Momentum Software Blog
6 Myths of ERP
1.ERP is for large businesses only.
Initially developed for larger businesses and organisations, an increasing number of small businesses are embracing ERP. ERP is very adaptable and can be customised for a vast array of business types, business processes, and workflows. On a basic level, there is an accounting function, a purchasing function, customer service, manufacturing, project management and inventory. Integrating the data from the various functions is essential for all businesses and increases efficiencies and productivity.
2.An ERP will run my business
An ERP is designed to support your business workflow, by integrating data from various sources such as purchasing, manufacturing, and accounting. The point is to give you access to live data in a format which gives you insights into your business and allows you to make sound business decisions. However, it will not run your business. You and your employees run your business.
3.ERP Solutions are expensive
Purchasing an ERP is an investment, similar to any asset your company owns and there are on-going costs involved similar to maintaining an asset. The main difference being, ERP has the added benefits of more efficient workflows, increased productivity, access to live data, the ability to control cost, being more competitive and enabling growth. Implementation of an ERP sometimes results in a blow out of the budget, however, if detailed scoping is carried out, expectations set, and thorough training provided it should be maintained. When balanced against the ongoing costs of time spent using excel spreadsheets and disparate systems, I'd say it was a no-brainer.
4.Our team is savvy - we can implement it.
You might think your business is the same as many others in the market place. Or you might be so confident with your own or employee skills you might think implementing an ERP is easy. First of all, no business is the same. Every business started in a different way and grew with different people and processes. Secondly, an ERP is highly customisable so it can be adapted and developed for your unique business processes. An ERP partner understands this and has the knowledge, experience, and skills to adapt your ERP to support your business exactly the way it needs to. An ERP partner should manage the implementation in such a way that everyone should know exactly what stage they are at and what information has to be provided to ensure a smooth go-live that has been tested.
5.SCM, CRM, MRP, and ERP - are one and the same.
Supply Chain Management, Customer Relationship Management, Manufacturing Resource Planning are actually all functions that sit within an ERP. ERP is a system that manages not only your finances but all other functions required to run your business, including BI (Business Intelligence), MRM (Materials Resource Management, JIT (Just-in-Time Inventory), POS (Point-of-Sale), Fixed Asset Management and Project Management. By integrating these functions you can gain new insights, tighten up processes, and increase productivity and competitiveness.
6.ERP is not good value for money.
Whilst the implementation and upfront costs of an ERP can seem expensive, consider the cost of not getting an ERP. If you are using disparate legacy systems, exporting to spreadsheets to analyse data that may be up to a week old - how can you be competitive? Imagine having an integrated system that can improve efficiency and therefore productivity in all aspects. Improved workflow means less frustration for employees which also increases productivity. Your business should easily provide a superior service or product through improved performance which will boost customer goodwill and increase turnover.
ERP technology can give your organisation more efficiency, operational excellence and ultimately more profit.