True and false about ERP solution

Date: 18-10-2012
Author: Anca Cazacu

Even in this decade of automation, there are so many misconceptions about implementing ERP solutions. Thanks to those wrong perceptions, it seems to exist a sort of reluctance among users to adapt to ERP. According to Forrester Research, there are at least 15 myths about ERP solutions, and the most popular ERP myths refer to price, advantages, implementation and beneficiaries of the benefits of using such solutions.

Those myths are false or true? Let's see.


1. ERP is high-priced

It`s not true. Yes, sophisticated high-end ERP solutions with large functionalities are very expensive, such a complex integrated application being addressed more to medium and large companies. But now, thanks to the technological advancements like cloud computing and mobility solutions, ERP solutions are available in all sizes and shapes and any company size can benefit from advanced technology and flexible management solution at a fraction of cost.


2. ERP system is helpful only for senior management

To ordinary employees, accustomed to a certain lightness of collecting and entering business data, implementing an ERP solution, which involves compliance with very stringent steps of how data should be processed, it is not always well received and is seen rather as an additional way of control imposed by the company`s management. But the truth is that one of the unique features of ERP is automation of processes across the organization. And 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.


3. ERP solutions are meant to impress the customers

It is a true that ERP solutions help customers better by enhancing the operational efficiency of the organization and, finally, increasing the output quality. And quality products and services will improve customer goodwill and relationship. But the advantages offered by ERP solutions are many more than just impressing customers.


4. Implement one ERP solution for all group companies, even if their business activity is completely different

It is true that any ERP solution has a basic core functionalities which can fit to any type of business, like Treasury or Accounting. But based on the nature of business and the specific requirements, the ERP features and functionalities differ. For example, a manufacturing unit that produces preforms (PET) have different processes when compared with a steel plant or a food plant. So, it is best to analyze various ERP packages and choose the best fit according to the organizational needs.


As you can see, after my opinion, all those myths were demystified! But I'm curious to know what is your standpoint related to the four myths that I mentioned above.