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Factors to Consider When Choosing an ERP Software

It is normal for large companies to have several departments. Each of these departments has its set of operations that it carries out on a day to day basis. Managing such processes becomes quite hard for such organizations. Traditionally, these operations were managed through file systems. File systems, however, has the main disadvantage of data duplication which leads to redundancy. File systems are also very hard to manage. Retrieval of records from such a system too is not always without hitches. The many problems associated with the file systems gave birth to the development of Enterprise Resource Planning solutions.

Enterprise Resource Planning software are designed to bring together the various operations of an organization in one place. Any operation a business undertakes is called a business process. An ERP solution is thus a process management tool for businesses. 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. Through the ERP system, the employee is able to send their request to the human resource department. 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.

ERP solutions come in different sizes to support both small and large businesses. 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. Normally, customer hosted ERP solutions will attract more costs because the customer must acquire the hardware required to operate the ERP system. Additionally, client hosted ERP solutions require on-site support in case of technical failures.
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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, these ERP systems save the customers the cost of having to purchase hardware to host the system. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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The ability of any ERP solution to be integrated with other systems should always be one of the factors to take into consideration. What makes cloud-based ERP solutions ease to integrate is because they allow 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.