NextUp: Too many of the SMEs in Romania have not yet automated their business operations, although digitization has become a necessity, an investment and the difference between bankruptcy or business development

Digitization is not a luxury, but the foundation on which the agility and ability of entrepreneurs to immediately respond to market needs is built.

The Romanian business environment is far from the level of digitization it should have for its needs and compared to the level in the European Union. Most SMEs in Romania have not yet implemented business IT systems, have not digitized their operations according to the needs of the company, still using rudimentary methods for managing daily operations, says the software company NextUp, the developer of a fully customizable ERP software . Moreover, Eurostat figures show that only 18.6% of local SMEs have an advanced level of digitization.

“The fear of digitization is still acute in the business environment in Romania, because there is still a lot of ignorance. Entrepreneurs postpone the decision to update their IT systems for several reasons, including the fear of change, the complexity of the project, the reaction of employees, the duration of the induction process. It doesn’t help either that legislative unpredictability or excessive bureaucracy make it difficult to finance digitization. Also, financial education isn’t too great. Most entrepreneurs think it works anyway, that their intuition successfully replaces making the right decisions based on the numbers. Considering the technological progress, we are at the point where digitization is absolutely necessary for the development of a business. Without it, there are constant losses, financial, stock or cash crises that lead in a relatively short time to immense pressures and even to the loss of the business. Eurostat statistics show that SMEs in Romania are digitized at an advanced level in proportion to 18.6%. But we believe that the situation is even more pessimistic, considering that currently few local companies use software suitable for the level they are at, and the costs of automating operations are increasingly affordable”, explains Roxana Epure, Managing NextUp partner.

Companies with businesses of 1-5 million euros postpone digitization for months

The representatives of NextUp emphasize that entrepreneurs in Romania have other fears regarding the adoption of technologies for digitalization and automation of business processes, mainly that it takes a long time to implement a new software, suitable for their business, although there are modular solutions that avoid stopping the activity, delays and difficulties adaptation.

Likewise, some entrepreneurs even avoid aligning with legal requirements, because they still believe that certain matters are strictly the responsibility of accountants.

Thus, for example, there are still companies with turnover of over 1 million euros that use a program like Excel, rudimentary software or just a small invoicing software for the entire activity.

“Digitalization in business does not mean the use of computers or online tools, such as email or social media, which are also used by individuals, it means the use of appropriate software, neither below nor above the business level, adapted to daily operational needs per day so that expenses are reduced and business development is boosted. There are many companies with annual business between 1 and 5 million euros, active in various fields, such as retail, services, production and distribution, which are not digitized up to date, with suitable software, according to business needs. Entrepreneurs delay the implementation of modern technological solutions by at least 6-12 months from the moment of the emergence of the need for new automation. During this period of procrastination, their businesses lose money and miss out on growth opportunities and strategic decisions. One of the reasons for the delay is the misperception that ERP software is too cumbersome and expensive for their business. But digitalization with an ERP can be achieved with an initial investment from 3,000 euros, through which it automates many operations, has access to new functionalities, aligns with legislative requirements and benefits from unlimited support for use. Businesses that do not digitize have higher losses and expenses, consume their human resources on repetitive tasks with no added value, cannot anticipate the strengths and weaknesses in the business through concrete data and miss market opportunities, being overtaken by already digitized competitors”, explains Roxana Epure, Managing Partner NextUp.

SMEs in Romania that do not digitize face both uncontrolled losses and an increasingly pronounced chaos in their activity, human errors and avoidable expenses. On the battlefield of the modern market, the speed of reaction gives them a serious competitive advantage if they adapt to the technological evolution. Thus, based on the digitalization and automation of business operations with the help of an ERP software, entrepreneurs can make correct decisions, have clear forecasts and can rise to a level of performance and safety that guarantees them profit. Furthermore, the automation that an ERP provides means fewer errors, more accuracy and increased efficiency across all departments. For example, the inventory is done automatically, 100% correctly, with a single click. In addition, it synchronizes perfectly even with the online store and provides real-time business reports.

“The need for an ERP software, not only as a tool, but as the foundation of a new beginning, provides efficiency, clarity and control. It also turns every challenge into an opportunity and paves the way for a higher level of performance and security. An ERP increases productivity by providing the necessary tools to work with speed, control and precision. The outcome? Smoother operations. Less time wasted on manual tasks, more motivated and engaged employees. Thus, entrepreneurs save time and reduce costs. The software transforms hours of work into seconds of precision, and the entrepreneur receives the results he is interested in, updated in real time – exactly what he needs to make the right decisions, on the spot. A suitable ERP offers both filtered results and an overview, but also reports updated in real time: cash-flow, PNL, profitability by cost centers, stocks, etc. You target the result, the software takes you straight to the target. A healthy, long-lasting, profitable business is built on decisions based on clear data, in numbers. Concrete information is the currency of success. Digitization is not a luxury, but the foundation on which the agility and ability of entrepreneurs to immediately respond to market needs is built”, points out Roxana Epure, Managing Partner of NextUp.

NextUp is the developer of ERP software that saves entrepreneurs time with red tape, such as e-Invoice. The NextUp software is adapted to local businesses and used mainly in online retail, traditional retail, production, distribution and services, to automate repetitive activities that consume resources and optimize business processes and forecasts. NextUp has over 6,000 customers, with an average of 5 users per company.