Enterprise Resource Planning(ERP) is a supportive package for the business and is still considered by many companies as a necessary evil rather than an investment. So, if the business is down, the need for the ERP seems to be down and the first reaction is to have a sharp cut on ERP expenses.

But, is the cost cutting, the only strategy for minimizing the impact of global recession, at a time when the corporate have already started considering ERP as a good investment and a booster for business growth?

Global economy has its own cycle. After each boom, it also goes through recession and after each recession it has to come back to the boom period.ERP managers should therefore consider this lean period of business as an opportunity for improvements in ERP and for increasing the rate of return on ERP investment in the long run. Economic cycle has to see bright days again. So, the wise man is the one who utilizes the bear phase to get ready in the bull phase. Cost cutting without effecting the performance of the ERP should only be a part of the strategy instead of being the only strategy.

For survival in global recession ERP strategy can be broadly classified in 2 parts 1) Cost Cutting without effecting the performance of ERP, 2) Utilising the lean business period for increasing the ROI for ERP investment

Cost Cutting:

ERP Support:There are 3 ways for ERP support:

o In-house support

o On-site support by external resources

o Internet-delivered remote support

The best approach could be the combination of On-site support and internet-delivered remote support as 70-80% issues can be solved by remote support. Remaining issues can be resolved on site. Server Maintenance: Setting up and maintaining your own server can be very expensive, looking at various costs incurred on such items as Staff, Electricity, air conditioning, Space etc. Server outsourcing to a data centre looks a better option AMC and License Cost: You can also renegotiate with the ERP supplier for license fee and AMC based on the latest or forecasted headcounts

Utilising the Lean Business period:

Normally the volume of business is reduced in the recession period. With the reduced business, availability of resources is easier. Due to reduced workload, management can also concentrate on the ‘important but not urgent issues’ which are normally ignored when the business is in full swing.

So, these resources along with management attention, can be used in many ways to increase the rate of return on ERP investment and to prepare ERP in a better way for the coming boom period.

Some of the ways suggested are:

ERP Optimisation: This lean period can be used for optimizing the ERP processes or introducing the new processes as per the present and future business requirements.

Data Cleaning: This lean period can be utilized for eliminating the duplication of the data and removing the data inconsistencies

Training of end users: Most of the end users could be having some amount of idle time. So, this idle time can be utilized for enhancing their ERP skills. They can be trained for advance functionality of ERP. This training could give very good returns once the business is again in full swing.

Training of suppliers/customers: Some of the applications of ERP may also require training for external agencies like vendors or customers. These external agencies can also be trained in this period.

Build Control: In a running business and high profitable years, the companies do not pay attention to the control & risk areas in the system. This may someday cause big financial losses. We have many examples like 7 Billion dollar fraud of Societe Generale SA, one of the largest bank of Europe, by a junior staff simply due to insufficient controls in the system.

So, ERP managers should also concentrate on the loop-holes/ risk prone areas in the system like excess or inappropriate access of the activities or the fields, to avoid any unforeseen disaster.

Data Analytics: ERP managers should also analyse the data generated in the past years to find out any data inconsistency or fraud through the system.

Implementation of ERP or new applications for ERP: When there is no business in the market, you can get the best deal in all respect. To survive in this period, suppliers give the best discount. Also, due to less number of projects, you can get the best resources which otherwise are busy on more lucrative foreign projects. Selecting ERP: When ERP is implemented in the company, it becomes backbone of the company’s business. It can affect your business in positive or negative way based on the quality and suitability of ERP to your business. Yet, the companies select the ERP like they are purchasing any other product.

Every company has a unique business model. So, before selecting the ERP, one should analyze the suitability of the ERP to the business. There are many ERPs available in market with very low cost to very high cost. Companies should do the cost benefit analysis of the ERP based on the size of the business before finalizing the most suitable ERP.

Their can be many other strategies for surviving the recession period based on the individual business. But, the approach should not only revolve round cost-cutting, it should also be seen as an opportunity to strengthen the muscles of the business to gain the maximum and achieve fastest growth once the boom period is back.

Quality product – This is the single most important and the foremost factor which needs 100% attention, in terms of quality. Why a customer would buy your product? The answer is, customer needs it. Why he needs it? Because it is going to benefit him in one way or the other or he is influenced by the product. There’s a famous quote regarding sales – “Selling is the greatest art.” But, successful sales are only based based on those products which excel, on account on quality. So if you are looking for long term customers, focus on quality.Attractive offers and Benefits – Offer your customers something they never been offered before, at least you never heard that someone among your competitors ever made such an offer to the clients. This could be a very tricky sales strategy having extreme importance, but your product quality is again the most significant thing here, rest is bonus to clients. So, the offers might be some very cheap packages, in terms of services or products, a contest or a free gift or an ebook. Customers love free and useful stuff with the product they buy, obviously it would lead to mass mouth to mouth publicity.

Online marketing – There are a numerous resources available all over the internet to promote your business and increase sales results. You need not to go though various online sales training courses or every time to pay for some cheap ebooks over the internet that guarantees incredible increase in sales overnight. One of the best online promotion strategy is to create a website and promote it with online promotions campaigns like search engine optimization and pay per click. Internet marketing will bring potential online customers seeking to buy goods and services on web. Get their attention. Also, social media networks like Facebook, Twitter, MySpace etc allows you to market your business online in front of millions of the people all across the globe. Online marketing should be your way towards high quality sale.

Perfect sales depend upon a high quality product and effective utilization of sales improvement strategies. It includes having customer attention, serve him best with your efforts and after sales services. Remember “THE CUSTOMER IS ALWAYS RIGHT”, understand customer needs and serve at your best.

Golfers have a remarkable memory of everything that took place during a round, but typically don’t write it down or create a record that can be used for a lesson from the coach. Remember the old adage: ‘the numbers don’t lie?’It is the same for your business, whether you are a solopreneur, manage a team or are responsible for the whole organization. Tracking wins and loses is not good enough in sales or any performance area of the business for that matter. A methodical, yet meaningful tracking of results can reveal important areas of needed improvement as well as successes that need to be replicated.

Allow me to offer these scoring components that track to winning:

A. Determine the 3 most imperative performance factors to be recorded, including frequency or other relevant stats.

B. Determine targeted results for each factor.

C. Immediately at the conclusion of a meaningful period, i.e. daily, weekly, etc. do a comparative analysis e.g. target vs. actual.

Like the word discipline, we reel at the thought of routine, but that is exactly what is required. Do you think that a champion like Phil Mickelson just goes about his practice [let alone his play in a tournament], just willy-nilly, hitting bucket after bucket of balls, hoping to improve? Not only does he record his performance against established objectives, points A and B, but practice is made up of a written out routine, the results of point C, above.

Let’s look at a real world example related to sales; customer relationship and communication.

a. The performance factors may be…

1. existing customer phone calls (non-sales / relationship building)

2. provide content value to established prospects (non-sales / relationship building)

3. search and contact non-established prospects

b. The targeted results may be…

1. daily – 10 contacts

2. weekly – issue 5 connections

3. weekly – 15 contacts

c. Target vs. Actual comparative, determining what daily / weekly activity must be altered to attain targeted objective shortfall, and / or determine successful activity that must replicated and so on.

This all may look rudimentary, but it is usually the fundamentals for winning that are set aside. How many of us have said, “Oh yeah, I used to do that.” So, if you do not have a meaningful tacking method, this is a place to start. Begin here and then add, subtract and refine the detail of the factors that track to winning.

Much like any other purchase you make, buying quantity or bundling will allow you to enjoy deep discounts. Business insurance policies are available in different countries with different names and coverage in package form. If you still have doubts after studying the stated points, try consulting a colleague or friend who also owns a business. Be careful when you make the decision – a wrong decision can be the road to bankruptcy. It is important that people own a business understand what is business insurance, so they can protect their business in case of any unforeseen event happened. Last of all, professional indemnity insurance is a must for businesses that are part of specialized services. Hiscox professional indemnity insurance specialist gives you the option to acquire your professional indemnity insurance online effortlessly and without hassle.

Mutual mystification in the sales process is a real deal killer. It happens when either a buyer or seller has different expectations for an outcome of a meeting. Or it can happen when one party does something bewildering that is not clarified-leading to the “two ships passing in the night” syndrome.

The seller must provide leadership throughout the deal flow and must not allow mutual mystification to occur. To ensure that there is no mutual mystification in your deal making, discuss before each meeting:· The purpose of the meeting and time length.

· Your specific agenda, especially on the items requiring action.

· Your buyer’s specific agenda/expectations, you do not want to be blindsided!

· Budget issues, if any.

· Expected results from the meeting (e.g. accept or reject the proposal being reviewed).

Often in sales negotiations there is a tug-of-war between buyer and seller; each at cross-purposes with the other. It is important for you, the seller, to isolate hidden agendas and areas of disagreement before your sales presentation. This way, you have time to adjust your proposal while educating the buyer to the reality to what is feasible in solving his problem. (Having unrealistic expectations, improperly handled, is the leading cause of failed sales closings.)

When you discuss ahead of time, and mutually agree to what’s coming next; you will build and maintain rapport, credibility, and trust throughout a profitable relationship.

Mutual agreement is the antidote to mutual mystification and your formula for sales success.