Types Of Enterprise Resource Planning: Which ERP System Best-Suits Your Business Needs?
All modern and traditional businesses benefit from Enterprise Resource Planning (ERP). ERP systems have evolved from their original concept into an advanced solution to all business challenges. The software is more reliable to manage operations, integrate different functions, and measure the development of the business.
The evolving technology has given us different types of ERP solutions today, and businesses can choose one based on their needs. Several aspects must be taken into consideration while selecting ERP software solutions for a business. Let us learn about the different types of ERP systems that are available in the market.
Types Of ERP Solutions Based On Functions
Industry-Specific ERP Software
ERP software started with single functions and later developed into software that combined multiple applications. This type of ERP solution focuses on the nature and challenges of a business vertical. Today, ERP solutions are specially built with functionalities that suit a certain industry such as manufacturing, healthcare, retail, professional services, distribution, marketing, sales, finance, human resources, and logistics. This software is also known as modular ERP or vertical ERP. The needs of different verticals vary, and having an ERP that entails industry specific features offer improved speed, efficiency, and relevancy of a business.
Generic ERP Software
Generic enterprise resource planning software automates processes and brings together various functions of the business into a system. This type of ERP solution can be customised as per the requirements of the enterprise. Unlike industry-specific ERP solutions, generic ERP software integrates various functions of the organisation. Functions such as accounting, human resources, customer relationship management, warehouse management, marketing automation, sales management, etc. are carried out by a single ERP software. It clubs together several smaller applications that carry out specific functions. Generic ERP solutions are also known as ERP suites.
Types Of ERP Software Based On Deployment
While choosing an ERP system, it is essential to know how they are implemented. Thanks to innovation and advancements, there are three ways of deploying an ERP solution: on-premise, cloud-based, and hybrid. Let’s understand the difference between the two.
On-Premise ERP Software
This type of ERP solution is installed manually in the servers and computers of the organisation. This process requires procedures such as the installation and will be a huge investment for the organisation. Along with this, the company has to take responsibility for the management of an ERP system. In case the organisation does not have an IT team, it becomes necessary to hire IT professionals who can maintain the solution for the company. This passes all responsibilities of the ERP solutions to the company. Few sectors such as healthcare, construction, and manufacturing might opt for an on-premise ERP system as they would like to ensure the security of their data and information.
Cloud-Based ERP Software
When an ERP system is deployed through a software as a service (SaaS) model, it is called a cloud-based ERP system. The SaaS has become a revolutionary way to get the benefits of ERP solutions at affordable rates. The services of cloud-based ERP software are offered to the owners and organisations in the form of subscriptions. This ensures that there is a continuous flow of the service. The provider of ERP solutions keeps updating the system with the latest updates and features to streamline and improve your workflow. Smaller or medium-sized enterprises and companies that do not have an IT department usually go for cloud-based ERP solutions.
Hybrid ERP Software
A hybrid ERP solution is a combination of on-premise and cloud-based ERP systems. The organisation has the option of complete control over a set of functions for security purposes. Whereas, other processes can be operated through a cloud-based solution. Everyone within the company will still have access to the same data and information when using hybrid ERP software. Synchronisation between the on-premise and cloud-based system allows employees to stay updated with real-time information. Organisations that require the flexibility of control may opt for this type of ERP solutions.
We at SourcePro, offer various types of ERP solutions such as modular and generic ERP software. Our services keep the ERP systems updated with the latest technologies to fit well with modern businesses. Consult us today, to choose a suitable ERP software solution for your enterprise.