Monday, 18 June 2018 14:43

Common Misconceptions Surrounding ERP Systems

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There are some common misconceptions surrounding ERP systems which can mislead customers away from pursuing an ERP system. This post will take a look at some of the most common misconceptions that Profitsflow have encountered from customers and how we answer these misconception. 

ERP is Only for Larger Companies:

A lot of people think that ERP is only made for larger companies and when ERP first became available, this was generally the case. Only big name companies could afford to implement these new and expensive systems.

However, the landscape of ERP has changed dramatically with it becoming much more accessible, and (most importantly) affordable, for smaller businesses. Nowadays, ERP systems are flexible enough that the system can be scaled to the size and requirements of any business.

 

ERP is “Too Complex”, to Use and to Implement:

People can view ERPs system as too complex, from choosing a solution to the implementation process. This procedure can seem very daunting, but if you can engage with the product and get the right level of support, then implementing an ERP system can change your business.

Frequently, companies decide to implement ERP when they realise their company will no longer function on a combination of different systems. Generally, companies need to operate on an integrated system in order to function efficiently and competitively.

ERP systems are seen as difficult to comprehend. But, anything can be difficult to use, until you know how. A good ERP supplier will never expect users to know how to use an ERP system from the beginning. An ERP system, for many, is a whole new way of doing things. At Profitsflow, we tell our customers to give themselves the time to get used to the software. Take advantage of the customer support and training that is provided as part of your software package.

 

“One Size Fits All”:

Some companies are able to use an “off the shelf” solution, but the majority of the time, some form of customisation is needed. Think about your business and how it functions, there are certain functions that may be similar to other businesses, but there will be certain functions that are unique to your business.

If customisation is needed, allow the time and money for the customisation in order for your company to receive the ERP system that will streamline and elevate your business functions.

 

ERP Only Benefits Management:

With an ERP system, each user can only access the software components that are relevant for them, with only a select few having access to all modules. Each user may not have access to the whole system, but that does not mean that an ERP system will only benefit management.

An ERP system provides information from all departments of the business, with each user contributing data to the bigger picture, the company as a whole. An ERP system consolidates all departments of the business, providing better insights and transparency, which benefits the company as a whole by streamlining workflows, improving efficiency and providing better decision making capabilities.

 

ERP Has to be Cloud Based:

ERP does not HAVE to be cloud based. However, a lot of ERP systems now offer a cloud based solution. The shift to cloud based solutions has enabled smaller businesses to access ERP systems, as they do not need to pay the upfront cost of hardware, instead it is a monthly or annual fee.

Cloud based solutions have gained a lot more popularity in recent years, but that is not to say that a company cannot go down the traditional route and install hardware on premises. It is even possible to do a mixture of both, both on premises and in the cloud.

 

If you have any questions about Profitsflow, our products or ERP, please direct them here.

To read some more of our blog posts, click here.

 

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