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TOP 5 BENEFITS OF IMPLEMENTING ERP SOFTWARE

There are many advantages to implementing an Enterprise Resource Planning (ERP) software system. Among countless other advantages, implementing ERP software can improve productivity, increase efficiencies, decrease costs and streamline processes.

Here are the top five most common benefits that companies report:

Efficiency. An ERP system eliminates repetitive processes and greatly reduces the need to manually enter information. The system will also streamline business processes and makes it easier and more efficient for companies to collect data.
Integrated Information. Instead of having data distributed throughout a number of separate databases, all information is now located in a single location. Data is also kept consistent and up-to-date.
Reporting. ERP software helps make reporting easier and more customizable. With improved reporting capabilities, your company can respond to complex data requests more easily. Users can also run their own reports without relying on help from IT.
Customer Service. It’s easier to provide high-quality customer service using an ERP system. Sales and customer service people can interact with customers better and improve relationships with them, through faster, more accurate access to customers’ information and history.

Security. A new system will improve the accuracy, consistency and security of data. Restrictions to data can also be enhanced.

Fully cited from here http://www.workwisellc.com/5-benefits-implementing-erp-software/

COMMON ERP MISCONCEPTIONS

There are many misconceptions about ERP (Enterprise Resource Planning) software. These misconceptions range from the need for customizations, the value of support, how they are implemented, and where the actual benefits come from. There are going to be issues where there are arguments for both sides, but the thing to remember is that your experience will be unique to you, so you need to be thorough when evaluating, implementing, and maintaining the system. Relying purely on reputation, stereotypes, and singular recommendations can be dangerous.

Let’s take a closer look at nine common misconceptions when it comes to ERP software.

ERP MISCONCEPTIONS
1. It is better to start with a simpler, cheaper software and then switch to an ERP in a few years.

The thinking seems logical. You start with a lesser software to manage whatever parts it can and then get a full ERP solution to handle everything later on with the money you save in that timeframe. In this sense, you are downgrading the solution you buy. When you do that, you are essentially putting money into a system that you know will be replaced one day and you spend time implementing it, which will all be a waste when you stop using that software. In the long term, the negative impacts on the company with the limited capability will be clearly visible and affect the bottom line in one way or another. It is better to invest the money now so that it goes toward the final solution and you can see those benefits sooner.

2. An ERP that fits one company can fit any company.

Unless you are getting a referral from a company that does essentially what you do (a competitor), the ERP they have may not be the best option for you. Every business is different; the degree of difference varies based on industry, number of locations, size, product/service, etc. This is where searching for industry specific ERPs can be a huge benefit, but looking at a generic ERP that has had success with companies like yourself is also a good option.

3. ERP benefits managers, but not so much other employees.

ERP software benefits the entire business and anyone that is an employee. It improves the entire operation from selling, to production, processing, shipping, billing, etc. It affects various departments, not various managers. It cuts the need to repeat the same task such as double data entry, makes it easier for employees to find and record information vital to the company’s successes, and centralizes the company’s processes so everyone can have the same view.

4. Implementation can be a cheap and fast process.

To start, both cheap and fast are relative terms. Generally speaking though, there is no one ERP vendor that will be so much faster at implementing or so much cheaper to implement than another that it alone should be the deciding or eliminating factor. If one does claim to be drastically more inexpensive, then be weary of the other costs of items like customizations, annual maintenance, and other fees. These higher “hidden” costs will more than likely make up for their software cost, and often it is these costs that are the reoccurring ones. Saying the implementation will be fast can also be misleading, as it takes both vendor and company to handle that process. So, there are many opportunities for either you or the vendor to be waiting on each other to move forward.

5. We do not need any customizations.

Customizations can be an expensive, complicated matter, especially when unplanned for. But, it is something your vendor should be able to anticipate based on previous discussions about your company’s processes and needs. The more detailed and complex the business is, generally the more customizations. Despite the cost and time needed, they are very worthwhile as they can take the final ERP product from good to great saving time and money long term.

6. The new ERP software will let us know what processes we need to change internally.

The thought here might be that the solution will be so advanced and in depth that it will give clear direction on what to do internally. However, it is quite the opposite. Today’s ERP solutions are so complex and out of the box are usually generic enough to fit multiple industries or different sized companies, that there are too many options and paths you could go down. It actually can end up causing more confusion than help in that regard. This makes it all the more important to fine-tune your specific processes and needs, and find the best product that fits these items.

7. Support is a secondary thought.

Big mistake. Companies like Nike, Hewlett-Packard, and Hershey all experienced failed ERP implementations because of poor support and management. Ensuring you have a plan for the support of the software and user training can be just as critical as the actual implementation. Spending all the time and money to implement only to have the ERP fail due to support and training issues is not only costly, but also embarrassing.

8. On-Premise ERP solutions are a thing of the past, everyone is going to cloud.

Although there are providers that only offer cloud ERP solutions, and the cloud model has had a lot of hype, there is no evidence to support that On-Premise solutions are going away anytime soon. In fact, a majority of implementations are On-Premise and not in the cloud. There are a variety of reasons why. Some companies do not like the lack of security knowing that all of their data is in a cloud somewhere, others don’t like the inability to customize and manage the ERP for themselves, if it is, and others find the reoccurring costs associated with the cloud make it less financially appealing than the On-Premise option.

9. Benefits come from the ERP directly.


The ERP solution you implement is ultimately useless if your employees do not know how to take advantage of its capabilities. It is a tool, not an end all to make the business succeed in every manner. It can automate many processes, but human intervention and intelligence is required. You cannot spend too much time training the users and ensuring they know the part of the system they need to know inside and out. This can take serious time. It may seem like employees can get a base line and learn on the go, but it simply isn’t that easy when dealing with such a complex product.

also fully cited from this link http://www.workwisellc.com/common-erp-misconceptions/