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ERP (Functional areas (Financial accounting, Management accounting, Human…

ERP

Implementation

Process preparaion

Linking current processes to the organization's strategy

Analyzing the effectiveness of each process

Understanding existing automated solutions[

Two tier enterprise resource planning :checkered_flag:

Manufacturing globalization, the economics of sourcing in emerging economies

Potential for quicker, less costly ERP implementations at subsidiaries, based on selecting software more suited to smaller companies

Extra effort, (often involving the use of Enterprise application integration[42]) is required where data must pass between two ERP systems[43] Two-tier ERP strategies give enterprises agility in responding to market demands and in aligning IT systems at a corporate level while inevitably resulting in more systems as compared to one ERP system used throughout the organization.[44]

Disadvantages :unamused:

Customization can be problematic. Compared to the best-of-breed approach, ERP can be seen as meeting an organization’s lowest common denominator needs, forcing the organization to find workarounds to meet unique demands.[54]

Re-engineering business processes to fit the ERP system may damage competitiveness or divert focus from other critical activities.

ERP can cost more than less integrated or less comprehensive solutions.

High ERP switching costs can increase the ERP vendor's negotiating power, which can increase support, maintenance, and upgrade expenses.

Overcoming resistance to sharing sensitive information between departments can divert management attention.

Integration of truly independent businesses can create unnecessary dependencies.

Extensive training requirements take resources from daily operations.

Harmonization of ERP systems can be a mammoth task (especially for big companies) and requires a lot of time, planning, and money

Benifits :smiley:

ERP can improve quality and efficiency of the business. By keeping a company's internal business processes running smoothly, ERP can lead to better outputs that may benefit the company, such as in customer service and manufacturing.

ERP supports upper level management by providing information for decision making.

ERP creates a more agile company that adapts better to change. It also makes a company more flexible and less rigidly structured so organization components operate more cohesively, enhancing the business—internally and externally.[53]

ERP can improve data security. A common control system, such as the kind offered by ERP systems, allows organizations the ability to more easily ensure key company data is not compromised.[citation needed]

 ERP provides increased opportunities for collaboration. Data takes many forms in the modern enterprise. Documents, files, forms, audio and video, emails. Often, each data medium has its own mechanism for allowing collaboration. ERP provides a collaborative platform that lets employees spend more time collaborating on content rather than mastering the learning curve of communicating in various formats across distributed systems.[citation needed]