The Limitations of ERPs

A wide variety of companies in different fields depend on software to ensure smooth flow of their business on a daily basis. Enterprise resource planning software, with its integrated modules that cover the verticals of a company has proved to be an effective way of managing the company’s resources and improving overall efficiency. But there is always two sides to a coin and ERP comes with its own set of limitations. Let’s look at some of them.

1. Cost The software, as such is expensive, especially fro smaller companies. Adding to the basic cost will be customization requirements but one cant forego the customization either as every company’s requisites from the ERP is different.

2. Implementation Time FrameBringing in an ERP software over the breadth of the organization is a challenge. So many different functions have to be integrated into the software and the staff have to educated on the proper usage of the software. There are many instances in which the staff find it difficult to migrate to the new environment, thereby causing huge, unsustainable time delays in implementation.

3. FlexibilityERP software is seen as a fixed and rigid program; once the program s built, it is extremely difficult to usher in changes in terms of functionality, options or additional features.

4. ReturnsIt is also difficult to quantitatively measure the benefits reaped from implementing an ERP software.

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