Should Your Company Buy an Enterprise Resource Planning (ERP) System? My Thoughts.
I believe that Enterprise Resource Planning (ERP) Systems are vital for most businesses. But let’s look into the advantages and disadvantages so that you can make an informed decision based on the needs of your business.
PROS: If you’re looking to increase productivity, an ERP System is for you. They allow for better reporting of data (which, in turn, means your business would better be able to plan), better data security and a unification of IT costs in general (so you can focus your efforts and money towards other aspects of your company), and overall increased collaboration among departments (due to the fact that all of the actions of the various departments within your company would be able to be detailed in a centralized location that can be made available to all employees). Also, something that I really like about ERP systems is that they are totally customizable based on the needs of your company. All in all, with an ERP system, your business will be able to run more efficiently, which will almost certainly benefit your customers as well.Â
CONS: ERP Systems can be very expensive. Based on my research, ERP vendors don’t outright list the price of the system on their website. Instead, they ask you to fill out certain information about your business and get a “free product tour,” like Oracle NetSuite does on their website. Not only is the initial software expensive, but there is an added cost of implementation, maintenance, and customization. If your company is small, choosing ERP might not be the right financial decision for you.












