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Advantages and Disadvantages of ERP
The advantages and disadvantages of ERP is an attention-grabbing
Study. The leading advantage of anERP system is bringing down the
expenses and reduction the precious time which would have
otherwise
been wasted in bureaucratic maneuvers and not needed delays.
Different software programs maintained inthe departments were
proving to be a great difficulty. Since ERP is a consistent
platform it ensures that
there is no contradiction in the information that is
processed.
Industry wise advantages
Manufacturing Sector--------------------Speeding up the whole
process.Distribution and retail Stores-----------Accessing the
status of the goodsTransport
Sector---------------------------Transmit commodities through
online transactions.Project Service
industry-----------------Fastens the compilation of reports.
The advantage and disadvantage of ERP is best understood by
studying them under different categories.Therefore the next
paragraph presents information on corporate as a whole because the
advantage of ERP
systems in a company is different when compared industry
wise.
Advantages in a corporate entity
The accounts department personnel can act separately. They don't
have to be at the rear of thetechnical persons every time to trace
the financial dealings. Ensures quicker processing of
information and reduces the load of paperwork. Serving the
customers efficiently by way of
prompt response and follow up. Disposing queries at once and
facilitating the expenditure fromconsumers with no difficulty and
well in advance of the set time limit.
It helps in having a say over your contestant and adapting to
the whims and fancies of the market
and business instability. The swift movement of goods to rural
areas and in lesser known places
has now become a reality with the use of ERP. The database not
only becomes user friendly butalso helps to do away with unwanted
uncertainty. ERP is suitable for worldwide operations as it
encompasses all the domestic jargons, currency conversions,
diverse accounting standards, and
multilingual facilities .In short it is the perfect commercial
and scientific quintessence of theverse "Think Local. Act Global".
ERP helps to control and data and facilitates the necessary
contacts to acquire the same.
DisadvantageIn spite of rendering marvelous services ERP is not
free from its own limitations. ERP calls for avoluminous and
exorbitant investment of time and money. The amount of cash
required would even belooming on the management given the fact that
such an outlay is not a guarantee to the said benefits but
subject to proper implementation, training and use. In the ever
expanding era of information theft ERP isno exception. It is
alarming to note the time taken to implement the system in the
organization. Thesemeans large amounts of workers have to shun
their regular labor and undertake training. This not onlydisturbs
the regular functioning of the organization but also runs the
organization in the huge risk oflosing potential business in that
particular period. There are great benefits rendered by the system.
On the
other hand when one thinks of this information reach in the
hands of undeserving persons who could domore than misuse ,it is
evident that there is no way of ensuring secrecy of information and
larger chancesof risk will be generated as long as they are in the
public domain.
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ERP System Integration
One of the most important characteristics of ERP systems is that
they are built on a single comprehensivedatabase to share
information across the enterprise. ERP system integration, on the
internal side, can beassumed to be complete and comprehensive. And
as long as the ERP systems covers all of yourinformation management
needs, and there are no external systems or applications in place
or planned,integration should not be a concern.
ERP system integration with the outside world is another matter
entirely. Most companies have more thanjust anERP systemand many
also want to exchange information and documents with trading
partners.
The good news is that information and document exchange with
partners is pretty straightforward thesedays through web-based
application design, included collaboration functionality in most
systems, andaccepted standards for business document and
transaction exchange through EDI (Electronic Data
Interchange, a rather dated but still widely used protocol for
exchanging purchase orders,acknowledgements, ship notices, etc.)
and the newer and more capable Web services / SOA protocols and
standards.Integrating ERP with other enterprise applications is
the more problematic area of ERP systemintegration. In addition to
the ERP business information backbone, many companies have other
systemsfor Manufacturing Execution (MES) and data collection,
Quality management and process control (may
be a part of MES), Warehouse Management (WMS), Transportation
Management (TMS), and/or other
outside systems that could benefit from integration with the ERP
backbone.One of the most frequent requirements is the need to
connect to a separate Customer RelationshipManagement system or
CRM. The customer interface is perhaps the most critical aspect of
businesscommunication and the areas where companies tend to be the
most unique and exhibit their competitiveedge (providing excellent
customer service). As such, many find that generic ERP customer
order
fulfillment falls short of their CRM needs, so they seek out a
best-of-breed or specialty application tohandle the marketing and
sales support functions of CRM. Integration with the rest of the
ERP suite
provides the critical link between demand (CRM) and supply
(ERP).There are several approaches to CRM integration (also applies
to MES integration, WMS integration,etc.) including the following,
in order of increasing cost, delays and risk:
Single sourcebuy CRM from the same supplier that provides your
ERP solution. It islikely that full integration is already
built-in.
Pre-integratedfind a (third-party) CRM supplier who has already
developed anintegration with your brand and version of ERP.
Fourth-party integrationSome independent (or perhaps
not-so-independent) softwaresuppliers may have developed a packaged
integration between your ERP and your chosenCRM. This may be a
rather rare opportunity limited mostly to ERP and CRM products
with a large installed base
Middlewareintegration can be accomplished through middleware
toolsets, using SOAand Web Services design. This approach is most
beneficial when there a number of
integrations to be built and maintained since the tools can be
expensive. Custom programmingbest suited for one-to-one integration
projects. Relatively
expensive. Take the longest to build and test. Often less
comprehensive than otherapproaches because the links are all
hand-built. Most expensive and troublesome to
maintain.
http://www.aptean.com/en/Solutions/By-Application-Area/Enterprise-Resource-Planning-ERP/Resources-Folder/About-ERP-Systemshttp://www.aptean.com/en/Solutions/By-Application-Area/Enterprise-Resource-Planning-ERP/Resources-Folder/About-ERP-Systemshttp://www.aptean.com/en/Solutions/By-Application-Area/Enterprise-Resource-Planning-ERP/Resources-Folder/About-ERP-Systemshttp://www.aptean.com/en/Solutions/By-Application-Area/Enterprise-Resource-Planning-ERP/Resources-Folder/About-ERP-Systems
