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Advantages and Disadvantages of ERP Systems



There are many advantages of implementing an ERP system. A few of them are listed below:

A perfectly integrated system chaining all the functional areas together
The capability to streamline different organizational processes and workflows
The ability to effortlessly communicate information across various departments
Improved efficiency, performance and productivity levels
Enhanced tracking and forecasting
Improved customer service and satisfaction

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

The scope of customization is limited in several circumstances
The present business processes have to be rethought to make them synchronize with the ERP
ERP systems can be extremely expensive to implement
There could be lack of continuous technical support
ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Courtesy: tech-faq.com

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Common ERP Myths

ERP means more work and procedures

ERP will make many employees redundant and jobless

ERP is the sole responsibility of the management

ERP is just for the Managers/Decision-makers

ERP is just for Manufacturing Organizations

ERP is just for the ERP implementation team

ERP slows down the organization

ERP is just to impress customers

ERP package will take care of everything

One ERP Package will suit everybody

ERP is very expensive

Organization can succeed without ERP

 

 

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