enterprise resource planning common myths versus evolving reality

Organizations are achieving their goals through ERP solutions, such as operational efficiency (96.6%), reporting and visibility (85.7%), updating their technology stacks (80%), and increasing competitiveness and growth (68.4%). Panorama Consulting Group, 2021

So, it’s evident that ERP is helpful for your organization. All you need to do is ignore the common ERP mistakes and choose the right tool that can serve your purposes. The following sections dispel all common ERP myths and unveil the truth about them.

1. ERP Systems Are Not Affordable

The cost of ERP systems varies depending on many factors like the number of employees you’re managing, and the number of modules, extensions, and features you’re using. So, it’s not always true that ERP systems are expensive. You can choose a suitable ERP tool that aligns with your budget and business needs at the same time.

Moreover, an effective ERP system saves a lot of working hours. It also reduces the chance of human error to almost zero. These things have a monetary value that can be added to the price of the ERP system. If you consider the outcomes of using ERP software, it is not too much expensive as most people think.

2. Pre-made ERP Systems Are Bad

A large number of people believe that building a custom ERP solution is better than buying already available ERP software. They rarely realize that custom ERP tools involve higher development costs and require highly experienced developers in the team. And you will face serious problems when any of the members of the core development team leaves your company.

On the other hand, you will get continuous support from the ERP solution provider if you buy their product. So, technically, readymade ERP systems are more affordable and hassle-free.

3. Only Larger Companies Benefit from ERP

Common ERP Myths- ERP is suitable for only large business

ERP systems are only for larger organizations- this is one of the most exercised misconceptions about ERP. Yes, there was a time when only bigshots with substantial investments could afford to integrate automation into their business processes and reap the amazing ERP benefits . With the advancement and availability of modern technology, ERP solutions are now affordable even for smaller companies.

Since you can choose a personalized plan, you can pay as you go. That means if you have 15 employees, you can choose a plan that works for only 15 users and charges less. You’ll have to pay more for more users. Thus, ERP solutions can help businesses of any size.

4. ERP Is Suitable for Certain Teams

Some people think ERP is meant to benefit only certain teams like the HR department and CS department. In reality, ERP has the potential to help you manage every team in your company. All you need to do is implement it the right way. Integrate the same central system for each relevant department. ERP can work as the only management hub across all teams.

5. Support is an Additional Thing

Almost all paid ERP software comes with a responsive support team. But, some ERP users tend to go for the free version of the software, considering support as a secondary option. Their idea is right but only for the short-term. You may face issues while using the software in the long run. So, it’s wise to think long-term and buy the pro version to avail uninterrupted support feature.

6. Personalization Is Difficult

You can choose extensions and modules that are necessary for your business. Take WP ERP as an example. We have multiple extensions under our HRM module. You can pick the one you need and pay only for that. We have more useful extensions under other modules like CRM, Accounting, and Project Management. You have the liberty to select or omit any of the extensions. So, personalization is difficult- this is surely a myth.

7. Implementation Needs External Workforce

It’s really an advantage to have IT professionals inside the organizations. But, it’s not mandatory in most cases. Anyone with standard computer knowledge can configure ERP software with ease. Moreover, your ERP solution provider should provide all required documentation and technical support during the implementation phase. Even most vendors let users test a trial version before final deployment.

You should choose a competent partner who agrees to assist in the ERP implementation process. If you get support from the vendor, you won’t need an external workforce to integrate an ERP system into your business and manage the processes smoothly.

8. ERP, MRP, SCM & CRM- All Are the Same

Manufacturing resource planning (MRP), supply chain management (SCM), and customer relationship management (CRM) are all different from ERP. But, an ERP solution can integrate the centralized system with other tools that support MRP, SCM, CRM, or any other management tool. For example, WP ERP has core ERP features along with CRM, Accounting, and HRM extensions.

9. Takes Longer to Come into Effect

Old ERP systems used to take significant time to reach a working level. But, modern ERP solutions are easy to set up and become ready right away. Since most of the ERP solutions are now cloud-based or SaaS, they will start working as soon as you provide the necessary data. The only prerequisite is a fast internet connection.

10. ERP Is to Impress Your Customers

When you implement an ERP system into the business, it streamlines all your business operations. It ultimately contributes to increasing customer satisfaction. But the primary goal of using ERP software is not to impress customers. In fact, it focuses mainly on managing internal business processes. Some ERP tools work hand in hand with Customer Relationship Management, in that case, the use of ERP involves customers directly.

11. ERP ‘does everything’ for You

No tool can do everything for you. ERP systems only facilitate the business management process. You need to have smart people at the office who can use the tool and provide information to the system when necessary. For example, WP ERP has everything to Streamline Complex Business Activities . But you need to know how to use the resources it offers.

Learn how to use WP ERP from this use case ➡ How weDevs is Using WP ERP.

WP ERP for Small to Medium Companies

Every small or medium organization finds it difficult to manage all their employees, keep track of revenues and expenses, and provide customer support. That’s where WP ERP comes to the rescue for WordPress users. It is one of the leading plugins that have the three most needed modules to manage a business smoothly. Three modules are as follows:

Each module comes with essential extensions that offer great functionalities for WordPress users who are looking for ERP software. Read the following section to know more about the modules and extensions of WP ERP features.

Supercharge Your Business with 30+ Modules & Extensions

The core ERP plugin is free with basic HR, CRM, and Accounting modules. But, you need to upgrade to the pro version to get additional and customizable modules depending on your needs. Let’s find out how the three ERP modules can help your business grow.

WordPress HR Plugin : WP ERP offers a simple and straightforward employee management tool to manage the various functions of the HR department. With WP ERP, you can see employee details, leave requests, employment history, performance logs, company-wide announcements, and more!

This HR module has 12 extensions to enable all the HR functionalities from your WordPress dashboard.

Know details from here ➡ WP ERP HR Extensions .

WordPress CRM: Now you can track and follow up on customers’ queries efficiently using WordPress CRM. It has made building sustainable relationships with your customers easier. You can prioritize users based on life stages and respond to important customers urgently. WordPress CRM also has an in-built email communication tool to facilitate your work process.

This CRM module has 13 integrations and extensions to take customer relationship management to the next level.

Know details from here ➡ WP ERP CRM Extensions .

WordPress Accounting for Non-Accountants : Accounting is quite intimidating to people with no business background. WP ERP introduced a module to enable non-accountants to understand and manage trial balances, income statements, ledger reports, debits, credits, and more. You can even make data-based decisions after analyzing the graphical interface.

This Accounting module has 7 extensions to help you manage account receivables, account payables, bank balance, and overall income and expense.

Know details from here ➡ WP ERP Accounting Extensions .

Simplify Your Experience with WP ERP

We’ve debunked the common ERP myths and misconceptions throughout this article and explained how WP ERP can help manage your business processes. Now, it’s your turn to decide if you want to ignore these misconceptions and start using an ERP system. If you run a WordPress website, WP ERP has the potential to simplify your experience while handling complex management activities.

You can subscribe to our newsletter to stay updated on exclusive ERP and WordPress-related content.

About Tanvir Faisal

Md. Tanvir Faisal is a Content Writer at WP ERP with 4 years plus experience in Content Writing, Copywriting, Proofreading, and Editing. He focuses on writing informative content that draws social media attention and enhances search engine visibility. To date, he has successfully developed useful content for many websites across all formats.

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6 Top ERP Myths Busted

Enterprise resource planning (ERP) can be a powerful tool when businesses leverage it to manage data for core business processes. However, several common ERP myths can discourage companies from making the investment. To understand what’s true and what’s not true about ERPs, explore these top ERP myths and discover why they’re false in real-world applications.

Myth # 1: ERPs Are Only for Big Businesses

One of the top myths about ERP is that the software platform only works for large businesses. People may think enterprise resource planning is only valuable for large-scale operations. In reality, enterprises of all sizes can benefit from ERPs. As the technology continues evolving, it allows for customization on multiple levels.

While ERPs were most often a solution tailored for larger businesses in the past, today’s ERP options can work for everyone. Designed for versatility and adaptability, modern ERPs can deliver the specialized capabilities smaller enterprises and larger businesses require.

Myth #2: ERPs Are One-Solution-Fits-All

Every enterprise has unique needs and operation strategies, so a tailored approach to management solutions is crucial. Rather than being one-size-fits-all, ERPs can be highly versatile for individual business needs, and companies should implement software that matches their unique requirements.

When you select a platform for your operations , take the time to compare your options and evaluate based on business trends, industry specific features, functionalities and requirements. You want to find software that fits your business goals, production requirements and industrial needs. Each business’s ERP can look a bit different depending on its specific applications and requirements.

Myth #3: ERP Is Too Expensive

Many businesses think ERP’s are too costly to implement, but it can deliver a high Return on Investment (ROI) . Getting an ERP is a long-term investment that can reduce inefficiencies and optimize processes across the enterprise, leading to many savings for years to come.

One high cost that can contribute to an overall more expensive project is the time put into crucial decision-making. Streamlining the decision-making processes between management and key stakeholders and optimizing the enter process can significantly reduce costs during implementation.

Myth #4: ERP Only Benefits Executives and Management

Another common ERP myth is that the platform solely benefits top management. ERP does deliver sizable advantages for executives and management, providing valuable insights into processes as they make vital decisions in the future.

However, these advantages extend across the enterprise , optimizing processing efficiency, data sharing and management and other critical operations throughout all levels of business. By facilitating streamlined information sharing, ERP software improves company-wide communication, reduces inefficiencies from duplication and miscommunications, optimizes project planning and helps reduce operational costs.

Myth #5: ERP Implementation Takes Too Long

Many enterprises think of ERP as an arduous process that can take years and considerable resources to implement. In reality, these drawn-out timelines are typically due to issues with planning and scope-setting rather than an intrinsic part of the implementation. To effectively implement an ERP system , setting the proper scope and objectives and identifying available resources is critical.

With effective management, the implementation process can take a few months to a few years, depending on the size and scale of the project. When evaluating options for implementation, businesses should consider time and resource constraints to identify the best opportunities for their unique needs.

Myth #6: ERP Belongs to IT

While it may seem like ERP is solely an IT concern, it provides value for and requires engagement from the entire organization. An ERP platform is a business asset that necessitates ownership and input from areas across the company and from various levels and departments. After implementation, it serves as an integral part of daily business operations, and enterprises should run it as a business initiative staffed by the best-qualified people.

When businesses recognize an ERP’s potential and center their operations around it, they can get maximum value from the platform. Implementing it as a central part of operations allows the ERP to provide sustainable use that can adapt to changing needs, streamline processes and promote business growth.

Optimize Your Business With ERP Solutions From Multiview Financial Software

Take advantage of what a robust ERP can offer for your organization when you partner with Multiview. Our fully scalable ERP solution has an optimized design for rapidly growing small, medium and large businesses. With our ERP, you can get the versatility and scalability you need for critical processes across your organization.

For more information on the unique products we offer for your business needs, request a Multiview product demo today.

Multiview Financials ERP provides our clients with a comprehensive software suite that empowers their finance teams. Request a demo today!

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COMMENTS

6 Retirement Planning Myths and Mistakes to Avoid
For many people, retirement planning often starts — and also ends — with opening a 401(k) account that their employers sponsor. In addition, almost 15% of Americans don’t have any money saved for retirement at all.
What Is Resource Planning?
Resource planning is the step in writing a business plan that involves identifying the resources that a proposed business needs to succeed. This includes resources that the entrepreneur already has and those that still need to be acquired.
What Are Some Examples of Myths ?
Some examples of myths include the Greek story of Persephone’s abduction by Hades and the tale of Prometheus tricking Zeus into choosing a lesser offering. Myths are ancient stories that are typically used to explain some natural phenomenon...
Enterprise resource planning: common myths versus evolving reality
Enterprise resource planning: common myths versus evolving reality ; Vincent A. · Mabert ; Ashok Soni ; M.A. Venkataramanan
Enterprise Resource Planning: Common Myths ...
Enterprise Resource Planning: Common Myths Versus. Evolving Reality. Vincent A, Mabert, Ashok Soni, and M.A, Venkatara~anan.
Enterprise Resource Planning: Common Myths vs. Evolving Reality
The dominant reason for adopting ERP was to simplify and standardize IT systems; the second most common reason was to have access to accurate information.
Enterprise resource planning: common myths ...
Mabert, Vincent A. & Soni, Ashok & Venkataramanan, M. A., 2001. "Enterprise resource planning: common myths versus evolving reality," Business Horizons
Enterprise Resource Planning: Common Myths ...
Known as the "Big-Five" of ERP software, they control approximately the 70% of the ERP market share (Mabert et al., 2001) . Software vendors mention that ERPs
Enterprise Resource Planning: Common Myths vs. Evolving Reality
Enterprise Resource Planning: Common Myths vs. Evolving Reality Case Solution,Enterprise Resource Planning: Common Myths vs. Evolving Reality Case Analysis
Enterprise resource planning: common myths versus evolving reality
Enterprise resource planning: common myths versus · V. Mabert, A. Soni, M. Venkataramanan · Published 1 May 2001; Economics · May 2001; Economics; Business
9 Myths of Enterprise Resource Planning
Myth #1: ERP is too expensive · Myth #2: ERP is only for Big Business · Myth #3: ERP only benefits executives and management · Myth #4: ERP solutions are only used
Enterprise Resource Planning: Common Myths Versus ...
Enterprise Resource Planning: Common Myths Versus Evolving Reality - Can an ERP system successfully become the backbone of company operations in the new economy
Common ERP Myths and Misconceptions: How WP ERP Can Help
10+ Common Myths About ERP Software · 1. ERP Systems Are Not Affordable · 2. Pre-made ERP Systems Are Bad · 3. Only Larger Companies Benefit from
6 Top ERP Myths Busted
Another common ERP myth is that the platform solely benefits top management. ERP does deliver sizable advantages for executives and management