Even in this decade of automation, there are so many misconceptions about the concept, infrastructure and implementation of ERP solutions. Thanks to these wrong notions, there seems to exist, a sense of reluctance among users to adapt to ERP. Here we are, with 6 of the most popular ERP myths demystified!
[Myth # 1] ERP is an activity primarily meant to impress the customers.
Truth - It is a true that ERP helps customers better by enhancing the operational efficiency of the organization thereby increasing the output quality. Quality products and services thus improve customer goodwill and relationship. But the advantages offered by ERP solutions are many more than just impressing customers.
[Myth # 2] One size fits all- We can just implement one ERP solution for all our group companies.
Truth - Based on the nature of business and the requirements, the ERP features and functionalities differ. So, it is best to analyze various ERP packages and choose the best fit according to the organizational needs. For example, a manufacturing unit that produces plastic goods have different processes when compared with a steel plant. So, accordingly the features and functionalities of ERP solutions differ.
[Myth # 3] We have an excellent business track record. We can expand our operations by scaling the extant processes.
Truth - We are in a world where distributed production and remote operations are prevalent. Managing the activities of an organization that has a mobile workforce and is spread across multiple locations, is a complex task. ERP can ensure operational efficiency and help managers to effectively control people and processes. <We need to talk about adapting to the latest technological advancements as well. The points specified do not completely demystify the myth.>
[Myth # 4] ERP is high-priced. Only multi national corporations can afford to it.
Truth - It is true that sophisticated high-end ERP solutions with large functionalities are very expensive. Thanks to the technological advancements like cloud computing and mobility solutions, ERP is available in all sizes and shapes. Companies like Ramco Systems provide cloud based ERP solutions based on the SaaS delivery model through which companies can pay according to their usage.
[Myth # 5] ERP is helpful only for senior management.
Truth - One of the unique features of ERP is automation of processes across the organization. This makes life easier for employees across all levels. So, it is not just for the big guys, but for the entire organization to benefit.
[Myth # 6] All our work will be taken care of by the ERP tools.
Truth - Present day ERP tools can automate most business functions but still there are numerous businesses activities that require manual intervention and intelligence.