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What are the disadvantages of a web based ERP system?

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Question added by Zain Khater , Project Supervisor – StartUp Project , Injaz
Date Posted: 2017/03/21
JEFFIN JOSEPH MATHEW
by JEFFIN JOSEPH MATHEW , Senior Accountant , TT TRADING

web based ERP requiements of deploying data in a cloud system. This raises some risk towards data security.

Jicky Hao
by Jicky Hao , Store In Charge , Mattex Geosynthetics

Main known drawbacks of using web-ERP system are:

- you should provide Internet access to get to your stored data;

- some tasks are difficult to implement as the web applications;

- you or your SaaSm solution provider should provide extra protective measures to reliably store your data.

At the same time web-based ERP solutions have many advantages (apart from low total ownership costs):

- you do not have to install the software on your infrastructure;

- you don't have to administer complicated configuration of IT-infrastructure;

- you can get access to your data from any location in the world with any device that have Internet connection;

- Updates of your ERP-soultion is done by your SaaS-provider.

As an example of the web-based ERP solution, I want to provide the Clobbi, the SaaS ERP system of the company I work for.

Under the SaaS model, Clobbi provides full ERP functionality, including operational scheduling and medium-term production planning.

Sameera Srilal Fernando
by Sameera Srilal Fernando , Cost Manager , Kulkarni Quantity Surveyors

Internet connection shall be a high speed connection

Required a ton of cyber security inorder to secure data

Since it is based on internet, running cost is much higher

Should have experts to maintain the system

tanweer alam
by tanweer alam , Project Manager PMO , Genpact - India

As such there is no disadvantage, you have to decide how you are deploying your ERP system like Inhouse or over the cloud, if it is on over the cloud then the concern is your data security, you have to check the SLA and data governance part

 

Rahul Dev dev
by Rahul Dev dev , General Accountant , H&H procourment LLC

On the other hand, deploying your ERP software system to the cloud does have a few drawbacks. Most importantly, web-based ERP requires payment of regular hosting fees for the hardware. Over time, these costs can mount up and eventually even surpass the investment costs of an on-premise system. Another possible problem is that of reliability. Though today’s networks are rock solid, slowdowns and outages do occur. Downtime could be very disruptive and costly. Data security and integrity is another concern. Most data networks are extremely secure and feature powerful encryption, but breaches do occur. Finally, many organisations experience a feeling of loss of control when their data is stored offsite. In such cases, the idea of off-site ERP might clash with corporate culture.

Rokibul Alam
by Rokibul Alam , Finance Manager , First International Company Bangladesh

ERP is a good Accounting syestem. Some disadvantage is a pertiqular accounts or ledger not show the result.

JOHN NZIOKI
by JOHN NZIOKI , IT MANAGER , CITY WALK LTD

web based erp system my be a limitation to companies at remote areas where there is no internet connectivity in countries not developed and thus become a disadvantage since it can only be used in advanced countries.

Incase there is no internet, or internet down time occurs it may affect the operation of the system.data security becomes another challange since you do not have full control of your information incase of cyber attacks of the cloud hosting companies.

HIDAYATH PASHA
by HIDAYATH PASHA , ASSISTANT , CANOPY LIFE SCIENCES

Main known drawbacks of using web-ERP system are: - you should provide Internet access to ... As an example of the web-based ERP solution, I want to provide the Clobbi, the SaaS ERP system of the company I work for. Under the SaaS .

Ayub Maroof Faruqui
by Ayub Maroof Faruqui , Head Of Operations , M.N. Nabi Textiles ltd. uunder DOREEN GROUP

First of all

  • This is Expencive
  • Need a bunch of highly qualified people in this field
  • Required a long time to implement 
  • Vendor always try to hide the SOW (Scope of Work) by asking your requiremnt rather than what they can provide
  • Net dependabitlity is a major factor
  • Vendor always discurrage to hire experianced people as he will unhide all field where vendor does not work 

Shanoj Naykath
by Shanoj Naykath , General Accountant , Hesan Al Sahra General Trading LLC

ERP System is web based. so the speed and availability of internet connectivity will affect the performance.

Shaik Javeed Shaik
by Shaik Javeed Shaik , assistant accountant and cashier , centrix inferior pvt ltd

  • The installation of the ERP system is costly. ERP consultants are very expensive take approximately 60% of the budget.
  • The success depends on the skills and experience of the workforce, including education and how to make the system work properly.
  • Resistance in sharing internal information between departments can reduce the efficiency of the software.
  • The systems can be difficult to use.
  • Change of staff, companies can employ administrators who are not trained to manage the ERP system of the employing company, proposing changes in business practices that are not synchronized with the system.
  • Having an ERP system has many advantages, but does not guarantee the total success of the company. Organizational culture, know how to involve staff and anticipate changes that will suffer the organization using this system of administration, are important elements for the completion of the implementation.
  • The effectiveness of the ERP system may decrease if there is resistance to share information between business units or departments. Due to strong changes that implementation of the ERP system brings in the culture of work, there may be poorly trained or disinterested in making use of the same staff…
  • The benefits of having an ERP system are not presented immediately with the implementation of the software, they will be evident long after the system is running.
  • The culmination of the implementation depends on the ability and skill of the workforce, also involves education and training, to make the system is correctly applied.

In conclusion, it is essential to analyze whether the ERP system will be implemented in your company is right for your needs and that does not violate the interests of their organization.

Also keep in mind that a bad strategy implementation can lead to failure of the same.

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