Countering 4 Key Business Challenges Faced by Mid-sized companies

  • 17 February 2021
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Key Business Challenges

In the business world, small and large are the two glorious segments that grab most of the attention. However, the market segment that is often missed-out and little understood on its pain points and challenges is the ‘mid-market segment’. 

Midsize businesses contribute to a large share in the global economy and their respective parent countries’ financials. However, these companies are too big to leverage the government subsidies and quite small to weather the ebbs and flows in business like the larger enterprises. Thus, their constant efforts in enhancing the visibility and reach in the market share along with dealing with the associated competition have led these organizations to reinvent their processes and cultural traits to support their overall growth initiatives and survival in the market.

But, the road to success is no bed of roses for the organizations lacking a concrete digital transformation strategy. A survey conducted by IDC1 on 1,957 midsize companies about business success and the role of CEOs in the same mentions that the key factors responsible for making mid-market organization, the best-run, digitally sound company are:

  1. Making the digital transformation goal, a priority
  2. Leveraging & managing the company data to understand customer’ needs 
  3. Focusing on the pain points that restrict the organizational change

One of the key solutions we can think of to give mid-marketers’ growth objectives a direction is the implementation of the Enterprise Resource Planning Solution. Implementation of the right ‘ERP software’ helps mid-size companies remarkably improve their metrics, optimize their business processes, enhance visibility and transparency, gain customers’ trust, and enable integration across the entire organization. Ultimately, helping mid-marketers embark on their journey of digital success. 

So, would it be true to say that ERP is the cure for mid-market business challenges as well? Let’s see.

Is ERP Software a Panacea for the Mid-market Segment?

Although, it is true that ERP software is able to solve most of the organizational challenges but the results are fruitful only when the ERP software is designed to cater to the specific needs and requirements of the mid-marketers. 

The biggest mistake of mid-marketers is believing in the software that is capable of solving their current challenges and not considering the future aspects of the company. So, the current solution may help you run your midsize business seamlessly today, but it is not going to support your growth ambitions tomorrow. Nonetheless, it is not wrong to say that ERP contributes towards making an organization but, not choosing the ‘right ERP’ can add to your business challenges. 

So, what could be done? Choose the ERP software that understands your midsize business needs. SAP Business ByDesign is one such Cloud-based ERP for midsize companies that is the answer to all key challenges of fast-growing midsize business. Let’s take a look at the major challenges first and then we’ll learn how SAP Business ByDesign is capable of solving them all alone. 

Mid-Marketers’ Major Pain Points

ERP implementation is a significant decision for the mid-marketers and thus, the evaluation of the ERP must be done accurately to avoid all the future hurdles. ERP software is no magic wand that can transform businesses overnight. But, to achieve the same, the ERP has to be modified as per the business requirements. Failing to do the same, will only increase the roadblocks of the company in the long term and would ultimately make the marketers fall prey to the following challenges:

  • Added IT setup and Hardware Maintenance Cost

Typical ERP systems that are deployed on-premise are installed locally on the company’s hardware and managed and maintained by IT staff. No wonder on-premise ERP software offers complete ownership and security to the customer, but it also increases the added cost on hardware and IT maintenance, and being a mid-marketer, cost always remains a major concern.  

Cloud-based ERP software however costs much lower than on-premise systems because the software is hosted and managed by the service provider on Cloud. That means, while you are busy focusing on the growth objectives, you need not worry about the hardware and IT maintenance every now and then, your Cloud ERP service provider will do that for you in a safe environment.

  • Frequent Upgrades and Enhancements

Another challenge that hinders the growth objectives of mid-marketers is the upgrades in their current systems. The implemented systems are generally customized as per the specific needs of the businesses and are not very easy to re-implement with the upgraded version. As a result, every time your ERP provider releases a new product, service, or upgrade, your IT team has to begin from the scratch again. This is the major reason companies avoid upgrading their systems and keep running their businesses on the out-of-the-date applications. 

The upgrade system is however completely different in the case of Cloud ERP systems. Here, the systems are continually upgraded by the service providers without hampering the regular workflow of the organizations. That means, you always have access to the most updated and application. 

  • Lack of Data Availability and Accessibility

Mid-size businesses due to their financial constraints instead of making a valuable investment in modern ERP systems end up using multiple systems dedicated for each department. This leads to multiple data sources but a lack of data availability and accessibility to the employees. This further creates confusion due to disintegrated systems.

Modern ERP software, however, serves as a single source of truth. This not just saves your money and efforts from deploying multiple applications but also enables stronger communication with a centralized data platform.

  • Loyalty Towards Spreadsheets or Legacy Software

Midsize marketers’ loyalty to spreadsheets is one of the major reasons that hold them back from achieving their objectives. As businesses grow, data grows too and the increasing numbers of spreadsheets turn into headaches rather than being data assets. 

Modern Cloud-based ERP systems, on the other hand, not just efficiently manage the data, but also render real-time information to the users. These systems are scalable, efficient, cost-effective, and value for money over piles of outdated spreadsheets.

How SAP Business ByDesign can be Your Rescue Solution?

SAP Business ByDesign is an intelligent Cloud ERP platform designed to turn growth potentials of mid-marketers into real-results. Being a Cloud solution, this product is easily affordable and easy to implement. Also, unlike on-premise ERP solutions, the upgrades in this product are managed on Cloud-enabling businesses to scale without complexities and cost issues. That means SAP Business ByDesign is a single solution to all your mid-market challenges and a panacea to your business.

SAP Business ByDesign is a single solution to all your mid-market challenges

Do you also wish to grow your mid-size business in an intelligent enterprise using this genius product? Get in touch with us, we can walk you through the benefits, capabilities, and all other important stuff related to ERP for midsize business, SAP BYD with a free demo. With our decade-plus experience in handling SAP implementations, we’ll guide you to design your cost-effective digital transformation strategy. 

Reference:

  1. https://www.incloudsolutions.co.uk/wp-content/uploads/2020/10/The-CEO-Role-in-Best-Run-Midsize-Companies.pdf