Advantages & Disadvantages of ERP ( Enterprise resource planning ) understand with simple & easy words

 Advantages & Disadvantages of ERP ( Enterprise resource planning ) understand with simple & easy words 


A lot of businesses in your shoes try ERP when their accounting software and inventory spreadsheets become too difficult to manage. But well-versed research is always advised before making that commitment.

Cover Image of  Advantages & Disadvantages of ERP ( Enterprise resource planning ) know in simple points ?
Cover Image of  Advantages & Disadvantages of ERP ( Enterprise resource planning ) know in simple points ?


The advantages presented by the ERP are:

1. Optimization of business processes.


2. Accurate and timely access to reliable information.


3. The ability to share information between all components of the organization.


4.Elimination of unnecessary operations and data.


5.Reduction of time and costs of litigation.


6. The performance of all work units that make up their business because better use time is increased. If you previously had to make reports and take them from one place to another, now the time is spent on other activities.



7. To improve performance and save time, optimize the control and analysis of management decisions there in the long term, reduced costs for the company.



8. Another obvious advantage is in terms of customer service because the response time is reduced attention to them.



9.When a company has an ERP system is more competitive in the environment in which it operates.



Disadvantages presented by the ERP are:

1. The installation of the ERP system is costly. ERP consultants are very expensive take approximately 60% of the budget.



2. The success depends on the skills and experience of the workforce, including education and how to make the system work properly.



3. Resistance in sharing internal information between departments can reduce the efficiency of the software.



4. The systems can be difficult to use.



5. Change of staff, companies can employ administrators who are not trained to manage the ERP system of the employing company, proposing changes in business practices that are not synchronized with the system.



6. Your company may not need all the modules present in ERP, which makes it an unnecessary investment.



7. The effectiveness of the ERP system may decrease if there is resistance to share information between business units or departments. 

Due to the strong changes that implementation of the ERP system brings in the culture of work, employees may be poorly trained or disinterested in making use of the same staff.



8.The success of ERP mostly depends on the ability and skill of the workforce. You will have to spend a good time training your present workforce so that they use the system correctly.

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