ERP will make many employees redundant and jobless

Another popular misconception about ERP system is that its implementation will make many jobs redundant (because of the automation) and hence, many employees will lose their jobs. A properly implemented ERP system will automate many tasks in the organization. 

This does not mean that the ERP system will make people redundant. Yes, there will be changes in job descriptions and in the activities people used to do. Many tasks will be automated and this will make the people who were doing those jobs unnecessary. 

But ERP system also create new job opportunities and they very same people whose jobs were automated could be used to fill the new positions after giving them proper training on the new tasks. Hence, the amount of planning that goes into re-location and re-training of the employees by the management and the implementation team can go a long way in reducing the anxieties of the employees. ERP is a people system made possible by computer software and hardware.

ERP package will take care of everything

ERP is not a silver bullet or a cure-all. Yes, a properly implemented, operated and maintained ERP system can dramatically improve productivity, automate tasks, reduce wastage and improve profits. But an ERP system needs people to operate, use and maintain it. If the employees are not interested in using the ERP system or are using it improperly, if managers are not making use of the decision-making capabilities of the system or if the system is not maintained properly, then the ERP will not deliver it promises.

It is a fact that the ERP tools have evolved over-time and have now become very sophisticated. Today's ERP tools automate most business function and processes thus making the lives of the users a lot easier. But thinking that the ERP tools will take care of everything can be a recipe for disaster. There are many business activities that need human intervention and judgment. While the ERP tools make these jobs easier, there is no substitute for human intelligence and decision-making.

ERP is just to impress customers

It is true that a properly implemented ERP system can help in serving the customers better as it helps the organizations to react faster, respond better and deliver high-quality products and services at astonishing speeds. This improved efficiency and quality will go a long way in improving customer goodwill and customer relations. So with an ERP system you get more satisfied customers, but that is only one of the advantages of an ERP system.

ERP is very expensive

ERP packages come in all shapes and sizes. The sophisticated and high-end ERP tools are very expensive. ERP system needs people to manage it. Thus implementing and managing an ERP system is an expensive affair. But these expenses should be weighed against the benefits of the ERP system.

An efficient ERP system will increase the productivity of the human resources, shorten development and change cycles, streamline the production process, reduce errors by automating the monotonous and repetitive tasks, enable the better management of projects by providing quality information, improve customer satisfaction by resolving problems quickly and so on. When the benefits of the ERP system are considered, it becomes evident that the money spend on ERP is well spent and the ERP system will pay for itself.

Organization can succeed without ERP

Before the advent of ERP, organizations were run manually. So, do we need ERP in order to succeed? If an organization is very small in size, caters to the niche market and has very limited scope, then it can sometimes succeed without ERP. But today's organizations are becoming large and the products are becoming more and more complex in size, sophistication and technologies used. Also, a single group does not necessarily build the different components of a product.

This is the era of multi-site, distributed production, where different groups situated in different parts of the world develop the components of a system. In such a scenario, managing the activities of an organization is a very complex task. If proper control mechanisms and procedures are not in place, very soon the operations can get out of control and products and organizations can fail.

ERP means more work and procedures

Properly implementing and managing an ERP system is not an easy task. The transition period from the traditional system or manual processing to ERP is difficult as new skills have to be learned; new procedures and processes have to be followed, and so on. Many employees think that ERP will add more work, make the work more difficult and will force unnecessary procedures. Transformation from the old system to the ERP system is a difficult process. 

However, if the management and the implementation team do their job properly, ensuring that the employees are told what to expect and given proper training, then the transition can be smooth. Once the employees get used to the new system, they will understand the potential benefits and the effort saved through automation of talks and jobs. Today's ERP tools automate many of the repetitive, monotonous and tedious procedures, tasks and processes thus making the life of the employees a lot easier.

One ERP package will suit everybody

There are hundreds of ERP tools available in the marketplace. These tools differ in features, capabilities, size, functionality, price, technical support, customization, scalability etc. The organizations are also different from one another. Each has its own characteristics and identity. Assuming that one tool will be suitable for all organization is wrong. Selecting and purchasing an ERP tool without analyzing whether it is suited for the organization will have disastrous consequences.

For an ERP implementation to be successful, the tool that is implemented should be compatible with organizational culture, practices and procedures. So when purchasing an ERP package proper attention should be given to the selection of a tool that is best suited for the organization.