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Challenges Of Implementing An Erp System

Satisfactory Essays

What are the challenges of implementing an ERP system?
With the extraordinarily rapid growth of ERP’s implementation from the late 1990s to today, there are lots of inevitable challenges that companies may confront during ERP implementation process.
1. Decision-making challenge
a. Selection challenge
When a company decided to execute a managerial information system implementation project, the first question that companies will face is how to select the most suitable applications on type, size, and scope that are required in the future companies business from the tons of solution applications offered on market. There is no single answer on how to find what you need; in order to make decisions; companies have to seriously consider the combination of their own conditions and requirements with the needs of business.
There are some facts indicates that the implementation of ERP not always successfully accomplishes the companies’ goals, targets, and anticipant outcomes and profits. However, the surprised truth reported by much of the research say that the main reason of failure on ERP implementation is due to the high degree of complication from the massive changes ERP causes in organization rather than ERP itself. An ERP implementation is a huge commitment from the organization, causing millions of dollars and can take up to several years to complete. 1 But when companies implement successfully, the value, profit and benefits provided by ERP can be enormous. What is more, it

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