Advantages and Disadvantages of ERP Systems
Advantages
May provide strategic advantage
Integrates the supply chain
May provide reduced costs
Off the shelf coding
Creates a common data base
Helps integrate a multi-site organisation
Can standardise information handling
Can standardise business processes across the organisation
May require fewer support staff
Can replace legacy systems at one time
Creates a method of training staff in a single approach
Can be used as a business simulator
Disadvantages
Is very expensive
Commits the company to a single supplier
Is complex and requires highly experienced staff
May create an ongoing process of upgrading
May be very difficult to replace
May be difficult to implement
May alienate staff if required to adopt a 'standard' non-tailored approach
ERP expertise may be difficult to source
May be difficult to manage if supplier goes bust
May be difficult to access prior to implementation
Implementation process may be difficult - business may suffer
May be vulnerable to pressure from skilled staff