ERP is an acronym for Enterprise Resource Planning. It is a SaaS (software as a service) based platform. Usually, it is acquired to manage various tasks of business such as financials, operations, supply chain, manufacturing, reporting and human resource activities. It centralizes all the out comings and incoming and gives an accurate report by performing trend analysis and the chances of errors are minimal as every report is created through an algorithm if such reporting is done manually chances of errors would be more and it will be time-consuming as well. To run a business smoothly all the departments of the organization should be synchronized to have a better understanding of what are the reasons behind the business success and how the overall productivity can be increased.
Following are the modules offered in an ERP system:
There are two types of ERP offered. It depends on your business which would be a suitable one for you. Following are the types of ERP.
On-premises ERP is usually acquired by large firms to streamline their business. It is beneficial for large business if they have an IT support team who are always there to maintain it in case if there is any need, if they don’t have an IT team they have to wait for the vendor to come over which will take some time and time is valuable asset it cannot be wasted. Also, in the beginning, a big investment is needed to buy the hardware and software. If an organization wants to keep its data secret from others than on-premises ERP would be the best option. In case of any disastrous situation, the data gets lost if the systems hard-drive gets damaged, regular backup of data should be created to keep all the records in such case.
Cloud ERP small business is a type of ERP which is cloud-based and is obtained by small or medium ranked businesses. It is beneficial for such businesses as there isn’t an initial huge payment required for the hardware. The owner just has to purchase the ERP software, the servers are maintained and hosted by the software provider but the organization have to pay monthly recurring charges for the maintenance. Cloud ERP small business is a cloud-based software so a good, uninterrupted internet connection is required to have access to the cloud but the benefit to the user will be that the software will be managed and updated by the provider so the person wouldn’t have to go through the hassle of all such kind. In case of any disastrous situation, with cloud ERP small business can have a peace of mind that their data is secured by the cloud provider.
Hope the above-stated article would help you to analyze which type of ERP would be the best suit for your business. Whether you go for the on-premises ERP or Cloud ERP small business.