Question

In: Accounting

A lot of companies do use multiple systems, instead of a single system. At times, having...

A lot of companies do use multiple systems, instead of a single system. At times, having multiple systems is even an advantage over only one larger system. When would that make sense?

Solutions

Expert Solution

Although an organisation in today's world would always prefer to have one large single system for organisation so that it saves cost, time and energy to monitor different system.

But it has been observed that a lot of companies use multiple systems for their businessess when

1. There are many sub processess involved in the company which are independent of others

2. Deploying one large system would also mean higher costs for small companies as the ERP etc costs a fortune to many of the beginners. Having multiple system will be cost effective in long run.

3. In an organisation where many of the process requires specific system to operate for eg. dying would require its own set of machines and system to properly dye the clothes, assembly of cars would requires specific machines and its own system to operate independently.

4. The company doesnt have to worry as the operations can go on in other department if the system fails,

as they are independent of each other it ensures that productivity of the company is not hampered.


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