In this report, we haveabove mentioned the role, benefits and advantages of ERP in big businesses. Wealso discussed the effectiveness of ERP that can be checked through the test wederived and we also talked about possible errors that might come through anERP.
ERP is totally a game changer for an organization but that does not meanthat it will always be a hit or give positive results every time. Many types ofissues can be faced while implementing the ERP or after implementing thesystem. Implementing ERP system needs a lot of planning and monitoring toguarantee success and erase the problems.
As we mentioned aboveERP can be used for sales, customer service, procurement, HR, accounts and soon. It without any doubt make things easy but there can be issues as well. Thefirst issue of implementing ERP system is that which systems should beintegrated and which systems shouldn’t be integrated. It is very difficult tohave an idea where integrating systems in an organization can gain a competitiveedge and where it will delay the company’s workflow system. There can be a resistancerelated to ERP from the employees of the big organizations. For example if abiometric attendance system is introduced in the company, the problem wouldarise for the employees who don’t come early or leave early, so there would bea resistance from their side. It has been noticed that many employees leave thecompany after ERP system is deployed. Well, this type of issues can be managedby the leadership of the organization if they truly want to but there are alsosome other kind of issues.
While the ERP system is being deployed, the trainingsessions are attempted by the IT people for the employees of the company whowould be using that system later. Now what those employees do is that theydon’t take the trainings seriously and it wastes a lot of time of theorganization as the organization has to arrange the trainings again and again. Thecompany should always assign their best employees for that purpose.
Other than that, ERP isway too expensive as a system. Its initial cost must be adequate but the totalcost is too much and it depends on the customization. The more is thecustomization the more is the cost of the system. And ERP also has many costsfor the maintenance and other things. So companies must remember that the ERPis not an easy button and does not solve all the problems at once.
ERP systems are allabout the technology and the technology is up grading day by day which meansthat there would be costs for the technology which needs to be properlyaddressed by the big businesses. The role of topmanagement of a company is very important in implementation of an ERP as theymust have a vision about the implementation of an ERP and must act as a leader. They should let the implementation done in the stages and must have done aproper analysis of the requirements. They must take all the employees inconfidence and must motivate them while leading them towards success of an ERPsystem. In this way, many things would be crystal clear.
We should not forgetthat beyond the initial noteworthy costs and resources needed, the biggestchallenge is successfully changing the company’s culture to take maximum advantageof an ERP system. ERP system imposes a different approach by forming commonapplications that are supporting business operations. Achieving maximum resultsfrom the system will mostly depend on the company’s ability to guarantee thatkey processes are made best throughout the company. In this way, most of theproblems that might the company face would be taken care of. The issues wouldno longer be major issues that cannot be solved. So this must be clearthat there are many issues either organizational or technological that needs tobe faced and solved while implementing the ERP system in the big businesses.