Common myths and Evolving realities

Common ERP Myths

There are a lot of myths that surround the concept, infrastructure, implementation and practice of enterprise resource planning. Very often people are not willing to adopt ERP because of these wrong notions. In this section we will see some of the most common myths about ERP.

There are following myths about enterprise resource planning.

a. ERP means more work and procedures- Transforming traditional system to ERP is difficult. For this new skills have to be learned. Many employees think that ERP will add more work and make the work more difficult. If management and implementation team plan properly and employees are given proper training then transition can smoothly take place. 

b. ERP will make many employees redundant and jobless- Another popular myth is implementation of ERP many employee will lose their jobs because of the automation of business process and tasks. ERP automate tasks in the organization and also create new opportunities. 

c. ERP is just for the managers/decision makers- Managers and decision makers uses ERP the most. But this is also true that every employee in an organization benefits from ERP system by high quality and timely information. 

d. ERP is the only responsible for the management- ERP system and its work has the duty of all the employees, every department and every single person within the department. Management just plays a role of given that back to ERP system. When ERP system will have full backing support from the management then only its will be able to work smoothly. 

e. ERP is just for manufacturing organizations- This myth is basically due to ERP has evolve from MRP and MRP II which are relevant to manufacturing organizations. ERP focuses on all of the areas of enterprise, wide planning and its resources. It is not related to only manufacturing or any other particular department. 

f. ERP slows down the organization- In the traditional system most business tasks were performed manually which was a time consuming process. ERP system automated the flow of information within different departments of an organization without duplication of errors and provides more accurate results. 

g. ERP is just for the ERP implementation team- In an ERP implementation team there are consultants, vendors and group of employees. After the implementation and the user training is over,consultants and vendor representatives will leave and then it becomes the responsibility of employees to make best use of ERP system. 

h. ERP is just to impress customers- ERP system helps in serving better. It also help company to react faster, response better and deliver accurate, fast and quality product which improves customer goodwill and customer relations. 

i. ERP package will take care of everything- A properly implemented ERP can automate tasks, reduce waste improve profits but ERP system needs people to operate it. 

j. One ERP package will suit everybody- For different organizations you need different ERP systems because one organization is different from other in its functionality, price, technical supports size, features. Thinking that one tool will be suitable for all organizations it is wrong. For an ERP system implementations successful tool should be according to organization culture needs. 

k. ERP is very expensive- ERP system comes in different size and shapes. High-end tools are very expensive. Qualified people are requiring for proper implementation and effectiveness. So implementing and managing ERP system is expensive. But the ERP system gives more benefits against expenses. 

l. Organizations can succeed without ERP- In today‟s scenario organizations are becoming large in size and technology. Today‟s era is of distributed production in which different parts of one product is developed in different parts of world. In such scenario, to integrate and control the activities of an organization can be only done through ERP system


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