A recent survey by the Aberdeen Group reported the responses of 1,100 small- to midsize businesses (SMBs) about their usage or non-usage of ERP solutions. Drawn from data collected in 2009 Q4 and 2010 Q1, the survey found that only about 27% of SMBs used ERP, but of that percentage, the top twenty percent of best-in-class performers had implemented an ERP solution.

The top performers in the Aberdeen Survey reported several process and organizational benefits provided by their use of ERP solutions:

• •There was a 21% reduction in operating costs.

• •There was a 19% reduction in administration costs.
• •For the manufacturing companies that responded, there was a 17% reduction in inventory and a 16% increase in schedule compliance.
• •All top performing respondents reported an aggregate 17% improvement in complete and on-time delivery.

The back office processes and procedures of the top performing SMBs of the Aberdeen Group survey improved due to being accelerated as well as streamlined. Standardization of processes and procedures made it easier to automate those functions; particularly positively affecting manufacturing enterprises. Visibility of critical data and processes improved with the improved integration provided by ERP applications.

Equally important to a successful implementation of ERP is the commitment of resources and buy-in by top management. The top performing SMBs in the Aberdeen Group survey followed an aggressive implementation schedule and a long view commitment of the managers that continued after the initial selection and installation phases. The top performing SMBs found that the entire implementation process took only weeks, not the months or years feared by those SMBs that had not yet decided on ERP.

The 2010 Aberdeen Group survey of 1,100 SMBs found that even small enterprises can realize significant benefits from a well-managed ERP implementation for both cost savings and for operational improvements. The cost savings and improvements in scheduling can be quantified, but the less tangible yet still important benefits of standardizing, accelerating, and streamlining business processes were also apparent.

The results of the survey also found that the worst performing SMBs were the ones who had postponed, delayed, or completed decided against implementation of an ERP solution. The Aberdeen Group recommended that with the now lower cost of ERP solutions and availability of standardized implementation templates, even small SMBs should investigate and consider an ERP solution.