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Advantages and disadvantages of Enterprise resource planning (ERP)

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The advantages presented by the ERP are:
1.Optimization of business processes.
2.Accurate and timely access to reliable information.
3.The ability to share information between all components of the organization.
4.Elimination of unnecessary operations and data.
5.Reduction of time and costs of litigation
6.Then, as each module of the ERP system enters the same real-time database, another advantage is that no duplicate records or playback operations, ie, redundancy is avoided.
7.The performance of all work units that make up their business because better use time is increased. If you previously had to make reports and take them from one place to another, now the time is spent on other activities.
8.To improve performance and save time, optimize the control and analysis of management decisions there in the long term, reduced costs for the company.
9.Another obvious advantage is in terms of customer service, because the response time is reduced attention to them.
10.When a company has an ERP system is more competitive in the environment in which it operates.

Disadvantages of ERP are:
1.The installation of the ERP system is costly. ERP consultants are very expensive take approximately 60% of the budget.
2.The success depends on the skills and experience of the workforce, including education and how to make the system work properly.
3.Resistance in sharing internal information between departments can reduce the efficiency of the software.
4.The systems can be difficult to use.
5.Change of staff, companies can employ administrators who are not trained to manage the ERP system of the employing company, proposing changes in business practices that are not synchronized with the system.
6.Having an ERP system has many advantages, but does not guarantee the total success of the company. Organizational culture, know how to involve staff and anticipate changes that will suffer the organization using this system of administration, are important elements for the completion of the implementation.
7.The effectiveness of the ERP system may decrease if there is resistance to share information between business units or departments. Due to strong changes that implementation of the ERP system brings in the culture of work, there may be poorly trained or disinterested in making use of the same staff...
8.The benefits of having an ERP system are not presented immediately with the implementation of the software, they will be evident long after the system is running.
9.The culmination of the implementation depends on the ability and skill of the workforce, also involves education and training, to make the system correctly applied.

Titany answered the question on September 23, 2021 at 15:04

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