ERP vs Multiple Software’s

The current era comprises businesses that are small and large, depending upon their activities, number of employees, and reach over the globe. All of these businesses, however, use software’s ad applications to record, classify and interpret data for the purpose of numerical inferences. For such tasks a business could opt for two options: either it can use multiple software for each of its departments or it can apply an ERP system throughout its premise.

It is important to note that small businesses do not require such use of digital mediums for record-keeping or transferring information, they can simply use spreadsheets or manual methods. On the contrary, large-scale businesses develop a need for such software and systems otherwise they cannot keep up with the pace of hundreds of transactions.

Both methods, ERP and multiple software’s have their own pros and cons and either one of them must be picked by a business after evaluation of benefits. Let’s compare and contrast the advantages and disadvantages of both the channels.

 

Multiple Software’s Pros

Multiple Software’s Cons

ERP Pros

ERP Cons

  1. They can be set up easily according to the needs of the departments because of low costs and simple installation methods.
  2. They can be chosen as the best fit for each department, individually, according to its functionality.
  3. Separate and on-time upgrades are made available by the creators of the software for smooth running.
  1. There are ambiguity and inconsistency among the Master Data that includes variables of the activities.
  2. The system of information is mostly scattered due to multiple bases of data and no common platform.
  3. A manager cannot navigate or easily access the data of several employees because they’re not connected.
  4. There is no possibility of cross-reporting between departments for updates or correspondence.
  5. Many software’s require a high level of maintenance.
  6. The system of the business cannot be integrated due to distinctiveness among all the software.
  1. A single platform provides the hub of all the information, as a database easily accessible by all.
  2. The accuracy of data is promised because every data is connected with the other,
  3. The use of this system provides easiness because the information is available in one place.
  4. The access to data from this platform is steadfast.
  5. Although these systems are quite expensive when purchased, at some points, great discounts in their prices are also offered, by which they become cost-friendly in the long run.
  6. Communication among all the departments is made very transparent and everybody knows the activities and true picture of the company and the adjacent departments.
  7. The maintenance and supervision of such a system are convenient and efficient due to less diversity of platforms.
  1. It is very difficult to find one ERP system that can fit all the needs of the business and its departments; usually, customizations are made.

 

It is quite evident that the use of ERP for large scale businesses, specifically, can bring along a lot of benefits in the long run and help them develop the corporate functionalities in a much more efficient way. The dynamic changes of the production and sale businesses now demand the interconnectedness and integration among their several departments, which are dependent one each others performance, and hence that could be only be accomplished with a database that is found to be the fundamental ground for all information that is present.