To ERP or Not to ERP for SMBs: What Can ERP Do For Me?

Aberdeen defines Enterprise Resource Planning (ERP) as an integrated suite of modules that forms the operational and transactional system of record upon which any business is based. Although ERP began as Material Requirements Planning (MRP), and as a result is most widespread in the manufacturing industries, it is now used in organizations of all types and sizes to manage business processes, reduce costs, and provide visibility to managers. Still, ERP's reputation as a mature business application includes a stigma that it may only be useful for organizations of a certain size. To the contrary, Aberdeen's 2011 ERP survey found that 75% of the 332 Small and Medium-Sized Businesses (SMBs) surveyed currently use ERP. This report highlights the pressures faced by SMBs that have not yet implemented ERP, identifies the performance gap between SMBs with and without ERP, and shows how ERP deployment can help bridge that performance gap. The result is an answer to the question, "What can ERP do for me?"

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