If you’re a small-sized business and still doing your processes manually, I am sure you have heard someone advise you to buy an ERP system.
As an owner, you dream to automate everything and expect that when you buy an ERP, you’ll be able to see all the information that you need in a snap.
As an ERP provider that has implemented the system in hundreds of companies, we have come up with a list of common myths about implementing an ERP system.
1. ERP Systems are expensive. It all depends on your company’s needs. There are already several licensing models available for ERP systems. There’s license per user, software-as-a-service (SaaS) model where you pay annually or monthly, and there’s license per company with an unlimited number of users. Some providers offer the implementation fee separately and some offer it inclusive of the package.
You can buy in modules or several modules. If you are able to list down only what you need and negotiate good payment terms, then ERP systems don’t have to be expensive. Not implementing an ERP system if you are a growing company is more expensive because there might be profit leaks that you don’t see if you don’t see your reports on time.
2. The ERP Vendor Will Do It For You. Selecting the right ERP vendor is just one part. The other part is selecting the right team internally to implement the ERP system.
We always say that it’s a collaboration between the user and the service provider. You’ll need someone who understands your internal process, probably a consultant with experience in implementing an ERP system, and a team who realizes the benefits and has the enthusiasm to implement the ERP.
3. The ERP Should Adapt to Your Process. While there’s an advantage when the ERP software is flexible and robust, you should still be open to re-engineer your business process. Review your existing process and compare it with the ideal process, identify the gaps in between then customize.
4. ERP Requires an In-House Data Center and In-House MIS Team. With the boost of growth in technology such as hardware variants and cloud services, it’s not practical to establish your own data center to implement an ERP system.
The most practical, as we always suggest, is to subscribe to a cloud provider such as Amazon EC2, Linode or MS Azure, hire a third-party person to maintain it, and choose the right ERP vendor that will guide you through the process. You may opt to get a backup device or server (it need not be expensive) that replicates the cloud if you want to have a sense of backup in your premises.
5. People Will See Your Data and Financial Records Online. There are a lot of security technologies available now like SSL, encryption, VPN, firewall, etc. The same technologies employed by banks in their online banking facilities.
Practically speaking, unless you’re as big a brand like Coca-Cola, P&G or Google, I don’t think people would spend their resources looking at your finances. 🙂
I hope that we have been able to put your mind at ease by discussing the myths surround the ERP system. Now, it’s time for you to take action and get in touch with us. We’ll be more than happy to answer all your questions.