If your manager is trying to make high-level business decisions, don’t let them guess. Have them use SAP S/4HANA, edition for SAP Business All-in-One.
Have you ever walked into your local supermarket and found your favorite food in a different location? Have you ever wondered why the manager decided to place it on another shelf?
What if we asked you about your neighborhood bank and their new debit card reward system? Each time you used the bank’s card, they would present you with loyalty offers from places you already shopped and “conquesting” gifts from merchants that want your business.
These companies have two things in common:
- They analyzed massive amounts of data to make an educated guess about what their customers wanted. And, chances are, they used ERP software, such as SAP, to do so.
- They are both SMEs. This is important to note as we continue to discuss how smaller companies, just like corporations, can take advantage of SAP software.
Decades ago, these two businesses may have relied on simple Excel spreadsheets to stockpile data. Managers would have manually mined the information and used a separate program to create dozens of graphs.
From there – likely weeks or months later – they’d complete the report and present it to their supervisor. That supervisor would then send the document to his or her superior, and maybe, at some point, the department head or CEO would look at it.
“SMEs are using BI software to streamline information gathering and analyzing processes.”
If you became exhausted just reading that, you’re not alone. It was tiring to type! Now, imagine if there was a way to avoid that cumbersome scenario. That’s exactly what many SME managers are doing today. They’re using BI software, which streamlines information-gathering and analyzing processes.
In the world of BI, data silos don’t exist. The entire company is part of an interconnected web, and employees quickly collect statistics to make high-level decisions.
Information is Growing: Small Businesses Must Adjust
Today the vast amount of available data is overwhelming managers. SME higher-ups who are still leaning on archaic data-processing practices are likely finding their data-entry teams and payroll costs swelling exponentially.
Just how fast is data increasing? Exact figures differ from expert to expert. A report by IDC noted that, over the next several years, the digital universe would double every two years. Gartner reported that enterprise data growth would rise by 650 percent over the next five years. Even more daunting, the latter stated that 80 percent of this data would be unstructured.
However, I.A. Tjomsland may have put it best in his speech, “Where Do We Go From Here? Digest of Papers: The Gap between MSS Products and User Requirements,” when he quoted Parkinson’s First Law and stated managers simply don’t know how to handle the uptick in data.
“Those associated with storage devices long ago realized that Parkinson’s First Law may be paraphrased to describe our industry – ‘Data expands to fill the space available,'” stated Tjomsland. “… I believe that large amounts of data are being retained because users have no way of identifying obsolete data; the penalties for storing obsolete data are less apparent than are the penalties for discarding potentially useful data.”
He made that speech in the early 1980s, and the statement still holds true today. Managers tend to throw their hands into the air because they don’t know how to make sense of what’s in front of them.
With BI software, managers have more control over their data growth.
SMEs Struggle to Take on Risk
Large corporations typically absorb failure better than SMEs, which tend to offer smaller lines of products and services and have less capital to recover from mistakes.
Because of this, Dr. Prasad Akella, a SAPinsider, noted SMEs need an ERP system that can increase risk tolerance and help managers make quick, correct decisions. The right BI solution can help employees rapidly study data so they can adjust business offerings as markets change.
SAP Can Filter Data
Large companies may take in more information than smaller ones, however, that doesn’t mean they’re any more prepared to handle it. SAP can help companies filter information so managers can efficiently create reports.
“If you’re not sure what SAP solution to purchase, start by researching SAP S/4HANA, edition for SAP Business All-in-One.”
If you’re not sure what SAP solution to purchase, start by researching SAP S/4HANA, edition for SAP Business All-in-One. This software is perfect for small and medium-sized enterprises that have outgrown their limited bookkeeping software and are looking for a more robust, adaptable solution. Built on top of SAP’s state-of-the-art platform, SAP HANA, SAP S/4HANA, edition for SAP Business All-in-One gives managers a tremendous amount of power to not only study analytics but also predict future business outcomes.
SAP HANA reported that nearly 200,000 SME customers use their products to gain real-time insights into useful data. As proof, just look at FreshDirect. The company shifted its business practices in 2008 and went from being a floundering online grocer to a multimillion dollar, stable corporation. It didn’t do it overnight, however.
For years, the business was losing new customers and bleeding profits. Then, in 2008, Chairman Richard Braddock fired the company’s CEO and refocused FreshDirect’s strategy. It began analyzing real-time data more astutely, improving customer relations and examining its existing delivery zones and time slots. While it built its own internal system, it also turned to SAP.
“SAP has helped us see our business very clearly in a cost-effective manner,” said Jason Ackerman, co-founder and CEO of FreshDirect, according to SAP. “We can put in place better controls and enable managers to run their operations more efficiently.”
If you’re thinking about integrating SAP S/4HANA, edition for SAP Business All-in-One into your existing business model, like FreshDirect, you’ll be able to develop deeper, more valuable relationships with clients, improve purchasing power and protect against low profit margins.
To make the switch, contact GROM today.
Small businesses can use SAP, just like large corporations, to make decisions quickly and efficiently.