ERP Pros and Cons

change-aheadMany of the clients Accountnet works with are businesses who have outgrown Quickbooks and other business management systems and are looking at a more robust, ERP (Enterprise Resource Planning) solution.  In a nutshell, ERP systems integrate all of your company’s individual department functions into a single software application, which make it easier to track workflows across the entire enterprise. ERPs can reduce operational costs that come with the manual tracking and data clean-up/import/export using separate, stand-alone systems.

But there are a number of things to consider before jumping into ERP.  Here we outline some of the pros and cons of introducing an ERP system to your organization.

Pros of implementing an ERP System:

  1. The various modules of an ERP system (such as Finance/Accounts, Human Resource Management, Marketing/Sales, CRM and more) make it easier for order and inventory tracking, revenue/sales forecasting and all related activities to be managed from one, centralized system.  Employees – especially senior management – benefit from having complete visibility into all the important processes across all departments within an organization.
  2. Since a single ERP system can be used across departments to fulfill their individual functions, there is no longer a need to buy and maintain disparate software systems and try to make them work together — or have to rely on manual reporting processes — which saves both time and money. And because a single database is implemented on the backend to store all the ERP data, companies can consolidate storage and back-up of all enterprise data.
  3. Accountnet can help you extend your ERP systems to provide robust Business Intelligence functionalities that provide insights on your business processes and can help you identify potential areas of problems or where to make improvements.

Disadvantages of ERP (Enterprise Resource Planning) Systems:

  1. It’s very important to find the right ERP implementation partner to work with you through the entire process. Many companies are surprised to find that their new ERP system does not do everything they need it to do “out of the box.”  The right integrator can help ensure your new ERP solution is in-sync with all your important business processes.
  2. User adoption is perhaps the most important factor for a successful ERP implementation. Comprehensive user training and an easy-to use interface is critical.
  3. Evaluation prior to implementation of ERP system is critical. If this step is not done properly and experienced technical/business resources are not available while evaluating, ERP implementations can (and have) become a failure.

Interested in learning more? Contact us at Accountnet for a free phone consultation.