ERP Disadvantages for organisation or company

ERP disadvantages must be overcome.ERP systems come with their share of headaches.  

They are usually difficult to implement. Sometimes they are difficult to operate.In the past few years, 

odds of success have improved. 

1.  Everyone in your organization from the database administrator to the receiving 

clerk to the CEO needs new skills to work with the new technology and business 

processes. 

2. Most companies must hire outside consultants to help accelerate and improve the 

implementation. 

3. In the early 1990s, almost half of the MRP/ERP implementation projects failed. 

Many of these early projects were either abandoned or were finished late and over 

budget. An industry of software implementation specialists was created to assist 

businesses with implementation projects. 

4. Many large and costly implementation projects have produced little or no return 

on investment for their owners other than to solve the Y2K problem. Several 

companies have actually observed a reduction in productivity in the first six to 

twelve months after starting their new systems. 

5. Many companies are surprised to discover the ERP implementation wasn't just a 

software replacement project, but the start of a continuous process of change, 

evolution, and improvement. 

6. Many implementation team members have discovered after the ERP project is over 

that their old jobs either no longer exist or are dull and insignificant. 

7. Package software can force you to make certain choices about how your business 

will operate, and you might introduce some constraints on your traditional business

 processes.

More Disadvantages ERP Systems
Problems with ERP systems are mainly due to inadequate investment in ongoing training

 for the involved IT personnel - including those implementing and testing changes - as

 well as a lack of corporate policy protecting the integrity of the data in the ERP 

systems and the ways in which it is used.

Points 
  A.Customization of the ERP software is limited.
B.Re-engineering of business processes to fit the "industry standard" prescribed
    by the ERP system may lead to a loss of competitive advantage.
C.ERP systems can be very expensive (This has led to a new category of 
    "ERP light" solutions)
D.ERPs are often seen as too rigid and too difficult to adapt to the specific
    workflow and business process of some companies—this is cited as one of the 
    main causes of theirfailure.
E.Many of the integrated links need high accuracy in other applications to 
    work effectively. A company can achieve minimum standards, then over time 
     "dirty data" will reduce the reliability of some applications.
F.Once a system is established, switching costs are very high for any one
     of the partners (reducing flexibility and strategic control at the corporate 
     level).
G.The blurring of company boundaries can cause problems in accountability, 
    lines of responsibility, and employee morale.
H.Resistance in sharing sensitive internal information between departments can
     reduce the effectiveness of the software.
I.Some large organizations may have multiple departments with separate, 
    independent resources, missions,chains-of-command, etc, and consolidation 
    into a single enterprise may yield limited benefits.
J.The system may be too complex measured against the actual needs of the 
    customers.
K.ERP Systems centralize the data in one place. This can increase the risk 
    of loss of sensitive information in the event of a security breach.
  
 

Next:
11. Advantages of ERP for Implementation Projects 

13. ASP - Application Service Provider

14.  ERP  AS Application Service Providers (ASP)