The Downside of ERP Software

ERP Software has frequently been showered with praise as it often helps companies lower budgets and helps boost the productivity of its employees. Its role in improving efficiency within the company has helped many companies grow successfully. However, all this success does have a tradeoff.

The often ignored downside of ERP Software is a result of the efficiency of ERP Software. In boosting the productivity of employees, ERP Software renders many other employees superfluous. ERP Software achieves its cost savings as a result of boosts in productivity but also due to a lowered headcount. Since ERP Software automates many tasks, it also takes jobs away from many employees. Thus, the savings from ERP Software are also attributed to the reduced number of employees that are necessary to keep the company running smoothly.

With the economic recession continuing, companies continue to look for ways to lower spending. Although its role in saving company budgets can’t be taken lightly, the downside of company improvements is the decreased headcount within the organization. This often ignored fact is the reality of the improved efficiencies associated with the implementation of ERP Software. It should be taken into consideration when noting the costs and benefits of ERP Software. However, it should not diminish the importance ERP Software has in maintaining and growing a successful company.

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