Guidelines on How to Compare Enterprise Resource Planning Software

Starting a business is never easy. Throughout your preparation, you will experience some mishaps along your journey. It could be the lack of finances or the time you have left in building the firm. Nonetheless, these misfortunes won’t hinder you from making your dream business a reality.

However, your journey as a business owner doesn’t end there. Once you’ve started giving products or services to the public, you need to make crucial decisions for your business. For instance, if your sales are low, you need to think of ways that will help increase your profits.

With the advancement in technology, you can make quicker decisions with the help of such tools. This makes a wise business decision become easier nowadays but choosing the right tool for your company is a bit tricky. Because of the number of choices you have, it’s quite overwhelming to search for a program that fits your needs. In fact, you might need a lot of time before you can pick the right software.

Fortunately, you don’t need to do that anymore. There are many articles that teach you how to choose the right software package for your firm. This blog is one of them. In this post, we will give you some tips that you must follow when you compare enterprise resource planning software.

But first, we need to discuss the meaning and purpose of the enterprise resource planning system, as well as its types. So sit back, relax, and enjoy reading this article.

What Is Enterprise Resource Planning?

When you search for “Enterprise Resource Planning” on the internet, the information about this program can be overwhelming. Every website has different definitions about this system. That could be because of how the platform is used. Nevertheless, if there’s one thing in common with regards to their descriptions, it would be the strength of this tool. Most of the user reviews on the internet said that it is one of the powerful business programs.

But what makes it so robust than other systems on the market? Before we answer this question, let’s define this system first.

So what is enterprise resource planning software? According to TechTarget.com, Enterprise Resource Planning (ERP) refers to a set of applications that help in managing the business. These activities include customer relationship management, product and inventory management, human resources, and accounting. In a general sense, it incorporates these applications into a single system to highlight procedures and data across the firm.

The ERP system has several features to offer. First is the database. This component highlights several functions that are used by different departments. With this program, employees can get the same information for their needs.

Moreover, this tool has synchronization and automation features. Once you integrate it with other systems, the resource planning software will receive information from other programs and vice versa. Hence, it eliminates data entry, allowing you and your workers to focus on more important tasks.

Other features include mobility or dashboard that allows you to monitor your business wherever you are.

3 Types of Enterprise Resource Planning Systems

There are three types of ERP software systems. Each has specific uses and strengths, but what is the best tool for your business? Let’s take a look at these programs one-by-one.

Let’s start with the industry specific software. As the name suggests, this tool is specifically created for a particular industry. It aims to help businesses that are in the distribution and manufacturing fields. Hence, this tool is ideal for large corporations that have specific needs.

Second is the cloud ERP software, otherwise known as SaaS ERP. It is one of the widely used tools today. According to the 2016 survey of RightScale.com, the cloud ERP demands continuous increase as the users and the providers mature. As of today, there are hundreds of cloud ERP vendors on the market, proving the rising popularity of this platform.

The web-based ERP tool is ideal for businesses of all sizes. However, small-scale entrepreneurs generally use this program. With this system, they can monitor their firms wherever they may be. Furthermore, they can use whatever device that they have. They only need to have an internet connection to access the platform.

Last is the ERP for small business. Like the industry specific platform, this tool is specifically made for small enterprises. It controls human resources and sales and order, but it doesn’t fully manage the database and the manufacturing parts. Nonetheless, it will still help in managing your small firm.

Now you know the different types of ERP products, it’s time to choose the best software for your business. You may read some enterprise resource planning software reviews as these write-ups will help you select the right package.

Tips for Comparing Different ERP Tools

Selecting the best ERP program for your company is challenging. In fact, it would take hours to days before you could make a choice. Fortunately, we can make things easier for you. You simply need to make an ERP software comparison.

So the question is how to compare enterprise resource planning software. Here are some tips to follow:

1. Product-Based or Project-Based ERP System?

Generally speaking, ERP tools are divided into two categories and these are the Product-Based and Project-Based ERPs. The project-based solution is specifically designed to meet the needs of the service provider. The product-based, on the other hand, are developed for manufacturers.

When choosing the right software, consider the type of business you have as it will narrow down your choices.

2. On-Premise or Cloud-Based System?

Another thing to consider is whether you need an on-premise or a cloud-based solution. On-premise programs are those tools that need to be installed in the computer. This system requires continuous update and management. However, it features a data center where you can find all your valuable files.

The cloud-based solution requires no installation process. Furthermore, you can access the system with your laptop and handheld devices. Lastly, it automatically updates and backs up data. In that way, you can still retrieve these pieces of information if your computer breaks.

However, it doesn’t have a personal data center. Because it’s in the cloud, you’re not the only person who’s using the storage. It also needs an internet connection to access the solution.

Which system should you choose? It depends on your needs and your budget. If you’re always staying in the office, then you may choose the on-premise solution. However, if you’re always on-the-go and are on a tight budget, then you should select the cloud-based platform.

Once you have narrowed down your choices, then it’s easier to compare different ERP solutions.

3. Vendor Relationship Requirements

Because you’ll most likely use the software for many years, the provider relationship is an essential aspect. When finding the right software company, make sure that their products are compatible with your system. Know the software packages that they offer and the requirements of their tools. In that way, it will be easier to integrate the program with other systems.

You also need to consider their approach to the latest innovations, such as mobile devices and data analytics. Make sure that the provider does not only cover your present needs but also your future requirements. After all, you’re going to work with them for years.

Last is their support system. There are companies that provide their own technical support, and there are those who outsource them.

When comparing software providers, you need to choose a firm that has its own customer service. Working with an organization that hires local customer service representatives means that they are knowledgeable in their fields. Moreover, it will be easier to solve any technical issue because they have been doing it for years.

4. Customization of the ERP Software

Getting a platform that lets you customize the features of the software can be tempting. With this package, you can add more functions to your existing components. But the question is do you need to upgrade your system all the time?

Always remember that when you get more add-ins, you need to buy these features to use them. Hence, if you’re still satisfied with the built-in functions, then there’s no need to get more components. However, if your business is growing, then you must decide whether you should get more features. Knowing what your company needs will help you succeed.

5. Overall Expenses of Ownership

Let’s face it! Owning an ERP platform can be expensive. Some have installation charges while others ask for maintenance fees. When comparing and getting ERP tools, you need to consider the overall cost of ownership.

To do this, you need to know the charges that they need. Calculate the fees to know the cost of the software ownership. If you know the overall expenses of ownership, then it will be easier to make a decision.

These are just some of the things that you need to compare when getting an ERP solution. If you take these things into consideration, you will get the right tool for your business.

Are you looking for sites that compare enterprise resource planning software? Go to CrowdReviews.com and read our reviews of enterprise resource planning software.