Advantages:
• ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically)
• Updates only need to be done once to be implemented company wide
• Provides real-time information, reducing the possibility of redundancy errors
• Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness
• Vendors have past knowledge and expertise on how to best build and implement a system
Disadvantages:
• Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high
• Inflexibility- vendor packages may not fit a company's business model exactly and customization can be very expensive
• Return on Investment may take too long to be profitable
• SAP ERP implementations have a risk of project failure
• ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically)
• Updates only need to be done once to be implemented company wide
• Provides real-time information, reducing the possibility of redundancy errors
• Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness
• Vendors have past knowledge and expertise on how to best build and implement a system
Disadvantages:
• Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high
• Inflexibility- vendor packages may not fit a company's business model exactly and customization can be very expensive
• Return on Investment may take too long to be profitable
• SAP ERP implementations have a risk of project failure
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