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ERP Software Pitfalls

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ERP solutions have solved many problems of business enterprises, but ERP software has many pitfalls, which should be analyzed during the implementation of this software.

Some of the common pitfalls of ERP software are:

Poor compatibly to other software systems: The improper design of software implementation may make enterprise software inefficient. For example: If the company buying the enterprise software is using software products of some other company, or if to a previously installed system a new ERP software is integrated, then the new software may reduce the system's efficiency. If the integration of two systems such as CRM and manufacturing is not done suitably, the production unit may not get consistent data to design products. The customer buying enterprise software should use compatible products to get high efficiency.

ERP implementation can be expensive: Large companies have suitable infrastructure to maintain software and hardware terminals, but mid-size businesses and small companies may find the expenses on computers and hardware too much for their budgets. Many companies prefer to keep previous software modules to prevent expenses on taking new enterprise resource planning modules and if the implementation is not done at base level, it may not help the company completely. Companies buying enterprise software may find ERPs extremely expensive initially.

ERP Software security depends on people who using it: Enterprise resource planning software provides high security to the company's data, but if it is not maintained properly, the data may face security problems. Companies may have to hire support staff at high pay scale to maintain this Software security. Sometimes, companies wish to reduce buying cost and are not willing to take expensive training needed for high quality security and it may ultimately result in security issues.

ERP Software cannot be customized to meet the user's needs accurately: Although, this software use standard methods to design the modules such as finance, HR, production, inventory and manufacturing, but each company follows its own way of working. Sometimes, companies change their procedures to match the needs of the ERP software because to change software is very difficult. If you make changes to a single module of this Software, the complete software functioning has to be redefined, which is very expensive.

Extra costs and time spent on ERP implementation: Companies buying ERP have to spend money on buying software and hardware, and the burden of extra expenses on implementation makes it further difficult for the buyers. Technically proficient staff has to be employed or training has to be given to previous employees to run enterprise resource planning system. Initially, the implementation may take a lot of time and many companies are not ready to spend money and time on implementation. Companies have to pay to get extra license of the software, which is a biggest pitfall of software.

Some changes cannot be implemented to previously installed ERP Software: Sometimes, changes in manufacturing unit or market needs brings a lot of changes in production procedure and in such cases, previously installed enterprise resource planning software becomes outmoded. Changes in software market and introduction of new technologies can also makes enterprise resource planning software obsolete.

Related Book
Best Practices in ERP Software Applications
Best Practices in ERP Software Applications
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This book is written for business professionals, consultants, project managers, programmers, vendors, service providers, executives, teachers and students who are working, managing or studying in the field of software application development, process improvement, business process re-engineering, information technology, hardware applications development and corporate business process automation.

 Read Related Articles

ERP Software History
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