8/14/2019 Benefits of ERP Systems

1/5

Benefits of ERP Systems

8/14/2019 Benefits of ERP Systems

2/5

Tangible Benefits.

-Inventory reduction.

-Personnel reduction.

-Productivity improvements.

-Order management improvements.

-Financial cycle improvements.

-Information technology cost reduction.-Procurement cost reduction.

-Cash management improvement.

-Revenue/Profit increase.

Transportation / logistics cost reduction.-Maintenance reductions.

-On-time delivery improvements.

8/14/2019 Benefits of ERP Systems

3/5

Intangible Benefits.

-Information visibility.- New/improved processes.

- Customer responsiveness.

- Cost reductions.

- Integration.- Standardization.

- Flexibility.

- Globalization.

- Supply/demand chain.

- Business performance.- Dismantling inefficient legacy systems.

8/14/2019 Benefits of ERP Systems

4/5

Limitation of ERP

Large dollar investments for setup,implementation and maintenance even for smallERP projects

Painful and lengthy implementation anddebugging

High level of expertise needed for implementationand debugging

Multiple difficulties are hidden leading dodoubling the time and tripling the cost estimatesfor the project

Difficulties amplify organizational resistance tochange

8/14/2019 Benefits of ERP Systems

5/5