Enterprise Resource Planning

Advantages and Disadvantages of ERPS
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Advantages and Disadvantages

 

Discussing the advantages and disadvantages of ERP is a very influential discussion from a business perspective. The single greatest advantage of an ERP system is saving money and valuable time which otherwise is wasted due to time consuming procedures. Because ERP is a standardized platform it ensures that there in no inconsistency in the information that is processed. 

 

 

Advantages

 

  • The accounts department can act independently. Do not have to wait on behalf of the technical experts to record transactions.
  • Quick process time.
  • Reduction of paperwork.
  • Serving customers efficiently through prompt response times.
  • Queries are disposed immediately. And facilitating payments with ease and ahead of potential deadlines.
  • Database becomes user friendly and does away with unwanted ambiguity.
  • ERP controls data and facilitates the necessary contacts to acquire the same information.

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Disadvantages

 

  • ERP is not free from its own limitations.
  • ERP is a very expensive and time consuming investment.
  • There is no quality guarantee. The system must be properly utilized and maintained. (Appropriate training is required).
  • No protection against information theft.
  • Training is necessary. Workers must shun entire workload to adapt to the training.
  • Increases the risk of information misuse.

 

Benefits in a Nut Shell

 

Organizations must do exceptional planning and devise appropriate strategies before giving the green light to ERP systems. ERP can cut cost and increase the quality of an organizations working time. It helps exceptionally in making the use of technological advancements. ERP systems allow an organization to eliminate time consuming and painstaking processes.

 

 

Source: http://www.erpwire.com/erp-articles/erp-fundamentals.htm

 

Conclusion

 

ERP is highly recommended in an organization not only because the advantages outnumber the disadvantages, but also by keeping in mind the ways to conquer the disadvantages. An organization has to appropriately consider the advantages and disadvantages of ERP prior to adopting the system into there organization.

Created By Curtis Rideout + J.R
Contact: x2005fze@stfx.ca