10 Advantages and Disadvantages of Oracle ERP

Oracle ERP (Enterprise Resource Planning) is a cloud-based software that helps manage the daily business operation of an enterprise. These operations include human resources, accounting, inventory, customer relationships, and order management. It integrates all the information and business processes that help increase efficiency and have better collaboration among different departments.

Oracle ERP has a single shared database that all the departments of an organization use for different purposes. It reduces the chances of any miscommunication and makes the information-sharing process much faster. It also helps in automating manual processes, analytics, reporting, forecast, budgeting, and planning. Now that you know what it is let’s find out what are the 10 advantages and disadvantages of Oracle ERP.

Advantage#1. Oracle ERP provides better security & governance

Every business needs additional security features for data protection and not every business has a separate budget allocated. Oracle ERP stores all the data in advanced data centers with top-notch security measures. Their cloud storage is in compliance with data protection regulations as well. Besides amazing security features, it is also very easy to govern as you have role-based access controls.

Advantage#2. Oracle ERP is much easier to deploy

Deployment of on-premises applications requires a lot of time for deployment because you need to install the apps on each pc, laptop, and server. However, deployment in Oracle ERP is much easier and faster. All you need is an internet connection for installation and updates. Maintenance and updates of security patches are also much faster without any downtime.

Advantage#3. Oracle ERP is very cost-effective

Since Oracle ERP is cloud-based software, you only need to pay the charges based on your usage. This makes Oracle ERP very cost-effective. You also get to save a lot of cost in terms of security, support, and maintenance because they will take care of all these things for you. A study shows that Oracle ERP costs 14% less than others. They can give you an estimate of monthly, quarterly, and annual payment plans that will help you choose according to your budget. These plans would include security, updates, upgrades, backups, and support.

Advantage#4. Oracle ERP offers automatic updates

You need to keep your software updated if you want enhanced security and performance. It can be a costly and time taking process which might result in some downtime as well. However, it’s not the case with Oracle ERP as it is managed by Oracle itself. All the updates are done automatically, and your system would be secure with the latest functionalities. This also improves the productivity of your team and you can allocate team members to other important tasks.

Advantage#5. Oracle ERP provides high scalability & availability

Your requirements can change as your business grows over time. If you need more or less storage space, you can scale up and down based on your requirements. You will only have to pay for the services as per your use. Also, if you shift your office location you won’t have to shift any physical hardware. As opposed to on-premises Oracle ERP ensure 100% availability with minimum to no downtime. High availability and scalability are one of the biggest advantages of Oracle ERP.

Disadvantage#1. Oracle ERP requires customization

The first disadvantage is that Oracle ERP (Enterprise Resource Planning) system requires customization. The customization process takes plenty of time and effort. For customization, you also need someone who has expert knowledge. Although it would be just a one-time thing, you would need to keep your budget flexible because it also requires spending some money.

Disadvantage#2. Oracle ERP requires employee training

The implementation of Oracle ERP won’t be successful if employees have no idea how to use it. This means if you want to use Oracle ERP effectively you need learning and training sessions for your employees. This again would require more budget allocation for employee training and consumes a lot of time.

Disadvantage#3. Oracle ERP adaptation takes time

Shifting or Oracle ERP can be a big transformation from the traditional system for your business but more for employees. According to the stats, 70% of employees resist the change. It might make them uncomfortable because they have to learn the complexities of the new system. This is one of the biggest reasons why businesses fail to transform into new systems.

Disadvantage#4. Oracle ERP needs improved documentation

There are many features that are available in Oracle ERP but not mentioned in the online guides of Oracle. Although the users do need training, but good documentation is a must. For some people, the dashboard of Oracle ERP might be okay but not for everyone, and users usually have a hard time navigating.

Disadvantage#5. Oracle ERP takes time to give positive results

If you are adopting Oracle ERP for short-term and instant results, then it’s not meant for your organization. It is rewarding in the long run and you need to have the patience to see the positive results. Customization, implementation, adaptation, and training take time, so it won’t show you positive results instantly.

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