What are the Organizational Challenges of ERP?


18 Feb

The scope of study of ERP extends to the different areas. It is a very vast subject. ERP ranges from implementation to the areas like technical advancement, ERP outsourcing, impact on international business, job consultation opportunities education etc. It was designed basically to assist the process of manufacturing. For this process the first software that was developed was MRP in 1975 and after that advanced version was developed namely MRP2. ERP is having more benefits than MRP or MRP2.

ERP (Enterprise Resource Planning) systems try to collect several processes and data sources of an organization into a single system. For this integration purpose, ERP system will use various components of computer hardware and software. If ERP system is implemented successfully and integrated seamlessly with other information systems its benefits are obvious. For the purpose of ERP planning, implementation and integration, organization faces many challenges.

Lots of challenges are faced by the organizations right from choosing the vendor. It is not possible to study or analyze the failure of ERP system in an organization. If there is a failure of ERP, there are lots of excuses like vendor was not giving the proper and timely service, to accept the ERP system, organization was not equipped fully. Within and outside the organization this excuses will led to skirmishes only. Some of the top organizational challenges are:

* Lack of ERP expertise
* Budget limitation
* Not enough executive support
* Lack of employee buy–in
* Lack of project resources

The implementation of ERP faces some unexpected cultural and structural organizational challenges. ERP helps to practice and establish the best business of world –class. In decision making it demands for flexibility and empowerment. In an organization ERP brings transparency. Nowadays it is considered that ERP is the backbone of e-business.

Some of the organizational challenges are to maintain a good relationship with customer. It is a great challenging job to implement the enterprise resource planning (ERP). In business entity or company ERP is to be implemented in different stages. When ERP is implemented correctly it gives positive result. Time, resources and work should be taken into consideration while implementing ERP. The implementation of ERP is made in the different departments but in the later stage they should be integrated. The advantage of implementing the ERP in different department is that people in the other department will effectively utilize the resources after seeing the result of the previous department. It is also necessary that everyone in the company should be trained enough to compete with the new ERP system.

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