The Difference Between SMB/Commercial & Enterprise SPM Platforms | OpenSymmetry (2022)

WHAT IS THE DIFFERENCE BETWEEN SMB/COMMERCIAL AND ENTERPRISE SPM PLATFORMS?

Companies are typically classified by their revenue, employee size, or the number of customers. Small businesses have fewer than 100 employees and less than $50 million in revenue while medium-sized businesses have less than 1,000 employees and less than $1 billion. Large enterprises are substantially bigger, both in employee size and revenue.

However, employees and revenue metrics do not accurately reflect the needs of software users. When considering an SPM application, companies should instead focus on; the number of payees, data management complexity, the level of sophistication regarding their crediting and compensation plans, and lastly, their reporting/analytics requirements.

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The market perception is that SMB organizations can use less sophisticated applications without the need for customization. Likewise, the perception is also that enterprise-sized companies will require more sophisticated solutions due to the size of their organization or simply that they have a high number of people on sales compensation plans.

But are those perceptions accurate?

Even the smallest organizations may require enterprise-level applications to support their current and future organizational structure. Conversely, large companies may have already streamlined their operations or may choose to build in-house instead of buying a vendor application. Understanding the size of an organization should not be the driving factor when looking at solutions.

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The content provided below is designed to showcase specific areas where solutions may differ as it relates to their capabilities in meeting the needs of a complex SPM program vs. a program that is more straightforward. Simply put, in this space it can be difficult to tell which systems were designed to support what we may consider an enterprise sales compensation program and those that may not and as such, this paper will attempt to call out specific components that an SPM team will need to consider when bringing vendors in to be evaluated.

Complex Crediting: Solutions vary greatly in their ability to handle complex crediting and this should be a consideration when looking for a solution to meet your company’s needs. As an example, a company that needs to credit more than 10 payees for a single transaction, or the credits have a more complex rule logic, will want to leverage real life scenarios during the product demos. Given the potential coverage gaps, less sophisticated solutions may require the crediting logic to be handled outside of the solution or necessitate the introduction of custom code to try and meet the client needs. Either case is considered less than ideal. It will more than likely require the administrative team to work in a less than ideal situation and may incur additional expenses if changes to the credit logic are required on an ongoing basis.

Volume Processing (transactions & credits): Most of today’s solutions are able to manage reasonably large amounts of transactions when processing incentive compensation (e.g. 100k’s of transactions per payroll); however, systems tend to differ when clients are looking to process multiples of this and then potentially multiply this again by the number of credits being generated by a single transaction. Then to make matters more complex, companies will at times need to re-process prior periods. As some of the SPM systems are unable to handle large transaction counts in a timely manner, they will often recommend workarounds by moving crediting outside of the system or completing some level of aggregation before loading the data into the system for calculation processing. Similar to the workarounds for complex crediting, this is not ideal and tends to create additional processes and challenges.

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Multiple Business Unit Limitations: Even the smallest firms can have multiple domestic and international business units. Your SPM system should be able to support all business units and global entities in a single SPM instance, but current limitations including data segmentation, process coordination, and security access can cause challenges for less sophisticated applications. As a result, companies (regardless of their size) may need to pull these requirements into their evaluation to ensure the solution will meet their needs on a global level. Companies that don’t do this may end up having to purchase and maintain multiple instances of their SPM solution, limiting their ability to consolidate data or having to find workarounds when language capabilities don’t support local payees and administrators. One overarching challenge resulting from a system that does not provide true global coverage is that it will hinder a team’s ability to develop and implement a coordinated set of processes and controls in support of a best of breed SPM program.

Reporting and Analytics: Unfortunately, SPM systems vary greatly in their ability to meet clients’ needs when it comes to analytics and more advanced reporting. There are a wide range of capabilities between solution providers in the SPM space. Often it is the more sophisticated clients (or clients with more advanced reporting needs) that end up seeing challenges in getting what they need from a vendor’s solution. Common issues with some of the vendors is their ability to access data from the system to either develop analytics dashboards within the tool itself and/or export the data so that it can be used by an external platform. Another issue created by some of the systems relates directly to the management of the reports and dashboards. While some of the solutions can be configured to meet clients’ needs, the level of expertise needed to maintain these systems can end up being much more extensive than initially expected. Reporting and analytics are often one of the key drivers of SPM investments, so we recommend companies ensure enough time to evaluate the vendor capabilities when the requirements are more sophisticated in nature than one will find with a larger sales organization with greater complexities.

Payee Record Continuity: Some solutions are limited when it comes to management of multiple payee profiles. As an example, if a payee is attached to multiple plans at one time (e.g. transferring between roles with overlapping periods), some solutions require the administrators to maintain additional payee profiles for a single sales rep causing additional management needs and further causing the payee to have to log into the system as a different user to see their reports. While managing through workarounds can be accomplished, this tends to be a significant problem for larger organizations with thousands of payees and/or consistent changes within the sales hierarchy.

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Calendar Setup: Calendar setup can be challenging in some applications, as they may have a restricted or limited ability to support unconventional or multiple calendars within an organization. Larger or more complex organizations typically need to credit different groups of payees on different schedules (including monthly, quarterly, or annual frequencies). A system that won’t allow this via out-of-the-box configuration will create significant challenges for the SPM administrators from an ongoing management standpoint. While there are workarounds, some systems may require custom objects when building and maintaining, and/or developing additional crediting rules and environments so you can support different payout frequencies.

Multiple Sales Hierarchies: Smaller organizations may only require a single hierarchy for managing both credit roll-ups and reporting. That said, larger or more complex sales organizations may employ disparate hierarchies for both reporting and crediting (to support channels and cross-selling) and as a result may find less flexible solutions extremely limited in their ability to meet their needs. Another potential challenge may arise if you need to import product hierarchies to help drive crediting logic and should be considered if this is an integral part of your program. If your organization expects to use more than one hierarchy, make sure this requirement can be met (out-of-the-box) by your selected vendor. The workarounds are not worth the headache.

WHEN YOU NEED SPM ENTERPRISE CAPABILITIES

Extensive and diverse data requirements, a large number of payees, varied hierarchical sales organizations, and complex sales compensation plans are all reasons why you may need an enterprise level SPM application. Leading enterprise solutions are robust applications that may require less customization, fewer additional modules, and overall, less time trying to fit your organization into the vendor’s box.

While we recommend a comprehensive SPM framework development, understanding your data criteria will help you choose potential vendors that offer the flexibility you need to maximize the value of your SPM investment.

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FAQs

What is the difference between SMB and enterprise? ›

SMBs are defined as having less than 100 employees and between $5-$10 million in annual revenue. SME: Small and Medium-Sized Enterprises. Also known as “mid-market”. SME's are defined as having between 101-500 employees and between $10 million and $1 billion in annual revenue.

What is the difference between commercial and enterprise? ›

An enterprise is a business, corporation, organization, or government department that employs a sizable staff and often has multiple branches in multiple locations. A commercial business is a legal entity that sells its products or services to the general public.

How do you approach an SMB lead differently than an enterprise lead? ›

The type of information you need to provide is different as well. Enterprise customers have a better understanding of their needs and tend to look for solutions with specific capabilities. SMBs tend to start with less understanding and need to do more research, so part of your role has to be that of an educator.

What is the difference between SMB and mid market? ›

Small And Midsize Business (SMB)

The attribute used most often is number of employees; small businesses are usually defined as organizations with fewer than 100 employees; midsize enterprises are those organizations with 100 to 999 employees.

What is a small medium or micro enterprise? ›

An SME is any organisation that has fewer than 250 employees and a turnover of less than €50 million or a balance sheet total less than €43 million.

What is an SMB platform? ›

Server Message Block (SMB) is a communication protocol originally developed in 1983 by Barry A. Feigenbaum at IBM and intended to provide shared access to files and printers across nodes on a network of systems running IBM's OS/2. It also provides an authenticated inter-process communication (IPC) mechanism.

What is the difference between small business and commercial? ›

'Business' banking generally refers to the services used by smaller companies, including sole traders. 'Commercial' or 'corporate' banking generally refers to the services used by larger enterprises with a high turnover.

What is a commercial enterprise examples? ›

What are some examples of commercial enterprises? Commercial enterprises include, but are not confined to, the following: (a) food and beverage services; (b) car rental to Airport guests, visitors, FBO operators, and other Airport users; and (c) retail sale of apparel and other personal products.

What is a commercial enterprise system? ›

Enterprise systems are large-scale software packages that are able to track and control all of the complex operations of a business. These systems are used as a central command hub to help automate the business and make reporting and decision making easier.

Which is the best platform to generate leads? ›

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What is an enterprise company? ›

Enterprise is another word for a for-profit business or company, but it is most often associated with entrepreneurial ventures. People who have entrepreneurial success are often referred to as “enterprising.” There are many forms of legal enterprises, with the most common in the U.S.

What are the three approaches of lead generation? ›

So, there we go, the three best lead generation methods: search engines, content marketing, and of course, social media.

What is an enterprise company size? ›

Employees: Over 1000 employees. Annual Revenue: Over $1 billion. IT Staff: Full time IT staff, including several specialists.

What is the difference between small medium and large business? ›

Small enterprises: 10 to 49 employees. Medium-sized enterprises: 50 to 249 employees. Large enterprises: 250 employees or more.

What is an example of an SMB? ›

An SMB share, also known as an SMB file share, is simply a shared resource on an SMB server. Often, an SMB share is a directory, but it can be any shared resource. For example, network printers are often shared using SMB.

What is the best definition of a micro-enterprise? ›

The term microenterprise, also known as a microbusiness, refers to a small business that employs few people. A microenterprise usually operates with fewer than 10 people and is started with a small amount of capital advanced from a bank or other organization.

What are the different types of SMEs? ›

Within this umbrella there are three different categories: medium-sized, small, and micro-businesses. These categories are defined by turnover and number of employees.

What are the examples of small and medium enterprises? ›

Some examples of common SMEs include:
  • Hair and beauty salons.
  • Dental practices.
  • Medical centres.
  • Bars, cafes and restaurants.
  • Many online retailers.
  • Gyms.

What is the difference between SMB and NFS? ›

NFS has no fast file find; SMB has fast find. NFS no server and printer browsing, while SMB has server and printer browsing. NFS slower reads and writes; SMB faster. NFS better with small files, while SMB fine with small files but better with large files.

What is the difference between SMB and AFP? ›

SMB is a fabric protocol that is used by Software-defined Data Center (SDDC) computing technologies, such as Storage Spaces Direct, Storage Replica. AFP is a network file control protocol system specifically designed for Mac-based platforms.

What are the 3 message types of SMB messages? ›

File messages: Used by the redirector to gain access to files on the server. Printer messages: Used by the redirector to send data to a print queue and get status information about the queue. Message messages: Let applications exchange messages with another computer.

What are the most important differences between small companies and big ones in terms of management? ›

Larger businesses tend to have a more rigid hierarchy and a bureaucratic structure because they have more employees. In this hierarchy, the board of directors and the CEO have the most control in the chain of command. In contrast, many smaller companies only have a small group of people or a single person in charge.

What are the most important differences between small companies and big ones in terms of management etc? ›

Without question, one of the clear differences between smaller and large organisations is the more bureaucratic and hierarchical structure. Due to the amount of personnel within a large company, they are inherently more hierarchical.

Is a small business a commercial enterprise? ›

Commercial enterprise means any for-profit activity formed for the ongoing conduct of lawful business including, but not limited to, a sole proprietorship, partnership (whether limited or general), holding company, joint venture, corporation, business trust, or other entity which may be publicly or privately owned.

What is an example of an enterprise? ›

Examples of enterprises

That includes companies such as Ford, Microsoft, GE, and Oracle. Edge's list includes Walmart, Exxon, Apple, Amazon, UnitedHealth Group, McKesson, CVS, and AT&T. These are all large companies that meet or exceed the loosely defined enterprise criteria.

What are the three types of commercial? ›

Banner advertisements, online video commercials, and text advertisements are all popular ways to reach out to potential clients on the internet. Other methods of advertising a product or service include TV commercials and product placement.

What is commercial use example? ›

Examples include, but are not limited to, merchandise, books for sale (including textbooks), apps that will be sold or have advertising, periodicals and journals with paid subscriptions, TV programs and commercial films, advertisements, websites that sell images, and cause-related marketing.

What is enterprise platform? ›

Enterprise Platform is a group of technologies & tools that are used as a base upon which other applications, processes or technologies are developed.

What are the 4 types of business enterprise? ›

There are 4 main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

What are the two definitions of enterprise system? ›

Enterprise systems are software that provides solutions to an integrated business organization. Learn more in: Enterprise Resource Systems Software Implementation. 3. Information systems that allow companies to integrate information across operations on an enterprise-wide basis.

How can I increase my leads quickly? ›

Here are five foolproof ways to generate leads for your business:
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How do I get more MLM leads? ›

Some of the most popular ways in generating targeted MLM leads include:
  1. 1 Using email finder tools. ...
  2. 2 Using social media. ...
  3. 3 Finding forums and groups online. ...
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  6. 6 Creating an e-book or course about MLM lead generation.

How can I generate leads quickly? ›

Here are some ways to use kind words to generate leads:
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What is the importance of enterprise? ›

Entrepreneurship Accelerates Economic Growth

Entrepreneurs are important to market economies because they can act as the wheels of the economic growth of the country. By creating new products and services, they stimulate new employment, which ultimately results in the acceleration of economic development.

What kind of company is enterprise? ›

Enterprise is the largest car rental company in the U.S. and is the parent company of the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands. It has more than 10,000 locations in neighborhoods and airports.

What are the 4 types of lead? ›

Different Types of Leads
  • Summary Lead. A summary lead is the most common and traditional lead in journalism. ...
  • Single-Item Lead. This lead focuses on just one or two elements of a summary lead. ...
  • Delayed Identification Lead. ...
  • Creative Lead. ...
  • Short Sentence Lead. ...
  • Analogy Lead.

What are the four types of leads? ›

Some business owners and sales leaders consider prospects as “hot leads,” “working leads,” “qualified leads” or “nurturing leads.” That just means they are leads who have expressed interest in your company. Now you are moving them through the sales funnel using a variety of tactics and strategies.

What are four main stages in lead management process? ›

What are the important stages in lead management process?
  • Step 1 – Lead Capturing.
  • Step 2 – Lead Tracking.
  • Step 3 – Lead Distribution.
  • Step 4 – Lead Qualification.
  • Step 5 – Lead Nurturing.
13 Dec 2021

What are the 3 characteristics of an enterprise? ›

Liability – who is responsible for the debts of the enterprise? Duration – how long does the enterprise last? Decision maker – who makes decisions about the operation of the enterprise?

How do you identify micro small and medium enterprises? ›

Those firms with up to Rs 1 crore-Rs 10 crore investment and a turnover of over Rs 5 crore, but under Rs 50 crore are termed small enterprises. Lastly, those companies with up to Rs 1 crore investment and a turnover of less than Rs 5 crore are defined as micro-enterprises.

What is the difference between small and large business marketing? ›

Differences in Market Niche

Another difference between small businesses and large companies is that small companies often focus on a niche market, while larger companies tend to offer more products and services to a wider variety of consumers.

What are the characteristics of small and medium enterprises? ›

Features of SMEs
  • Being run by a single individual or small team of people.
  • Having a physical location and/or online operation.
  • Being the sole employment or as part of a hobby/side hustle.
  • Existing in one or more sectors of the economy.

What does small and medium enterprise mean in business? ›

A small or medium-sized enterprise, or SME, as defined by the European Commission is a business or company: that has fewer than 250 employees; and.

What is SMB strategy? ›

SMB stands for small- and medium-sized business. 'SMB sales' refers to salespeople selling products or services to small- and medium-sized businesses. These businesses usually have fewer than 500 employees and are often startups, local businesses, or small firms.

What is an SMB file type? ›

An SMB file contains a CAD 3D model saved in the Autodesk Shape Manager (ASM) format. It stores 3D geometry and structure information of the part, which includes holes, pockets, and slots.

What is the difference between SME and large enterprise? ›

Small enterprises: 10 to 49 employees. Medium-sized enterprises: 50 to 249 employees. Large enterprises: 250 employees or more.

What is considered an enterprise? ›

An enterprise is defined as a legal entity possessing the right to conduct business on its own, for example to enter into contracts, own property, incur liabilities and establish bank accounts. An enterprise may be a corporation, a quasi- corporation, a non-profit institution, or an unincorporated enterprise.

What is considered enterprise level? ›

Therefore, the term “enterprise-level” will generally pertain to a solution that's especially knowledge and resource-intensive. These enterprise-level solutions will often be up for large-scale implementation, which requires the foresight and technological expertise to implement properly.

How many employees is considered enterprise? ›

Employees: Over 1000 employees. Annual Revenue: Over $1 billion.

What is the difference between micro business and small business? ›

A micro business is a type of small business that employs fewer than 10 people, according to the Small Business Association, while small businesses can include businesses with up to 500 employees.

What is enterprise example? ›

Examples of enterprises

That includes companies such as Ford, Microsoft, GE, and Oracle. Edge's list includes Walmart, Exxon, Apple, Amazon, UnitedHealth Group, McKesson, CVS, and AT&T. These are all large companies that meet or exceed the loosely defined enterprise criteria.

What is an example of an enterprise system? ›

Enterprise resource planning, supply chain management and customer relationship management systems are each examples of enterprise systems.

What are the 5 five components of enterprise? ›

5 Key Components of a Successful Enterprise Architecture Function
  • Governance. Enterprise architecture (EA) requires governance, however not in the form of complex documents, forms or processes. ...
  • Talent. ...
  • Executive Sponsors. ...
  • Scope. ...
  • Business Value.
11 Aug 2014

What are the three categories of enterprise? ›

Currently, there are distinguished three main types of enterprise systems: customer relationships management (CRM), enterprise resource planning (ERP), and supply chain management (SCM).

What are the three stages of enterprise? ›

3 Stages of Business Growth and How to Navigate Them
  • Business Growth Stage #1: Emergence. The Situation. It's the early days of a brand's development. ...
  • Business Growth Stage #2: Expansion. The Situation. ...
  • Business Growth Stage #3: Maturity. The Situation.

What are types of enterprise? ›

Types of Enterprise
  • Sole Proprietorship.
  • Partnership.
  • Private Limited Companies (Ltd.)
  • Public Limited Companies (PLC)

How many employees does a SMB have? ›

It defines small business by firm revenue (ranging from $1 million to over $40 million) and by employment (from 100 to over 1,500 employees).

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