An ERP is an organisation-management system that has been developed over a long period, and it continues to be developed to keep pace with the changing ways organisations use it.

Because ERP has been around for so long, some details of the system are sometimes misunderstood and differ from the reality.

This article presents 5 things people often misunderstand about ERP systems,

so that readers can have a clearer picture of ERP, and have information from another angle to help in deciding whether to implement one. The 5 things people often misunderstand about ERP are as follows:

People often misunderstand that ERP is only an accounting system
People often misunderstand that ERP is suitable only for large businesses
People often misunderstand that ERP is very expensive and complex
People often misunderstand that ERP is outdated technology that hardly anyone uses anymore
People often misunderstand that ERP cannot be customised

The details of each topic are as follows

1. People often misunderstand that ERP is only an accounting system

Some people may think that ERP is a system specifically about accounting, but in reality ERP is diverse and covers many areas of the business — such as human-resource management, warehouse management, production, marketing, and customer management — covering the whole of organisational management.

2. ERP is suitable only for large businesses

Some people think ERP is suitable only for large companies.

But in reality ERP can be used in small, medium, and large companies alike. The choice of ERP depends on the needs and the size of the business.

On this point, the organisation can consult with an ERP provider about which kind of ERP suits it.

3. ERP is very expensive and complex

Some people may think that switching to an ERP is very expensive and complex.

In reality there is no denying that using an ERP is a form of organisational investment.

The return on that investment does not come only as lower costs and higher profit,

but also as higher and faster operational efficiency, with the organisation using accurate and precise data. On the whole, investing in an ERP is a worthwhile investment.

4. ERP is outdated technology that hardly anyone uses anymore

In reality, ERP is a system that is developed and improved all the time, so that it keeps up with the times and with changing business forms, and stays current with how users work — so that the system can meet user needs for the highest efficiency of organisational management.

5. ERP cannot be customised

Some people think that the workflow in their own organisation is complex and different from other organisations in the same industry.

The organisation therefore feels that an ERP may not be able to be adapted to its particular complexity and differences.

But in reality ERP is highly flexible and can be customised to match an organisation’s needs — which is nothing to worry about at all.

In summary, an ERP is a system made up of many modules that cover the needs of organisational management. ERP is flexible and can be used by small, medium, and large businesses alike.

Although the cost of an ERP is a high investment, it gives a worthwhile return. It is also technology that is updated all the time and can be customised to suit an organisation’s use.

So an ERP is a system with many special qualities, and one that helps promote the efficiency of organisational management fully, in every dimension.