Disadvantages Of Enterprise Resource Planning

732 Words 3 Pages
Enterprise resource planning (ERP) system has gained its leverage over other business management systems due to its ability for real time and faultless communication abilities. However, ERP implementations are at risk to increase costs to the business. Companies tend to experience challenges during the RP implementation through the poor selection of ERP system, under estimating their business process; which leads to the need to customize the system after initial implementation, and forcing the company to change its business practices. ERP implementation is an expensive and time consuming task. Therefore, it is imperative that the decision makers of the company approach ERP implementation with complete understanding and certainty. If a company fails to properly plan for ERP implementation, they inadvertently organize their failure. Selecting the wrong ERP system also occurs from not understanding the business process. it is important to decipher differences between needs, processes, and the structure of the company. It is essential that the right system is selected so that the company can take full advantage of the great benefits that ERP can provide the company. Poor planning is the central cause of ERP implementation failure. Understanding of the size, scope, …show more content…
This is extremely important to companies that operate on a multinational scale. Multinational companies look forward to knock down cultural barriers, provide effective communication opportunities, and help with cost advantages. ERP systems help organize operational activities within a business. Due to the fact that ERP systems allow companies to realize weakness within their company; such as production schedules, inadequacy of current systems (if applicable), lack of ability to compete with competitors, and other performance

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