Ruby Wertheimer

USC '22. From NYC. I like information technology and movies. I especially like my ITP101 class with professor Sloper. If you're at USC, you should definitely take it!

[rubywertheimer]

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. 

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.

[rubywertheimer]

What is Enterprise Resource Planning (ERP)?

Enterprise Resource Planning is when technology integrally manages a business’s functions. Companies such as SAP and Oracle sell a suite of integrated applications that help a business oversee, organize, and manage information gathered from business activities. ERP allows for increased efficiency, a “streamlining of business functions,” because it updates in real time and is always accurate. ERP is beneficial to businesses because what one department does always affects another department. In fact, it usually affects multiple departments. Therefore, if one department does something, it is valuable for the other departments within that business to know what has occurred so that they can react quickly, allowing for greater efficiency overall.