Every great system comes with some challenges which have to be overcome for attaining its full benefits. An ERP system also lets its users face some of these challenges in the short-run. However, if catered properly and timely, they turn out to be of the least significance.

  1. Expensive Costs

An ERP system is definitely not of low cost and requires costs of installation, fees to be incorporated in the business, consultation expenses being paid to experts, machinery to align with the system in every department, and lastly the training of staff to learn the skills of using an ERP, effectively. It also demands maintenance and tech-update costs to keep it running smoothly over the years.


There obviously are costs for incorporating technology in the business, but once it has been installed successfully, it gives a guaranteed return on investment by reducing the number of resources that were being employed and remunerated for executing tasks earlier. Initially, there were 6 employees to do make payrolls of 500 employees in a period of one week (supposedly). After installing ERP, it reduces to 2 employees, doing the same task in a single day. This reduces the costs of resource hiring and increases time for other useful activities. The solution is to view it from a larger perspective. The payback of an ERP is marginally very high because, after the initial setup costs, everything turns to be profitable because of efficiency.

  1. Occasional Malfunctioning

Although an ERP is designed and tested by quality assurance there may still arise some problems that can cause future disturbance for the businesses that are using an ERP system. This usually happens when the need of the customer changes or the database reaches a limit. The system might give errors or restrictions for further recordings.


Seldom does it happen that an ERP malfunctions because it is delivered only after the testing’s by the quality assurance department. However, if it still does, the solution is to contact the provider or creator of the software to formulate updates and developments according to the new needs or expanding data servers.

  1. Sensitive Information

The world is moving towards digital mediums but some organizations may be rigid in their structures of communication. They might not be willing to disclose information to certain departments of their business. On the contrary, an ERP system prevails over the benefits of transparency. This becomes a contradiction between the policy of business and the purpose of the ERP system.


There are certain businesses that demand privacy and security regarding their information even inside the business departments because the nature of information is very sensitive. The solution that is built inside an ERP system regarding this challenge is of assigning roles to only specific people, digitally, who can access the information. This keeps the permissions and allowance of viewing and editing the data very safe and secure.

  1. Adapting to Culture

Organizations that have developed practices of manual recordings for years have trained their employees to execute tasks in a certain manner. The shift that is caused by the sudden installation of a digital system makes it difficult for the employees to adapt to the new ways of proceedings. A complexity occurs because of devices, internet connections, and other user-interface ambiguities that are faced by the new learners.


The shift in the execution of activities definitely demands a solution of change management whereby the transition of manual to digital mediums is first understood by the management, and then planned according to the needs of the business. After that implemented at the proper platforms and then communicated with the employees thoroughly until they get equipped with its usage.