ES systems are the classic two-edged sword. That is, they promise and can deliver great benefits through increased efficiencies by increasing standardization and control and by closely integrating a firm's channel partners into a lasting and mutually beneficial relationship. But these advantages can't be achieved without some significant operational, financial and even cultural trade-offs. What are some of the primary pros and cons of using these powerful (but dangerous) tools?
The primary pros are that ES support organizational centralization by enforcing uniform data standards and business processes throughout the company and a single unified technology platform. The firm wide data generated by enterprise systems helps managers evaluate organizational performance.
The cons are that ES are difficult to implement and require extensive organizational change, large new software investment, and careful assessment of how these systems will enhance organizational performance. They cannot provide value if they are implemented atop flawed processes or if firms do not know how to use these systems to measure performance improvements. Employees require training to prepare for new procedures and roles.