Friday, December 15, 2006

ERP Applications: Myths And Misconceptions

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.

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.

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