Enterprise Resource Planning (ERP) is a transformative technology for any business.
The right ERP software can help you organize, automate and improve your business. Unfortunately, choosing software at random increases the risk of wasting money without boosting your business.
ERP software allows organizations to become more flexible and efficient by making data-driven decisions. They combine business processes into one hub from which you can easily manage your entire business.
However, adopting and implementing an ERP can have a wide range of results. This explains the misconceptions, truths and myths around this business software. Some organizations believe their business is not complex enough to warrant an ERP.
This is not the case. Every business has enough complex processes to streamline and improve. Another misconception is that ERP software is only suitable for large companies or those in resource-intensive industries, such as manufacturing, food and beverage, or retail.
Even small and medium businesses can benefit from an ERP solution, and if it has been customized for their organization.
Myth: An ERP should be implemented all at once
Gartner coined the term “postmodern ERP” which is the next logical step in the evolution of this technology. This means that modules in these systems can be replaced when they become obsolete or redundant.
This option helps improve business processes without spending resources on developing and deploying an entirely new software solution.
Instead, you can add new modules to the already used application and perform customization if necessary.
Customization has long been a feature of ERP deployments, which is aligned with the flexibility and agility expected of these software solutions.
Myth: ERP must always adapt to existing business processes
The truth is that organizations often rush into automating previous processes, often out of habit, but more often due to poor planning. The organization should view its ERP implementation as an opportunity to conduct a comprehensive review of its business processes – and be open to change.
An ERP can be implemented in stages. This ensures that you are using all tools and processes. Such a solution can help drive analytics efficiency, improve reporting, and enable better business decisions without disrupting business processes. Businesses are looking for growth and with a custom solution you won’t outgrow your software. You can always reconfigure it later.
The author is the CEO of SYSPRO Europe, Middle East and Africa