Once upon a time, enterprise resource planning (ERP) software seemed like a complicated undertaking for both users and technology providers. It required advanced expertise, was complex to implement, and was better suited to the needs of large organizations than small- and medium-sized businesses (SMBs). Nowadays, fuelled by the growing popularity of cloud computing, machine learning and artificial intelligence (AI) in addition to an increased demand for tools that drive digital transformation, ERP solutions have become much more approachable for organizations of all sizes.
For managed service providers (MSPs), ERP software represents both a substantial revenue generator and an opportunity to solidify their position as a trusted IT advisor for clients. SMBs are looking for ways to streamline business operations, improve customer experiences and accelerate growth. By combining systems for finance, sales activities, customer relations, business intelligence, supply chain and project management in a single platform, ERP software can help SMBs achieve such goals. However, they might not know where to start with implementation, or even recognize that an ERP tool has what they’re looking for. Therein lies an opening for managed service providers (MSPs) to deliver real value.
What exactly is ERP software?
In the simplest of terms, ERP tools consolidate essential business functions to automate workflows, provide a single source of truth for critical data, improve productivity and collaboration across departments and provide end-to-end visibility over a company’s performance. Common capabilities of ERP software include:
- Financial management
- Customer relationship management
- Project management
- Supply chain management
- Human resources
- E-commerce
- Reporting
Looking for the right ERP software? Look no further than Business Central
3 signs your MSP clients could use ERP software
The first step in determining if your MSP’s clients could use an ERP solution is to simply listen to their current challenges and understand their goals for growth. Even though ERP software is much easier to use and deploy than it used to be, it still helps to focus on business outcomes as opposed to technical capabilities alone. Typical customer pain points to look out for include insufficient or unsatisfactory accounting practices, using outdated or unsupported software for key business processes and a lack of information-sharing between departments.
#1 Your client’s financial capabilities are limited or insufficient
If your client is stuck scrolling sprawling spreadsheets or using basic accounting software that simply isn’t meeting their needs, it might be time for them to explore ERP software. Using an ERP tool, they’ll be able to easily manage cash flow, invoicing, budgets and reporting, among other things, all from a single space. They’ll also be able to take advantage of automated workflows, avoid mistakes associated with manual data entry and identify opportunities for improved financial performance, all of which can help them attain greater profitability.
#2 Your client’s current tools are outdated or have reached end of life
Many SMBs will hold on to aging tools simply because they’re familiar. After all, if it isn’t broke, don’t fix it! Until, of course, it does break and can’t be restored to the same state the company was previously used to. It’s also possible that your client’s current tools are based on-premises, and moving to the cloud would help them be more secure, reduce the need for manual updates or better support a hybrid workforce. Whatever the specific case may be, a need for a more modern solution they can get ongoing support for might be a sign that ERP software is right for them.
#3 Your client has a specific need their current software doesn’t satisfy
Maybe your client is expanding into new markets and has new compliance regulations to contend with. Maybe their inventory is growing, and they need to be able to handle greater sales volume across multiple locations. Or maybe need a better way to keep track of customer interactions and purchase orders. There are an endless number of reasons why an SMB might outgrow their current tools, and many of them could present you with an opportunity to recommend ERP software as part of your service offering.
How ERP software can deliver value for clients
We’ve talked a lot about the many functions ERP software can perform, but at the end of the day, your clients will want concrete examples of how investing in such a tool will benefit their business beyond solving the problems they’ve discussed with you.
Streamlining business operations
Constantly switching from one application to another slows a business down and can make it difficult for different teams to collaborate effectively. Using ERP software, your MSP’s clients can boost their productivity by automating manual tasks and access everything they need to run their business from just one window.
Consolidate business data
With key departments like finance, sales and supply chain connected by the same solution, businesses can rest assured they’re all working with the same set of reliable data. Doing so makes it much easier to make quick, informed decisions and keeps everyone on the same page with respect to business intelligence.
Break down information silos
According to Microsoft, 64% of employees report difficulty collaborating across teams when tools and processes aren’t properly integrated. The fact of the matter is that it’s much more difficult for a business to be efficient when its various units are all working with systems that don’t speak to one another. ERP software empowers separate departments to share information effortlessly, allowing for faster task completion as well as increased communication.
Recommending the right ERP software
In addition to educating them about why they should implement ERP software, clients will also be looking to your MSP business for guidance on which specific tool they should choose. An obvious choice for SMBs is Microsoft Dynamics 365 Business Central.
Designed with SMBs in mind, Business Central is top-ranked ERP system that delivers on all the points mentioned above. It also integrates seamlessly with popular Microsoft 365 applications many MSP clients already use such as Outlook, Teams and Excel, which simplifies user adoption and cuts down on employee reluctance to adapt to new tools. Furthermore, if your MSP is already familiar with reselling Microsoft licenses, Business Central is a natural fit for your existing offering.
An experienced partner can help! Sherweb can equip you with resources, training and value-added services to assist you not only with provisioning Business Central for clients, but with making it a lucrative part of your MSP practice as well. Reach out to our experts to get started today or check out our partner guide for more information about how Sherweb can help your MSP grow.
