As per Gartner, Software-as-a-Service ERP market is projected to grow at a CAGR of 28 percent.
Enterprise resource planning is a business management software which provides real time analysis, collection and storage of data for core processes within an organisation. It integrates numerous business processes and streamlines the flow of information among all departments providing transactional databases for error free decision making.
A multi-billion dollar industry, ERP software is a fast growing trend in the Indian market. Though, believed to be an indispensable management tool, yet there are some misconceptions that still surround enterprise resource planning. These myths at times hold back entrepreneurs from taking the final plunge into the ERP waters. Let us discuss here some of the myths about ERP.
5 myths about enterprise resource planning
Misplaced expectations, flawed assumptions, faulty information and promises are some of the main reasons why ERP implementation sometimes fail. The blame then is conveniently shifted to the misconceptions. The best way to dispel these myths is to educate the buyers before they go in for ERP implementation. Here are 5 misconceptions pertaining to ERP:
1. It is only for big businesses
This is a big one. There could have been some credence in this argument during the initial years of ERP. But, with the technological advancements and increased customisation, ERP now is equally effective for small and mid-sized businesses. Rather than having different business functions most companies, whether big or small follow similar business operations. Every organisation has an account department, purchase and customer support function and manufacturing and transportation needs, the difference is only in the scale of enormity.
2. ERP is Expensive
Again, this could be the case for high-end and advanced ERP solutions. But with the advent of mobility solution and cloud computing it is now affordable for companies of all sizes. The type and amount of customisation are the two main factors on which the cost of an ERP system escalates. When companies get too bogged down on the functionality front only then the cost of an ERP system seems to be expensive.
3. ERP implementation is a long drawn process
There are several factors that determine the time that is required for implementing an ERP system. Number of users, size of business operation, amount of customisation and management expectations are all important aspects that dictate implementation time. Also, apart from a dedicated implementation team, you need to select a vendor who can provide excellent technical support, regular upgrades and consistent training for successful execution.
4. ERP systems are only to impress customers
An ERP system primarily increases the operational efficiency of your organization. An efficient organization results in the production of quality products and offers excellent services. This increases goodwill among customers and also improves their level of satisfaction. Therefore, an ERP solution has much more to offer than to just impress customers.
5. An ERP system is only for the benefit of the top executives.
As an ERP system provides real time information, it does help top executives in the decision making process. But, the benefit percolates to the middle and lower level executives as well. With improved planning and communication and by eliminating duplication of effort it helps employees perform better across the organization.
Hence, if you want to improve the efficiency of your organisation, increase profit margins and keep your customers satisfied, it is time that you start thinking about eZnet ERP.
With 24X7 expert support, eZnet ERP can make the process of implementation convenient for your organisation.
eZnet ERP is self-hosted cloud based application that also provides complete overview of your organisation.