What are the limitation of an ERP system?

Answer 1

1. Limitations

   • Implementing an ERP system in a new business can be very effective. Implementing the same system in an older business can be very difficult. All employees must be trained, and there will be significant down time as the business switches all applications over to the new system. Some businesses cannot afford the profit loss this downtime would require. ERP systems also tend to have industry standards for specific types of businesses, and the strict molds may lower creativity or competitive advantage.

   Policy Limitations

   • ERP systems do not fit the business plans of every enterprise. Often, ERP systems must be customized to allow for specific tasks. Not all ERP systems allow this---depending on the system or company the business uses, it may be against policy to make such drastic changes to the application.

   Ongoing Support

   • Support for ERP systems often can be difficult to depend on. Technical response can be adept at dealing with minor problems, but major complications with the ERP systems can be beyond the limited customer service available to businesses.

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