5 Myths of ERP software implementation
While implementing ERP solutions for companies of different sizes, we have come across many misconceptions regarding ERP systems. This is not uncommon as different companies do have differing experiences when it comes to ERP software implementation. Many of these myths still exist today and often times discourage potential implementers of ERP systems. We have identified 5 myths that have plagued the ERP landscape. At the same time, we will highlight the corresponding actions that will ensure a successful ERP implementation.
Myth 1: ERP software is for big companies
In the past, ERP software used to be out of reach for most companies and it seems that only multinationals implemented it. This perception has led many small and medium enterprises (SMEs) to shy away from implementing ERP as they do not think of themselves as in the “multinational” category. The fact is ERP can help all types of companies in different industries to automate their business process and reduce time consuming repetitive data entry work, including many SMEs.
In fact, since many SMEs do not have the luxury of a generous headcount, the same employee might have to multitask and handle different portfolios. Here is where an ERP system can help to automate the business process, allowing the SME to do more in the same amount of time. Hence no matter whether a company is “big” or “small”, as long as productivity and efficiency is important to the business, an affordable ERP system like InfoMaster ERP will be able to help businesses to work efficiently and easily.
Myth 2: ERP software is difficult to implement
This misconception is also due to the evolution of ERP. ERP used to be associated with many multinational manufacturing outfits where it started off as MRP (Material Requirement Planning). Subsequently, as requirements and scope of automation increased, it came to be known as Manufacturing Resource Planning (MRPII). Those who have heard of people experiencing sleepless nights implementing MRP might think that ERP is the same or worse. Well, not exactly. It really depends on the specific ERP software you have in mind to implement and the scope of the implementation. InfoMaster ERP is known to be simple to implement and user friendly. This reduces the learning curve and helps companies to go “live” in no time.
Myth 3: ERP software is not suitable for my industry
The main reason for implementing ERP is to integrate information across all departments. No matter what industry you are in, the core departments are more or less the same. This might includes sales, purchasing, inventory, finance, production, service and project departments. All these departments rely and exchange documents with one another. With ERP, it brings all these departments into one system thus allowing the company to analyze performance, improve processes and achieve better efficiency.
In addition ERP gives your visibility over your business process. Regardless of industry, you will be concerned about sales, costs and profitability. You will also need to identify fast and slow moving items,selling and buying price fluctuations, late deliveries, outstanding order and deliveries, etc. In fact, many businesses do not have access to this information or take a long time to get the information. InfoMaster ERP’s inquiry function provides a central dashboard where all this information can be obtained with a click of a button.
Myth 4: All ERP software is the same
While all ERP software share similar core modules, they actually differ greatly from one another. Some ERP systems are catered to larger enterprises where different businesses and processes are in place. These systems require complex configurations and interactions between departments and have a longer time to implement. Generally such multi-industrial discipline approach will need to use an ERP software that is multi-disciplinary. The availability of these ERP systems are few and far between. Generally, most ERP software vendors target a specific industry or verticals (e.g., distribution, manufacturing, construction, retail, etc.). If your business is geared towards a certain industry type, e.g. construction, you will find it beneficial to look for an ERP software that has modules catered for that specific industry. In this way, you will do with less customisation and shorter implementation time. The solution would also be time tested for use in that industry.
Myth 5: I already have an accounting software
The most common misconception is that since I am already using an accounting software, I do not need to implement ERP. The basic fact is that these are 2 different software altogether. Accounting is just one part of the ERP landscape. For many companies using accounting software, only the accounts department will have access to the data. This places a big strain on one or two persons in the accounts department to enter and manage the data in the system. Once business volume grows, more people are needed in the accounts department to addon to the workload. This usually does not happen, so it is left to the existing headcount in the accounts department to cope with the workload. This can be circumvented with an ERP system. Since ERP is meant for enterprise wide usage, the existing manpower can be used to tap on the ERP system. This divides the workload equally to all in the company and reduces redundant data entry work which otherwise have to be done repetitively. Rather than asking the accounts department to generate reports, each authorised personnel in the department will have self-service access to the central database. Having an accounting software is a good first step. Implementing a good ERP software will be the natural second step in the business growth process.
Listing of other Articles on ERP software
- 7 reasons in ERP implementation failure – Part 1
- 7 reasons in ERP implementation failure – Part 2
- 7 reasons in ERP implementation failure – Part 3
- 5 Myths of ERP Software Implementation
- Benefits of implementing an ERP system