Advantages of ENTERPRISE RESOURCE PLANNING

Visibility-ERP provides complete visibility in

all the departments of the organisation
(especially in the senior management).
Workflow- Automatic and
coherent workflow from one
department/function to another, to ensure a
smooth transition and quicker completion of
processes. This also makes all the interdepartmental activities are properly tracked
and none of them is missed out
Reporting- ERP a single and unified reporting
analyse the statistics of all the departments/
functions of the organisations.
Cost Reduction-ERP leads to reduce the cost
reduction of the organisation as there is less
reporting and less accounting personnel.
Easier- ERP system makes easier to for order
tracking, revenue tracking, inventory tracking,
sales forecasting and other related activities.
Business Intelligence- ERP systems
provide Business Intelligence functionalities
that can provide the business processes and
identify potential areas of
problems/improvements.
Centralised storage/ backup- Database
system is implemented on the backend to
store all the information required by the ERP
system, it able the centralized storage/backup of all enterprise data.
Collaboration- ERP system provide better
company wide visibility and hence faster

across all the departments of the

organisations.
E-Commerce Integration- ERP is possible
through E-commerce integration because it
can be handling by web based order tracking/
processing.
Various Models- ERP system has various
modules like source Management,
Manufacturing, Marketing, Sales, Supply Chain,
Warehouse Management, CRM, Project
Management, etc.
Integration- ERP is reducing data redundancy
and redundant data entry. Expect it, it will be a
big disappointment - ERP only improves the
cooperation of users.
Optimum utilisation of resources- ERP
system leads to the proper utilisation of the
resources by making proper use of resources
in the departments.
Globally dispersed- . ERP systems are
especially helpful for managing globally
dispersed enterprise companies, better.

Disadvantages of Enterprise Resource Planning

Costly- The cost of ERP software

planning, confirmation, testing,
implementation its very high. This makes
ERP very costly.
Decentralised Organisations- ERP is
difficult to achieve in decentralised
organisations with different business
processes and systems.

 Time Consuming- ERP are very time

consuming. Each project take 1-3 years to
take fully complete.
Indirect Cost - In ERP there is very
indirect cost like IT infrastructure and
maintenance of WAN links etc.
Complex- The system may be complex
measured against the actual needs of the
customer.
Customisation- Too much customisation
may slow down the project and make it
difficult to upgrade. Too little
customisation may not integrate the ERP
system and the business processes.
Migration- Migration of the existing data
of the ERP system is difficult to achieve.
These activities may consume a lot of
time and money if attempted.
Participation- The participation of users is
very important for successful implementation
of ERP. But ERP systems are generally difficult
to learn.