Myths of Implementing ERP Systems


Eilidh Edgar

Senior editor

Parul Saxena

Chief editor

Last updated: July 14, 2021

Enterprise resource planning is no longer exclusive to giant multinational corporations. A growing trend, even small businesses, and new startups have realized the various advantages of ERP systems!

Here’s an eye-opening statistic – the global ERP software market is expected to exceed 49.5 billion dollars by 2025.

Massive, isn’t it? It is time to jump on board the enterprise resource planning bandwagon. Read on to dispel some myths about implementing ERP systems and gear up to get the best system for your organization!

What will you learn from this blog? 

  • Understand the concept of enterprise resource planning.
  • Learn the various myths related to ERP and decide whether implementing ERP software will help their organization.

What is ERP?

Enterprise resource planning (ERP) is a business process management software that enables organizations to use integrated applications to manage diverse business functions. It automates many back-office functions related to technology, services, and human resources.

Looking for ERP Software? Check out SoftwareSuggest’s list of Best ERP system solutions.

The process is encountered with Several pieces of advice emerging on how you can address the different challenges and numerous benefits of this standardized system.

There are still many people out there who hesitate to implement ERP systems notwithstanding the importance of such systems, courtesy of the myths prevailing about them.

Now, because of such wrong perceptions, business owners feel reluctant to adapt to an ERP system.

Most Common Myths About ERP systems

ERP is a must-have business asset that can bring about a host of benefits. Research shows that 95% of companies have experienced significant improvement in their workflows after implementing ERP.

However, there are many misconceptions about ERP software that continue to prevail and impede business owners from adopting this revolutionary technology. It’s time to debunk these myths, so read on to understand the real picture of ERP software.

1. ERP Systems Are Expensive

Implementing ERP software may indeed require a large investment outlay.

However, implementing ERP systems will also help you save money in the long run by lowering your costs and making your workflow more efficient.

Besides, not all of these solutions are expensive. Thanks to advancements in technology, many low-cost solutions are very readily available. Small businesses can save up to 21% by negotiating with service providers!

2. ERP Systems Benefit Only Senior Management

The benefits of ERP will be seen all across the organization and are not limited to the upper hierarchy. ERP implementation can help mid-level managers and junior employees by automating routine tasks and streamlining workflows. ERP software is an all-inclusive solution that can benefit the entire organization.

3. One ERP Software Fits All

It is important to scan the market, compare ERP system offerings, and choose the system that best fits your requirements. What works for one organization may or may not work within another. Make sure that your ERP software has the functionality and features that you need to increase bottom-line performance.

4. The Purpose of ERP Software is to Impress Customers

A survey conducted on ERP service providers revealed that ERP software leads to a whopping 68% increase in customer satisfaction. However, that is not the sole or primary purpose of implementing ERP solutions. It also leads to faster response time, improved quality, and better operational performance in all functional domains.

5. ERP Software is Ideal For Large Business Corporations

Although larger companies typically used ERP software in the past, this is not true in the current business environment. Many ERP modules in the market cater to small business requirements. Service providers can also easily customize ERP solutions to ensure they fit the capability requirements and budget of small organizations.

6. ERP Systems Take Too Long To Implement

Many business owners do not take the plunge to implement ERP systems as they feel it will take too much time. The actual time for ERP implementation depends on several factors such as feature integration, degree of customization, and the number of final users. However, most efficient service providers ensure quick and hassle-free ERP implementation in a few months to a year.

7. ERP Software Cannot Be Modified Once Implemented

The best part of ERP implementation is that it is highly customizable. They can always be modified according to your needs or any changes in the organizational structure. Some of these systems are designed in a modular format, which means that it is possible to modify only a particular module without affecting the rest of the system.

8. ERP Software Is Complicated

A popular myth is that implementing ERP systems is highly complex and cannot be used by non-technical people. Well, that doesn’t hold anymore. Modern ERP solutions have navigable and user-friendly interfaces. Most employees can easily work their way through ERP software with some initial training and IT support.

9. Vendor Support Is Not Required

Many key decision-makers do not consider vendor support while implementing ERP software as they feel the internal IT team can handle maintenance issues. However, vendor support is not an afterthought. It is essential to choose your ERP service provider wisely and ensure that they are ready to provide post-sales support while your team adapts to the new system.

The Bottom Line

Before putting aside the funds for implementing an ERP system, you should conduct an extensive feasibility analysis to ensure that this is indeed the right solution for you. Always remember that despite all the advantages, sometimes this system just may not prove to be feasible for your organization.

Gain knowledge about ERP software to make an informed decision for your organization. The right ERP software can prove to be a tremendous organizational asset and increase bottom-line results exponentially!

Eilidh Edgar is a brand management executive working for one of the biggest team of coursework writers. Furthermore, she blogs brand management and marketing tips for beginners to help them devise effective brand marketing strategies.

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