ERP or enterprise resource planning is basically software that helps you in the growth of your business in many ways. There are many benefits that a company can have if it is using ERP, but there are risks and disadvantages too. So, if you are one such individual who wants to install an ERP system for your company, then you must know about the downside of this system as well. Here are the details.
Drawbacks of ERP systems
The biggest drawback of any enterprise resource planning system is that it does not work well with big organizations. The working of big organizations depends on different factors. All these factors are very different in nature and functions. As we know that ERP combines all the factors together and then work under one platform. In big business systems, this policy does not work at all.
Installation is a bit difficult
If we talk about the nature of enterprise resource planning system, then it is basically a software that a company buys, but if your company is using other software already, the installation of a new ERP won’t be possible. Even if you are able to install it in your company, this will affect the productivity a lot. It is said that less number of applications are good for increasing productivity. The other way of installing an ERP system is that you can plan the ERP integration of all these apps. Now, the problem with this thing is that it will take a lot of time doing that.
We know that the ERP system integrates all the essential components of your business and make them a whole. The entire data and important documents are there under one platform. This helps the company in increasing efficiency and reducing the cost. On the contrary, if by any chance this ERP system of your collapses, then you can imagine the loss that one will have to face.
One can face this risk even in the case when ERP is not designed or implemented properly. The only solution to this problem is taking the help of an experienced accountant, but the companies opt for ERP, only in the case if they do not have an accountant. If your company is facing a problem like this, you should hire an accountant immediately.
This should be there in our minds always that whatever technology we are using may have risks also. The ERP system works on the same policy.