What is ERP Software? Advantages & Disadvantages of ERP Software

ERP Software helps businesses automate their functions and grow faster. Read this post to understand what is ERP Software and its Advantages and Disadvantages

What is ERP Software?

ERP(Enterprise Resource Planning) software otherwise is a business automation software which helps to integrate core business processes in one single application. Basically this application helps different departments in the organization to communicate, share information, manage, and analyze data from various business activities. To understand what is ERP Software, In General, ERP covers Production planning and scheduling, manufacturing, leads management, sales management, inventory management, accounts management, delivery management, supply & distribution management. Apart from that each organization will have its own requirement which will also be developed into the application by the ERP vendor. But there will be additional charges for developing the same.
ERP system is a very important tool to any organization to integrate various business operations and improve productivity. Any ERP software is implemented in order to increase production, reduce cost, and save time.

Implementation of ERP Software

ERP Software implementation will generally take lot of time. The time period varies depending on the business process, size of the business, facilities available, training schedule and so on. Before implementing ERP software into the organization there should be a process preparation done. It is necessary to sit and write down which process needs automation and also should be able to foresee the various changes that will happen within the organization. The changes can be in infrastructure, technology, manpower and processes as well. Even though these changes can create ripple effect among the employees, in the long run company has to think about the organizational vision rather than minor issues. It is a known fact that anything new will have some time for people to adapt, accept and embrace the change. The business owner should have the patience to successfully implement ERP into their system. Otherwise, the entire effort of implementing the ERP system will be a big failure. Given below are the key factors responsible for failure in ERP Implementation.
Ӣ Poor Understanding of Business Process
Ӣ Wrong Choice of ERP Software
Ӣ Poor Learning Skills of Employees
Ӣ Poor Training Methodology
Ӣ Poor Infrastructure
Ӣ Poor After Sale Support

Advantages of ERP Software

ERP Software through proper implementation will definitely be advantageous to any company. The basic advantages are listed below for your understanding.
Ӣ Forecasting of Sales & Inventory
Ӣ Proper flow of communication
Ӣ Production Planning
Ӣ Standardization of process improves productivity
Ӣ Reduction in Cost
Ӣ Reduction of wastage
Ӣ Optimum utilization of resources
Ӣ Customer Relationship Management
The above mentioned list are not exhaustive.

Disadvantages of ERP Software

ERP Software even though advantageous has some disadvantages as well. The disadvantages of ERP software are given below
Ӣ ERP can be a costly affair
Ӣ Implementation is a time consuming process
Ӣ Business focus can be disturbed during process change
Ӣ Information sharing can have an adverse effect within departments
However, if you take a small and medium business they may not require too many automated system and process due to lack of skilled people in the organization. For those in the small and medium businesses they can look out for the ERP software listed here. For more queries on ERP software you can call at 044-49272736

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