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ERP Applications: Myths And Misconceptions

March 9, 2008

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By Alexander Gordon

Any new technology is bound to have its share of myths and misconceptions. ERP is no different, and integration of ERP is an especially fuzzy area. Most small business owners think of ERP in terms of old communication principles, and think of ERP as no more than an upgraded version of old systems.

Some of the common myths regarding integration of ERP are discussed below.

1) Information Transfer Is Unidirectional
Information can flow in both directions, either from or to the ERP. If the ERP is integrated with the plant, it will have a bi-directional information flow.

2) ERP Integration Is All About Copying Data
Since older methods of integration follow a system of copying a tag and its profile, business owners think modern ERP system can be integrated the same way. However, there is more to ERP integration, since the business related-date that the ERP handles is very different from what the plant handles.

3) The ERP Can Come Up With Standardized Answers All the Time
Many people think that queries related to a business process follow a set pattern, as do their answers. They cannot be more wrong. Even if the system knows the right question, the right answer may depend on a number of factors.

4) You Must Use Only the Latest ERP Technology
Although the latest ERP integration technologies offer many advantages to small business owners, they have their own share of problems. The biggest problem is the integration of new technology to the old. In some systems, you will find that retaining older applications may be more useful than overhauling it completely.

5) ERP to Plant Integration Needs To Be Total
The ERP system deals with business process, while the plant, system deals with manufacturing and procurement issues. While the plant capacity fluctuates, the ERP capacity remains stable.

6) Data Security Is Compromised When You Integrate Plant to ERP
Nothing can be farther from the truth. Many people are concerned about what happens to the data that is not on site. The ERP programmers have spent a lot of time and money on making the system as foolproof as possible, so even data that is not protected by elaborate passwords are not easily accessible to unauthorized personnel.

7) Installing ERP System Means That You Can Keep Fewer IT Staff
The ERP system is not meant to replace your IT staff, it is there to help them with day-to-day problems related to maintenance and troubleshooting.

Now that you the answers to some common questions regarding ERP, you can take a better decision regarding the kind of ERP system you need. If you need help in deciding which the best ERP is for you, you can consult a business consultant.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.Business Owners all across the country are joining “The Community of Small Business Owners” to receive and provide strategies, insight, tips, support and more on starting, managing, growing, and selling their businesses. As a member, you will have access to true Millionaire Business Owners who will provide strategies and tips from their real-life experiences.

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Written by CRM Help Desk · Filed Under Enterprise Resource Planning 

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