In the complex enterprise resource planning (ERP) world, myths and misconceptions abound. From believing that ERP is only suited for large corporations to thinking it’s too expensive or too difficult to implement, these common ERP myths can deter businesses from leveraging this powerful tool. But what if we told you that most of these assumptions are based on outdated information or misconceptions? In this blog post, we aim to debunk some of the most common ERP myths, explore the truth behind these myths, and reveal how ERP can drive efficiency, control, and growth for businesses of all sizes and sectors.
What is an ERP system used for?
First things first, let’s go back to basics – what is an ERP system, and what are they used for?
ERP (enterprise resource planning) is a type of software that organisations use to manage daily business activities such as accounting, procurement, project management, and supply chain operations. An ERP system can streamline your entire organisation and put your data all in one place, enabling more accurate reporting and a more efficient, collaboration-based, and data-driven work environment.
Myth-busting common ERP misconceptions
As ERP providers, we hear myths about the software every day. Let’s debunk some…
“An ERP system is only useful for large companies”
The belief that ERP systems are only beneficial for large corporations is a common myth that needs debunking. The truth is ERP systems can bring significant benefits to businesses of all sizes. While larger companies may have more complex processes that can benefit from an ERP system, smaller businesses can also reap substantial rewards.
Contrary to the myth, ERP systems are not just for big market players or B2B companies. Organisations desiring integrated business processes can leverage an ERP solution, including mid-market and small businesses. Industries commonly utilising ERPs include (but are not exclusive to) healthcare, pharmaceutical, manufacturing, e-commerce, and non-profits/governments.
In today’s digital era, businesses of all sizes and in all sectors can harness the power of an ERP to streamline operations and drive growth.
“An ERP system takes a long time to implement”
The myth that an ERP system takes a long time to implement is one of the most persistent misconceptions we hear as ERP providers. While the ERP implementation process requires careful planning, it doesn’t need to be as lengthy or as laborious as some might imagine.
The ERP implementation process can vary greatly depending on the project’s scope and the business’s specific requirements. Implementing an ERP system generally takes three to nine months or as little as two for small businesses. However, if your system requires customisation or if it encompasses multiple business functions such as finance and accounting, inventory, supply chain, procurement, manufacturing, sales, and CRM, the project’s timeframe may increase.
As long as you are prepared and have chosen an ERP partner that you trust, you should have no issues implementing your new ERP system in a timely, organised manner.
“ERP is the same as CRM”
When it comes to business management tools, Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) are two key components. However, a common myth is that these two systems are the same or interchangeable.
While both ERP and CRM software solutions centralise data and automate processes to drive business value, they serve distinct purposes within an organisation. ERP software is primarily used for managing financial data and operations, providing a holistic view of business processes and improving efficiency across the organisation. On the other hand, CRM software focuses on managing customer interactions and relationships, providing insights into sales trends, customer behaviour, and marketing effectiveness.
It’s crucial to understand that one system cannot replace the other. A CRM system drives sales by managing customer relationships, while an ERP system streamlines business operations to reduce overall costs. They are designed to complement each other, not to be substituted for one another.
However, some ERP systems such as Business Central can include CRM functionality within them at a basic level. There is often the option to purchase an add-on solution of an extensive CRM.
“ERP systems are not flexible; they are out-of-the-box solutions”
Stemming from early ERP models, this misconception is now outdated. Modern ERP systems have evolved significantly over time, offering considerable versatility and customisation capabilities.
Leading ERP software is typically fully scalable, allowing businesses to use only the functionality they need according to their specific operations. Some ERP systems, such as Bevica, can also be tailored to different sectors or have specific add-ons that you can add to boost their functionality.
Industry-specific ERP systems can be hugely beneficial, as they are tailored to your business and your specific needs.
“ERP systems are too expensive”
Whilst ERP systems do require significant investment, the belief that they are all expensive can prevent businesses from benefitting from this powerful tool.
The cost of a good ERP system can vary depending on the size of your business, your industry, and your specific needs. This cost can fluctuate based on the level of customisation required, the number of users, and the complexity of the business processes involved. For instance, cloud-based ERP solutions are typically priced per user, making them a more affordable option for small and medium-sized businesses depending on the associated implementation costs. Bevica eliminates the need for a significant upfront cost, as the subscription model includes the installation fee.
Whether an ERP system is too expensive for your business is completely based on your own circumstances. However, it is important to remember that a good system can eliminate repetitive tasks and save on certain costs by speeding up and smoothing out your processes.
In conclusion, we hear a lot of misconceptions as ERP providers, ranging from cost to functionality. Now you know the truth about ERP systems and can decide whether or not implementing one is the right choice for you.
Looking for a beverage business management system? Bevica is a leading ERP provider in the drinks industry, and we would be happy to discuss your options with you.