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Myths of ERP: Know the Facts that are not true about ERP (2020)



Myths of ERP: Know the Facts that are not true about ERP

ERP or Enterprise Resource Planning is one of the most used business management software or methodology platforms. It helps the business owners to perform the business-related tasks including real-time data collection, storage, as well as in its interpretation process. It combines several organizational systems flow among all the functions of a business. The principal aim of this software is to offer glitch less transactions in production.

Most of the enterprises are already using this software and enjoy the success of this software throughout the globe. It has become more common for large as well as small companies. Despite being a popular software, there are some misconceptions about the implementations of Enterprise Resource Planning in today’s business market. So, you can have a look at the following section to know the facts that are not true regarding ERP.

Enterprise Resource Planning is Expensive

ERP may seem quite expensive, but you will need to keep in mind that you will get huge benefits in the long run. In fact, you will get a higher return on your investment. The requirements of every business tend to vary. Technological advancements like cloud computing are expected to make this software more inexpensive. This software may not always be costly, but it is budget-friendly for any size of enterprises in the market.

ERP brings profits to Large Businesses only

This software was used by most of the larger companies in the past. But, nowadays, several smaller businesses started to use ERP due to its increasing options for customization. Enterprise Resource Planning comes in different shapes and sizes. So, selecting the accurate ERP solution, whether you are running a small or big business, is important in terms of longevity and effective implementation.

It only Benefits Management and Executives

It’s true that the ERP solution offers upper management essential information in making their important decision. But, the advantages of this software can spread to the entire process of the business. It can help you by improving the operational procedures as well as boosting the performance of your employees across all levels.

Furthermore, this software helps the user by enabling the extensive sharing of data. It may help you in growing communication, improving project planning, to lower duplication of tasks, as well as to lower the purchasing costs. In one word, it can benefit the whole process of the business.

This Software is only used to impress Consumers

If you implement this software in a proper way and use it efficiently, then it certainly has the ability to impress your consumers. But, it is neither the sole nor the original aim of this software. Offering excellent results through improved operational performance and enhanced the quality of your services or products is the main intension of ERP solutions. It can help your organization to boost the goodwill of the consumers as well as can help you to make a strong relationship with your customers.

One Enterprise Resource Planning Solution Fits All

It’s necessary to compare ERP solutions and then choose the best one depending on the requirements, features, functionalities, and trends of your business. For example, an organization that produces one product probably differs in its ERP than the requirements of an industrial unit that produces several types of products. On the other hand, an industrial unit that produces metal products will have different requirements than a chemical plant. The specific capabilities and attributes of Enterprise Resource Planning depend on the specific requirements of a business.

ERP, CRM, SCM, and MRP are all the Same

Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Manufacturing Resource Planning (MRP), and Customer Relationship Management (CRM) - all are separated systems. They have segregated targets for various business processes. All of these systems can be integrated and implemented individually. Or if you prefer, you also can use these systems in combination depending on the specific requirements of your company.

This Software takes too Long Time to Implement

The time needed for the implementation of this software depends on various factors. These include the size of your business, the leadership expectation of your company, the degree of customization, the number of your customers, and the availability of resources. Therefore, proper implementation of ERP needs a commitment extending from numerous months to a few years.

Final Thoughts

By lowering expenses, preserving time, and reducing errors, the implementation of ERP software can develop human processes in the market. But, it never destroys the human perspective of those methods.

2020-05-12 09:29:13


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