The most well-known provider of enterprise resource planning (ERP) software and related business applications is SAP, which stands for Systems Applications and Products and people have to undergo SAP training Malaysia. Customers can manage their business operations, such as accounting, sales, production, human resources, and finance, in an integrated environment thanks to an ERP system provided by a company. SAP’s clever integration provides simple, seamless information flow between its various components and aids in the implementation of legal and financial controls. Businesses use ERP systems primarily to enhance internal operations and overall corporate performance. They also aim to lower labour costs, pay down IT debt, and enhance employee-company relations.
Here are some of the primary benefits of an ERP system:
- One of the main selling aspects for ERP is its feature called total visibility. By making data from each and every division readily available to you and your senior management, ERP enables complete access to all crucial business processes.
- Better Planning and Reporting – By introducing an ERP suite across departments, your company will have a single, integrated reporting system for each and every process that can produce insightful reports and insights as needed.
- Complete Customization – The majority of ERP suppliers offer a variety of programs that can be used in combination based on business requirements.
- Improved Efficiency – An ERP can decrease the time and effort needed by your personnel to complete daily tasks, in addition to lowering IT and training costs. When implemented properly, an ERP can significantly reduce or eliminate tedious manual operations, freeing up team members to concentrate on activities that have a direct impact on income.
- Data Quality and Security – Data security is one of the main benefits of an ERP system. Data is, after all, the foundation of the ERP paradigm. Collaboration inside a firm is improved through sharing data between functional silos including customer service, sales, marketing, and business development. Controlling who can view and edit the data is the opposite side of ubiquitous data access. The safety of your data is guaranteed by the inherent controls of ERP solutions.
As we can see, the ERP system provides a tonne of advantages, making it seem like any business should use it. However, it’s vital to consider certain drawbacks as well before making a decision.
Some of the drawbacks are as follows:
- The ERP Software’s price. A single licence for a typical ERP might potentially cost you five figures if you decide to invest in one. The price of the programme alone at first may be too high.
- The price of installation and upkeep. Considerably while the software is a significant investment on its own, the deployment procedure may be even more costly. Businesses must account for the cost of labour and the amount of time required for a successful deployment.
- The methods for customization. One of the best features of ERP is customization, but it can quickly and easily go out of control. It takes a lot of time, effort, knowledge, and money to customise your ERP software.
- The difficulty. ERP software solutions offer a wide range of features, but because of this, the software may also be complicated and challenging to use. It happens frequently that businesses get caught up in the potential of an ERP without making enough preparations for its adoption.