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ERP misconceptions

There are many misconceptions when it comes to ERP. The misunderstandings range from the need for adaptation to how the solution is implemented and what are the actual benefits of an ERP system.

Adjustments are redundant

It can be both costly and complicated to customize and modify an ERP system, especially if the need for adaptations occurs unexpectedly and therefore, is not sufficiently planned. However, it is unlikely, if not inevitable, that an ERP system must be adapted to, for example, unique industry-specific needs and processes. Generally speaking, the more complex a business is, the greater is the need to make adjustments in the system. In spite of the fact that it may be involved with relatively high costs and that it may take a lot of time to customize an ERP system to fulfill the needs desired, such long-term adjustments will save the company both time and money.

Start simple and inexpensive and then switch to ERP

Initially the thought may seem logical. As a start-up business, you start with a smaller financial solution that can handle as much of the finances as it is possible, and which may even be free, and when the company has grown to a size where such a system is not sufficient, you acquire a real ERP system.

However, if you choose the above strategy, you will in the long run waste time and resources into an economy system that ultimately needs to be replaced by an ERP system that can handle all aspects of the company's accounting needs, such as Dynamics NAV. The limited capacity gained by a small economy system may have negative effects in the long term and affect the bottom line, for example when you have to change to another solution. In other words, there is more reason in investing in the right ERP system from start, thus benefiting from its many functionalities, as well as saving a potential expensive and extensive migration.

The benefits of ERP are solely dependent on the solution itself

Unless the users are familiar with the solution and can gain full advantage of its entire functionality, you are far from getting full benefit of the ERP system. ERP is a tool which quality is highly dependent on the user's ability to use it. It can automate and streamline a lot of workflows and processes, but ultimately the out come from the system is conditioned by the user's skills. It is therefore extremely important to educate users and thus ensure that they have a thorough insight and knowledge of the part of the system they use and are familiar with. This learning process can be extremely time-consuming, but nevertheless necessary. Knowledgeable users are a precondition for an effective ERP system.

Only senior management benefit from an ERP system

An ERP system provides important access to and overview of important data that allows management to make important decisions, but an ERP system does more than that. By streamlining collaboration and workflows projects and communication are optimized across the company's departments thus making them more efficient. Therefore, an ERP system makes work easier for all employees in the company.

ERP is for large companies only

It is not uncommon for smaller companies to grow out of their accounting systems over time. When that time comes it's time to implement an ERP system. For it is not only large companies who need ERP, even small businesses, especially those who expand, need to be able to meet the accounting requirements that are being asked for them. The right ERP system and, not least, the right supplier and business partner can easily meet the growth of an innovative and expanding business. Or to put it another way, an ERP system can easily be adapted to the needs of any company regardless of size.

ERP on subscription
As a small or new business, you can advantageously buy your ERP system as a package solution, where you only have to pay a monthly fee per user and therefore have the ability to customize the number of users to the size of the company, which is obviously suitable for a business in growth. Active Business Solutions offers Dynamics NAV as a subscription solution in the cloud. Please contact us for further information, if such a solution might be of interest to you.

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