Question

An enterprise resource planning system (ERP) can be a valuable resource to a company to implement and evaluate a set of corporate strategies. Comment on advantages and reasons why such a system might fail in some industries.

Answer 1

ERP facilitates the flow of information across the different integrated business processes. It has a large number of advantages but its implementation also presents industries in some sectors a challenge which I have described below:-

ADVANTAGES

1. Making use of a centralized system instead of a number of different software allow better integration, easier data sorting/ viewing and allows all the data values to be consolidated.

2. It helps create a better interaction between the company and the consumer.

3. Allows holistic management of any project.

4. Allows better and more accurate forecasting.

DISADVANTAGES

1. Needs a lot of investment to be able to be set up.

2. Implementation is tricky and requires more time when the system needs to be customized to the needs of the company.

3. Deployment is not necessarily easy and can be hard for the system to implement initially.

4. Has a lot of indirect and maintenance e costs associated with its use.

3.