An Enterprise Resource Planning (ERP) implementation can revolutionize all aspects of your business processes. Let’s dive into the top three common myths associated with ERP implementation and discover the truths behind them.
#1 Myth: ERP is for large enterprises.
When people think about ERP applications, they often assume that only large or multinational enterprises implement these solutions. The truth is quite different than this.
For years, small and medium-sized enterprises (SMEs) remained on the sidelines, while their larger competitors enjoyed the advantages of ERP systems. However, times have changed, and the latest research tells a different story - around 80% of SAP’s customers are small and midsize companies, choosing SAP solutions that help them simplify, automate, and grow their businesses.
Resistance to change can complexify and prolong the process in both large multinational companies and SMEs. What businesses should understand is that a successful ERP implementation is an ongoing journey of continuous improvement.
No matter how you turn it, implementing ERP is an extensive project and requires careful planning. Fortunately, SAP tools like Digital Discovery Assessment (DDA) and Cloud Application Lifecycle Management (CALM) assist customers throughout the transition.
#2 Myth: Cloud ERP is less secure than on-premises.
On-Premise solutions have become a cornerstone in organizations’ technological infrastructure around the world. Given its long-standing tenure, the thinking often results in believing that on-premises are more secure. In reality, major cloud data centers have stronger security measures due to dedicated teams solely focused on guarding against security breaches.
Cloud providers offer a diverse array of security features and services aimed at assisting businesses in safeguarding their data and applications. Utilizing a cloud ERP system allows businesses to enhance their security posture without having to invest in their own security infrastructure as in on-prem users.
Ten years ago, CIOs may have been hesitant to move to the cloud due to the uncertainty in stable safeguarding, but now we see a shift towards embracing the cloud for its enhanced security features. Cloud providers handle the distribution and implementation of patches, ensuring that the business can operate without interrupting the business.
Moving to the cloud is not just a technical process, but a transformative one that keeps businesses current, up to date, and secure.
#3 Myth: ERP is a one-size-fits-all solution.
Most companies out there are struggling with a ‘spaghetti’ ERP landscape, hindering their ability to rapidly decode and transform to meet ever-changing business requirements. Businesses see the transformational benefits of implementing a fit-to-standard approach to ERP, which helps maintain a clean core while leaving complexity behind. However, it is important to note that ERP is not a one-size-fits-all solution, and deviations from standardization occur for a reason.
Within the organization, it is essential to establish a clear understanding that cloud ERP doesn’t require businesses to adopt a complete fit-to-standard approach. 90% of fit standard approach and the rest focused 10% serve as a competitive edge or a key to enhancing operational efficiency.
An example of a successful cloud ERP implementation is La Moderna, a food manufacturer in Mexico City. Their proactive adoption of best practices and simplification of processes has positioned them well to take advantage of future innovations in the ERP solution. The company’s attitude toward change management with a solid cloud ERP strategy enabled La Moderna to drive out complexity and positioned themselves to take advantage of the innovations in the solution.
Cloud ERP enables businesses to stay compliant with the evolving rules and regulations, as localization extends beyond language or currency considerations but also encompasses compliance with local regulations.
This session will provide an overview of the capabilities SAP brings to help you implement ERP successfully with confidence. Shifting from a blueprint and design approach to a fit-to-standard approach comes with many efficiencies and advantages, and you’ll understand the key to implementing your ERP successfully from our expert. Furthermore, you'll learn how La Moderna successfully implemented our Cloud ERP smoothly and realized its value quickly.
