There is already individual functional application in the business. These systems perform well in individual application areas of human resource management, sales and marketing, production and service, account and finance etc. They provide all the information appropriately in their respective areas whenever needed. However these systems have limitations. Once the relation of one system is needed with another they cannot function. e.g. if the organization needed the information of production to the human resource, it should be done manually or data has to be converted from one form to another form, similarly the information of sales and inventory is not directly available with the account and finance. Thus the integrated information is lacking in the individual functional business application. Beside this there exist the technical difficulties of operation and maintenance of individual system as they might have different software and database platforms.
The enterprise system is not free of challenges. It has some challenges of implementation. They can be summarized as:
• People think that enterprise system solves all the problems. So human resource can make very little effort. But the thing is that enterprise system itself cannot do anything without proper support from the human staff.
• Proper training to the human resources is needed. People are reluctant to move from one application to another.
• Migration of data format is big challenge. The new enterprise system may need the input data in different format.
• Business process re-engineering to match the functionalities of the enterprise system.