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Advantages and Disadvantages of ERP (Enterprise Resource Planning)

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Advantages and Disadvantages of ERP (Enterprise Resource Planning)

Advantages and Disadvantages of ERP


  • As ERP is driven by data, it is important that none of it is obsolete. ERP (Enterprise Resource Planning) provides real time information at all times, thus reducing the chances of redundancy and other errors.
  • Integration of ERP is possible on a global scale and not just locally. It bridges the gaps caused by the differences in currency, language or culture. Additionally, it is easy to implement.
  • If ERP updates need to be implemented for the entire company, then they need to be done just once, instead of going through individual departments.
  • The interface is user friendly and customizable. This allows end users to state the operational structure of the product.
  • Overall, the work environment is made extremely efficient for all employees.


  • Though there are not many, ERP does have a few disadvantages.
  • If company goals are not defined properly and if the need of ERP is not clearly stated, there exists a risk of failed implementation. To avoid this, a company has to be very clear on why and how it wants to incorporate ERP into its system.
  • It may take a while to get good returns on investments.

Make ERP a part of your organization if it isn’t. You will not be disappointed.

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