ERP stands for Enterprise Resource Planning. It is a software where the source code is open for the users.
The ERP systems help in better sharing of information, reduction of operational costs, promotes higher synergy between the marketing and sales which in turn increases the overall revenue of the company.
ERP systems also help in improving customer service and to reduce the working capital.
Now let us discuss the various types of ERP systems
- Industry Specific Infor ERP
These ERP systems are primarily for the manufacturing and distributing industries.
Large corporations generally opt for these types of ERP which can be customized according to the requirements of the company.
- Cloud ERP
Many of the companies opt for the web-based ERP’s generally known as Software as a Service(SaaS), instead of implementing the ERP system directly into their computers.
The company can access the ERP via the internet by paying a subscription fee.
The company can access the data from the remote server using any device at any place which makes this system highly portable.
- ERP for SMB
These ERP’s are for the small and medium-sized businesses offering only the required benefits instead of all the features like warehouse management, at an affordable price.
- Open-Source ERP
Open source ERP systems allow the companies to access the source code of ERP and then modify the same using their own team of IT professionals rather than paying heavy extra charges for vendor customization plus licensing
What are some of the benefits of using an ERP?
- For higher business efficiency
ERP systems increase the efficiency of the business procedure by eliminating the need for repetitive procedures by incorporating different business activities like accounting, marketing, and sales, overall production etc into a single platform.
- For higher data security
The ERP systems comprise of a single data warehouse protected by several firewalls and restriction systems to prevent any kinds of illegal data extraction.
Since only a single data warehouse is used, it becomes easier for the company officials to keep track of the warehouse tightly.
- Helps in overall cost reduction
Using an ERP system, the company officials can keep a track of all the business procedures which can help in the prevention of delays, system breakdowns and all sorts of disruptions, which in turn reduces the overall cost.
- Easy customization
ERP systems can be easily customized according to the needs of the company by modifying the ERP source code.
Now, what are the factors one should consider for properly implementing the ERP in the business system?
- Specifying the requirements by identifying the problems
- Chalking out the Budget
- Setting up the team for ERP implementation and maintenance
- Opting for a demo of the ERP before the actual purchase
- Ensure proper Data Migration
- Ensure that the business infrastructure is compatible with the concerned ERP
- Customizing the ERP according to the company’s needs
- Pilot Testing of the ERP after customization
Some popular examples of ERP systems are
- NetSuite ERP
- Microsoft Dynamics GP
- Oracle ERP Cloud