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ERP systems can lead to the commoditization of business processes, meaning that every company that uses an ERP system will perform business processes the same way.
1. The cost of ERP Software, planning, customization, configuration, testing, implementation, etc. is too high.
2. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to get completed and fully functional.
3. Too little customization may not integrate the ERP system with the business process & too much customization may slow down the project and make it difficult to upgrade.
4. The cost savings/payback may not be realized immediately after the ERP implementation & it is quite difficult to measure the same.
5. The participation of users is very important for successful implementation of ERP projects – hence, exhaustive user training and simple user interface might be critical. But ERP systems are generally difficult to learn (and use).
6. There maybe additional indirect costs due to ERP implementation – like new IT infrastructure, upgrading the WAN links, etc.
7. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating ERP systems with other stand alone software systems is equally difficult (if possible). These activities may consume a lot of time, money & resources, if attempted.
8. ERP implementations are difficult to achieve in decentralized organizations with disparate business processes and systems.
9. Once an ERP systems is implemented it becomes a single vendor lock-in for further upgrades, customizations etc. Companies are at the discretion of a single vendor and may not be able to negotiate effectively for their services.
10. Evaluation prior to implementation of ERP system is critical. If this step is not done properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure.
A Company going for an ERP is like a man is looking for a lady for marriage. You will never be able to match 100% business to ERP as it is. Proper Business Re Engineering and some Customization are needed. Same time, Change Management will make lots of restrictions for the new life of the company with ERP. Success or Failure of ERP will be dependent on many parameters like, Proper vendor selection, Senior Management support and proper project management. Can not criticize in general, it is always a case by case matter.
1-having long time for analysis and design phase
2-higher cost of configuration, testing, implementation
Hi! Everybody, Many people still dont understand the importance of ERP and how integration of all the functions helps in tracking of any issue from its root. This is one of the reason very often people start criticizing.
Cost involved is a bit high and enterprenuers try to keep away/postphone their desire for ERP
people often resit for change. And this involves changing from the legacy system to a new system of ERP. They are often scared of transition difficulties.
There are very few people who are actually trained in ERP Systems and who are well versed in understaning its structure and working. Affordability of such skilled people is another negative.
Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating ERP systems with other stand alone software systems is equally difficult (if possible). These activities may consume a lot of time, money & resources, if attempted.
Cost , data security and implementation troubles.
From experience working with ERP it is of utmost importance that data that is fed into the system is up to date and current. Any corrupt data, whether captured incorrectly by system administrator or the end user will have an negative effect on outcomes.
There are many great benefits of having ERP in the workplace including well-defined integrated business processes leading to standardisation, streamlining and value-creation. The level of customization during implementation drives the implementation duration, which in turn affects the implementation cost. Make sure to get correct specifications that fit your business needs during blue printing phase to avoid very costly corrections.
1. The cost of ERP Software, planning, customization, configuration, testing, implementation, etc. is too high.
2. ERP deployments are highly time-consuming – projects may take 1-3 years (or more) to get completed and fully functional.
