1. Why do I need an ERP system?
If you're unfamiliar with ERP systems, you may think your current business operations are going fine despite occasional inconveniences. You might wonder why you need an ERP system when your current systems or operational methods seem sufficient for business.
In reality, ERP is about integrating and managing all of your enterprise's resources. For example, in the course of operations, business owners or managers need to know and understand various data points such as inventory management, sales volume, sales team size, and more. Suppose you ask each colleague for this information individually and await their responses. In that case, this management approach will likely encounter increasing problems, hampering your business's progress and making it difficult to overcome operational bottlenecks. An ERP system helps businesses integrate and manage all their resources, making it easy to access data or allocate resources for new projects by simply checking the system.
Therefore, many people mistakenly view ERP systems as an expense when they are an investment. Implementing an ERP system in your company can make it easier for you to overcome business challenges and achieve significant growth.
2. Is an ERP system expensive? Is it suitable for startups?
Indeed, in the world of ERP systems, the principle of "you get what you pay for" applies. A million-dollar ERP system will naturally have more powerful features than one that costs a hundred thousand dollars. However, you may not necessarily need a highly robust ERP system if you're a startup or a small to medium-sized enterprise. You can communicate your requirements and daily departmental workflows to the ERP system provider and sales team, and they can recommend a system suitable for your needs and within your budget.
To illustrate, many men enjoy cars, and some may prefer to buy an expensive car to showcase or indulge themselves. But if all you need is a vehicle or to make your life more convenient, you can afford a cheaper seven-seater car. ERP systems work similarly—you can start with a system that suits your needs and upgrade later. Moreover, an advantage of ERP systems over cars is that they can be upgraded. For instance, if you currently don't require extensive features, but as your company matures and you need more capabilities, you can upgrade your existing ERP system without needing a complete system replacement.
3. Why shouldn't I use a free ERP system on the market?
Various free ERP systems are available for download on the internet, which may seem like a cost-saving option and offer the benefits mentioned earlier, facilitating smooth company development. However, most free systems merely provide a platform for data integration. Without an experienced colleague or a sales and operations team to assist your company, it can be challenging to reap the benefits of an ERP system.
Furthermore, free ERP systems may have security vulnerabilities, potentially leading to data breaches that outweigh any perceived cost savings.
After reading the three misconceptions and explanations above, your perception of ERP systems may have changed. You may even consider leveraging ERP to enhance operational efficiency and increase revenue. In our next discussion, we will share more about ERP systems and guide you in choosing the right one among the numerous available options. Stay tuned for more information if you are interested!
