Why Everything You Know About ERP is Wrong
ERP has been the backbone of manufacturing IT for so long that it has taken on its own myths. The trouble is that these myths are now ‘accepted wisdom’, despite being anything but acceptable or wise. Destruction of these misconceptions is long overdue.
Misconception 1: ERP is costly
“For manufacturers with multiple sites, subsidiary companies, international facilities and specialized production processes, connecting systems into an ERP framework soon builds to the point where rip and replace seems the easier option. For those looking to invest first time around, the costs of an ERP expert to analyse and align business processes to match the ERP system and train employees is prohibitive.”
This is simply not true. The technology to connect disparate systems and deliver the information in a clear, meaningful manner is already available. It does not matter if these are cloud, hybrid or on premise so the lower upfront investment options of cloud computing are there for manufacturers looking to expand or invest for the first time. Expensive ERP expertise is a thing of the past. Dashboards and analytics based on familiar, industry standard platforms have replaced complex proprietary options.
Misconception 2: ERP is complex and always results in projects running over time
Manufacturing is a complex industry. Research shows this will only increase. Analyzing business processes and developing software to automate them should eliminate complexity but when it doesn’t, we have to throw time and resource at the project and use brute force to crack the nut.
Now we know better. Firstly complexity is no bad thing – it is a mirror of the business. It enables operational precision and commercial opportunity. But complexity can inhibit innovation so focus on making processes tight and lean before they are automated. As a result, an ERP implementation delivers value earlier and is completed quicker.
Misconception 3: ERP implementations are invasive and disruptive
Connecting the mass of data and information to deliver a working ERP system is a huge task. It is dwarfed only by the ongoing use of ERP that demands software upgrades, training, security patches and a lot more besides. This is a huge drain on the resources of the company.
Wrong again. Intelligent deployment delivers consistent, meaningful information to the end user regardless of the deployment method, so a business can be up and running with ERP in days. A modular, event driven approach means manufacturers can get the capabilities needed in the order they want without disrupting other areas of the business.
Misconception 4: ERP vendors are inflexible and notorious for their lack of support
Some software vendors can disregard the pains of manufacturers, ignoring the realities of budget and IT resource limitations as well. Believing that the software is always right, business processes have to be changed and people retrained.
Well I cannot speak for others but not at Infor. We spend thousands every year researching the issues and challenges facing manufacturers. We spend millions developing solutions to help solve these problems and we are in this for the long haul. That goes for both the software and services.
So why have these myths never been slain before? There are many possible reasons but I believe it is because manufacturing has rarely dared to think differently. Thankfully, this is now changing. Operational directors are not just accepting what the software industry tells them they can have.
Savvy manufacturing leaders now start with an outcome – for example a 20% cost decrease – and ask software vendors what they can do to make it happen. Thinking differently, daring to push manufacturing technology beyond current limits should be encouraged. Destroying myths and accepted wisdom will be a hallmark of those manufacturers set to succeed.