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Key Things That Should Influence the Choice of an ERP Solution Big corporations will normally have several departments. Each of these departments has its set of operations that it carries out on a day to day basis. Managing each and every one of those operations can be an uphill task for such companies. Traditionally, these operations were managed through file systems. The problem with this solution, however, is that it usually leads to redundancy of data. File systems are also very hard to manage. Obtaining data from physical files is also usually hard. The many problems associated with the file systems gave birth to the development of Enterprise Resource Planning solutions. Enterprise Resource Planning software are designed to bring together the various operations of an organization in one place. Any operation a business undertakes is called a business process. An ERP solution is thus a process management tool for businesses. A company’s resource ranges from office furniture to computers to people to office stationery. ERPs give business the platform they need to manage all their resources from one place. A department like the human resource will need to manage various employee’s requests such as annual leave requests. An ERP system will offer the employee a place to log in their requests. The human resource manager, on the other hand, will be able to see and approve or decline employees’ requests. In this way, the organization is able to keep track of all employees’ requests in a single place. ERP solutions come in different sizes to support both small and large businesses. These solutions can be cloud based or they can be hosted on customer’s servers. It is important to understand the key things to look at when making a choice of which ERP to use. ERP solutions that are hosted on client servers will usually require the customers to buy hardware for running them hence they are thus more expensive to deploy. Additionally, client hosted ERP solutions require on-site support in case of technical failures.
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Cloud based ERP systems, on the other hand, are usually hosted by the vendor of the ERP system and customers are allowed to login only to their organization’s profile. Customers are thus saved the cost of having to host the ERP system themselves. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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The ability of any ERP solution to be integrated with other systems should always be one of the factors to take into consideration. What makes cloud-based ERP solutions ease to integrate is because they allow connectors to be added to them. Connectors are add-ons that can be added to an ERP solution to allow it to extend its functionality. Connectors also help to ease communication between an ERP system and other organization’s systems.