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Is enterprise level software right for small businesses?


We all understand that enterprise level software is a great option for large corporate businesses. However, are these solutions as effective for small businesses?

Is enterprise level software right for small businesses?

November 8, 2021

Category

Business


Technology to a large degree, has levelled the playing field for businesses all over the world. Whereas traditionally, complex technology solutions were only within reach for large corporate entities, these days almost any business can purchase enterprise level software.

With more and more businesses turning to technology to market their products/services and engage with their customers, businesses now understand the importance of software. Whether a business is looking to streamline their social media exposure right the way through to offering customers a frictionless way to make a purchase, technology is at the heart of almost every business.

However, when it comes to technology there are lots of options available to almost any type of business. Some factors that many business owners or decision makers factor into their thought process include cost, complexity, deployment and benefits.

The consensus has been for large businesses to utilise enterprise level software and for small businesses to take advantage of smaller, less complex systems. With the current pandemic situation forcing businesses of all sizes to re-evaluate their technology needs, the focus of this week's blog is to analyse and discuss whether enterprise level software is right for small businesses.

Defining enterprise level software
Firstly, enterprise level software can be defined as software that is used to satisfy the needs of an entire organisation rather than individual users. Enterprise level software often spans a number of functions within a business.

A common example of enterprise level software could be a database management system that helps a company track potential and existing customers. This type of software can be used by the sales team to plan interactions as well as the customer support team to better service their clients. As a result, enterprise level software is usually quite complex and has the ability to be scaled for any size of organisation with team roles, permissions and detailed analytics.

Enterprise level software examples
If you have worked in any large organisation, the chances are you have had real time experience with enterprise level software. Most enterprise level software is ‘off the shelf’ software that can be adapted to the needs of the business.

For instance, a really common piece of enterprise software that you have probably heard of is Salesforce which is a customer relationship management platform. For large businesses that are interacting with thousands of stakeholders, this type of software is ideal for their needs.

In contrast, for a small business such as a hair salon or a gym, using Salesforce would not be appropriate as it has lots of functions that will never be utilised by the business.

Another example of enterprise level software is SAP (Systems, Applications, and Products in Data Processing) that is designed to manage business operations and customer relations. SAP is one of the world's largest enterprise level software company’s and boasts many huge clients that use its software.

There are countless other examples of enterprise level software that you have come across in your professional life, working for corporate clients. This is the main aspect here though, enterprise level solutions are often the standard for large corporations but not independent small businesses.

Benefits for businesses
It is important to recognise that taking advantage of enterprise level software can yield many benefits for organisations. For example, this type of solution can often be modified to suit the needs of a business and therefore it can integrate with existing software that is currently being used by the business.

The very nature of enterprise level software means that it can offer clients a really detailed view of their business functions, processes and customers. As a result, many large businesses can better plan their resources, improve efficiency and ultimately drive cost savings by having enterprise level software in operation.

The final benefit we wanted to address was joining up the key functions of a business into one central system. As businesses grow and scale, they often struggle to ensure that all vital departments are on the same page. An enterprise level solution ensures that all team members are using the same platform and it therefore makes it easier to share information and knowledge across an entire organisation.

Associated problems
While we have discussed the many advantages of enterprise level software, there are a number of drawbacks that deter organisations of all types and sizes to deploy these solutions.

Firstly, enterprise level software is expensive which means it is often too costly for small businesses to utilise. Larger organisations have the budgets to deploy large scale solutions but for the average small business, this is simply not possible.

The complexity of solutions is another important consideration. With large organisations, they often have the teams and resources to implement enterprise level solutions. In contrast, most small businesses don’t have the same skill sets as larger entities and therefore are deterred by complicated software.

The very nature of complex enterprise level solutions results in a considerable time investment to ensure the systems are ready to use. Often, large businesses will look to phase in new solutions over a period of time, after thorough testing in a controlled environment. Unfortunately, small businesses don’t have the luxury of time and need more immediate solutions that can be deployed quickly.

Alternative solutions
When it comes to technology solutions, there are many options available to small businesses aside from enterprise level software. Most small business owners often have to adopt a multi-disciplined approach to their business and get involved with a variety of areas on a day-to-day basis.

Therefore, small businesses are looking for solutions that are cost-effective, easy to use and can yield tangible benefits quickly for the organisation. For the reasons mentioned earlier in this blog, small businesses quite rightly understand that enterprise level software is not well suited to their commercial needs.

It is for this very reason that many businesses look to Digital Agencies and consultants to help them deploy the right type of solutions for their business. For example, rather than use an enterprise level social media management system, most small businesses will be just as effective using a streamlined platform that makes the creation/posting of content to different social media networks effortless.

The key to working with small businesses is to understand their needs, their budget and their objectives. By analysing these fundamental areas, it is easier to help local businesses use the right type of technology solutions that will make a genuine difference to their business.

Summary
As we have throughout this week's blog, enterprise level software is not right for small businesses. Factors such as cost, complexity and deployment mean that smaller businesses can not leverage the maximum benefit from these types of solutions.

For technology to truly work for a business, it needs to be appropriate for the needs of the business. However, there are a number of commercial technology platforms that can help local businesses engage with their customers without being overly expensive and difficult to use.

Here at iOB Business, we specialise in helping our partners launch Digital Agencies and effectively use technology solutions that can assist local businesses. To find out more about some of our technology platforms and wider commercial infrastructure, please contact a member of our team today.

Until next time, take care.

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