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Factors that Influence the Choice of an ERP Solution 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. Monitoring all these operations can be quite difficult for such companies. Traditionally, these operations were managed through file systems. The problem with this solution, however, is that it usually leads to redundancy of data. File systems have also proved hard to maintain since they require large physical space. Obtaining data from physical files is also usually hard. 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. Any operation undertaken by any enterprise 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. An ERP system offers an organization a single platform to manage its resources. Employee’s requests such as annual leave need to be monitored by the human resource department, for example. An ERP solution will allow for the employee to send their request to the human resource department through it. 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. 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. It is required that there is an understanding of important factors that influence the choice of an ERP solution for any organization. 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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Cloud based ERP systems, on the other hand, are usually hosted by the vendor of the ERP system and customers are allowed to login only to their organization’s profile. Customers are thus saved the cost of having to host the ERP system themselves. 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. The ease of integration for cloud-based ERP systems is made possible by the fact that these systems allow for addition of connectors Connectors are added to ERP solutions to scale up its functionalities. Additionally, connectors are useful in helping ERP systems to exchange data with other systems.