Scalability, key asset for young and growing companies
If you have look at the French economy, whose growth has been slack for many years, where insertion in the work market is more challenging than ever for some parts of the population, especially for young people, it is all but a surprise to see them create their own jobs ! This trend is confirmed by the INSEE (national institute of economical studies and statistics), the yearly creation of ventures leaped by 75% between 2008 and 2009 (from 331 439 to 580 193), ), at the begining of a massive financial and economical crisis. We won’t enter a socio-economical analysis of the French ventures market, nonetheless we can simply make this asumption : an increasing and diversifying Offer for a relatively stable Demand results in an intensification of the competition, and only the businesses which have been able to take the right turns (activity sector, positioning, internal organisation…) will settle in the long run on the road to success.
For a successful take-off !
When you start from nothing or few, facing turnover’s rapid growth, with 2 or 3 digits is likely and is strongly impacting day to day activity. More hours and employees needed, more clients, providers, products, financial operations, projects etc… Adaptation is a well-known capability of Human beings, however, when it comes to softwares and information sytems, adaptability isn’t granted, especially within young and fast growing companies that swiftly hit the limits of their current organisazation.. At this point, we reach a critical stage where the system’s unability to perform and load the increasing amount of work, data and operations becomes a real brake to the company’s development. This is also where scalability, the ability to adapt to change and leaps of exchanges and interactions, takes all its importance. Editors are focusing in scalability, aiming to propose evolutive softwares that will be a support that will follow the evolution of the business using it for their everyday activity.
Starting from the bottom … To which point ?
At a certain stage of development, managing a company requires data’s centralization, a common basis allowing the information to flow and be accurate and available to the right person when they need it in a matter of productivity and profitability. The need for ERP software arises from this assertion, its scalability will make possible :
– An optimised cash flow thanks to the reduction of operational costs but also a better productivity allowing the activity to grow and erasing the costs of organisational non-quality.
– Accuracy and objectivity for the managing team that which will be able to take strategic and operational decisions based on the performance of the company’s different services
– Growth projects, whether internal or external, made easier, For instance the buy-out of a competitor, the creation of a subsidiary company abroad, simply hiring new staff… All of these changes will radicaly impact the internal organisation of the business.
Progressively, we are swaping from the « young and fast growing venture paradigma » to a business controlling its operations and costs while keeping the luxury to grow upon a solid basis, certainly, but also scalable. It seems important to remind the fact that ERP softwares are only support, not miraculous remedies, and remain dependant on the dayly usage of the company’s managing and operational teams. That’s why preparing the implementation of the right solution must be well thought and accompanied by experts.