The Challenges Facing Small and Midsize Businesses

Small and midsize businesses focus first on increasing sales and profitability. Getting orders from customers and fulfilling them at a profit is always job one, and software can be a tool to increase efficiency and productivity. But at some point, especially if growth has been rapid, most businesses find that the process of increasing sales is being slowed down because information is not flowing smoothly from one part of the business to the other. This can happen for many different reasons.

Information Gap

The information gap refers to the lack of timely business information needed to run the business efficiently. For example, if a large order comes in that is time sensitive, the key question is: When can we fulfill this order? In the face of an information gap, the right information must be assembled from a variety of sources, if it has been properly captured in the first place. In the face of a persistent information gap, business decisions are made without sufficient information, resulting in mistakes, rework, or missed opportunities.

Process Gap

A process gap exists when manual business tasks are not automated, or automation stops in one application and must be manually transferred to another. Process gaps are resolved by duplicate re-entry of information from one application into another or by constructing brittle, special-purpose software to do the transfer. Process gaps slow a company down, retard change, and reduce the possibilities for automation. Effective and complete integration in which information flows from one step to the next bridges the process gap, as shown in Figure 1-1.

Figure 1-1: SAP Business One provides comprehensive integration

Multiple Point Solutions

Companies often acquire multiple point solutions to meet specific needs as business expands; for example, an accounting application to manage general ledgers and invoices, or a warehouse management solution to keep track of inventory. Keeping this combination of applications up to date, integrated, and running smoothly can be a challenge. To get a picture of what is happening in every part of the business takes a lot of work and requires information to be extracted and reconciled across many systems. While such applications may serve for a time, ultimately your business needs a more flexible and integrated solution.

How SAP Business One Addresses the Challenges

SAP Business One meets the challenges of small and midsize businesses because it is designed to do so, as shown in Figure 1-2.

Figure 1-2: SAP Business One meets the challenges of small and midsize businesses

A Unique Approach

While most business software is focused on automation, few software companies, if any, approach the challenge of creating software in the same way as SAP. Most of the time, a software vendor picks one area, such as accounting or CRM, and builds a product to support the particular processes related to that area. How these processes work with the other fundamental processes of other areas is a question left unanswered. SAP Business One is the answer to that question.

An Integrated Solution

SAP Business One takes a “single solution” approach to business management and process automation. Sales, CRM, financials, and operations are all supported and automated in SAP Business One. The automation of each process is integrated, as sales orders flow into the accounting software and become requests to manufacture products, which may require materials to be withdrawn from inventory. The historical boundaries between applications do not exist in SAP Business One.

Streamlined Business Processes

The broad scope of SAP Business One helps you streamline and automate your entire business from end to end, including CRM, accounting, warehouse management, and manufacturing. Furthermore, when an important business event occurs, automatic responses can be executed as needed. This management-by-exception paradigm increases productivity by reducing information overload and inappropriate actions, allowing users to intervene in the automated process as needed.

Instant Access to Information

Having all business data stored in a single integrated application like SAP Business One means critical business information is simply a few clicks away in a configurable dashboard or through intuitive drill-down reports. Since SAP Business One works primarily in real time, changes are recorded instantly, without delay. You can get the state of the business whenever you need it through a variety of different reporting mechanisms, including Microsoft Office applications, mobile devices and Crystal Reports.

Customizable and Adaptable

SAP Business One is designed to be easily configured, integrated, and extended. Through its integration with Microsoft Office, SAP Business One unifies business applications and desktop productivity applications. Through SAP’s global network of certified solution partners, SAP Business One can be adapted to meet the specific needs of local markets and vertical industries. The adaptability of SAP Business One means that the software grows with your business and can be modified easily to meet your changing business needs.

Designed Exclusively for Small and Midsize Businesses and Backed by SAP

SAP Business One is a new breed of business management software built from the ground up exclusively for small and midsize businesses like yours. It draws on SAP’s more than 30 years of experience in creating business applications that serve the needs of more than 12 million users worldwide.

As the worldwide leader in business management software, SAP is committed to bringing comprehensive business management solutions to meet your current and future business needs. Helping you run your business smoothly is one of the most important jobs of SAP and its global network of certified SAP Business One partners.
Figure 1-2: SAP Business One Standard Modules

SAP Business One Mobile App

Each SAP Business One user benefits from a free Mobile App

Key benefits

  • Managers, sales, and service employees stay informed about their business, view reports,

manage contacts, and handle sales and service activities

  • Better-informed employees have access to the most relevant data and business processes
  • Approvals & Alerts provide Real-time business decisions anytime and anywhere

resulting in higher productivity.


A significant part of the production process involves the consumption of resources.

To facilitate this, a new resource master data concept is introduced in version 9.1.

This enables a resource to be managed by the system and for capacity to be assigned to

this resource.

This version also includes other important enhancements such as:

  • By-products which can be included in bills of material and production orders,
  • Additional quantities for machine setup time or lead component consumption
  • And bulk updates of bills of material.

These enhancements allow you to manage additional production scenarios for light

manufacturing in SAP Business One.

The benefits of these enhancements include:

  • The ability to plan and monitor capacity of your resources,
  • The possibility to more tightly track costs associated with production
  • And thus achieve improved management for all your bills of material.