Are you constantly seeing the phrase ‘ERP’ crop up on the web? When searching, the huge amount of information that comes up on ERP systems can be overwhelming, and rather confusing too.
There are so many different definitions, and one type of ERP system can be completely different from another. If you’re considering an ERP system for your business but aren’t sure exactly what it is, we’re here to help. Keep reading to understand what exactly an ERP solution is and the types of ERP systems that are available.
What Is an ERP System?
ERP stands for Enterprise Resource Planning. However, even the full name doesn’t give much on what an ERP system is or what it does.
Putting it simply, ERP software integrates lots of functions within a business into one complete system. The idea is that the system streamlines processes and data across an entire business.
While most ERP systems are very different, all share one central feature. That’s a shared database that assists with various functions used by separate areas of the business.
That means staff working in different sectors of the business can use the same data and information for their needs. For example, those working in marketing can access the same data as those in the accounting department.
ERP systems also provide synchronized reporting and automation of data. Employees no longer must manage separate databases that have to be manually joined to produce reports. Instead, many ERP solutions allow different staff members to access reports from one integrated system.
For example, a common ERP system feature is a portal or dashboard to allow staff to access the business’s important metrics.
What Types of ERP Systems Are There?
ERP tools are hugely beneficial for businesses, but it’s not a one-size-fits-all. Choosing the right ERP system can be overwhelming, as there are so many types that suitable different sizes of businesses.
There are several factors to help you choose what software suits your business. These include price, company size, industry, and whether it’s cloud-based or not.
Let’s look at some of the ERP systems available.
ERP Systems for Small Businesses
Small businesses that are growing need software to help manage daily business tasks such as finances. However, there’s not much point spending loads of cash on expensive software for features that they don’t yet need. Instead, small businesses should choose an ERP system that covers the basics and allow room to grow.
One option is Acumatica. This is a cloud-based ERP system created for smaller growing businesses. The business edition features basic accounting integration and requires less than 10 users.
Another popular choice among small business owners is Oracle NetSuite. This ERP system offers visibility for all users into the business data at an affordable price. However, it’s important to note that Netsuite will offer higher prices as a long-term solution as the small business grows.
ERP Systems for Mid-Sized Businesses
Businesses that are mid-sized are likely to need a more exhaustive system that can automate company processes and offers one central location for all collected data. But, in most cases, there isn’t much need for customization.
Microsoft Dynamics is a great choice for mid-sized businesses. The software features a number of partner products that can be added on, so users can build an ERP system to suit their business needs.
Oracle JD Edwards is another popular option. An integrated system, JD Edwards offers flexibility for mid-sized businesses. There are various applications that the software can efficiently run for complete ease.
If a mid-sized business grows, JD Edwards can also be updated to serve the company’s needs.
Oracle Netsuite works for mid-sized businesses too, as well as small businesses. The system is flexible, meaning businesses can function entirely through Netsuite once older programs are no longer required. This is incredibly useful if a small or mid-sized business grows and evolves into something larger.
ERP Systems for Large Businesses
There are plenty of ERP systems on the market to suit larger and enterprise businesses too.
Acumatica ERP is a popular choice. Large companies have a range of products from Acumatica and its partners to choose from, meaning its easy to craft a customizable system to suit the business needs.
However, it’s important to understand that customizing an ERP program can result in future problems. Big businesses that create ERP systems using lots of different tools instead of a pre-prepared system can expect issues, which is, of course, bad news for a large business.
Oracle ERP Cloud is another option for large companies. Businesses of different sizes can take advantage of ERP Cloud, including large enterprises. However, this system is more expensive which makes it less attractive to smaller businesses.
The integrated tools and software make streamlining business operations smooth and simple, perfect for large businesses that have a lot going on.
Understanding the Types of ERP Systems
There are many benefits of ERP systems. Opting for an ERP system can make any business – big or small – more efficient and successful by managing and integrating a huge range of business functions and tools.
The range of ERP system modules allows different departments within an organization to collaborate with one another smoothly, allowing them to undertake and complete their designated tasks.
If you’re considering an ERP tool for your small, medium-sized, or big company, now you have a better understanding of the types of ERP systems on offer.
If you need help choosing an ERP solution or require assistance managing one, we’re here to help. Learn how we can help you here.