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Common Myths about the Advantages of an ERP System

Year 2013
February 2013
Common Myths about the Advantages of an ERP System
03 Feb 2013
There are many myths that surrounds Enterprise Resource Planning (ERP) System and we will tackle the most common of these many myths. Along side every myth busters, we will provide you the advantages that you can get with having an Enterprise Resource Planning system. So let’s get through it one-by-one:

Myths #1: ERP is very expensive and takes a long time to implement – True

ERP software are available in different price categories where the most expensive ERP system are usually the most sophisticated. Depending on your organization/business operation, your ERP system requirement will vary.  Obviously the bigger the scope, the more the investment as well as the the implementation lead time.

Your advantage: In terms of return on investment (ROI), implementing an efficient ERP System that increases your revenue, is definitely worth it. The ERP system will pay for itself along the way.

 

Myth #2: Implementing an ERP system is a one-time project – False

It can be, but it shouldn’t be! An efficient ERP software is not a one-time-fits-all kind of management system where you just create and leave it later to its own. ERP software technology needs occasional human intervention to develop and evolve to adapt to your operation needs. It should not be the other way around.

Your advantage: This gives you the opportunity for constant improvement. It exercises teamwork from all levels of your organization to come up with an ERP solution that improves your productivity.  Constant development of the ERP system connects all users and irons out SOP  issues within the entire operation. It should be constantly evolving accordingly for its users’ benefits or it will depreciate in time and so do your customer and employment satisfaction.

Myth #3: ERP system are fixed and cannot be modified – False

An ERP system can be modified according to your needs yet still many vendors will not alter the structure of their software. Modifying an off-the shelves ERP system requires coding and other technical implementation which some ERP software vendors are not well verse in.

Your Advantage: A more flexible ERP software lets you create more fitting operating procedures and allows a smooth implementation to all levels of your organization. Find out what works best for your operation and get a customisable ERP System like Synergix E1 ERP System.

Myth #4: ERP software creates more complex procedures – False

ERP system are created to simplify and create a more unified information. It takes a lot of getting used to for anyone to use a new system. The process will be changed, and for a certain time, things can go quite complicated but after the adjustment period, all go like clockwork.

Your advantage: Take this opportunity to simplify, pin point the crème de la crème of your whole operating process and fix indecisive procedures. Work with your team and your ERP system provider on a potential solution against the challenges you will meet along the way.

Myth #5: ERP system does all the work – False

ERP software is not an oracle for a successful business. It is a system that needs humans to operate and develop. An ERP system reports information that is an important basis for any decision-making in your company. It is up to you how you are going to use these information to improve your productivity.

Your advantage: Educate. All users in your organization must know what your ERP system can provide and its purpose. The more they are aware of the benefits they can get with the ERP system, the more dependable and timely the decisions are going to be made.

Myth #6: A business does not need an ERP System to succeed – True

There are a lot of businesses who does not use an ERP system, most of them are small-size businesses. Some middle-size businesses uses only one ERP software, usually financial management software, to go around.

Some large businesses use many ERP software from different vendors and use it as one ERP system or they call it the best-of-the-breed ERP system. Disadvantage of this kind of set up is that it requires more IT work to maintain a unified information system from different ERP system. It is advisable to use a whole ERP solution from one vendor to get the most integrated system.

Another wrong perception is that an ERP system is only to impress customers. Yes, it will improve the quality of your customer service but customers cares less about what an ERP system you are using or, in fact, they don’t even know what is it.

Your advantage: Regardless of the business size, having an ERP software implemented in your business process can push you a notch up against your competitor. You will have a more integrated information, productivity, good customer service and dependable decision-making. These merits makes a recipe for a successful business enterprise.

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