Enterprise resource planning (ERP) is the integrated management of main business processes, often in real-time and mediated by software and technology.
ERP software is designed to unify various functional areas related to the business process. Since it centralizes all the data, the data can be shared across various departments without any hassle. It also automates most of the tasks and you get reminders for important tasks that are nearing the deadline.
ERP at its rudimental level is a database management system which creates and manages a database of business processes including:
- Accounting and Finance
- Raw materials
- Production capacity
- Supply chain management
- Workforce scheduling
- Human resources
- Human capital management
Let us go through the different types of ERP implementations.
On-premise ERP software:
On-premise ERP software is implemented using company hardware and servers. The onus is on the company to provide security for data and ensure that there no data breaches. Since it is implemented or installed on the company servers it can’t be accessed outside the company premises with the help of the internet, thus making it impossible for companies to provide work from home option to its employees.
Cloud ERP follows SaaS(Software as a Service) model, it is implemented using a third party platform and you are given access with the help of cloud technology. In service-based models, the payment is usually offered every month which is beneficial if you are looking for a pocket-friendly option. Cloud ERP can be implemented within just a few days depending upon the client’s demands.
Hybrid ERP software:
The problem with On-premise ERP is that it doesn’t allow the data to be accessed outside the office. The advent of technology paved the way for an advanced implementation system which offers the best of both worlds which are known as the hybrid ERP solution. The basic selling point is that a hybrid ERP solution can give you implementation costs that are much lower compared to an on-premises solution while giving you significant advantages that come with a cloud-based solution.
Effective benefits of ERP software:
There is a common misconception among enterprises that only big industries can implement ERP solution because it is too expensive for smaller and medium enterprises. ERP is expensive but there is a lot of Cloud ERP software offered by various companies at an affordable price.
Streamline Business Information
As every business process is centralized it makes it easier for every employee to access important data and make analysis on them and come up with new ideas to tackle the challenges faced by your organization.
Properly implemented ERP system reduces most of the redundant and boring tasks. Hence your employees would look forward to their tasks more efficiently which result in increased productivity.
Helps you to provide better customer service:
Sometimes the customers have specific preferences and only the employee handling their work will know about it and he would have made notes accordingly on his laptop for future endeavours. Suppose the next day that employee falls sick and his customer starts screaming for not attending him in a better way, what would you do now? ERP solves all that since it syncs even the notes made by employees and every other employee can access it and keeps your customers happy.
Better Management and Recording of Data:
Documentation is a tedious and boring process and no company is exempt from it. A boring process is a beacon for human errors, ERP fixes that by automating such things.
Reminders to not miss deadlines:
Humans forget a lot of things and it is fine as long as they don’t forget important deadlines. ERP is your knight in shining armour which helps you by giving relevant reminders so that you don’t need cough up penalty for not completing the tasks on time.