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# Introduction # Introduction
## What is an ERP system and why should anyone care to use it? ## What is an ERP system? And why should anyone care to use it?
*If you are already convinced you need an all-in-one system for your *If you are already convinced you need an all-in-one system for your
organization, you can skip this page.* organization, you can skip this page.*
Today, small & medium sized businesses are not so different from large/enterprises. Typically, they too face similar complexities as a large business but have limited resources to deal with such complexity. Today, small & medium sized businesses (SMEs) are not so different from large/enterprises. The SMEs face similar complexities as a large businesses do, but have limited resources to deal with such complexity.
Small businesses (like their bigger counterparts) have to Small businesses (like their bigger counterparts) have to
- do accounts to keep track of sales/ purchases * do accounts to keep track of sales/ purchases
- pay taxes to the goverment * pay taxes to the goverment
- pay their employees * pay their employees
- manage deliveries within promised timelines * manage deliveries within promised timelines
- deliver quality goods and services * deliver quality goods and services
- communicate with customers, answer queries * communicate with customers, answer queries
And generally try to keep everyone happy. And generally try to keep everyone happy.
So far, large enterprises have been able to invest 100s of millions of dollars in very sophisticated systems such as SAP to bring their multi country, multi company, multi currency global businesses online into a single platform to achieve some of the basic process such as accounting, taxation, payroll, reporting, supply chain to name a few. Large enterprises have been able to invest 100s of millions of dollars in very sophisticated systems such as SAP. Systems like SAP are able to handle requirements from such large enterprises to bring their **multi country**, **multi company**, **multi currency**, global businesses into a single platform. This has helped them achieve consolidation of data / records related to basic process such as accounting, taxation, payroll, reporting and supply chain to name a few.
Small businesses, on the other hand, typically have been left out of this 1st wave of digital revolution (1995-2015) because they dont have the $ power to license, hire and customize such software to suite their needs. Systems like SAP have been NO-GO for most SMEs with a *minimum* CAPEX or OPEX layout of $100k (100 Thousand Dollars) In contrast to large enterprises, SMEs have been left out of this **1st wave of digital revolution (1995-2015)** because dont have the $ power to **license, hire and customize** such software to match their needs. Systems like SAP have been **NO-GO** for most SMEs. Such systyems need a **minimum** CAPEX or OPEX layout of **$100k (Yes, One Hundred Thousand Dollars)** and upwards.
So even today, small businesses continue to struggle to keep things organized. They often use a mix of applications and tools such as spreadsheets, accounting softwares, web based CRMs to manage their day to day record keeping. As a consequence, they have to access different systems to understand customers, sales, cash flow or profitability. The information exists in silos and the data is hard to combine to get useful insights or alerts. As a consequence, small businesses typically are **reactive** instead of being **proactive**. With such a constrained way of working, there is limited scope for **leveraged growth**. Which means, as your business grows, your cost grow in the same proportion. And you have hardly improve your margin. So even today, small businesses continue to struggle to keep things organized. They often use a mix of applications and tools such as spreadsheets, accounting softwares, web based CRMs to manage their day to day record keeping. As a consequence, they have to access different systems to understand customers master data, sales, cash flows or profitability. The information exists in silos. The data is hard to combine to get useful insights or alerts. As a consequence, SMEs are **reactive** instead of being **proactive** in their day to day operations. With such a constrained way of working, there is limited scope for **growth**.
ERPNext addresses some of the above fundamental problems of: ERPNext addresses some of the above fundamental problems of:
* affordability : It is a Free & Open Source Software, freely available to download, install * affordability : It is a Free & Open Source Software, freely available to download, install
* completeness : All necessary modules are covered [Full List](https://erpnext.org/ "ERPNex.Org Homepage") * completeness : All necessary modules are covered [Full List](https://erpnext.org/ "ERPNex.Org Homepage")
* customizability : Easy to add fields, or to add more features * customizability : Easy to add fields, or to add more features
* efficiency : Computing requirements are relatively low (cheaper to host and manage) * efficiency : Computing requirements are relatively low (cheaper to host and manage)
* wholesomeness : One system, One database, allowing multiple simultaneous users to use at the same time * wholesomeness : One system & one database that allows multiple users to record transactions or extract data, simultaneouly.
## What is ERPNext? ## What is ERPNext?
ERPNext is an end-to-end business solution that helps you to manage all your business information in one application ERPNext is a full featured business management solution that helps SMEs to record all the business transactions in one system. Further, SMEs can use it to make informed, fact based, timely decisions & remain ahead of the competition. It serves as the backbone of a business to add strength, transparency and control to your growing enterprise.
and use it to not only manage operations but also enables you to take informed decisions well in time to remain ahead of your competition. It forms a backbone of your business to add strength, transparency and control to your enterprise.
Among other things, ERPNext will help you to: Among other things, ERPNext will help you to:
* Track all invoices and payments.
* Track all Invoices and Payments.
* Know what quantity of which product is available in stock. * Know what quantity of which product is available in stock.
* Identify and track your key performance indicators (KPI's). * Identify and track your key performance indicators (KPI's).
* Identify open customer queries. * Identify open customer queries.
@@ -52,6 +50,14 @@ Among other things, ERPNext will help you to:
And a lot lot lot more. And a lot lot lot more.
## Is ERPNext only for SMEs?
ERPNext could be used by SMEs as well as large enterprises. There is no known limitation or performance issues. So far it has scaled well. We know of serveral retail chains in Africa and a highly regarded equities trading company in India (with 1000+ employees) that uses ERPNext.
Check out [User Stories (https://erpnext.org/stories/zerodha)]
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