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Busting 3 implementation myths in ERP

Busting 3 implementation myths in ERP

When the time comes to consider a new enterprise resource planning solution, there is a need to understand what exactly the system can do for your business. Often, companies will hear a lot of stories on how a new Microsoft Dynamics implementation had amazing effects on efficiency, productivity and yielding a high return on investment that results in growth. As a consequence, they may feel pressure to buy into the hype of what a vendor is selling. Conversely, these businesses may stumble upon on a horror story that tells them of a failed implementation that ended in heavy costs and low returns. These events may make them feel uneasy .

However, these situations are usually the combination of urban legends and exaggerations that may influence decision making. Here are some myths that are common when discussing ERP implementation, and how they aren't true:

Myth 1: ERP systems take a long time to implement
According to consulting firm A.T. Kearney, a common misconception is the amount of time it takes to complete an implementation. With some horror stories, there is usually a theme of an installation and integration dragging for months before it ultimately fails. The problem with this idea is that this is usually the result of software customization , which requires extensive coding from either the vendor or a trusted partner to complete. For many businesses, the proper selection of a software platform, as well as the modules necessary to operate their business, are usually enough to get the results they need. Implementations can end up being shorter than expected, with configurations taking up to one to two days.

Myth 2: Every aspect of business will improve with ERP on a uniform level
There is a consistent unwritten idea that ERP is somewhat magical in the way it improves businesses operations. The sudden gains in productivity are seen as miraculous, even if they aren't that drastic. However, the problem with this thinking, as ERP Focus notes, is that it suddenly gives the idea that everything can be fixed with a single ERP solution. This runs in contradiction to how the software actually works. With various modules, such as mobile WMS and timekeeping software, there is a lot of things ERP can do and even more it cannot, even with a full customization.

Myth 3: ERP delivers benefits
Similarly, there is also this idea that ERP solutions such as Dynamics NAV deliver the gains that come with implementing them. This is merely correlation equaling causation. What ERP does is help companies improve their processes. As such, the only way that a new implementation can "deliver" results is if companies improve their operations while using the software. It can reveal issues and bottlenecks that are inherent in the way goods are produced, and the different aspects of the business can fix or improve upon them. However, if these problems remain in place, ERP isn't going to help. A solid ERP implementation means changing the business as well.

Learn how to define your ERP strategy by downloading the white paper entitled "ERP in Manufacturing: Defining the ERP Strategy" from the DMS website today.

Posted in: ERP Solutions

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