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Which is a disadvantage of an enterprise resource planning (ERP) system?

O Helps companies adjust to changes.
O Can replace separate software systems.
O Can reduce operating costs.
O Implementation requires a large commitment of time and people

1 Answer

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Final answer:

The disadvantage of an ERP system is that its implementation demands substantial time and people resources, which can disrupt daily operations and require significant setup and adjustment effort.

Step-by-step explanation:

Among the options provided regarding potential drawbacks of an enterprise resource planning (ERP) system, the one citing a disadvantage is that implementation requires a large commitment of time and people. An ERP system can demand extensive resources during its implementation phase, which is not only time-consuming but may also necessitate considerable human resources to manage the transition, customize functionality to meet the company's specific needs, and train staff on how to use the new system effectively.

Moreover, these efforts can lead to disruptions in the company's daily operations. While ERP systems have several advantages, such as aiding adjustment to changes, replacing multiple software systems, and reducing operating costs, the initial setup and adjustment period is substantial and can be a significant hurdle for organizations.

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