Enterprise resource planning (ERP) is a transformative technology for any company.
A properly chosen ERP software can help you to organise, automate and improve your business. Unfortunately, choosing the software randomly ups the risk of wasting money without boosting your business.
ERP software allows organisations to become more flexible and efficient by making data-based decisions. They combine business processes in a hub from where you can easily manage your entire business.
However, ERP adoption and implementation can have a wide range of outcomes. This explains the misconceptions, truths and myths around this business software. Some organisations think that their business is not complex enough to warrant an ERP.
It's not the case. Each business has enough complex processes to streamline and improve. Another misconception is that ERP software is suitable only for large firms or those within resource-intense industries, such as manufacturing, food and beverage or distribution.
Even small and medium businesses can benefit from ERP solution, and if it has been customised for their organisation.
Myth: An ERP needs to be implemented all at once
Gartner has coined the term "postmodern ERP" which is the next logical step in the evolution of this technology. This means modules of these systems can be replaced as they become obsolete or redundant.
This option allows improving business processes without spending resources on development and deployment of an entirely new software solution.
Instead, you can add new modules to the application that is already in use and carry out customisation if needed.
Customisation has long been a feature of ERP deployments, which is aligned to the flexibility and agility expected of these software solutions.
Myth: ERP must always fit existing business processes
The truth is that organisations often rush into automating previous processes often out of habit but more often due to poor planning. Organisation should be thinking about their ERP implementation as an opportunity to conduct a full review of their business processes - and be open to changes.
An ERP can be implemented in stages. This ensures you use all the tools and processes. Such solution can help up efficiency of analysis, improve reporting, and allow making better business decisions without interrupting business processes. Businesses look for growth and with a custom solution, you won't outgrow your software. You can always reconfigure it down the line.
The writer is the CEO of SYSPRO Europe, Middle East and Africa
