Let’s discuss the advantages and disadvantages of implementing an ERP system.
Advantages & Disadvantages of ERP (Enterprise Resource Planning) Systems
In order to understand computer networks better, it would be helpful to have an overview of the applications running on the network. ERP, or Enterprise Resource Planning is an important enterprise application that integrates all the individual departments/ functions in a single software application.
ERP Systems make it easier to track the work-flow across various departments and reduce the operational costs involved in manually tracking, and perhaps duplicating data using individual & disparate systems. In this article, let us have a look at the advantages and dis-advantages of implementing ERP (Enterprise Resource Management) Systems.
Advantages of ERP (Enterprise Resource Planning) System:
1. Complete visibility into all the important processes across various departments of an organization (especially for senior management personnel).
2. Automatic and coherent work-flow from one department / function to another to ensure smooth transition/ completion of processes.
3. A unified and single reporting system to analyze the statistics/ numbers/ status etc in real-time, across all the functions / departments.
4. Since same software is used across all departments – this can avoid individual departments having to buy and maintain their own software systems.
5. Certain ERP vendors can extend their ERP systems to provide Business Intelligence functionalities as well.
6. Advanced e-commerce integration is possible with ERP systems that can handle web-based order tracking/ processing.
7. There are various modules in an ERP system like Finance/ Accounts, Human Resource Management, Manufacturing, Marketing / Sales, Supply Chain / Warehouse Management, CRM, Project Management, etc.
8. Since ERP is a modular software system, its possible to implement either a few modules (or) many modules based on the...