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June 25, 2019 12:00 PM

Benefits of ERP: Advantages & Disadvantages

Enterprise Resource Planning (ERP) was first developed to automate and link together various business processes and transactions across departments such as financials, human resources, sales management, and inventory management in manufacturing companies.

ERP helped in bidding goodbye to traditional record keeping activities that were working in silos and improved integration across the enterprise.

Learn about ERP Systems: Enabling Interaction and Collaboration

In other words, ERP systems enable inter-departmental interaction and collaboration through an integrated suite of applications. Organizations can seamlessly store, record, and interpret data systems while incurring fewer costs and increased productivity.

If an organization employs ERP, it is a sure way to become a highly efficient and automated, lean business enterprise.

ERP Software: Why is there a Need to Automate Traditional Business Processes?

ERP software can accelerate automating traditional business processes and end working in silos. It can integrate processes by making data readily available and accessible in a centralized location.It will be convenient for all the parties, using them through automated communication to perform tasks more productively.

Savings on Time, Operational Costs

Performance wise-a centralized database aids organizations to make well-informed business decisions. Using the help of data analytics organizations can clock in savings on

  • Time
  • Operational costs
  • Minimal errors
  • Lesser duplication of data

In other words- more benefits.

How Artificial Intelligence is Changing ERP?

From automating just the traditional business process, ERP has taken the next step and called for increased automation of ERP software and its features through the amalgamation of Artificial Intelligence and other emerging technologies, etc. e.g., Internet of Things (IoT).

It can offer increased workflows, record-keeping, forecasting, collaboration through maximum, increased integration of the ERP software.

ERP software aims to mainly systematize routine business processes to complete tasks in a timely fashion. It can bring in process efficiencies and a multitude of benefits with increased productivity and reduced cost expenditures.

benefits of erp software

Automating processes with ERP systems allow

  • Integration across departments
  • Understand interdependencies between processes
  • Identify and resolve bottlenecks in business processes
  • Effectively minimize errors by integrating systems
  • Simplify and automate tedious business processes
  • Efficient use of the right technology by embedding business intelligence concepts

AI Fueled ERP Software

The AI-fueled ERP software can also help employees to contribute to other activities by upskilling and gathering new abilities to contribute to the organizations' visions and goals.

Manufacturing companies gain

  • Better uptime
  • Reduced maintenance
  • Longer product lifecycles
  • Improved product design
  • Large-scale changes

Understanding ERP Automation

ERP automation was also driven by the goal of automating the traditional business process to enable efficient workflows between silo departments thereby enabling.


  • Enhanced integration
  • Efficiency
  • Reduced business costs
  • Increased profitability


From archiving and restructuring and automating a business process, ERP in the future may adopt more technological features with digital technologies and bring out more business efficiencies and elevate new standards in the business.

ERP systems consistent process efficiencies help organizations stay ahead of the competition in the current business landscape. ERP systems equip companies to increase agility, productivity, and flexibility to meet systemic regulatory compliances at all levels from the ground level-up.

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