There are a lot of myths that surround the concept, infrastructure, implementation and practice of enterprise resource planning. Very often people are not willing to adopt ERP because of these wrong notions. In this section we will see some of the most common myths about ERP and will try to demystify them.
ERP is just for Manufacturing Organizations
This assumption is basically due to the way in which ERP was historically developed from the methods of Material Requirement Planning (MRP) and Manufacturing Resource Planning (MRP II), which are relevant to manufacturing organizations. In the manufacturing industry, MRP became the fundamental concept of production management and control in mid 1970s. At this stage BoM (Bill of Materials), which is purchase order management that utilizes parts list management and parts development, was the prevailing trend.
And this concept unfolded from order inventory management of materials to plant and personnel planning and distribution planning, which in turn became MRP II. This incorporated financial account, human resource management functions, distribution management functions and management accounting functions and came to globally cover all areas of enterprise mainstay business and eventually came to be called ERP. But in reality the concept of enterprise-wide planning of resource is not limited to any particular segment of industry.
ERP means more work and procedures
ERP will make many employees redundant and jobless
ERP is the sole responsibility of the management
ERP is just for the Managers/Decision-makers
ERP is just for the ERP implementation team
ERP slows down the organization
ERP is just to impress customers
ERP package will take care of everything
One ERP Package will suit everybody
ERP is very expensive
Organization can succeed without ERP
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