Generally it is considered that Enterprise Resource Planning (ERP) systems are suited for larger enterprises. This believes is due to several reasons like high cost of ownership, the complexity of implementation and the continuous maintenance costs. Regular maintenance of ERP System is necessary since it works on huge amount of data & regular maintenance of the software makes it faster & reliable. However in last decades erp has made possible for large sized organization as well as small sized business. Both types of organizations avail benefits from erp software. Though ERP is beneficial for SMBs (small and medium-sized businesses) but still there are several obstacles especially during implementation & it create perception that ERPs is suitable for large sized organization. There are several challenges that arise during ERP implementation.
- ERP Customization: The most common concern that arises during erp implementation is customization. Since customization is done according to need of the specific organization hence several problems arises during implementation & after implementation. Every company has different way hence it is necessary to do some adjustment while implementing enterprise resource planning software. Sometimes customization need costly up gradation.
- The users: Users are one of the important factors for successful implementation of erp system. If the user does not know more about this software & does not know how to operate it, the software may not be useful for the organization. We are human & easily get confused. Hence an ERP user should be trained & professional.
- Investment in Internal Hardware: Slow & heavy hardware are incredibly unproductive. Since erp connects several departments of an organization hence it stores huge amount of data & there is a need of significant amounts of storage so that the software may give high work performance. A properly manager erp system with proper hardware has the ability to bring more customers toward business & increase customer satisfaction. Selection of a software package is necessary but technical issues are also important & should be resolved. The work station need to be revised for new system new hardware items may need to be ordered, purchased, and replaced. The entire internal network also need to be analyzed and modernized if required, and the speed and bandwidth of the existing Internet access should be taken into consideration along with possible technical concerns about the mobile devices being used.
- Communication: Communication is also a big factor for success of any enterprise resource planning software. At every stage of erp implementation, communication between employees is necessary.
These are some top challenges that arise during erp implementation.