By Dan Muhuni
Businesses have been advised to adopt efficient software to help them navigate the current economic slowdown.
Management experts say companies will have better chances of survival and growth in the messy economic conditions if they are able to find means of maximizing revenue creation and cutting costs. Small and medium size enterprises particularly need to focus on activities that will stimulate demand through broadening their range of customers, as well as products and services that generate good returns.
But Mr Paul Marketos the group Managing Director of Bluekey Software Solutions Company warns this might not be possible without the correct systems in place. Speaking in Mombasa while introducing the company’s Enterprise Resource Planning (ERP) solution known as SAP Business One, Mr Marketos said businesses should invest in Information Technology (IT) infrastructure to sustain their growth in profitability.
“Businesses must move away from the traditional ledgers and point solutions for production and stock towards integrated management systems. Management must have a single view of the truth; so it’s out with spreadsheets, and in with a solution that binds departments together through business processes,” he said. An ERP system is an integrated solution that helps companies to collect and use the same data or information to make different business decisions – like in customer service, selling, procurement, financing, hiring, technology, among others.
Bluekey’s Kenyan subsidiary, relaunched last year, has entered the coastal town of Mombasa as part of its expansion in Kenya and the region. The company is the largest reseller in Africa of SAP Busines One, a business management software designed specifically for small and midsize businesses. In Kenya Bluekey has customers across a wide range of industries including manufacturing, distribution, professional services/consulting, advertising and corporate PR, education and construction industries.
“We have a strong base of highly experienced personnel to implement and manage the solutions, and our core focus is to make sure that we do not compromise on quality,” said Ms Mala Bhatt, the managing director of Bluekey Kenya.
With SAP Business One, she said, a business can see returns within two years. The software integrates critical business functions across sales, distribution and finance. “With SAP Business One, a company can instantaneously access a complete and up-to-the minute view of their business, so they can respond to customers faster and grow their business more profitably,” said Ms Bhatt.
According to Mr Marketos, on average, investment on ERP system for a small company costs between Sh500,000 and Sh1.5 million, but the savings can be enormous. But companies might fail to get optimal return on investment because of poor implementation. “Very often lack of ownership reduces returns, and companies must understand that once the system is in place, they need to invest in time, skills and other resources to make it work for their business,” he said.
An ERP drives profits through improved efficiencies and processes, greater productivity and better access to information.
As companies battle hard economic times, experts warn that laying off workers to cut down costs could be counterproductive if companies do not improve on efficiency in service delivery. A Deloitte and Touché Partner John Kiarie said that as much as companies were concerned about costs, inefficiency was still the major stumbling block in enhancing business performance.
Mr Kiarie delivered a keynote address on ‘Growth in Uncertain Times’ at the Mombasa Club at the Bluekey seminar to promote the software. “Companies must have efficient processes especially in inventory, procurement and sales planning as well as managing information. Any restructuring has to be focused and not done in a blanket manner as this could lead to more problems in the running of business especially for the small and medium enterprises,” he said.
Mr Kiarie said companies needed to invest in information technology, adding that it is much cheaper to do business using automated systems than having a bigger workforce.
