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Disadvantages of ERP

However, with all the advantages the ERP offers, there are a number of disadvantages as well.

1.    Perhaps one of the biggest disadvantages to this technology is the cost. At this time, only large corporations can truly take advantage of the benefits that are offered by this technology. This leaves most small and medium sized businesses in the dark.

2.    A number of studies have shown that the biggest challenges companies will face when trying to implement ERP deals with investment. The employees must be continually trained on how to use it, and it is also important for companies to make sure the integrity of the data is protected.

3.    ERP has a number of limitations. The success of the system is fully dependent on how the workers utilize it. This means they must be properly trained, and a number of companies have attempted to save money by reducing the cost of training. Even if a company has enough money to implement ERP, they may not be able to successfully use it if they do not have enough money to rain their workers on the process of using it.

4.    One of the biggest problems with ERP is that it is hard to customize. Very few companies can effectively use ERP right out of the box. It must be modified to suit their needs, and this process can be both expensive and tedious. Even when a company does begin changing the system, they are limited in what they can do.

5.    Most ERP vendors will not allow the structure of the software to be altered. One advantage to ERP is that making the necessary changes to use it may actually make a company less competitive in the Markey. In addition to the costs involved with implemented ERP and training workers to use it, the ERP vendors may charge additional license fees, putting a strain on companies that do not have enough resources to pay for them.

6.    The technical support of ERP department has been questioned, and a number of problems could arise due to security, since corporate representatives must give sensitive information to the technology department.

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