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What is the biggest challenge with ERP systems?

ERP computer software concept businessman selecting interface

An ERP system lets an organization to establish a completely synchronized configuration that connects all the business processes together.

It enables an enterprise in gaining an advantage over competitors by saving resources and responding to an ever-changing business environment.

But, there are some challenges that one needs to take into account before implementing an ERP system. Let us take a look at these challenges in ERP implementation.

Challenge: You need to know what type of ERP system you need for your business?

When you are buying an ERP system, bear in mind the fact that it should support all the business processes you want to introduce. Your business can have one or more business processes like:

1. Procurement: it is concerned with the process of the acquiring of the materials required for manufacturing the products.

2. Distribution: the process of the process of the deliveries of the available products to the customer is divided into two channels:

  • Direct
  • Indirect

3. Manufacturing: the process of the production of the goods in order to bring them to the company’s standards.

4. Management: the process of the management of the company’s resources goes hand by hand with the 4th business process.

In case your company needs an information system to integrate all business processes within a single system, we can say that you need ERP Enterprise Resource planning systems.

Challenge: Buy ready-made or tailor-made ERP system?

The challenge here is that it is not a good idea to buy a ready-made ERP system if you need a new ERP and it is a good idea to buy an ERP under such circumstances.

There can be two cases:

  1. Our company can have a similar ERP system already, or a partially matching one.
  2. Our company can be using an ERP system of another company.

In both cases, it is not ideal to buy a ready-made ERP that is needed for your company.

Challenge: How much should you invest in ERP implementation?

Once you know the type of ERP system you need, you can easily respond to the question – how much should you invest in ERP implementation.

Figuring out the cost of the system is not as straightforward as it seems at first thought. A system of this sort is expensive and requires committed user-support services, staff training, collective planning, and money for supporting the additional hardware.

Challenge: What you can do to avoid the loss of the data assets of the old ERP system?

When we implement an ERP system that comes with improved functionality, more data is generated that needs to be saved and processed.

However, this is not going to be the case if an old ERP system has been taken over.

You can solve the problem by creating a data migration plan, which will help you to gather information on:

1. How to transfer the data

2. How to check the data

3. Who is responsible for the aforementioned tasks.

4. How to save the time spent on data migration.

Challenge: How long it takes to implement an ERP system?

There is no single answer to this question. It depends on the size of the company, the type of the business it is engaged in, as well as the kind of ERP system it needs.

It may take around 6 months to set up an ERP, depending on the above-mentioned circumstances.

Challenge: What features and functions are necessary for an ERP system?

You need to consider the following features and functions when you are choosing an ERP:

1. Business Process

2. ECM

3. Supply Chain Management

4. Business Intelligence

5. Customer Relation Management

6. Spatial

7. Specialized Solutions

8. Security

9. User Interference

You may also look for more detailed information on selecthub.com/enterprise-resource-planning/key-erp-functional-requirements/

Challenge: Which ERP system should be used for innovation and research?

ERP software plays a key role in research and innovation as well. With the help of an ERP, an IT company can collect, process, organize and analyze the necessary information for innovation at any time, thereby enabling them to find results quicker.

Conclusion

The above is a brief description of the challenges that may arise when implementing an ERP system. 

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