Enterprise Resource Planning

Enterprise Resource Planning systems are management information systems that apply numerous business practices associated with the operations of a firm involved in manufacturing products or services. ERP software is integrated into one system, organizing manufacturing, accounting, marketing, strategic management, and warehousing logistics into such a system. Although there are advantages to ERP, there are more limitations and pitfalls to be aware of. Apart from the systems being extremely expensive, ERP is often seen as too rigid and difficult to adapt to. Personal turnover may become rampant, and the system suffers from frequent compatitiblity problems. Overall, it is highly recommended that firms avoid this technology, until it continues to improve.