ADVANTAGES AND DISADVANTAGES OF A ERP

In my opinion, an Enterprise Resource Planning (ERP) system makes companies more flexible. An integrated communication system, in real time, provides businesses with more adapted and optimized operations.

Besides, the unification of data bases promotes that knowledge transfers to every department. It might be said that the owners of the knowledge are not the employees, but the whole organization.

Another advantage of the ERP system is the security guarantee data it offers against some possible external espionage.

Nevertheless, before making any decision on its establishment, companies should analyze their current and future needs, as the cost of such systems is quite high. There are several options available on the market, moving from standard packages to personalized systems, so that enterprises can select the one that fulfills their needs.

After having selected the most suitable system for the society, a difficult stage comes, which is ´the introduction´. If it has not been properly done, it might cause several problems.

Once the introduction is started, a precise evaluation and control system is required in order to detect the possible mistakes as soon as possible.

All these stages carry a high cost. Because of this, it is important that every user learns how to use the new system appropriately, which demands both investment and time.  Moreover, the ERP system needs maintenance. They must be updated and broadened with modules so that the company remains competitive.

 


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