An enterprise resource planning (ERP) system helps businesses streamline operations and maximize resources. In a fast-paced international marketplace powered by technology, companies rely on digital tools to improve production and stay ahead of the curve. Discover the different ERP system types and how they automate essential processes to improve financial reporting, inventory management, and more.
ERP for Everyone
Understanding the different types of ERP systems makes it easier for companies to select tools that fit their budget and requirements. ERP systems centralize the data from various departments and bring it together on one integrated platform for easy access. An ERP solution exists for companies of all sizes and types to improve accuracy and efficiency while providing crucial insights into overall performance.
An on-premises ERP is a traditional system that relies on hardware installation at the use site. This type of ERP system requires the company to buy and maintain hardware, servers, and qualified staff to install and manage it. While this provides complete control over data and security, the system can take a long time to install and be costly to manage.
ERP in the Cloud
Cloud-based ERP systems are hosted on remote servers rather than ones installed at the business and accessed via the internet. Using cloud-based ERP supports remote workers and collaboration from any location or device, empowering teams with real-time data to fuel the most intelligent decisions. Additionally, cloud-based ERP systems provide outstanding security features and usually have lower upfront costs than on-premises ERP systems.
What is a Hybrid ERP?
Companies have a hybrid ERP system that combines on-premises and cloud-based ERPs to provide the highest flexibility over data storage. For example, some information can be hosted remotely while others remain on-site. This type of ERP system benefits companies seeking to streamline operations and bring various departments together affordably for optimum efficiency.
Benefits of ERP Systems
All ERP systems significantly benefit businesses, helping them realize a measurable ROI. By streamlining operations and automating core business processes, ERP systems help improve productivity and efficiency. Additionally, access to the latest data empowers the team to make critical decisions when they matter most.
Cost Versus Functionality
While all ERP systems provide distinctive benefits, they are priced and operate differently. Choosing the right one requires attention to detail, and cost should not be the only guiding influence. Instead, consider functionality and what the system must do to bring different departments together to work seamlessly and improve productivity.
An ERP system automates repetitive tasks such as order processing, accounting, and inventory management to improve accuracy and eliminate inevitable human errors associated with manual processes. Additionally, human resources can be used to focus on business-building activities such as customer service and procurement processes rather than performing tedious manual work. As a result, management finds employees enjoy their work more and perform optimally when they have the right tools.
Different types of ERP systems exist to meet or exceed the requirements and goals of all kinds of companies. Compare the various software and systems and work with a professional team to determine which suits a company and will help it streamline operations and processes. Investing in a robust ERP system today helps businesses become more profitable and productive tomorrow.