The other day while reading about the ERP trends across the world, I came across research by RsearchandMarkets.com where they predicted that the ERP market will be worth $41.04 billion ( Ksh 4.2 Trillion) by 2020 . The value is based on the compounded annual growth rate (CAGR) of 6.9 %, for the period between 2015 to 2020. It got me thinking about the value of ERP in Kenya and whether the same growth will be seen here as compared to the other parts of the world. As I mentioned last week here, the adoption of ERP in Kenya is still low but then came the question why? The answer is long and winding but we will get to it in due time.
The starting point is; this should not be seen as a problem but an opportunity for a rapid growth going forward. Generally, this means that at the moment most of our business processes are still very dumb, uncoordinated and inefficient. Kenya is a cost sensitive market, and people are ready to spend on things that they can easily point at their benefits…the more tangible they are, the better. It is the reason why people are ready to invest in buying land but not on software or tech start-ups. It is the reason why people do not take IP seriously in Kenya and it is the reason why ERP still sound Greek to many.
Partly because of the above, Kenyan businesses are missing out big time. Justifiably, some might think they are saving cost but in reality they not that efficient and productive. That route is more expensive in the final analysis. The expected market growth mentioned at the beginning is occurring for many reasons according to Erpnews.com. They include:
- A need for more intelligent and streamlined business processes
- The requirement for businesses to achieve more operational efficiency
- A growing demand from small, and especially medium-size businesses for ERP solutions that can drive them forward
- An increasing acceptance of mobile and cloud-based services, opening doors for more flexible, lower investment opportunities for SaaS
Having said all that there are genuine cost factors which sometime truly affect the adoption of the ERP. Most ERP I have come across are very expensive, sometime making it hard for the medium size businesses to think of getting one. For example, to get ERP system in most cases one would have to pay for the software itself, then the cost for customization of an ERP system to fit the individual business needs and cost of upgrading the system almost every year. Those are normal system acquisition stages but some of them cost an arm and a leg when you put the whole thing together. During the SYSPRO event last week, I asked the cost question. I wanted to see if SYSPRO ERP will be affordable for most Kenyan medium size firms. Their answer was yes, they are flexible and normally price their system on case by case basis. They look at the needs of each company and provide, best case scenario in terms of the cost.
Better still, I liked the kind of ecosystem their building which has enabled them to have 98% customer retention rate. Through their PartnerUP programme, they provide support to partners through ongoing education and training. This provides partners with invaluable knowledge to not only effectively market their businesses, but also to improve their sales – upscaling their businesses as their customer base increases. The idea is to ensure that the partners represent SYSPRO as brand ambassadors and who understand the product in and out.
In Kenya SYSPRO is targeting Manufacturing sector and distribution. SYSPRO ERP Software allows manufacturers to plan, execute, and control production. On the other hand, SYSPRO distribution software provides the technology needed to effectively manage an end-to-end supply chain. Distributors can manage financials, optimize inventory and improve profitability. Explore how to excel in customer service and meet strict compliance regulations.
Though SYSPRO Kenya luanched their office in Kenya just the other day, they have been around for the last 20 years. So I located two of their existing clients Kenya Vehicle Manuacturers (KVM) and Cooper K- Brands Ltd, to find out their experience with the software. And the recurring theme from both of them was that the SYSPRO team is very supportive to their partners. Kenya Vehicle Manuacturers (KVM) like the inventory feature of the SYSPRO ERP though the system help them in their aspects of production. Cooper K- Brands Ltd is all for the finance, customer care and inventory features
According to SYSPRO Kenyan team, here is what you can expect from your SYSPRO ERP investment:
- A business process-driven solution with nearly 40 years of experience
- A scalable, structured and phased implementation approach delivering the right solution to meet your business goals and objectives
- A system that grows with you. Easy to install, easy to learn, and easy to upgrade – from simple integration with existing line-of-business applications, through to automation and optimization of all your business processes
- A familiar, intuitive user experience built on industry-standard technology
- Accessible anywhere, at any time, and on any device: Cloud, MS Office, Desktop client, Mobile devices
- Flexible, customizable solutions designed to fit your business and put you in control
- World-class support for your implementation and operational requirements