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International Journal of Management and Economics ISSN: 2231 – 4687
Impact Factor-6.81 (SJIF)
Vol. I No. 27 Janaury-2019 UGC Referred Journal No:-64206
--------------------------------------------------------------------------------------------------------------------------------
42
Advantages and disadvantages of Enterprise Resource Planning (ERP)
Systems *Mr. Kekane M.A.
**Ms. Bhawsar B. S. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Introduction ERP is that integrate application in programs accounting such as accounts receivable, sales- order booking, manufacturing and the functions in the business. The business cannot function properly. ERP
systems are depends upon purely IT tools in business. Using the ERP systems, businessman can the
management planning and Process.
Objective of the Study:- The main objectives are as follows:
1. To study of concept of ERP.
2. To study of Advantages of ERP system.
3. To study of disadvantagesof ERP implementation.
Research Methodology:- The research is purely depending upon a secondary data. The information collected from various books,
journals, government publications etc. and research is descriptive in nature.
Meaning of ERP Enterprise resource planning (ERP) is business process management software that allows an
organization to use a system of integrated applications to manage the business and automate many back
office functions related to technology, services and human resources.
Definition of ERP An Enterprise resource planning system is a fully integrated business management system covering
functional areas of an enterprise like Logistics, Production, Finance, Accounting and Human Resources. It
organizes and integrates operation processes and information flows to make optimum use of resources
such as men, material, money and machine.
Advantages of ERP system
1. Visibility
2. Workflow
3. Reporting
4. Collaboration
5. Secure
6. Centralized storage 7. Modular software -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* C.D. Jain College of Commerce, Shrirampur,Maharashtra, India
**C.D. Jain College of Commerce, Shrirampur,Maharashtra, India
ADVANTADVANTADVANTADVANT
AGESAGESAGESAGES
Visibility
Workflow
Reporting
Business
IntelligenceCollabo
rationSecure
Centralized
storage
Modular software
Various modules
International Journal of Management and Economics
Vol. I No. 27
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8. Various modules
Disadvantages of ERP
1. Cost of the Software
2. Implementation and Maintenance3. Customization Process
4. Complexity
5. Integration
6. Inflexibility
7. Time-consuming
8. Requires continual improvement
CONCLUSIONS The effects are managerial and operational. The paper has discussed in details of different advantages and
disadvantages of ERP systems. This research easy to understand which advantages get a various company
as well as disadvantages also faces
eight phases.Large manufacturing business is not able to smooth functions properly today without support
of IT system. The computerization of all the areas of the business various operation
of its efficiency and effectiveness. These systems are mainly used in large and mediumsized business.
Reference 1. Kubicka, Advantages of using enterprise resource planning systems in the management process. pg.no
237-243
2. Law, C. C. H., & Ngai, E. W. T. (2007). ERP systems adoption: An exploratory study of the
organizational factors and impacts of ERP success.
3. https://www.eoi.es/blogs/cristinafernandez/2013/02/03/advantages
resource-planning-erp/
4. https://www.actouch.com/forum-
5. www.google.in
Implementation and
Maintenance
Cost of the Software
Requires continual
improvement
International Journal of Management and Economics ISSN: 2231
Impact Factor
Janaury-2019 UGC Referred Journal No:
----------------------------------------------------------------------------------------------------------------
43
Implementation and Maintenance
Requires continual improvement
The effects are managerial and operational. The paper has discussed in details of different advantages and
disadvantages of ERP systems. This research easy to understand which advantages get a various company
problems of company. the Success Scheme (SS). The SS consists of
Large manufacturing business is not able to smooth functions properly today without support
of IT system. The computerization of all the areas of the business various operations results in the increase
of its efficiency and effectiveness. These systems are mainly used in large and mediumsized business.
Advantages of using enterprise resource planning systems in the management process. pg.no
Law, C. C. H., & Ngai, E. W. T. (2007). ERP systems adoption: An exploratory study of the
organizational factors and impacts of ERP success. Information & Management, 44(4), 418
https://www.eoi.es/blogs/cristinafernandez/2013/02/03/advantages-and-disadvantages
https://www.actouch.com/forum-community/erp/erp-definition-what-does-erp-stand-
#####
DISADVANDISADVANDISADVANDISADVAN
TAGES TAGES TAGES TAGES
Time-consumin
gInflexibility
Integration
Complexity
Customization Process
ISSN: 2231 – 4687
Impact Factor-6.81 (SJIF)
2019 UGC Referred Journal No:-64206
---------------------------------------------------------------------------------------------------------------------------
The effects are managerial and operational. The paper has discussed in details of different advantages and
disadvantages of ERP systems. This research easy to understand which advantages get a various company
problems of company. the Success Scheme (SS). The SS consists of
Large manufacturing business is not able to smooth functions properly today without support
s results in the increase
of its efficiency and effectiveness. These systems are mainly used in large and mediumsized business.
Advantages of using enterprise resource planning systems in the management process. pg.no
Law, C. C. H., & Ngai, E. W. T. (2007). ERP systems adoption: An exploratory study of the
(4), 418-432.
advantages-of-enterprise-
-for/
Inflexibility
Integratio
Complexit
