Study the advantages and disadvantages of ERP. Based on these lists and the other information provided in the chapter 14, do you think that installing an ERP system would be worth it, even at a cost of, say $100 million (for a fairly large firm)?

Advantages and disadvantages of ERP

Following are some of the advantages and disadvantages of ERP:


  1. ERP or Enterprise Resource Planning can help better control the information flowing in a large organization.
  2. With and ERP, information duplication or repetition can be avoided.
  3. ERP can identify the areas of an organization with higher costs.
  4. ERP can also identify areas that have higher sales.


  1. It might need a high capital investment to install an ERP system.
  2. All the employees would be needed to be trained to use an ERP system which could be costly and time consuming.
  3. Serious challenges might be faced while integrating an ERP with the existing applications.

$100 Million is a large amount of money. If a company can afford it, it’s worth it in my opinion.