SMEs are redefining the business landscape in India. According to statistics, there are more than 40 million SMEs in India, employing a combined workforce of more than 100 million people, and contributing a staggering ~25% of service sector GDP. The data indicates the burgeoning magnitude of forces in play here. For these forces to work in sync it requires a collective effort of clever business strategies, a will to outperform and efficient use of modern-day technology. A small visit to an SME facility is enough to understand that it is being run by some of the brightest minds in the country who understand the A to Z of their business, but it also shows the dark side of it. That they still prefer to function in a technology reluctant environment. This calls for a deeper understanding of various business tools that can help them achieve greater profitability and compete with big corporate.
Following are the 3 Must-Have Business Tools for SMEs:
1. CRM (Customer Relationship Management)
One of the notable qualities of SMEs is their ability to form strong, stable and long-lasting relationships. This is because most SMEs are family businesses where kids learn the nitty-gritty of a business from a very young age. They learn how to spot viable business opportunities, form valuable partners, open profitable ventures, and deal with important issues at a lightning-fast speed. They don’t learn these things from some world-renowned management institute, rather it’s in their blood. But there is a negative side to this too. Due to their limited acquaintance with the outside world, they fail to recognize the role that technology can play to boost their communication. This is where Customer Relationship Management (CRM) software can help them. It helps a business manage its customers with super-ease. It provides them the ability to build deep-rooted relationships with their customers, make their sales reps proactive and, share important information with team on-the-go. The following points explain the uses of a CRM software lucidly:
- A business can get customers through different channels such as Email, Telephone, Search Engine ads, and Social media sites like Facebook and Twitter. CRM software provides businesses the ability to effectively respond to their queries and also cross-sell and upsell their products and services. Thus, increasing their revenue significantly.
- Think about this scenario. Suppose a sales rep who is onsite wants to update important information about his client. In normal circumstances, he can do this only after reaching the office, but a CRM software allows him to update information on-the-go. Also, sales managers can check the progress of sales reps in terms of their sales targets, keep an eye on the status of ongoing campaigns, and provide insights into conversion effectiveness in the sales pipeline.
- A CRM software also helps compare prices and discounts offered by different suppliers, and keep track of meetings with vendors and invoices raised by them.
Finding the right CRM software is a long and hard exercise. Though cost is an important factor, there are many others that top the list. At Sage, we understand your challenges and provide tailor-made solutions so that you can address them with ease. Our industry-leading Sage CRM software will help your business in building long-lasting and profitable customer relationships.
2. ERP (Enterprise Resource Planning)
In the information age that we live in, data has become the new oil. Businesses require efficient management of data to survive and compete and contrary to the widespread assumption, SMEs are not immune to this anymore. With swathes of data being bombarded on a daily basis, traditional methods such as paper spreadsheets, charts, and logbooks have been rendered useless. These techniques of data storage and manipulation are okay till business is in its infancy. But when the time is right, when it decides to up its game, modern resource planning methods have to be adopted. ERP can help businesses effectively manage their accounting, finance, and logistics needs.
The following example will help you understand how ERP can help boost the productivity of the Logistics Department.
Take for example a tire-manufacturing business that produces 200 tires per day. Suppose the ERP software finds that the company would fall short of 100 tires on Thursday and it takes 3 days for the bells to reach from the vendor to the company premises. As a result, the ERP software will automatically place an order of 100 tires with the preferred vendor on Sunday so that they reach on time and the business functions at its normal pace.
Also Read: Manage Financial Risk with an ERP
3. HRMS (Human Resource Management System)
The defining parameter for the success of a business is the productivity of its employees. A highly productive employee achieves targets on time, takes initiative, does not run away from solving complex problems, and has good communication and networking abilities. But this doesn’t come naturally, especially in the case of SMEs where either the HR department virtually doesn’t exist or exercises minimal power. HRMS does away with such issues and also assists in other crucial functions as mentioned below:
- It maintains a central database that contains important information related to employees, vendors, suppliers and other stakeholders.
- It helps update information on-the-go such as enrollment of new employees, benefits and other status changes.
- It tracks the current status of employee development programs.
- It simplifies salary processing by managing the complete payroll process.
Sage is a leading organization when it comes to ERP. Our world-class Sage 300cloud helps facilitate your business processes. We offer an array of customizable solutions and tailor it as per your business needs so that you function without any hassle. today to know how we can help automate your business activities and make your day-to-day business functions fast, efficient, and convenient.
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.