Features

• The ERP architecture or methodology is based on a single data definition. All applications share one data format and source. There is no need to consolidate information from multiple systems and translate data for management to report on the whole organization.
  
  ERP data is always updated in real-time (meaning immediately rather than stored for later processing) so information is always current.
  
  ERP applications should follow a single standard for look and feel and share reporting tools so that a user familiar with one application can easily navigate and report from all applications.
  
  

Disadvantages

• The biggest disadvantage is that you have to buy all applications from a single vendor. One vendor may have very strong offerings among some applications but generally won't be the best in all areas. Using a "best of breed" approach gives you the best functionality, but the systems will not be integrated.
  
  The customer would have to build that integration through interfaces or messaging transactions. The customer would also have to translate all data into one format for reporting.
  
  Implementing individual systems can be done faster and cheaper than a full ERP, even if the ERP is done one module at a time. This is because ERP implementation requires multiple groups working together and agreeing on configuration and rules.
  
  

Advantages

• The primary advantage is the integration of data. All applications use a single definition of data and some use a single physical database. There is no need to consolidate and transform information from multiple systems in order to report on the organization as a whole.
  
  Another advantage is that system users have a single interface to all applications. All modules look and act the same, navigation is similar enough that there is little, if any, learning curve as you move from application to application.
  
  From the technical prospective, you have a single set of tools (utilities, programming languages, query tools, etc.) so your technical staff can support more than one system with fewer people.
  
  

Considerations

• For most organizations the advantages of ERP outweigh the disadvantages. A single information set that is current, accurate and can be accessed quickly provides a way for management to make informed decisions faster, which can result in fewer missed business opportunities.