Enterprise Resource Planning (ERP) is an essential tool that is used by businesses to streamline and increase the efficiency of their operations. Research study says that companies that implement ERP can realize up to 75% improvement in overall operational throughput. Despite its wide popularity and usage, there are some misconceptions about what ERP does and who its beneficiaries are.
It’s important to clear the misconceptions about ERP in order to implement it at the right time and realize its full benefits.
Misconception 1 – Involves Only IT Professionals
Reality – IT is the key player in ERP implementation. However, the final product will be owned by users across all departments. The responsibility to train users in ERP usage lies with the HR department, which works in tandem with IT to ensure complete internalization of the ERP tool. The primary users of ERP are not only top management. It includes even the front-line employees in an organization since they are the primary source of input for various ERP data that will be collated for reports.
Misconception 2 – Long Implementation Time
Reality – ERP software is now available across a wide range of business models and hence, implementation time has been largely brought down. Today, ERP caters to the complex needs of manufacturing organizations and can be tailor-made to simplify complex processes and suit the business need.
Misconception 3 – Suitable Only for Large Companies
Reality – The most common misconception about ERP is that it is suitable only for large organizations. ERP software is usually highly scalable and flexible. It can be customized to suit the needs of individual organizations. It is possible for companies of all sizes to realize the benefits of ERP implementation, which results in accelerated time-to-market. Rapidly growing small and medium businesses can benefit immensely from ERP solutions because of their highly scalable features.
Misconception 4 – Internal Teams Cannot Implement
Reality – When you choose an ERP system, it also means you choose a suitable internal implementation team. ERP service providers usually work in tandem with internal IT teams and other subject matter experts to understand the unique needs of your business. Therefore, before finalizing the ERP implementation partner it’s important to assess what kind of after-implementation support they will provide which includes training, software upgrades, etc.
Today, manufacturers are increasingly turning towards the implementation of a robust ERP system that connects them to delivery units, third-party logistics, warehouses, suppliers, and customers. ERP tools can largely help deliver operational excellence by providing users with everything they need in one place. It also helps make the entire supply chain network transparent and easy for analysis. ERP implementation empowers employees and senior management to make informed decisions about inventory, cost control, and more.
If you are looking to implement ERP for your organization, Infoways is the right choice. We are an Infor Channel Partner and National Reseller of Infor LN (previously called Baan), the company’s flagship ERP solution. Infor LN has been designed for speed, and to master complexities of the manufacturing segment. If you want to explore working with us, send us a line and our experts will get back to you.