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Enterprise Resource Planning

notes 6.1 Benefits of ERP

Installing an ERP system has many advantages both direct and indirect. The direct advantages
include improved efficiency information integration for better decision-making, faster response
time to customer queries, etc. The indirect benefits include better corporate image, improved
customer goodwill, customer satisfaction and so on.
Figure 6.1 taken from a survey conducted by Deloitte Consulting shows the major quantifiable
(tangible) benefits of an ERP system. The respondents who participated in the survey were asked
to check the tangible benefits of the ERP systems from a set of benefits. Most respondents felt that
inventory reduction was the main benefits, followed by personnel reduction and productivity
improvements.
Figure 6.1: Tangible Benefits of EPR

Figure 6.2 taken from a survey conducted by Deloitte Consulting shows the major non-quantifiable
(intangible) benefits of an ERP system. The respondents who participated in the survey were
asked to check the intangible benefits of the ERP systems from a set of benefits. Most respondents
felt that information visibility or better information availability was the main benefit followed by
improved business process and improved customer responsiveness.
Figure 6.2: Intangible Benefits of ERP

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