Enterprise Resource Planning (ERP) systems play an important role in improving all business processes. For example, Company N can implement an appropriate ERP system to overcome certain issues and barriers preventing it from development. The first issue is the focus on paperwork and manual paper processes. ERP systems allow for shifting to using electronic documents and soft copies of papers for all types of business operations (Al-Jabri & Roztocki, 2015).
The second issue is the use of different applications and software instead of relying on one integrated system (Hamlett, 2019). The application of ERP will contribute to decreasing costs of operations and risks of using contradictory data or missing information. Finally, Company X faces the problem of data redundancy because of applying for different programs. ERP will prevent sharing duplicates of documents and storing inconsistent information.
However, despite the benefits associated with implementing ERP systems, there are also potential issues and obstacles. The main problem is associated with change management as the application of ERP means altering the overall system of working with business documentation, resources, and data. As a result, challenges and employees’ dissatisfaction can be observed (Brown, DeHayes, Slater, Martin, & Perkins, 2011).
Another problem is related to the costs required for applying the system because this prolonged process needs many financial resources and purchasing an effective ERP solution (Al-Jabri & Roztocki, 2015). Additionally, all the employees need to be adequately trained to work with ERP systems, and this process is also challenging and cost- and time-consuming.
Therefore, despite understanding the benefits of using ERP systems, managers should also realize potential challenges and problems to address. It is possible to state that ERP systems allow for optimizing all business processes and data flows, but the implementation procedure prevents many firms from further development. Still, leaders and managers are expected to evaluate the advantages and disadvantages of using ERP systems to make well-reasoned decisions.
References
Al-Jabri, I. M., & Roztocki, N. (2015). Adoption of ERP systems: Does information transparency matter? Telematics and Informatics, 32(2), 300-310.
Brown, C. V., DeHayes, D. W., Slater, J., Martin, W. E., & Perkins, W. C. (2011). Managing information technology (7th ed.). New York, NY: Pearson.
Hamlett, K. (2019). Why implement an ERP? Web.