Today, things are constantly changing. However, something that is true across all sectors is the implementation and integration of new technologies. This includes enterprise resource planning (ERP) technology.
When it comes to using ERP technology and relying on advice from Technology Evaluation Centers, most people want to know more. Keep reading for the top pros and cons of implementing this technology.
Advantages of ERP Technology
Some of the top advantages of utilizing ERP technology can be found here.
1. Streamline Workflows
An ERP system is designed to provide several modules to handle all business processes in a central location. Some of the most popular applications include accounting, forecasting, budgeting, human resources, and inventory management.
2. Improved Financial Planning
As mentioned above, modern ERP solutions have several modules for reporting and forecasting all types of data. The available analytical tools will go through real-time and historical data to provide the best information to ensure informed decision making.
One of the top features of any ERP solution is the reporting capabilities it offers. These applications can sort data and information by region, profit center, location, and several other customizable factors.
3. Improved Data Accessibility and Security
Managing the access and permissions of data through several systems can be a daunting challenge. With a common control system, businesses have the ability to make sure that company data can be easily shared without the risk of being compromised. When all departments use the same cloud-based ERP system, everything is stored in a single, shared database, which is able to be shared anywhere.
Disadvantages of ERP Technology
Some of the top disadvantages of utilizing ERP technology can be found here.
1. Slow Implementation of Software
Adding a new ERP system to a business can take some time, especially if a business is still using outdated hardware. It is not uncommon for the implementation of ERP to take two to three years, but this all depends on the scope of the software being used. As a result, to implement ERP, a business may have to begin planning for it several years in advance of being able to use it or be flexible during the implementation process.
2. Expensive to Implement and Use
All new software is going to cost something to implement. This is especially true if someone must upgrade their hardware system, too. Also, ERP software will typically require some level of training from the vendor providing it before a person can get started. Even though this training will usually be included with the cost of installation, there may be a separate fee if more sessions are needed.
3. Slow Data Migration
The first time that a new ERP system is used, it is necessary to input the current data into the new format. Based on the industry, this may take quite a bit of time to do. The more data a company has, the longer the process will take. Even data that is already digitized will take some time to make it into the new system.
Is ERP Worthwhile?
This is a question that each business must consider. Take some time to evaluate the pros and cons mentioned above to see if this is an investment that should be made. By doing this, any business owner can make an informed decision.