There are many misconceptions about SaaS ERP systems and how realistic it is to consider incorporating this kind of technology into your organisation. There is oftentimes a sense of reluctance when considering implementing ERP due to these flawed conceptions. Read on to find out more about the most common ERP myths and how they may not be as true as you think.
#1 ERP is too expensive
While high-end ERP solutions may be more on the more expensive side, technical advancements such as mobile and cloud computing are expected to make ERP software more affordable. Additionally, many ERP software companies offer multiple packages of varying prices depending on what your company may need.
#2 ERP implementation always takes longer than agreed upon
Implementations that exceed the time allotted aren’t common. Any failures in this respect can be attributed to poor planning and prevented with the right processes. Customisation and technical integration are the top two reasons for duration issues and can be avoided by fully understanding your company’s feature needs.
#3 ERP is only for Big Business
It is true that, initially, larger organisations embraced ERP solutions, but current designs work just as effectively for small firms. They are highly adaptable for a wide range of customer sizes because most companies are more similar than they are different and the basic concept of integrating data from a variety of functions across an organisation is universal.
#4 ERP functionality is the only important consideration
Despite what many think, the technology itself is not the only factor that is necessary to consider when choosing an ERP vendor. While it is a critical portion of the puzzle, there are several non-technical factors that are also important to think about. Selecting a vendor that matches your company culture and has past proven customer successes with their implementations are just two components that need to be considered.
#5 ERP customisation is difficult
Adaptability in ERP is considered a challenge to many companies, but ERP is actually all about change and growing in sync with new ideas. Once a system is implemented, it shouldn’t have locked in features if the correct vendor is chosen that allows for flexibility and customisation. That way, there is no need for costly custom development in the future.
#6 ERP is one-size-fits-all
It is not possible to simply implement one ERP solution for all companies because, based on the nature of the company and their requirements, the ERP features and functionalities differ. With this in mind, it is critical to analyse multiple ERP packages and pick the best fit depending on organisational needs.
#7 ERP is helpful only for senior management
ERP certainly provides a plethora of information to executives and management for decision-making purposes, but the benefits also extend to the rest of the company, improving operational procedures and boosting employee performance throughout all departments. ERP software increases communication, improves project planning, cuts down mundane tasks and lowers purchasing costs across all levels.
#8 ERP belongs in the IT department
As stated before, ERP benefits the whole company and is implemented across all departments. Therefore, while information technology is a critical portion of ERP implementation and maintenance, every organisational function has an important role to play and reaps the rewards of the system.
#9 ERP will make employees redundant and jobless
While ERP does automate most mundane and routine business functions, an organisation cannot survive with only this technology. The way the company works may become more efficient and transparent, but ERP is highly unlikely to reduce your need for personnel. There are still so many business activities that require manual intervention and intelligence.
#10 ERP is too hard to learn
Midmarket companies assume the ERP vendor installs the software and then “disappears” without educating or training the staff. On the contrary, many ERP providers support customers long after implementation takes place and assist with an individualised education program based on the company’s unique needs.
Even the most popular of qualms related to ERP implementation and deployment can be attributed to flawed thinking and are not necessarily true. By addressing the above ten myths and considering them in relation to your business, you can put more faith in your ERP solution and enjoy a smoother journey to your new system.
Interested in learning more about what to look for in an ERP vendor?