Many businesses from a variety of different industries make use of enterprise resource planning software. This is because many businesses will see significant benefits when it comes to using enterprise resource planning software. There are numerous times when a business has good opportunities to implement or upgrade their current systems. These times include when they are having issues with operations, when the business is experiencing times of growth, during a merger or acquisition, when the business is using old or outdated systems and when a business has outlined a strategic roadmap to upgrade and implement new technologies. Whilst there are many factors that indicate when or if a business should implement enterprise resource planning software into their operations, there are certain ones that benefit more from its implementation.
Here are some of the advantages and disadvantages of enterprise resource planning software.
The implementation of enterprise resource planning software provides a variety of benefits with cost savings. These can include better inventory management, which helps to reduce costs as you will not be excessively buying stock which ultimately will save you costs. It further helps to increase vendor relationship management meaning that you will be able to communicate more efficiently and effectively with the vendor. This will in turn help to be specific about orders and then reduce costs through this process. Furthermore, it helps with procurement management. This means that it will buy from preferred vendors and organize it in a way that you will be spending within a budget and on or before a deadline. This ultimately will help to reduce costs through its organizational ability.
Better cloud and data security
Enterprise resource planning software has a variety of implemented security tools which will help you to improve your cloud and data security. Through its dedicated tools to do with security, you can sleep better knowing that your data is less at risk for malicious and cyber-attacks. Many businesses do not have optimal cyber security, and cyber-crime and attacks cause billions of dollars of damage every year. Rather than having to hire a cyber security consultant to improve your system’s security, which can cost you more money, you can have dedicated security tools implemented through the use of enterprise resource planning software. In addition to this, the data that is stored on the cloud is distributed across multiple servers rather than one centralized location. This reduces the risk of catastrophic damage if an attack was to occur at a singular server, as your data is stored and backed up across multiple different locations.
It can be expensive
The initial cost of enterprise resource planning software can be expensive.
Not only is the funding of the technology expensive, but its implementation can be expensive too, as employees will need to be trained for its use as well as the labour costs required to overturn one system and implement another. This could take time and money to do and will cost you a bit. Moreover, enterprise resource planning software needs to be maintained, and you will need to train current employees to do so or hire new labour to take up this work. Enterprise resource planning software will also require ongoing and continuous training as it is upgraded along the way. This can further increase costs and time.
In summary, enterprise resource planning software has many benefits for the majority of businesses across various industries. These include the savings of costs through organization and efficiency and effectiveness, as well as increased cyber security to do with the cloud and data storage. However, it does require an expensive initial cost to implement and train employees to use it as well as its maintenance and ongoing training.