Challenges Of Erp Implementation
Business applications are no longer an option but have become an integral part of an enterprises strategic decision
. Most organizations are now using more than one business intelligent application to integrate different units. Enterprise resource planning (ERP) applications is an essential business tool. It is a suite of enterprise applications that integrates all the operational facets of an organization to create a platform for collaborative data sharing.
ERP software solutions have become essential for streamlining business. The idea is to retain, manage and embed business intelligence throughout the organizational framework. But many organizations face challenges in executing their ERP plans; partially due of infrastructural inadequacy and partially due to the high risk and costs involved with it. Below we have discussed the hindrances faced by SMEs in implementing ERP upgrade.
High cost: Finance always remains the major deterrent for small and medium businesses to investigate into and implement modern technology. ERP modernization process often is complex and involves many man hours. That further discourages SMEs in undertaking it.
Slow functioning: Limited infrastructural facilities often deter companies from deriving fullest benefits from business applications like ERP/CRM/SCM. Further, the software may suffer downtime issues whenever the server capacity exceeds - resulting in loss of business.
Integration difficulties: Integrating ERP solution with your existing software set up can cause an upheaval. Your organization may lack in updated software infrastructure essential for a seamless integration of the ERP application.
Integrating different ERP modules: ERP is not a standalone tool, but there needs to be an effective integration between different business intelligence applications for better management. Meanwhile, there can also be a demand for integration between modules from different vendors or between the different modules from the same vendor.
Insufficient expertise: One of the major difficulties faced by small enterprises in implementing ERP is insufficient expertise and workforce. They often lack in previous experiences or may be scared of a bad experience before.
Maintenance issue: SMEs that run with limited workforce often cant afford to maintain a fully functioning IT department, which leads to difficulties with maintenance and regular updating of software packages.
How these issues can be resolved
The above mentioned issues, however, should not be the deterrent for your business to avoid installing and benefiting from modern technologies. Most of these issues can be taken care of with open source enterprise resource planning system.
Open source ERP is easy to customize and implement and therefore, befitting for small and medium businesses. Moreover, it doesnt require the SMEs to make substantial upfront investment on their technological infrastructure. Open cloud ERPs operate in pay-as-you-go model which eliminates the issue of buying licenses for proprietary software.
Your software-as-a-service or
SaaS ERP provider will take care of the issues associated with maintenance and monitoring of the service; freeing you from setting up hardware infrastructure. The benefits a small scale enterprise can derive from implementing open source ERP are enumerated below:
Tension free installation
Easy deployment standard ready to use models are easily available
User friendly requires little to no training
Seamless integration between different modules
Hardware and technical support from SaaS provider
Easy customization options
Staff training by service provider
Little downtime
Quick return on your investment
Multiple backup for easy disaster recovery
Enhanced level of data security
by: Alan Tibber
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