An ERP system needs not be installed all at once. You can implement different modules of the system incrementally. In addition, you can build your own version of an ERP system by purchasing software that has pre-built interfaces to your existing software, or by programming interfaces between your existing non-compatible software. The benefits and risks are as follows:

Benefits:

• Cost savings through automated transfer of data
• Improved efficiency; ability to produce more in less time and for less money
• Visibility of entire company operations which leads to enhanced planning capability
• Ability to pass on cost savings to customers
• Ability to provide faster delivery to customers, with fewer errors
• Ability to easily participate in future automated e-procurement marketplaces
• Ability to integrate systems with those of customers for a seamless order and production e-procurement cycle

 

Risks:

• High implementation cost
• Lengthy implementation period
• Extensive training required
• Possibility of implementation failure without adequate support ⁄ consulting