It is normal for large companies to have several departments. Each of those departments conducts a number of operations on a daily routine. 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 have also proved hard to maintain since they require large physical space. 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. A business process is any task that a business does. An ERP system, therefore, is useful for business process management. A company’s resource ranges from office furniture to computers to people to office stationery. An ERP system offers an organization a single platform to manage 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. 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.
Today, there are many ERP solutions which are able to support small and large businesses alike. These solutions are offered as client hosted or as cloud hosted. 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. 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. Additionally, cloud-based ERP solutions can be integrated with other systems easily.
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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.