ERP implementation: Keep it simple

More and more, however, SMBs are discovering that smaller size doesn't necessarily translate to less sophisticated accounting or sales or customer relationship management needs, and the ERP market is expanding in the SMB sector.

"A lot of smaller companies are realizing the competitive advantage that lies with technology and process," said Joshua Greenbaum, principal of Enterprise Applications Consulting in Berkeley, Calif. "A company can be small in size but still compete in a global market against larger companies. These companies are becoming sophisticated consumers of technology."

SMBs often to turn to ERP as a method of planning for future growth, and it tends to be a watermark project for many. "These companies are often smaller, with less experience, and it's often the first major project they've done on their own," said Maria E. Anzilotti, vice president and CIO at Camden Property Trust, a real estate construction and management company in Houston. "It is a bit of a challenge." Among the

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issues: many IT employees lack experience in large-scale implementations such as these, while subject matter experts (SME) on the business side of the house are already strapped for time, and find it difficult to get heavily involved in ERP.

"What makes this different for SMBs is the limited SME time, and how to scale ERP as the business grows while being cognizant of budget," said Tom Cullen, CIO at Peet's Coffee & Tea Inc. in Emeryville, Calif. "We can't build a 30-person development team to run ERP."

Anzilotti and Cullen, both of whom are applying their previous experience with ERP to projects at their current, smaller companies, caution that it can be easy for SMBs to get off track with ERP. The following tips should help smaller companies maximize their chance for success:

In the end, many SMBs will find that ERP implementations mark a real turning point in company growth. "It's not an easy implementation," Anzilotti said. "It's important, but it's very difficult. I've never seen anybody skip through them, anywhere. But if you stay focused and partnered and keep the lines of communications open you will succeed, and the company will be pleased."

Carol Hildebrand is a contributing writer based in Wellesley, Mass.