead of a reactive approach. “I don’t know if it’s the right time to invest in a business solution, but I certainly think it’s a lousy time not to do anything,” Duffaut added.

Pre-packaged solutions

Addressing the key concerns of business risk and time-to-value in deploying new solutions, SAP is shortening traditional implementation times through dedicated offers which include a high degree of pre-packaged functionality and content.

For example, SAP’s Fast-Start Program for its Business All-in-One ERP/CRM solutions enables companies to get industry-specific business processes and greater visibility across their operations up and running within six to eight weeks.

The solution covers a typical SMB’s commercial processes -- like order-to-cash, procure-to-pay, financial accounting and management accounting -- which are localized for each country where the solution is offered.

With the Fast-Start Program, companies configure their Business All-in-One solution online by selecting the pre-defined manufacturing-, service- or trade-based industry functionalities and adding or activating other functionalities that could be relevant to their business.