How do brands and wholesalers determine their technology spending?
In most cases, supply and demand will dictate how quickly a business is built. Despite the life-cycle of initial investments, even the best funded brands must define themselves, generate demand and fulfill orders in a reasonable time-frame. We explore the need for technology as the focus shifts from software costs to customers and employees. We explore the timing and business case to invest in Enterprise business applications such as; Order Management, eCommerce, Marketing Automation, CRM and ERP.
How can we minimize costs and effectively get started? The answer is simple, buy cheap and valuable agile tools. The software world has made strides towards cloud, pay-as-you-go tools to run various business applications. The notion of a “computer system” is foreign to a startup brand wholesaler. Continued use of these functional collaborations is it. The beauty of this model is that your technical footprint is small and your exposure is by comparison, very large. In the short term the cost/return analysis is a win, WIN!
How far can a minimal structure take a good looking brand? This isn’t an all or nothing question, especially for medium sized organizations. Technology allows one person to do the job of several but there is still a balance of spending and functionality. Agile software lends itself to an array of pricing models and ultimately, minimizes traditional barriers to enter larger markets. At some point the effort to minimize costs starts to give away margins of future sales. Medium sized technology investments are typically focused on increasing sales channels, coupled with upgrades to previous order management and integrated eCommerce systems. Each of these systems support client acquisition and new hires while also defining a business case for a unified ERP system. Management struggles to capture actionable data across sales, inventory and financials.
How big is large? This has become more of a personal question than ever before. The business case for ERP in medium-sized companies is eminent however, the budget can be quickly overwhelmed. If you’re unable to produce quality reports, lack systematic connectivity between vendors, inventory, marketing, customers, sales teams, warehouse(s) and finance professionals; diminishes the ability to scale into new markets. For this reason, mid-market ERP solutions are designed to implement quickly and evolve though subsequent stages over time.
Is your organization contemplating a computer system? digad’s System Blueprint Process will map your current infrastructure, highlight places of improvement and recommend opportunities to change. New technology recommendations are supported by a tangible business case.
Next blog: How long does it take to implement ERP?