9 Misconceptions of an ERP Implementation

Enterprise Resource Planning (ERP) solutions are among the most sought-after digital transformation implementations. Not only do these software suites allow businesses to streamline and automate everyday business processes such as invoicing, stock management and more, but they provide critical data insights that give members of the organisation at every rung invaluable decision-making firepower backed up by hard data. 

Nonetheless, as with any digital transformation program, an ERP implementation can be a major step, especially for smaller organisations, and common myths and misconceptions prevail even in an increasingly digitised marketplace. That’s why we endeavour to set the record straight, and tackle 9 common misconceptions about ERP implementation, to help your business understand exactly how to navigate its own digital transformation. 

Ready to embark upon your very own ERP implementation? Find out more here! 

1. ERP Implementation is Just About Technology 

It’s easy to think of an ERP implementation as solely a technological undertaking. But at the core of any ERP implementation are the underlying business processes that are to be streamlined, optimised, transformed, or even made redundant by the ERP solution. Understanding those processes on their own terms is therefore crucial to a successful implementation of the ERP technology itself, as is understanding the people who are involved in those processes and bringing them on board. Team buy-in, to say nothing of leadership buy-in, is critical to a successful ERP implementation program, and this involves far more than simply making them aware of the technology to be introduced.  

You can read more about the role both people and processes play in digital transformations, including ERP implementations, in our two blogs on the subject. 

2. ERP Systems are One Size Fits All 

Every business is unique, beyond just the industry it operates in and the character of its organisation. It stands to reason then that no solution, be it software or otherwise, is fully optimised without being tailored to the unique contours of that business. This is where ERP software solutions can excel – when they are moulded to the specific needs of a business to address head-on the unique requirements of that business and its customers. An ERP solution that does not conform to existing workflows, processes and operations within a business will gum up the works and cause confusion and slowdown, throughout and following the implementation process. Customisation and configuration allow business to design an ERP system to their specifications, that complements, rather than disrupts, the way they do business. 

3. ERP Implementation is a Quick Fix for Business Problems 

ERP implementation is not a magic bullet. It requires careful planning, significant time investment, and ongoing management. While an ERP system can provide tools to improve efficiency and decision-making, it cannot fix underlying issues such as poor management practices or lack of strategic direction. An ERP system complemented and optimises existing processes; it cannot fix them if they are already not fit for purpose. This is why the first point raised in this article was that ERP implementation is not just a technological solution – a thorough understanding of a firm’s workflows and processes, and how they currently operate, is integral to a successful ERP implementation. 

4. ERP Implementations are Only for Large Companies 

Modern ERP systems are fully scalable and can be tailored to benefit businesses of all sizes. SMEs in particular are able to leverage the advantages of ERP systems (optimisation, greater efficiency, process automation, etc.) to do more with less, and grow their business without having to expand upon the assets they already employ. Better data management, enhanced decision-making, and streamlined processes means that SME business owners can be more involved in every step of their business, and make quicker decisions leading to tangible returns. 

5. ERP Systems are Too Expensive 

While it’s true that ERP systems can be a significant investment, they are not necessarily prohibitively expensive. The cost of ERP implementation varies widely depending on the size of the organization, the complexity of the system, and the level of customization required. Additionally, the long-term benefits of an ERP system, such as improved efficiency, reduced operational costs, and better decision-making, often outweigh the initial investment. Many vendors also offer flexible pricing models, including subscription-based options, to make ERP systems more affordable. 

6. ERP Implementation Disrupts Business Operations 

Careful planning, team member buy-in and phased implementation are all the hallmarks of a well thought out ERP implementation process. While it is probably impossible to eliminate some disruption from an implementation entirely, thoroughly mapping out the implementation process in advance can ensure that there is as little disruption as possible while the new system is being introduced. Training and support for employees, too, are also crucial to ensure a smooth transition. With the right approach, the benefits of an ERP system can be realized with minimal disruption. 

7. ERP Systems are Difficult to Use 

Modern ERP systems are designed with user-friendliness in mind. Not every employee is a tech wizard, so ERP developers (and those vendors who implement them on their behalf) know that keeping the user interface simple and easy to navigate is crucial to a successful uptake in the system. Many systems allow for intuitive interfaces, customisable dashboards, and comprehensive training programs to help users adapt quickly. Implementation partners such as Target Integration also work hard to ensure support is available as needed, following an implementation, so end users never feel like they are left alone with their new system. 

8. ERP Solutions are Solely the IT Department’s Responsibility 

As we mentioned above, buy-in from the team is positively crucial to a successful ERP implementation. It’s not enough for the IT department to simply facilitate the installation and announce the new system – if team members from the top to the bottom of the organisation aren’t involved in the process, both in training to use the new systems and in understanding the raison d’etre of the implementation itself, take-up of the new system will be haphazard, and risks falling flat. Leadership has a central role to play in this, both in understanding the changes being brought in – and their reason for being so – and in cheerleading the changes to the rest of the team. The IT department plays a critical role in managing the technical aspects, but the overall success of the project depends on the active participation and support of the entire organization. 

9. Once Implemented, ERP Systems Do Not Need Further Attention 

Finally, there’s a misconception that once an ERP system is implemented, it requires little to no further attention. In reality, ERP systems need ongoing maintenance, updates, and optimization to remain effective. Business needs and processes evolve, and the ERP system must adapt accordingly. Regular reviews, updates, and training are necessary to ensure that the system continues to meet the organization’s needs and delivers maximum value. 

Conclusion 

ERP implementation is a complex and multifaceted process that goes beyond just technology. By understanding and addressing these common misconceptions, organizations can better prepare for a successful ERP implementation. It’s essential to approach ERP projects with a clear understanding of the organization’s unique needs, involve all relevant stakeholders, and commit to ongoing management and optimization. With the right approach, an ERP system can be a powerful tool for driving business growth and ensuring success.