ADVANTAGES &

DISADVANTAGES OF
ERP SYSTEM
Name :- Devendra Ashok Jadhav
Class :- MBA 1st
Roll No :- 15
Under Guidance :- Dr Anup Mule Sir
What is ERP System ?

ERP stands for ENTERPRISE RESOURCE PLANNING, but what does ERP mean? The
simplest way to define ERP is to think about all the core business processes needed to run a
company: finance, HR, manufacturing, supply chain, services, procurement, and others. At
its most basic level, ERP helps to efficiently manage all these processes in an integrated
system. It is often referred to as the system of record of the organisation.
 Definition of ERP System

“Enterprise Resource Planning software is a complete integrated business management

software, which captures data in chronological order, and is used to link business processes
automatically, and give real time information, to authorized user”. Enterprise Resource
Planning System is a multi-location and multicompany, software solution.
Main Advantages of ERP System

 Optimization of business processes.

 Accurate and timely access to reliable information.

 The ability to share information between all components of the organization.

 Elimination of unnecessary operations and data.

 Reduction of time and costs of litigation

 To improve performance and save time, optimize the control and analysis of management
decisions there in the long term, reduced costs for the company.
Main Disadvantages of ERP System

The installation of the ERP system is costly. ERP consultants are very expensive take approximately
60% of the budget.
The success depends on the skills and experience of the workforce, including education and how to
make the system work properly.
Resistance in sharing internal information between departments can reduce the efficiency of the
software.
The systems can be difficult to use.
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.
Some Examples of ERP System

 Veeqo
Veeqo is an all-in-one, centralized ERP platform designed for businesses in the retail industry.
 Aptean ERP
Aptean is a popular ERP platform that’s easy to manage and has mobile apps for Android and iOS devices
so you can manage and sell goods. You can use Aptean on desktop platforms like Windows, Mac or Linux
 Oracle NetSuite
Oracle NetSuite is a fully customizable ERP software designed to support your enterprise’s growth. As
your business scales, you can add resources and functionality, making it a good choice for medium-sized
businesses that anticipate growth.
 SAP Business One
SAP Business One helps companies that have outgrown existing tools or need to consolidate their current
tools into one platform to have an all-in-one solution for their needs.
Conclusion

In conclusion, it is essential to analyze whether the ERP system will be implemented in your
company is right for your needs and that does not violate the interests of their organization.
Also keep in mind that a bad strategy implementation can lead to failure of the same.
If I miss any Advantages and Disadvantages of ERP System, please let me know.
THANK YOU