In all honesty, ERP has a bad reputation. Unfortunately, there have been a few companies where the system was not implemented correctly, so they got burned. The horror stories of these companies have seemed to stick better than the successes leaving people with a bad idea of ERP. These stories about ERP failing, however, are usually because the company didn’t do their job of researching or implementing the system correctly. It’s best not to believe all that you hear in these cases because they are most likely ERP misconceptions. Here are four of the most common ones highlighted below:
One Size Fits All
Every ERP system is as different as they can be. A company producing shoes is going to have a completely different method and recipe than a company that makes and packages donuts. Their ERP systems are going to have to work differently for them to both get everything they need out of the system. If a company swears that a certain ERP system doesn’t work, in all reality in may just not work for them.
Only Large Corporations Need ERP
This is one of the most common – and furthest from the truth – ERP misconceptions. Small businesses can benefit from ERP just as much as large corporations. Although ERP systems are known for their big price tags, the boom of cloud ERP has made it much more affordable for small to mid-sized businesses. Especially if a small business is experiencing growth, an ERP system can help to manage that growth and continue on that path.
ERP is for IT
If a company who struggled with putting in a new system tells you this ERP misconception, then the red flag can automatically be raised for why they failed. The number one way to ensure ERP becomes a success is to involve every department in the implementation process. Everyone who will touch the software should be trained in it, or you will have an expensive system that will never get used.
Although ERP does have great reporting benefits for executives when it comes to decision making, its most powerful functions benefit team members on the shop floor, in the accounting department, or any other department. ERP eliminates mundane, manual tasks, which frees up more time for team members to get more done and become a more valuable asset to the company.
Not only is every ERP system different, but every company’s experience with ERP is different. Don’t let someone else’s ERP misconceptions influence the decisions you make. Talking with a consultant who can check your business process, come up with a plan and is an expert in ERP systems is the best way to find out what it is really all about. You can most likely benefit from an ERP system, so learn about it for yourself.
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Choosing the correct ERP software solution is a major strategic business decision with long-term implications. While most businesses spend time and resources evaluating the efficacy of newly implemented software, it is vital that this same focus is brought to evaluating your ERP software options prior to the point of purchase. When Does Your Business Need
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