NextUp: Romanian SMEs postpone equipping themselves with an integrated IT system

Entrepreneurs in Romania would rather postpone equipping their business with a software than investing time in analyzing the available offers and choosing the most suitable one for them. In the context of the changes in the legislation of the last two years, regarding SAF-T and e-Invoice, many decide, driven by the obligations of the legislation, to get an IT system, but do not allocate the time to the analysis to choose the ideal one.

There is a big difference between equipping the business with a simple invoicing software, for example, and equipping it with an integrated IT system that takes as many repetitive gestures as possible from the workflows of the organization I lead. Finally, that’s where they end up: they equip themselves with the right software, but in the meantime they’ve wasted time and, perhaps, opportunities.

Romania continues to be among the least digitized countries, including in the private sector, on the European continent. According to a report on the digitalization of companies in the European Union in 2023, recently released by Eurostat, approximately 27% of SMEs in Romania have reached a basic level of digitalization, and 73% have registered a digitalization score between 0 and 3, i.e. the “very weak” level, and almost 19% the “weak” level. Only 8% have a high level of digitization, respectively 1.5% a “very high” level of digitization. Thus, Romania ranks last in terms of digitization among European Union countries, below the level of Bulgaria, where 28% of SMEs have a basic level of digitization. By comparison, in countries like Finland or Sweden over 80% of small and medium-sized companies have a basic level of digitization.

“Although Romania has excellent potential in the IT field, local businesses are taking small steps towards proper equipment, which will put them in a favorable position compared to their competitors. We are still looking at the cost and have not yet understood that technological equipment is an investment that saves you time, money, that is, resources thrown out the window. Moreover, the state institutions do not create an advantageous environment for mass digitization either, because they themselves are digitized on paper and not for real. More precisely, the state obliges us to submit monthly reports, citing the automation of this process, but does not provide us with the infrastructure capable of managing a properly automated relationship with the private environment. In this context, most entrepreneurs postpone the implementation of a technological system, putting themselves at a huge disadvantage, considering the benefits brought by digitalization with the right software“, explains Roxana Epure, Managing Partner of NextUp.

Here is what Romanian SMEs can achieve by digitalizing with an ERP-type software:

Automate repetitive and redundant tasks

Surely, all entrepreneurs would like to take some burden off the shoulders of their employees. And this is within reach with an ERP that ensures automation, streamlined work processes, reports, stocks and figures in real time, one click away, from any device.

In addition, it is good for entrepreneurs to know that they can opt for the option of a modular ERP, which allows them to implement at their own pace, depending on the availability of their resources.

Data security and centralization

Good business decisions are made with the numbers in front of you. They are the entrepreneur’s friend, by no means the enemy. An entrepreneur should not be overwhelmed by the sea of data of his business, and if he equips himself with a suitable software, according to his business, it will not be the case either.

But, in the absence of centralized data in real time and easy to follow, informed decisions cannot be made. Everything will be done on the fly, out of intuition or inertia, and it is hard to fix such a mistake. Modern software keeps all company data safe and protected from potential cyber attacks.

Resources managed correctly and efficiently

The truth is that when entrepreneurs try to do something by themselves and say “let it go like that”, the chances of wasting resources are very high. For example, human errors, which are normal and inevitable at some point, and money allocated chaotically because, without an integrated system to indicate where the serious problems are in the company, it is easy for entrepreneurs to swim against the current.

Scalability and development

As the business grows, so do the needs that the entrepreneur has from a software. That is why it is essential that the ERP is the measure of the business. That is, it can be customized taking into account the particularities of its business. An ERP is a business partner. It’s an investment that provides competitive advantage, helps the entrepreneur stay one step ahead of the competition, and gives the entrepreneur the big picture he needs to anticipate market trends.

“We believe that things will change in the near future and the rate of digitization in the Romanian business environment will accelerate considerably. More and more entrepreneurs understand that, without a dedicated software, they cannot manage efficiently and lose ground to the competition and lose customers and business opportunities. Using Excel is an outdated solution, which does not help you to keep up, nor to align with legislative requirements. Using the wrong software, which is too small and does not fully meet the needs of the business, is not a good idea either, because invoicing, accounting, production or customer management processes must be integrated and automated to ensure long-term success”, concludes Roxana Epure, Managing Partner 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, construction 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.