I wrote an article on the ‘Top 4 Common Business Software Misconceptions’. Today’s article is a continuation of that blog, but focusing more specifically on the misconceptions related to ERP software systems.
These misconceptions have the power to prevent business executives from implementing a fully integrated ERP software solution at their company; which is why it’s important to know the truth about ERP.
Here are 4 ERP misconceptions:
Misconception #1 – ERP solutions are too expensive for Small Businesses
Cost is always a major concern when it comes to ERP systems and it’s common for business people to assume it’s expensive. However, with the rise of SaaS solutions in the ‘Cloud’, a fully integrated ERP software system is affordable for businesses of ALL sizes. So even if your business consists of a team of only 10 people, you can afford to implement an ERP system and improve and standardize your business processes.
Misconception #2 – ERP systems ALWAYS require customization
Customization usually leads to increased risks and costs and a lengthy implementation phase. What’s important to realize is that most ERP Providers have designed and developed their systems by following industry best practices and the most efficient ways of doing business. Therefore, by changing the out-of-the-box ERP system to fit with your current business processes may not be in the best interest of your company. Without even realizing it, you can be customizing the system to be inefficient. On top of this, the more changes you do to your system the more you increase your chances of having complications during future upgrades.
Misconception #3 – An ERP Project is the responsibility of the IT Department
Yes, ERP solutions are under the care and maintenance of an IT Team but they are not solely responsible. ERP is considered a business asset; in order for the system to have a positive impact on an organization, it must be handled as a joint effort between the IT team and the company’s management. Continuous business input from all employees is necessary to improve the company’s operations throughout the years. Running an ERP system as a business initiative will ensure it is creating value and continuously evolving to reflect business requirements.
Misconception #4 – ERP Projects end at the Go-Live date
First and foremost, it’s important to know that ERP projects do not have an “end” date. An ERP system in the ‘cloud’ is constantly improved and updated even after the implementation phase. The ERP Provider’s job is never done as they should constantly be maintaining and finding ways to make the system even better throughout the years and ensuring it never becomes out-dated. The same is true for the organization’s management team, as they should constantly be giving their business input to the ERP Provider and working together to find better ways of doing business. The goal of an ERP solution is to improve business processes to make the business more efficient overall – this is never-ending