Common Myths and Advantages about ERP System
|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. Of course the bigger the scope, the investment increases and implementation lead time also increases.
Your advantage: If you look in terms of return in investment (ROI), implementing an efficient ERP that increases your revenue, is definitely worth it. The ERP system will pay for itself along the way.
Myth #2: Implementing a 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 system where you just create and leave it later to its own. ERP 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 a 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 it’s users benefits or it will depreciate in time and so does diminishes 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 a off-the shelves ERP system requires coding and other technical implementation which some ERP vendors are not well verse in.
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 goes like clockwork.
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. ERP reports information that is 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.
Myth #6 A business do not need ERP to succeed – True
There 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 uses 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 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 a 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.