Advantages and disadvantages of the implementation of the ERP system in modern organizations
Important aspects to consider when investing in integrated management of ERP systems (positive and negative factors)
Investing in an ERP (Enterprise Resources Planning) is complex, and like other investments to be made by any company demands an efficient and well developed planning, having as support for this planning internal and external factors that are directly connected with the everyday the organization.
However, it is important to note that in companies there are favorable and unfavorable to the implementation of the ERP system, from the favorable aspects are highlighted those involving business, law and technology.
Are those related to the business aspects related to economics and profitability of the business as well as its financial profitability, since those who are according to the law we can highlight the adequacy of the system’s laws and regulations of the country in which it is being implemented and finally we have connected to technology, the main aspect of the ERP system, these factors relate to the loss of competitiveness caused by the economic obsolescence of the technologies in use.
Already unfavorable aspects can be listed according to the difficulty of implementing this type of system, its high cost, and only large companies theoretically are able to deploy and maintain ERP, and also due to the long time required to its implementation, forcing companies to have to change many times until their organizational culture to adapt to the new requirements.
Data collected in a survey conducted by Andersen Consulting, together with the CEOs (Chief Executive Officer), with 200 companies that have installed ERP systems, showed that 67% of companies were able to improve the accuracy and availability of information to the ERP system, and we also achieved a 61% improvement in the decision of their managers through the process system, in addition to providing its users with a significant improvement in the control of future predictions of possible problems, which could not be identified without the aid of this tool.
Implement an ERP system, as we saw earlier, it is definitely not easy, it is of utmost importance that the company evaluates not only the decisions to be taken to deployment but as the decisions to be taken IRAM then having to adjust their personal and its structure so that both can extract from it the maximum of this potentially advantageous for the organization system.
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