Advantages and disadvantages of Enterprise Resource Planning (ERP)

Advantages:

1. Better organizational control, especially in large companies, where the volume of information is more than in a small company.
2. Duplication of information is avoided.
3. Improved communication, both internally and externally.
4. Company profitability analysis can be carried out to analyse where costs are higher and where there are more sales.
5. Improved decision-making process within the company.
6. The company is able to react better to any unforeseen problem or situation.
7. Better use of time.

Disadvantages:

1. The high cost of implementation and maintenance. (High initial investment)
2. Adaptation to the hardware in the company.
3. It is necessary to train all employees in the company so that the system is used efficiently.  This is a cost for the company as well as the time and effort needed for it.
4. Integration with other applications in the enterprise needed.
5. Inflexibility of the system, because this is a generic system.
6. There are few experts in this system.
7. If the system is not applied correctly, it can be very detrimental to the company.

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