What are the market prospects for ERP in S.M.E.'S?

The ERP market shows lots of avenues irrespective of the size of the company. As a subject matter of this link it becomes important to analyze the market opportunities of ERP in S.M.E.'S. S.M.E. market and ERP is analyzed from various dimensions.

Some of the issues requiring attention are as follows

Competition among larger and smaller players

The competition for ERP market in S.M.E.'s is quiet fierce. The vendors have increased considerably with the influx of bigger players in the fray. Formerly only the smaller vendors catered to S.M.E.'s. However the situation is totally reversed in the current scenario. The numbers of vendors are increasing not only due to the intervention of bigger players but also due to the intrusion of many smaller ones.

This makes it difficult for all of them to compete as the best only get to strike a deal. This market scenario has thrown more demands from the companies because they now have many vendors to choose. On the contrary the emerging increase has also resulted in more complexions in the market because each vendor is different and unique when it comes to the issue of software.

Saturation point for ERP market in S.M.E.'S

It has been largely argued that S.M.E. market has attained saturation point for ERP. This statement might appear logically true. There was not enough number of players for the ERP products in the S.M.E. market formerly. S.M.E. market for enterprise resource planning was not competitive. Hence these existing ones made a killing with the software companies. Some of them handle lot of project simultaneously and successfully. All this makes one to conclude that the Small and Medium Enterprises. market for ERP is quiet saturated.

On the contrary it is not so though it might be tempting to think so. The needs of small companies are quiet different when it comes to ERP unlike the larger companies. The larger companies may have some common parameters in common whereas it is not possible to find the same in small and medium enterprises. Their requirements are largely varying. Infact it is not possible for bigger companies to place such demands considering the magnitude of the operations and the volume of investment required.

The minds of the ERP vendor are still tuned to this framework even in the case of small and medium enterprises. This drawback has remained unanswered though there are exceptions. The companies are not yet satisfied even though the market sound saturated. This is an important issue of S.M.E. market and ERP.

The intervention of new vendors from different segments has given a positive response to this problem. Many of them have made commendable alterations and started to suit the needs of Small and medium ERP companies requiring ERP. The market still shows greater opening if companies can come forward to rectify this or deploy the existing ones. This statement is made on the assumption that other drawbacks are nil.

Opportunities for innovation

ERP vendors are frequently coming out with inventions and modular improvements not to forget mentioning the upgradation in the market. Small and medium enterprises can afford to go for such modifications are invested in newer ones if it is demanding and worth (assuming that finance is not a problem).Though larger companies have a greater capacity to do the same it is not practically advisable .Hence S.M.E.'s are still prosperous when it comes to ERP market.

Conclusion

The ERP market for S.M.E.'s is undoubtedly promising. It should be noted that vendors will have a great opportunity when they explore into the untapped areas to facilitate better flow between S.M.E. market and ERP.

How can ERP function more effectively in S.M.E.?
Discussing ERP’s intervention in small and Medium Enterprises
Issues concerning Open source ERP in SME’S
What are the common problems for ERP in SME’S?