Benefits of ERP: Weighing the Pros and Cons

A variety of industries and enterprise models use enterprise resource planning (ERP) software to organize and better connect their business applications. With the help of ERP solutions, users can automate, integrate, and create more visibility into how business processes are running, all while eliminating unnecessary IT tool sprawl.

Despite all of the benefits of ERP, businesses run certain risks when they invest in ERP without full knowledge of what the tool can do and how it should be set up and used. Weighing the pros and cons of ERP software ensures that organizations invest the right time, cost, people, and resources into selecting a solution that works.

Pros of implementing an ERP solution

ERP platforms offer a variety of efficiencies to enterprise teams, with improved data quality and management, increased collaboration, and new app integrations to simplify workflows

Data quality and process standardization

Most instances of ERP software rely on single-source-of-truth mega-databases, which pull data from business applications that have been integrated into the ERP. This larger database consolidates data from applications like customer relationship management (CRM) platforms and human resources information system (HRIS) software, which collect data from a variety of business departments and use cases.

Having different user profiles and documentation stored in one place not only makes for easier navigation and administrative visibility but also improves data quality and process standardization. Users can catch and correct data errors that have proliferated in one application or departmental process based on standardized data sets in the ERP.

Compliance and administrative controls

Many ERP platforms include automated policy management support, and some include specific support for regulations like GDPR and HIPAA. Greater administrative visibility and control over enterprise apps, data, and workflows make it easier for an enterprise team to maintain security, assess performance, audit operations, and meet compliance requirements.

Read the original article from CIO Insight