ERP Pitfalls

http://www.sandhill.com/opinion/daily_blog.php?id=18&post;=405 Interested article that touches on some problems with ERP technology. Excerpt: The ERP tax accumulates from several sources: 1. Silo mentality. A silo mentality increases complexity, and ensures duplication of efforts with different versions of the truth, which compromises the quality, reliability and accessibility of vital information. As Ken Jones, CEO of Accessible Technologies Inc. recalled, "Having to maintain and reconcile three databases was slowing production, especially in periods of strong growth and during peak season. Customer service was also hindered by the lack of system integration and an inflexible order configuration process." 2. Inability to predict future business needs. This vulnerability is especially true when implementing a new ERP system. Many companies tend to put in a system that closely resembles the older system it's replacing, instead of visualizing future needs when defining the ERP "wish list" of features. 3. Inability to change ERP system setup parameters. Usually hidden to all but the IT group, this factor still strikes across the system: from the internal accounting structures to the product IDs created after the first transaction is entered. 4. ERP system complexity. It can easily take hundreds of people to extract data from multiple sources and then refine and reconcile it. Employees build elaborate spreadsheets, reports, and databases that need to be maintained, compounding the initial reporting expense over time.