The “Goldilocks Principle,” as you may have guessed, is named after the children’s story “Goldilocks and the Three Bears.” Written by the British Poet Laureate Robert Southey and published in 1837, it’s the tale of a young girl named Goldilocks who tastes three different bowls of porridge and finds that she prefers neither too hot nor too cold but has just the right temperature.
The concept of “just right,” whether it refers to an amount, size, temperature, or level of difficulty, has been applied to a wide range of disciplines, including cognitive science, astrology, medicine, economics, statistics, communications, and indeed, child psychology.
Southey almost certainly did not realize the broader implications of his 26-page fairy tale, originally titled “The Story of the Three Bears.” Be that as it may, here at Basileia Consulting Group, we can quickly see how the “Goldilocks Principle” can be applied to your choice of an ERP (Enterprise Resource Planning) software system for managing your business.
In your search for an ERP solution, you want to avoid systems that are too small or too big. You want the ERP that is just the right size. That will be determined by both how much functionality you need and how much you can or want to spend.
An ERP That is Too Small
There are plenty of options that will handle the basics of accounting perfectly well. What are those basics? In our business, we refer to those essential elements as “glapper,” meaning:
- General Ledger (GL)
- Accounts Payable (AP)
- Accounts Receivables (AR)
The cost for “glapper” only functionality is negligible. But… if you want to avoid time-consuming duplicate data entry, if you want your accounting software to integrate with any other systems, such as inventory or financial reporting or operations, then despite the low cost, this would not be the ideal option for you and your company.
An ERP That is Too Big
Conversely, there are many ERP solutions out there that are simply too big for most small or midmarket companies and far too expensive as well. Solutions designed for conglomerates, multinationals, and enterprises with complex business structures probably offer more functionality than you want or need at a price far exceeding your budget.
An ERP That is Just the Right Size
There is an ERP software solution that was purpose-built for small and mid-market companies like yours. It’s called Microsoft Dynamics 365 Business Central (BC). And since that’s a mouthful, let’s just call it Business Central. It’s cloud ERP designed for you, with easy to budget for subscription pricing, so you’re only paying for what you need and what you use. And yet, it covers all of your bases, from Finance and Operations to Supply Chain Management (SCM) and Warehouse Management (WMS) and everything in between.