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Problems With ERP Implementation (Indonesia) .Id - en

1) Implementing an ERP system can cause problems like system disruptions that impact production or burden the company with IT costs. 2) Other challenges include poor legacy data, infrastructure requirements, customization needs, and issues with change management, training, and top management support. 3) Many companies fail because they think ERP automatically manages the business, but it is a human-oriented system.

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0% found this document useful (0 votes)
36 views2 pages

Problems With ERP Implementation (Indonesia) .Id - en

1) Implementing an ERP system can cause problems like system disruptions that impact production or burden the company with IT costs. 2) Other challenges include poor legacy data, infrastructure requirements, customization needs, and issues with change management, training, and top management support. 3) Many companies fail because they think ERP automatically manages the business, but it is a human-oriented system.

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Saiful lah
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We take content rights seriously. If you suspect this is your content, claim it here.
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Translated from Indonesian to English - www.onlinedoctranslator.

com

Problems with ERP implementations

In implementing ERP, several obstacles were found, including:

System disturbances or system downs that affect the production process. This situation may come
occasionally but can become a problem for the company if not handled immediately. Because all
customer and supplier transaction data and information are contained in the system. So the
company must employ IT technicians if there are problems with the ERP system and of course it will
burden the company.

In addition, there are several issues that hinder the successful adoption of ERP implementation in
the company, namely: previous legacy systems that have poor data quality, understanding of
business processes, infrastructure requirements, and customization of new systems. However, the
biggest problems related to the company's human resources are: Changes in work practices, change
management, availability of internal staff, training, top management support, and consultants.

There is a misunderstanding in the implementation of ERP, that companies think that with this
system, company management is automatically managed by ERP software, but in reality ERP is a
human-oriented system. So many companies fail to implement this system.

Although the implementation of ERP in companies is the main focus in business planning and
technology. However, implementing ERP requires extra costs such as the cost of ERP software,
design, customization, configuration, testing and implementation is too high. In addition, this system
also takes a long time to be implemented optimally and there is a possibility that this system will not
work as expected. This is because the system will upgrade and troubleshoot the system by the
company's IT system technician. Not to mention there may be additional indirect costs due to ERP
implementation such as new IT infrastructure, WAN link upgrades and more.

Implementation of an ERP system takes a long time, the possibility of an ERP operating optimally
ranges from 1-3 years (or more). Employees also need a long time to adapt to the system and
continue to learn this system. Because this system will always be upgraded to the latest version and
employees must adapt to the new system as well. In this system there is a dilemma because too few
adjustments may exist that the ERP system is not integrated with business processes & too many
adjustments can slow down the project and make it difficult to upgrade. So that the migration to an
ERP system will be difficult to achieve or even impossible to achieve.

Then the effort to integrate the ERP system with the system owned by the previous company (if the
company has stand-alone software) is also difficult to do. Because if this is done it can waste time
and money and resources. Because not all data can be transferred to a new system that has a
different programming and coding system than before. Then user participation is very important in
the success of ERP implementation in the company. Therefore, user participation in training and an
easy-to-understand user interface is very important. However, usually ERP systems are quite
complicated to learn and use, so not all users can be familiar with this system. especially for the
employees (veteran employees) that usually use the manual process to do the documentation and
business activities.

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