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Key Things That Should Influence the Choice of an ERP Solution Big corporations will normally have several departments. All those departments have given processes that they carry out on a daily basis. Managing such processes becomes quite hard for such organizations. In days gone by, such processes were normally monitored by use of physical files. File systems, however, has the main disadvantage of data duplication which leads to redundancy. File systems are also very hard to manage. Obtaining data from physical files is also usually hard. Given the many problems in file systems, there was a need to develop better systems called the Enterprise Resource Planning systems. Enterprise Resource Planning systems are created with the goal of merging various business operation to a single place of reference. Any operation a business undertakes is called a business process. An ERP solution is, therefore, is a system that is useful in management of business processes. A company’s resource ranges from office furniture to computers to people to office stationery. ERPs provide a single point platform for a business to manage all its resources. A department like the human resource will need to manage various employee’s requests such as annual leave requests. An ERP solution will allow for the employee to send their request to the human resource department through it. Once the request has been sent by the employee, the human resource person will then receive and approve it using the ERP system. Like this, employee’s requests are kept in a single system and can be monitored easily. A number of ERP solutions are available today for both small and large organizations. These ERP solutions are either hosted on client servers or they can be hosted on the cloud. It is important to understand the key things to look at when making a choice of which ERP to use. ERP solutions that are customer hosted usually lead to more costs since the customer must apart from the solution, purchase hardware to run the software. Apart from hardware costs, client hosted ERP solutions will require you to bring onsite technical support in case of failures of any kind.
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On the other hand, cloud-based ERP solutions are not hosted by any single customer but by the vendor in a platform that allows different customers to access services specific to their companies. In this way, the customers don’t have to incur the cost of purchasing the hardware needed to host the ERP solution. Besides this, cloud-based ERP solutions are ease to connect to other systems.
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The ease with which an ERP solution can be integrated with other applications is a factor to consider. Normally, an ERP system that is cloud-based has the flexibility of allowing for what we call connectors to be added to them. Conncetors are important in scaling up the functionality of an ERP solution. Additionally, connectors are useful in helping ERP systems to exchange data with other systems.