Erp Solutions: Myths Vs. Reality

An Enterprise Resource Planning (ERP) system attempts to amalgamate business processes

across the departments onto a single enterprise-wide information system. The main benefits of ERP are superior coordination among various functional departments and improved efficiencies of conducting business operations. However, even after the years of hands free operation, there still exist so many mistaken views about the plan, facilities and rendering of ERP alternatives. And, it is due to these unreal beliefs only there is a sense of reluctance among customers to go forward and adopt ERP freely. Following are the major prevailing ERP myths:

Myth 1: ERP solutions are mainly used to impress the customers.

Reality - It is been observed that ERP solutions facilitates clients better by enhancing the operational performance of the enterprise thereby producing excellent results. Quality products and services thus provide client with good repute and association. Hence the assistance provided by ERP solutions are many more than just attracting customers.

Myth 2: One solution fits all. Single ERP solution works in all enterprises.

Reality- ERP attributes and capabilities must be altered depending on the features of enterprise and its requirements. So, it is recommended to compare different ERP solutions and select the most suitable one as per the business requirements and trends. For instance, a manufacturing unit makes a variety of products and follows different procedures in contrast to a precious metal flower manufacturing unit that produces same products. Thus, consequently the attributes and capacity of ERP changes with the need.

Myth 3: Companies with an excellent reputation believe in following the existing procedures.

Reality - We live in a society where individuals propagate their characteristics from generation to generation and attributes are far apart in relevance. In such a scenario, managing the acts of an enterprise that has mobile workforce, spread over places all over the world is difficult. ERP solutions ensure functional performance and help managers in managing staff and process successfully with ease.

Myth 4: ERP is quite expensive. And can be afforded by multinational corporations only.

Reality - It is true that high-end innovative ERP solutions with huge capabilities require spending a big amount. However, due to the technical advancements like reasoning processing and flexibility alternatives, ERP is made available in all styles and sizes. ERP vendors these days provide company specific or customized ERP solutions depending on the organizations and their usage.

Myth 5: ERP is good only for big or high end employees

Reality - One of the benefits of ERP is automatic operation of procedures throughout the entire company. This creates workers job quite easier uniformly across all levels. Hence, it would be wrong to say that it is just for the big folks; rather ERP solutions are for the whole company to benefit.

Myth 6: ERP takes care of the entire work of the organization on its own

Reality- Thats true that present-day ERP solutions augment most companys capabilities but still there are few actions that require direction, guidance and human intellect to be roped in prolifically.

Thus, it can be said that ERP solutions, if implemented properly, raises the efficiency level of an organization to a great extent.

by: Clark Thomes

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