What is an ERP system and why should you use one?
If you own a business and are using much different software to manage your sales, HR, payments, services, projects, and other things. Though this might be working alright for you, however, you have to deal with duplication of data, mismanagement, and overwhelming systems to handle at a time.
A simple way out is to have an ERP (Enterprise Resource Planning) system for all the business management requirements.
Companies are transforming digitally and adapting to tools to streamline their internal systems. At the point that they have reduces the manual work, integrated automated processes, update their legacy software, and used many more practice approaches to boost efficiency and profits.
Today, they are more modern and versatile ERP solutions available to every size of business, no matter what industry they are from. The market researchers conclude that by the year 2025 ERP market is predicted to grow by more than $100 billion.
What is ERP? Bit of history and current ERP solutions trends?
Enterprise Resource Planning system popularly known as ERP is software that helps a company manage its day-to-day business activities like human resources, accounts, projects, operations, procurements, risk analysis, and drafting predictions & reports generations. Thus, eliminating the need for multiple systems, data duplications, and risk of data leaks or loss.
It provides unified and transparent management using multiple modules covering the complete business activities. And functioning as a centralized hub of data management for all the departments of an enterprise.
ERP systems go back about 100 years, first developed for manufacturing process scheduling called EOQ (Economic order quantity), and later modules were added to the software architectures and then evolved into a business management system- ERP.
Companies invest in an ERP solution to have better control over every growing yet important data. With an ERP, a business can gain data visibilities between multiple sections of the organization with a simple permission approval by the managers. The improved communication and flow of data can help have calculated insights into futuristic business plans, goals, and finances.
The reporting module of the system helps to generate live reports by data analysis of the latest or past data with few clicks. Also, a customized ERP solution can have reporting tools used for your organization’s specified needs.
Further, the automated integrations reduce the need for manual entries and capture data from one module to another, help with multiple analyses, expense reports and billing invoices, internal company’s routine communications, and much more.
Thus, overcoming all the obstacles in the workflow to reach optimum management all on a single platform.
Types of ERP systems
The ERPs software varies as per the unique requirements of various industries and business niches. They can be crafted as a custom solution for the requirement list of a company, can be subscribed to or brought from the market as a ready-to-use solution already developed by the provider for a common set of general requirements. For instance Microsoft Dynamics, Oracle, NetSuite, Acumatica ERP, etc.
However, we can list them as follow:
As the name suggests, the Cloud ERP solution is on the vendor’s server and can be accessed with subscriptions or plans over the internet.
They have been popularly used as the On-Premise based solution. As they cost beneficial as well as the updates & maintenance are taken care of by the vendor. The investment for the system can be calculated in advance on monthly/ annual subscription plans. This also includes the training, maintenance & support, and regular updates. Moreover, the implementation of the cloud ERP is way easier and takes less time. Thus, crossing out the need to have IT specialists, on the team all the time.
However, as the software is on the vendor’s server the control you have is limited and restricted according to your accounts plans. It is very important to choose a reputable Cloud ERP solution to provide as the security of your data is governed by the safety of the overall server. Thus, it’s vital to have a cloud ERP with a high-security standard or have the option to take third-party security integrations.
Premise ERP systems are installed on the company’s own servers and computers. The company has the license of this software and the cost depends upon the company size and operational requirements of the business.
The On-premise solution is completely owned by the company and every module can be customized as per the need. This requires IT experts, to help with the regular maintenance and update of the software.
An ERP system made of an On-premise + Cloud solution is called a Hybrid ERP solution. This is a two-tier ERP, where the On-premise ERP system is deployed at the head branch and cloud ERP is used for the other department of the organization. This is mostly preferred by MNCs or companies with multiple location offices.
A general enterprise resource planning system that offers modules for various Industries’ requirements specifically for accounts and finance but has very less operation-related functions.
Thus, a generic solution can be adopted by a wide range of companies irrespective of their niche industry. They are also known as Horizontal ERP.
Generic ERP costs less in comparison to Industry-specific ERP solutions. Some of the common functions that a generic ERP system provides are as follows:
⦁ Accounts and finance management module
⦁ Customer relationship management or CRM module
⦁ Human resource management
⦁ Business analytics & intelligence modules
⦁ Planning & predication modules
⦁ Inventory management
⦁ Supply chain management
⦁ Manufacturing management
Industry-specific ERP or Vertical ERP solutions are built particularly for specific industry requirements. They offer functions to manage not only generic business needs but also cover all the operations-specific modules.
Companies often design custom ERP solutions for their unique task management requirements. Most mid-size and large organizations have Vertical ERPs but nowadays even small companies have custom ERPs solution to build tools for their niche industry-based operation requirements.
Small Business ERP systems
Mostly small enterprises can make do with a cost-beneficial generic ERP system and have third-party integration for their specified operational needs. Moreover, they are not at the stage to invest more for the complete custom ERP system for them, They can adapt to some primary stage solutions that may exclude some operational centric features for the Enterprise resource planning system. For Small companies, cloud base ERPs are the best options.
Mid-size Business ERP systems
Mid-size companies are on the constant lookout for a better solution to get a more automated if not completely customized solution for their ERP system. They may not necessarily require a lot of custom tweaks but a system with some automated processes that can provide visibility to control and manage the various operational data.
Middle-size companies should seek ERP solutions that can be up-scaled as their business need grows, the cloud-based solution is a good option. As it still has a lower implementation cost and doesn’t require IT experts to maintain the system. However, as per the industrial domain’s unique requirements, they can opt for hybrid ERP solutions and have customized on-the-premise ERP systems. This can stretch the budget and may require building the technical team for the maintenance part but are good for the future business growth and operation management perspective.
Large Business ERP systems
These companies usually use an On-premise ERP solution or a Hybrid ERP (On-premise + cloud or any other combination of ERP systems) for their multiple office locations. To have a secure and manageable flow of data back and forth between its various operational departments and bases. The ERP has a custom module to provide tools to manage targeted operations.
A larger enterprise resource planning system needs to have a connected overall network that covers all the multiple department operations management tools with automated processes and visibility of data flow. Thus, the best solution is to have a Custom ERP system built and then add new modules to the traditional solution with every update. Also, as per the size of the company, it is difficult to migrate data from one ERP version to another updated version. Whereas, a customized solution can have all the required modules built with the design and tools to perform all the required tasks.
Esurgent can help you build ERP software for your business!
After reading through the meaning of an ERP system and its importance for business management, it becomes more vital to properly choose the best solution available for your company’s needs.
We at ESURGENT have our own custom ERP system that suits our company’s specified business requirements. The first version we have built with a more generic ERP solution with some custom modules for tasks-based solutions.
However, we are in the process to build a new version with more customized modules and features to better manage the overall company operations.
We can help you build your own unique ERP system for your listed requirement by guiding you through the following stages:
⇒ Layout the plan and discover the requirements in your ERP solution
Planning includes considering all the required tools and functions you need in your ERP for your company processes. And to scale out all the roadblocks in management that you face now and how the ERP will help you solve them. Thus, documenting the ERP software features and requirements.
⇒ Evaluating the requirements and listing steps for the development
Once the list of functions is made, it is easier to select/ custom build the solution that provides all these tools. This leads to selecting the platforms and technology to build the system. The development team helps you understand and create the development steps and process. That includes the timeline and cost listing for the budget planning.
⇒ Design, development, and Testing
Software engineers, according to the development plan build the solution and configure the implementation with your current workflow. The software is tested and reconfigured to make sure every feature is working.
The final ERP solution is implemented onto your server after clearing the quality checks. You can now migrate your data to utilize the benefits of the custom ERP solution. The ERP system resolves the requirements of each department and supports the company’s growth.
⇒ Support & Maintenance
With the growth of the company, the ERP system may also need to be reconfigured and updated to meet the new requirements. This is an ongoing process.
However, if you choose to opt for the ready to use ERP solutions, we can help you implement the system and build any third-party integration for better functions & security.
Let’s talk about your Software solution
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