Enterprise Resource Management (ERP) is becoming more common in small and large companies, but the ERP myths below may be holding you back. Once you learn about these misconceptions, it should become more apparent how ERP can help your business.
Why Companies Implement ERP
Before we get into the myths, why do so many organizations implement ERP? Here are a few reasons:
- Better business reporting, which means one database for every business process.
- Enhanced customer service, which allows speedier response times, quicker product delivery, and better order accuracy.
- Lower inventory costs, so the organization only needs to carry the inventory needed.
- Improved cash flow for more accurate invoicing and more cash-on-hand
- Enhanced supply chain management for improved demand forecasting and fewer production bottlenecks.
And now for those ERP myths that might be holding your company back:
ERP Costs Too Much
ERP has a reputation for being expensive, but did you know that advancements with cloud and mobile ERP computing are lowering the costs?
Many cloud-based ERP companies offer flexible pricing packages that many smaller organizations find attractive.
ERP Only Helps Executives
It’s true that ERP can provide company executives with vital information to make better business decisions. But benefits usually apply to others in the business, as well.
Many companies enhance their operational procedures and improve their employees’ performance. ERP also can help employees share information more quickly, enhance project planning, and reduce task duplication.
The truth is that Enterprise Resource Management can help most organizational departments.
ERP Is Just For Huge Companies
Many companies still believe that Enterprise Resource Management systems are too complicated to deal with. And they also think they can run their organizations fine with basic databases and IT systems.
This is possible for small businesses, but traditional database systems are prone to human error and require many hours to manage. ERP can help small companies to increase efficiency and reduce human error, which leads to higher profits.
Many ERP solutions can be tailored to meet the needs of small organizations, and they cost less than you think.
ERP Is Just To Impress Customers
If your team implements ERP correctly, it can impress your customers, and that’s beneficial. But that’s just one piece of the ERP puzzle.
Offering better results with improved operational performance and better product quality services can help organizations improve customer experience. And when you make customers happier, they will tend to stay your customers for the long haul.
ERP Provides Instant Results
ERP isn’t like a light switch – you turn it on, and the benefits are immediate. You don’t need to wait years for benefits, but they will take time to reveal themselves.
Remember that your coworkers need to learn how to use the system and every department has to adopt it. When they do, you’ll start to see measurable results.
ERP Is Only For The IT Department
ERP isn’t just for the technical team. It’s an organizational asset that needs input and ownership from every department, including everyone from executives to administrative assistants.
Every employee in the organization can provide input on ERP and use it to their advantage.
ERP Implementation Takes Too Long
How long it takes to implement ERP depends on many things: the size of the organization, what leadership expects, how many users, and the amount of customization.
Successful implementation often takes anywhere from a few weeks to a year, depending on these factors. But most organizations find the time commitment is well worth it for the benefits.
There are many benefits to ERP, and when you understand that much of what you read online about it isn’t accurate, you can see how it can provide so many advantages to your organization.