How New Systems Destroy Your Business

 

The Pitfalls of Introducing New Systems in Small and Medium-sized Enterprises

 

When it comes to implementing new systems in small and medium-sized enterprises (SMEs), the outcomes are not always favorable. While some companies attempt to enhance their organizational structure by adopting various external systems, others rely on their accumulated experience and expertise, foregoing the introduction of new systems.

This prompts the question: Can the introduction of a new system always lead a company in the right direction? Today, let's explore the answer to this question.

 

---

 

 

What is a Business System, and Why is it Necessary Within a Company?

 

We can easily find online posts complaining about the absence of a system in companies. However, number of people may discuss the absence of a system within their workplace without fully understanding what it means.

Essentially, a business system refers to the structured organization of tasks according to specific principles, ensuring uniformity and coherence. In essence, implementing a system involves standardizing and unifying company tasks according to established rules and procedures, documenting each task to clarify responsibilities and enable the system, rather than individuals, to drive operations.

While many companies, including SMEs, may lament the lack of a structured system, it's crucial to recognize that most businesses, regardless of their size or history, have some form of organizational task system in place. Without such a system, a company cannot sustainably generate profits.

So, when we're talking about the absence of a system, it often means that the existing structure fails to cover all aspects of the company's workflow. It's not a complete absence of structure but rather an insufficiency in the existing system, leaving certain areas unaddressed.

 

---

 

 

Challenges of Implementing Systems in SMEs

 

Loss of Flexibility

One of the prominent challenges associated with system implementation in SMEs is the loss of organizational flexibility.

Unlike larger corporations, SMEs often exhibit greater agility, partly due to their lean organizational structure, which primarily stems from their flexible workflow. While larger companies may navigate complex internal working processes, SMEs can often respond more swiftly to challenges, thanks to their direct decision-making channels.

However, the introduction of systems can undermine this flexibility by rigidly prescribing workflows, disrupting the natural adaptability inherent in smaller enterprises.

 

Diminished Efficiency Due to System Implementation

Implementing a system requires significant time, capital, and effort, both initially and for ongoing maintenance.

Many SMEs may focus on the upfront costs of system adoption but fail to adequately consider the resources required for long-term upkeep. Moreover, systems often necessitate additional personnel to maintain and operate them effectively. SMEs, which already contend with resource constraints, may find themselves stretched further by the demands of system maintenance.

Given that SMEs often face challenges in achieving economies of scale, they must leverage their limited resources efficiently. Here, human resources play a crucial role, especially in core business functions. Therefore, the introduction of new systems should account for potential disruptions to the efficiency of key personnel and necessitate additional workforce allocation to maintain operational effectiveness.

 

Inherent Problems with System Implementation

Furthermore, the systems themselves may possess inherent issues, particularly when introduced by individuals unfamiliar with the specific characteristics and needs of the company.

Each enterprise operates uniquely, with distinct business models and internal structures. Therefore, system implementations must be tailored to align with the organization's existing framework. Rushing to impose a standardized system without considering the company's individuality can lead to systemic dysfunction and undermine organizational cohesion.

 

---

 

In conclusion, while establishing a well-structured business system is essential for a company's growth, the suitability of any system is akin to finding the right fit of clothing. Despite the apparent benefits of system implementation, SMEs must meticulously evaluate whether a proposed system aligns with their unique requirements. Blindly adopting systems without due consideration can lead to the loss of organizational flexibility, decreased efficiency, and internal discord. Therefore, SMEs should approach system implementation with caution, ensuring that any introduced system complements their existing framework and supports their long-term objectives.

 

Company needs its own system

 

 

The Reason You Failed to Start in an International Sales