Common myths of ERP

By Mukesh Variyani September 11, 2019 Business

Common myths of ERP

Common myths of ERP Software

Have you come across the myths when you go for ERP implementation in your business process? Despite the popularity of technology, people still have some concerns related to it.ERP is the solution that aids businesses to increase their efficiency and totally automate their functions, to save time and costs. But some people have this notion set in their minds that older ways are the safer ones and new technology leads to high expenses and complex problems. Due to the fear of these misconceptions, they generally shrink away from adopting this solution and integrating it into their company.

Common misconceptions of ERP will help you understand that it is not what it actually provides. The service might be misconceived due to lack of understanding or not getting the real purpose or the benefits that ERP provides to enhance the growth of business and its operations. Understanding the common myths of ERP and how ERP software can change your business will help you make better decisions and ignore the unproven facts. The doubts and restrain is experienced from the employee side as well. They need to be focused in order to avoid wrong facts and myths about the system


Many people are turned off at eating vegetarian because of the misconception that all dishes are just an arrangement of bland vegetables. - Marcus Samuelsson

Do you have the same misconceptions regarding ERP?

Here are some myths you need to understand about ERP software.

1. It’s Expensive!

It’s Expensive!

Many of the companies think that investing in an ERP solution is an expensive affair. Cost is involved in a lot of stages such as customization of features as per company’s requirements, implementation costs, training costs, and maintenance costs. But if seen overall, the investment done on ERP is a one-time effort that results in the rendering of benefits for a much longer time. It finally realizes the money spent on it.

2. It's the same as CRM or SCM

It's the same as CRM or SCM

The other common misconception people create in their minds because of their lack of knowledge is that all the software such as supply chain management orcustomer relationship management Software serves the same purpose. They all are different systems that provide different benefits and functions. ERP is focused on the overall integration of business processes rather than catering to a single function.

3. One fits all

One fits all

Single ERP software that fits all the companies or serves all the functions is another myth. There are many vendors in the market that provides ERP software as per your own requirements and specific needs. They can easily customized industry-specific or even organization-specific features for the business for ease and better usability. If you belong to the packaging industry, only go for the features that you need.

4. Only Large businesses need them

Only Large businesses need them

Earlier mostly large business houses used the ERP technology in their functions due to a large number of employees as well as difficulty in control. But nowadays it is just a myth. Many small business owners and medium sector organizations have a popular use of ERP Software. This gives them the advantage of focusing on the strategic and core areas of the business as routine tasks are handled by the ERP.

5. Only exclusive for Top Level

Only exclusive for Top Level

ERP solution provides the results that help the top-level executives for better decision making. But the use is not restricted to just to the higher management but is used at all levels. It enhances better communication across departments and teams and provides operational efficiency to daily tasks. It boosts the performance of employees and at every level by reducing redundancies and errors.

6. The sole purpose is to impress customers

The sole purpose is to impress customers

The main motive or aim of every business is to attract and retain the customers, but it's not the sole purpose of either the business or the ERP solution. It does impress the customers, but along with it, the benefits that it provides to the business are numerous in number. These benefits are increased efficiency, improved performance, enhanced profitability and growth, reduction in time and costs and the list is still on.

7. Takes too long to implement

Takes too long to implement

The time takes to implement an ERP solution in your business is too long, which is the major misconception people have, which prevents them to even think and analyze their options. But in reality, it really depends upon the business requirements, their demand and customization process, their business-specific design or features, the complexity of implementation, etc. The minimum time taken by the implementation of ERP is within a few months.

8. Can only be understood by professionals

Can only be understood by professionals

ERP solution for companies is to simplify the work, not to complicate it further. The use of the software is not limited to high-end trained professionals. The software can easily be understood, learned and used by all categories of employees. They are tailor-made in user-friendly way categories. No such prior experience is required for working on it. With proper training to the employees, it's really good to go.

It becomes essential to address the myths and misconceptions that leads to people refraining the use of ERP solutions in their businesses, thereby missing out on the immemse benefits of ERP implementation and ending up paying more in terms of increased costs and time and delay in decision making.


A common mistake made by many business leaders is to assume that by building awareness of the need for change they have also created desire. - Jeffrey M. Hiatt.


Mukesh Variyani

MD, Finbyz Tech Pvt Ltd

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