Advantages and Disadvantages of ERP

ERP :advantages and disadvantages

Advantage
1.Allows easier global integration (barriers of currency exchange rates, language, and culture can be bridged automatically)
2.Updates only need to be done once to be implemented company-wide
3.Provides real-time information, reducing the possibility of redundancy errors
4.May create a more efficient work environment for employees
5.Vendors have past knowledge and expertise on how to best build and implement a system
6.User interface is completely customizable allowing end users to dictate the operational structure of the product

Disadvantages
1.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 2.unprofitable to switch vendors if switching costs are too high
3.Inflexibility - vendor packages may not fit a company's business model well and customization can be expensive
4.Return on Investment may take too long to be profitable
5.Implementations have a risk of project failure