Small and Medium Enterprises (SMEs) have realized the importance and need for Enterprise Resource Planning (ERP). It assists in handling day-to-day activities like finance & accounting, warehouse, inventory, manufacturing, supply chain, HR, and other activities. ERP also helps in eliminating data duplication, errors, misplacement, and other mistakes. While searching for the right ERP system for your business, one might come up with various terms, but the important terms to understand are generic ERP, industry-specific ERP, cloud ERP (public cloud ERP/open source), and on-premise ERP. These terms might confuse or worry you, but don’t worry we have explained these terms below:
Generic ERP
As the name suggests, generic ERP is purposed to handle all kinds of businesses. It offers all the primary functionalities and characteristic features in all fields.
Industry-specific ERP
Industry-specific ERP is designed to offer only those specific features which will be useful to that particular industry because it understands the in and out of that particular industry.
ERP is of two types, whether you can go with the public cloud ERP/open source (Cloud ERP) or the private cloud ERP (on-premise ERP). The difference between the two of them is summarized below:
Cloud ERP (Public cloud ERP/Open Source)
Cloud ERP is best for Medium and Small Businesses, as the vendor hosts all the services for you, and the company will not be responsible for any management of the ERP systems. It can be accessed by the users using the same server.
On-premise ERP (Private cloud ERP)
On-premise ERP is generally implemented by large-scale businesses and can only be accessed by the user of the company. It costs more than public cloud ERP.
Choosing the right ERP system for your business can be difficult, but knowing what points to consider while choosing will help you make a correct decision. The following points you have to consider are:
1. Business Goals
If the goals are set to speed up the company in the market, bring profit & growth to the business, and efficiency, then it is the right decision to implement ERP.
You should consider an ERP that is scalable and can upgrade to maintain the increasing complexities as the business evolves.
2. Budget and funds
Budget and funds are as important as business goals. Before considering any factor, ensure to make a budget (costing to the company, including maintenance or expert team to operate, manage, support) and choose the ERP accordingly.
3. Scalability
While choosing the right ERP system for your business, you have to analyze how much company strength is at present and predict how much will be in the future so you can make the right decision.
4. Functionality (Adaptability with existing software)
Before choosing an ERP, you have to ensure that your existing software is adaptable to those ERP systems unless you have to update your software, and it will cost you much more than your budget set.
5. Mobile-friendly
Choose an ERP system that is mobile-friendly so that you can log in from any device (mobile, tab, desktop), although many leading ERP systems offer mobile access. As long as you have a laptop, tablet, or phone, you’re connected. That means you can get crucial data anytime, from any place.
Although, there is no harm in looking for customer reviews and recommendations, apart from the points explained above.
RARR Technologies is a team of highly experienced professionals for Database Architecture, Design, Web & Mobile Application Development, IoT, and AI/ML-based applications.