Large companies usually have very many departments. Each of these departments has its set of operations that it carries out on a day to day basis. Managing each and every one of those operations can be an uphill task for such companies. 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 have also proved hard to maintain since they require large physical space. Data retrieval from files is also not always easy. All these problems necessitated the development of Enterprise Resource Planning software.
Enterprise Resource Planning software are designed to bring together the various operations of an organization in one place. A business process is any task that a business does. An ERP system, therefore, is useful for business process management. There are a number of things that fall under the category of company’s resources, such as people, furniture and stationery. An ERP system offers an organization a single platform to manage its resources. A human resource department, for instance, will need to manage employee’s requests such as annual leave and transfers. An ERP solution will allow for the employee to send their request to the human resource department through it. The human resource manager, on the other hand, will be able to see and approve or decline employees’ requests. In this way, the organization is able to keep track of all employees’ requests in a single place.
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. We need to know what to consider when choosing a good ERP solution for your organization. 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. Client hosted ERP solutions also require that in the case of issues, the vendor must be onsite to offer technical support.
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On the other hand, cloud-based ERP systems are hosted by the vendor on a server that can permit multiple clients to log in and perform tasks related to their organizations. In this way, the customers don’t have to incur the cost of purchasing the hardware needed to host the ERP solution. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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Ease of integration of any enterprise resource planning solution is a key factor to consider. What makes cloud-based ERP solutions ease to integrate is because they allow connectors to be added to them. Connectors are add-ons that can be added to an ERP solution to allow it to extend its functionality. Connectors also help to ease communication between an ERP system and other organization’s systems.