In the previous article, you have been learning about ERP concepts in the enterprise. In this article, we will analyze the benefits and disadvantages of deciding how to apply ERP to your existing business processes. As you know, deploying an ERP system requires a lot of investment from the enterprise, from the standardization of business processes to the resources, ideas and business direction of the enterprise future. The resources here are cost, budget, competent human resources to implement and use the system, and time funds of the business. Therefore, the risk and implementation difficulties will occur, but the benefits that ERP brings to the business is indescribable.
The Benefits Of The Enterprise When Implementing ERP
First of all, we cannot ignore the role of ERP in standardizing business processes. You know, a large company always wants to have an asymptotic process with the most complete, fewer errors in the data, synchronous and accurate data, and standardized accounting data.
The use of integrated ERP instead of discrete software to reduce costs, deployment time. In addition, centralized usage on a system saves the user time, while at the same time there are fewer errors due to inherited and interconnected data, which is tightly controlled by processes and algorithms available in the ERP system. As the data is recorded and updated in real time, ERP solves very well the security problem, focus, and accuracy of data at the specified time.
Secondly, a prominent feature of ERP is flexibility, customization, ease of upgrading, and extensibility. The demand of the business varies from day to day, so the requirement to modify the system is very high. However, it should be noted that the risk of revision is heavily dependent on the capacity and the solution of each deployment unit.
Thirdly, ERP helps enterprise information in the enterprise more accurate and reliable, greatly supporting business owners in decision-making and identifying future directions for the business. In addition, ERP helps businesses better control their costs and available resources, improve business efficiency and enable internal monitoring.
Finally, the ability to deploy on a large scale, meet the management of many industries, business models, and can deploy to many branches, countries around the world.
If you just talk about the benefits, the ERP system is really worth the investment. However, there are also potential risks to be taken into account. If not properly evaluated, investing in an ERP system will cost a lot of time and resources.
Difficulties And Risks When Deploying ERP Systems
An average ERP project, with an investment price of over $ 100,000, is a worthy consideration for businesses. Normally, only large enterprises, high investment cost and relatively fast payback period will dare invest in the system.
The second point we mention is that the level of management of some enterprises is not high, the process is complicated. With such businesses, ERPs often have to be modified to be compatible with their business processes in a way that is forced, even against the logic of the system, leading too much of the risk.
Another source from the solution provider, there are not many experts with good qualifications and experience in the field of ERP consulting and implementation. In many countries, local suppliers are too inexperienced and insufficiently reputable, so they are not capable of consulting the business process but just stop at the deployment level.
ERP requires some kind of old-fashioned process change, to improve performance. But this has faced the opposition of longtime staff and has used the familiar old process.
The above are some benefits and difficulties when deploying ERP systems in enterprises. Managers need to look at the real needs of the company, its long-term orientation, and its available resources to make decisions about whether to deploy ERP and to choose the right solution for the business.