ERP software implementation involves the integration all vital functional units of an organisation into a single system www.think-tribe.com/. This will allow for free flow data and information with the goal of improving productivity and profit. Although this technological changeover can lead to many positive outcomes, the potential pitfalls of ERP software should not be ignored.

First of all, this software is complex in its implementation, maintenance, customization and up-gradation. If these issues are not taken care of, it could lead to total system failure.

The second issue is compatibility. Incompatibility can reduce the ERP software’s effectiveness. This will reduce productivity by preventing data flow and information from flowing properly.

ERP software implementation can require large capital investments. This can cause serious financial problems for small and middle-sized business enterprises. Small businesses often retain their old infrastructure in order to save money on purchasing new software and hardware. This makes ERP less cost-effective. These hidden costs, along with the cost of training and hiring professionals, can make up a significant burden on any organization.