SAP provides a few simple tips on how to survive the recession. Savvy companies are using the current economic downturn to improve their businesses. There is no doubt that managing a company during an economic downturn is an enormous challenge. But these same challenges can also provide business opportunities and allow for reassessment. This might seem an unlikely time to reassess a company’s structure, but now is as good a time as ever. Introducing streamlining can increase productivity, efficiency and profitability. By re-evaluating a business, a company will be better able to monitor the competition to ensure it maintains a competitive edge for when the economy recovers.SAP has various products for various types of businesses. But for companies with 10 to 30 users, a basic platform, which would have less functionalities and less capabilities than other more sophisticated ERP systems, would be the best solution. ERP systems are priced by the number of users and how often a company is using the system. The actual ERP software is not the main cost; the implementation of the software is. This is because consultants will specify which platform best suits a company. ERP software can cost from $50,000 to several millions – it all depends on the company, on what they need and how many people will be using it. It may cost a company $100,000 to install an ERP system, but it might save around $150,000 to $200,000 a year. These cost savings over time will add up. It may take a company 12 to 14 months for a return on investment, but ERP systems should be considered as long-term investments. Software has come along way since the 80s, when ERP systems needed to be changed every five years. Today, ERP systems can be upgraded and maintained for around 10 to 15 years before needing to be updated. SAP asked more than 100 SMEs what their concerns regarding the recession were and their advice on how to survive it. The survey showed the number one tip for surviving the recession was to maintain good relationships with existing customers. Another key area to focus on, was reducing the amount of money spent on discretionary resources and to target specific areas to invest in. Sometimes it takes money to save money and an ERP system could help reduce other costs and simplify systems into one platform. ERP systems can assist with transparency and improve overall communication with employees. They can diversify, expand products and services and help pursue markets that have been less affected by the economic downturn. But companies need to ensure that their IT systems address problems in real time and are able to respond to today’s turbulent economy.Marketing and advertising are key areas where money should be spent. It is important for companies to maintain brand presence and awareness, and stopping advertising could harm a company in the long run. There may be competitive rates or package deals available for companies wanting to advertise during the recession. A company can increase its market exposure by advertising when everyone else is pulling back, which could give a business the competitive edge in a time when everyone is vying for that extra dollar.Before investing in ERP systems, companies need to consider the following:* Investing in an ERP system should be specific to your business and be based on what your business needs.* Are decisions being based on hard facts?Management is prone to making decisions based on instinct, intuition or what has previously worked. But companies need to base decisions on facts such as what is selling the product, how a company can maximise this and where the business focus needs to be heading.* Will it identify emerging trends and customer needs?An important benefit of ERP systems is that they can help a business identify trends and which target audiences products should be aimed at.* Will the software streamline processes and efficiency? * Will it cut costs and improve profitability?* Will it reduce the amount of errors and duplications?* Will it proactively respond to customer needs more efficiently?