Owing to their multiple benefits, enterprise resource planning (ERP) services are a must for today’s organizations. But to ensure that opting for ERP is the right step for your business, it is important to know the downsides of the app. The key ERP drawbacks customers may experience are as follows:
1: Data Security And Mandatory Compliance
There has been a significant upsurge in instances of data breaches globally in the recent past, according to available facts. Hackers have been active in breaking into corporate networks, causing significant losses. There are also some regulations that expressly aim to safeguard data privacy. Some of them are SOX, GDPR, CCPA, PCI-DSS. So, ERP data protection is really important.
Data security and data privacy are a must in today’s digital world. In ERP systems, there are many vulnerabilities that expose company data, posing threats to data security initiatives. Luckily enough, there are data security solutions on the market that will give you full peace of mind with their robust frameworks that provide granular oversight and control over data access and usage behavior of users.
2: Cost
You could potentially end up spending a huge amount on a single license if you were to invest in a conventional ERP scheme. That’s the biggest downside of ERP applications for many, by far. The software’s upfront costs alone can be prohibitively high, particularly for small to medium-sized businesses. By choosing a cloud service, which is usually paid annually, SMBs will minimize the upfront costs.
3: Implementation and Maintenance
Companies need to take into account the staffing costs and the time needed for effective implementation. You may need to recruit additional IT workers, ERP consultants, specialists in software training, etc. In addition to the license fee, a maintenance fee is usually charged by vendors selling conventional systems. Besides, you’ll need to invest in new hardware such as servers and compatible mobile devices to better support your ERP applications. And again, you will need to appoint people in order to maintain them.
The Cloud ERP platform again represents a promising alternative with a generally painless deployment, no hardware, and a minimal need for updates or improvements. Cloud-built technology is designed to be undemanding. It is known as SaaS (Software-as-a-Service). Implementing these systems involves logging into any compatible and internet-enabled device; the manufacturer usually carries out maintenance and updates.
4: The Process for Customization
One of the most significant features of ERP applications is customization, but it can easily and rapidly get out of hand. It takes a lot of experience, time, effort, and resources to customize your applications. But so many companies totally underestimate how many resources are needed, and either their customizations are not completed or end up going way over budget.
5: Complexities
ERP security solutions have numerous features, but it also means that the platform can be complicated and complex. In all the enthusiasm of an ERP solution, businesses are not unaware of being swept up, but they do not plan properly for its implementation. With processes for their operations, many companies may find themselves too big and complicated, resulting in low ROI. This is particularly true if you do not persuade your team due to the difficulty of executing the program.
Conclusion
Knowledge of the pros and cons of ERP software is expected when deciding which platform is right for your company. But it would help if you didn’t let these drawbacks scare you away from the positives that could give your business a significant competitive edge. Due to the long-term potential for fully automated business processes and efficiency boosts, together with robust ERP data protection, the advantages of implementing ERP systems far outweigh the shortcomings.
