Is ERP costly & only for large enterprises- Debunking the myths

Before we delve into the topic whether ERP is costly & only for large enterprises, we first need to know what ERP is? In case you’re not aware of the term.  The full form ERP is enterprise resource planning. If I have to explain in lay man’s language what it does, then the answer would be, it is an integrated system where data of all the functions of your business can be stored in one place. Gone are the days where you were needed to maintain hard copies of everything. Human’s can work the best in terms of keeping data, but not without error. On the other hand, if you have a system that helps you maintain all the data with the help of a human, it is going to have less errors. There are more benefits like: -

1.Automates repetitive tasks.

2.Reduces manual work, freeing up time for important tasks.

3.Centralizes data from various departments for a unified view.

4.Provides real-time data and insights for informed decisions.

5.Improves customer service through better resource allocation and response times.

6.Enhances inventory control.

Now you would say “I am sure it doesn’t come cheap, needs a manual setup, training of employees and of course why do I need it, as mine is a small or medium business.” I will answer that, but before that know how many types of ERP there are, because this too is vital information.

There are three main types of ERP software systems:

1. Onsite ERP/ (On-premises ERP)

·       Utilized and managed within the organization's own IT infrastructure.

·       It provides full control over the ERP software and security

·       Requires dedicated in-house IT resources for maintenance.

2. Cloud-based ERP/ (Software-as-a-Service (SaaS)

·       Hosting the ERP software on the cloud

·       Managing it through a third-party provider.

·       It can reduce expenses by eliminating the need for heavy upfront investments in hardware and software.

·       Technologies like AI and machine learning help in automating routine tasks.

·        Accessibility across devices means users can access the ERP system from anywhere, using computers, tablets, or smartphones.

3. Hybrid ERP/ (Two-tier ERP)

·       Combines aspects of both onsite and cloud-based ERP models.

·       Some applications and data reside on-premises while others are hosted in the cloud.

·       Provides flexibility to choose where to store and manage different parts of the ERP system based on business needs.

The large enterprise always makes sure that their human resource is used fully and employees are not engaged in doing something that is going to keep them busy than the main work that they do. As your business grows, maintaining a huge database is crucial and tedious at the same time. Maintaining the data of customers, accounts record, inventory etc is not at all easy you see. That is large enterprises use ERP systems.

Let’s debunk some myth now to answer the questions that you may have regarding ERP.

1.Myth: It is costly.

Fact: Cloud based ERP are very cheap.

2.Myth: It needs a setup.

Fact: Storing in cloud-based ERP doesn’t need a setup.

3.Myth: My data is not safe.

Fact: Cloud ERP vendors invest heavily in security measures, providing advanced protection against cyber threats and ensuring data integrity.

4.Myth: Well, it needs training.

Fact: Of course, but it is user friendly.

5.Myth: I would need to update it regularly.                                            

Fact: Cloud ERP providers manage software updates and maintenance, ensuring you always have access to the latest features and security enhancements without additional effort.

6.Myth: There is no benefit of having it on cloud anyway?

Fact: Low data storage, accessing it from anywhere, best part no risk of data loss.

7.Myth: I won’t be able to recover my data if there is a system failure?

Fact: Cloud ERPs typically offer robust disaster recovery solutions, protecting your data against loss due to system failures or natural disasters.

8.Myth: The business operations will be disrupted.

Fact: Implementing a cloud ERP system is faster compared to on-premise solutions, enabling quicker time-to-value and less disruption to business operations.

9.Myth: I have to pay for all the features that come in the package.

Fact: Many cloud ERP providers offer flexible pricing models, allowing you to pay only for the features and modules you actually need.

Well, it seems good, but what if I want to discontinue a certain ERP service., then what will happen to my data?

10.Myth: I am not getting my data back.

Fact: Data Transfer When Discontinuing ERP:

1. Exporting Data:

   • Explanation: You can export your data in commonly used formats (e.g., CSV, Excel, XML) from the ERP system.

   • Action: Follow the ERP provider’s guidelines or use built-in export functions to download your data.

2. Migration Tools:

   • Explanation: Some ERP systems offer specialized migration tools or services to help transfer data to another system.

   • Action: Use these tools or consult with the provider for assistance with data migration.

3. Backup Data:

   • Explanation: Ensure you create backups of all your data before discontinuing the service to prevent data loss.

   • Action: Store backups in a secure location, such as cloud storage or external hard drives.

4. Data Deletion:

   • Explanation: After exporting your data, you can request the ERP provider to delete your data from their servers to ensure security and privacy.

   • Action: Contact customer support to confirm the deletion process.

5. Consulting Services:

   • Explanation: Many providers offer consulting services to help with data transfer and ensure a smooth transition.

   • Action: Utilize these services if you need expert help during the data migration process.

This blog is just an outline of what an ERP system offers you. But I would suggest at least trying once to know whether you would like to have it or not. Who doesn’t want a good system that manages all data and takes improved and real time decisions to scale their business.  Try ZOHO ERP or ODOO ERP. These have good names in the market.

Ask these questions before buying from them: -

1. Does the ERP system support all essential business functions?
2. Is it scalable to accommodate future growth?
3. What are the implementation and ongoing maintenance costs?
4. How user-friendly is the system for your team?
5. Does it provide adequate support and training options?

Read Case Studies or Testimonials to understand which ERP system will be best for you as it varies depending on individual business needs. Embracing an ERP system is no longer a luxury but a necessity for small and medium-sized businesses aiming to thrive in today’s competitive market. By using ERP, you can streamline operations, enhance efficiency, and gain valuable insights to make informed decisions. Don’t let your business fall behind—adapt to the future with the best tools available. Start your journey towards growth and innovation today, and give your business the competitive edge it needs to scale successfully.