04 Major Challenges Of ERP

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04 Major Challenges Of ERP
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Data Protection
ERP can be a blessing or a curse when it comes to
data security. On the one hand, all of your
information is in one location where you can keep
track of it. On the other side, all of your
information is stored in one location where
thieves may access it. You may not have complete
control over your sensitive data if your ERP
system is hosted in the cloud by a third party,
which most of them are. At the absolute least,
the software's host firm has access to your
information. Another issue is that many ERP
systems just provide a login and password for
security. Phishing attacks frequently target such
credentials. As a result, additional security,
such as multi factor authentication, is required
to make ERP systems secure.
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Customization
This can be expensive. Most businesses only
consider ERPNext service providers extending
great ERP softwares because they are modular,
allowing users to pick and choose the ones they
want while knowing they may be combined.
However, one size does not always suit all, and
some customization is frequently required. You
have additional customization options if you host
your ERP system on your own servers. However,
allocating the necessary IT resources can be
difficult. Platform-as-a-service (PaaS) is
occasionally used by those who host on-premises
ERP software to make customisation easier.
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Data Migration
Data migration is a term used to describe the
process of moving. It is the single most
significant obstacle for most businesses. Whether
your data is on paper or in digital form, moving
it, cleaning it up to remove old or duplicate
information, and conforming it to the new format
will require time and money. The security of data
during and after the migration process is
extremely vulnerable. Another problem for larger
businesses when it comes to data migration is
determining which parts of the data should be
moved over and when. The large, monolithic ERP
migration is increasingly out of favor, and firms
are opting to migrate bits of ERP and have
ERPNext service providers by their side.
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Total Price
While ERP systems can reduce per-capita IT
expenditures, particularly for training, the
initial costs are usually always higher. At a
minimum, the software will cost well into the
five digits. When you consider the cost of ERP
consultants for project management and new IT
personnel, the cost of implementation might be
more than three times that of traditional,
stand-alone programmes. Another chunk of change
is the expense of maintenance, which is either
given as automated updates by vendors (for a fee)
or conducted by in-house staff. Annual
maintenance fees of 15 to 25, including
security patches, may be charged by on-premises
ERP software vendors. The subscription rates for
cloud-based applications usually include
maintenance expenses.
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