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ERP Software – 5 Misconceptions That Growing Businesses Have

Posted by Indusa Admin on November 10, 2015 1:06 pm

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With organizational growth, complete visibility into important business processes across all of your teams is essential to make effective decisions. Successful implementation of ERP software enables you to integrate core functions into a single software application, streamline workflows, and improve business efficiency. In order to sustain in a competitive environment, ERP systems need to be agile, cost-effective, and innovative. While the latest ERP systems offer various benefits like unified reporting, automated tasks, improved integration and collaboration, centralized management, and improved visibility, there are numerous organizations that will fail to take advantage of these benefits due to the below 5 misconceptions.

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Misconception #1: ERP Implementation is Expensive and Time Consuming
Proper planning and implementation of ERP systems is often time consuming, taking years to complete and even longer to prove the full bearing that they’ve had on your organization. Migrating from an outdated ERP system is surely an enormous task, but with modern ERP solutions and experienced resources, successful implementations can be carried out under budget and on time. With advances in technology, several ERP systems are currently available in the market that are reliable and do not need excess customization, improving the overall management of projects, less implementation resources and time needed for go-live. Additionally, you can choose a cloud-based ERP system, and enhance access to information, reduce operating costs, and minimize risks that can be involved with deployment. Using cloud tools, you’ll be able to take advantage of extensive flexibility and agility in implementation and maintenance of your new ERP system.

Misconception #2: Return on Investments Accumulate from Day 1
Limited knowledge about contemporary ERP systems can be detrimental. It’s a common misconception that implementing an ERP will provide transformational benefits from the very beginning. While newer ERP systems and versions lead to measurable benefits including comprehensive reporting and automating processes across the enterprise, these benefits are realized only after a certain period of time. Detailed introduction to ERP systems and rigorous training of users is key for achieving benefits in the long run. Intensive classroom as well as hands-on training makes the entire organization confident and well-versed with using the new ERP software.


Misconception #3: Smaller Companies Don’t Require ERP Systems
Numerous organizations consider ERP systems as an important tool only for large establishments, citing high cost and greater risks as major hindrances for smaller organizations. By adopting contemporary systems and processes, small businesses can also achieve economies of scale. Modern day ERP systems reduce the risks associated with manual and traditional processes, depending entirely on up-to-date and innovative tools and features. They enable small establishments to automate processes, generate customized reports and improve collaboration between various business units, helping you achieve your outcomes in a shorter time frame. By investing in a modern ERP system, smaller businesses can efficiently allocate time and resources for activities to keep projects on schedule and deliver tremendous business value.

Misconception #4: Separate ERP Systems are Required for Remote Business Units
Technological advances have enabled businesses to set up units in remote locations to achieve cost benefits. The presence of highly disparate systems for different processes and the need to manage each of them individually restricts you from achieving excellence. For instance, businesses that experience immense growth often hold off on upgrading their systems and continue to rely on outdated and time consuming activities that hamper their development. Modern day ERP systems automate business processes across the organization, eliminating inefficiency caused by department or region silos. You have the ability to bring together various disparate systems into one unified platform, and improve collaboration and management.

Misconception #5: Implementing ERP Systems will Lead to Layoffs
There is often a fear that automating business processes by implementing ERP systems will lead to surplus job losses and layoffs. An adoption of an ERP system, on the other hand, actually can help companies retain their employees by offering them value-added jobs. ERP systems align with the dynamic business needs of the organization, leading to a more satisfied and productive workforce. Modern ERP systems have made employees’ jobs easier with easy access to a vast pool of computing resources, up-to-date information, real-time reports, and innovative tools. ERP systems will enable your employees to be far more efficient, resulting in better business process outcomes for organizations of all sizes.

Achieve Business Goals with Ease
ERP systems are fundamental for business success, helping organizations streamline processes and workflows with a single integrated system. Better planning, increased visibility, improved efficiency, and enhanced collaboration enables you to make more effective decisions and achieve business goals, in order to stay competitive in a dynamic environment.

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Keith
About the Author – Keith Reali

Keith is a financial and management executive with broad experience in all aspects of business including general management, project management, cost management and financial management.

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Topics: ERP