ERP (Enterprise Resource Planning) is a technology which is an essential need for all the industries in the 21st century. ERP helps enhance the growth rate of companies. As a result, companies are investing their time in training, evaluation, and overall ERP implementation.
ERP software is a billion-dollar industry. ERP systems are now common for all scales of companies. Despite being popular, there are some misconceptions associated with ERP solutions in today’s marketplace. Let’s look at a few of the myths.
Myth #1: ERP is too expensive
This is one of the most common misconceptions about custom ERP solutions. Although, the high-end and advanced ERP solutions are expensive. But mobile and cloud computing solutions make ERP software quite affordable. Also, the pricing packages depending on the customization and usage.
Myth #2: ERP is only for Big Business
Earlier, ERP solutions were only used by larger firms. But with the advanced technologies and the increased customization features, small and mid-sized businesses can also use ERP. Whether the firm is small or large, selecting the right ERP solutions is much more significant for business operations.
Myth #3: ERP only benefits executives and management
Yes, ERP offers real-time information which helps upper management in the decision-making process. But the perks eventually spread into the entire business, smooth the operation process, and enhance the middle and lower-level executive performance. In simpler words, ERP solutions provide benefits across the organization.
Myth #4: ERP solutions are only used to impress customers
If implemented properly, the ERP associated system can impress the customer. But that’s not the only purpose of it. ERP solutions offer excellent services through operational efficiency and enhanced quality of products. Thus, it helps organizations to build strong goodwill among customers and improves their relationship with clients. Therefore, ERP systems have much more to provide than to just impress customers.
Myth #5: One ERP solution fits all
While selecting ERP solutions, companies should focus on the business requirement. For example, a firm which only offers a single product selects the different ERP systems compared to the manufacturing unit that provides multiple products.
Myth #6: ERP, SCM, CRM and MRP are all the same
Customer relationship management (CRM), enterprise resource planning (ERP), manufacturing resource planning (MRP), and supply chain management (SCM) differ completely from each other and target different kinds of businesses. These systems can be deployed individually or in combination according to the company’s business requirement.
Myth #7: ERP takes too long to implement
The time that is required to implement an ERP system depends on several factors such as customization, size of the business, the expectation of management, and the number of users. Along with having a dedicated team to implement ERP solutions, companies need to outsource a vendor who can offer technical support, regular updates, and training for execution.
Myth #8: ERP is an IT system and belongs in the IT department
Enterprise resource planning is a technology which requires input from all the department and involves ownership from hands-on worker to upper management. Although the information technology (IT) department plays an essential role in ERP implementation. But in the end, each business department is an integral part of the success of ERP.
Myth #9: I don’t need custom ERP solutions
Most business owners think ERP solutions are not customizable. According to the report of Panorama, 91% of the companies ended up customizing their ERP implementation. The remaining 9% are mostly small-scale firms that opted for one-size-fits-all solutions as it does not complicate their business procedures. If your organization is not a newly started company, you can opt for customization of ERP solutions.
Myth #10: On-Premise ERP solutions are outdated
Cloud-based ERP systems are rapidly gaining popularity, which is the reason most people think ERP solutions are a technology of the past. But it’s not true as 67% of the companies are still using on-premise ERP. The prime reason behind this is companies are not in favour of uploading all the data on a cloud, so they choose on-premise ERP, to have control over data.
There are plenty of myths written about ERP solutions out there. Don’t rely on these myths. Sort out the faulty information to make appropriate decisions for your organization. If your company is seeking technical and innovative ERP Solutions, NOI Technologies can certainly help you. Drop your enquiry here or write to us on [email protected] for OFBiz applications, custom ERP development, IT consulting, web design and development services.