Arise Ltd. is manufacturing several types of computer components and is having its branches throughout the globe. The company wants to centralise and consolidate the information flowing in from its branches in a uniform

CS Professional · Information Technology and Systems Audit · PYQS · December 2015
Arise Ltd. is manufacturing several types of computer components and is having its branches throughout the globe. The company wants to centralise and consolidate the information flowing in from its branches in a uniform manner across various levels of the organisation. Each factory and branch is using different software and varied platforms which do not communicate with each other. Also, there is no retention of electronic records in a common server. This results in large duplication of data. So, the company has decided to implement an ERP system to take care of all these issues. In light of the above, answer the following: As an information system auditor, what do you think about the limitations of an ERP system?

Answer & Explanation:

Each system has its own limitations. ERP is also not different and it has also got some limitations. Some of the limitations associated with an ERP system are discussed herein: Difficult to implement in running businesses Customization is problematic Policy Limitations Ongoing Support Lack of user participation in ERP implementation Problem of Harmonization of ERP processes with the business processes Resistance to change by the users High Annual Charges Training of users High switching cost.

Topics: Enterprise Resource Planning (ERP)

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