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Key Things That Should Influence the Choice of an ERP Solution It is normal for large companies to have several departments. All those departments have given processes that they carry out on a daily basis. Managing each and every one of those operations can be an uphill task for such companies. In the past, companies used file systems to manage these processes. Files, however, come with the disadvantage of duplicating data across departments. Maintaining files is also very difficult since they consume much space. Data retrieval from files is also not always easy. The many problems associated with the file systems gave birth to the development of Enterprise Resource Planning solutions. Enterprise Resource Planning solutions are meant to consolidate various business operations into 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. Employee’s requests such as annual leave need to be monitored by the human resource department, for example. 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. 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 solutions can be cloud based or they can be hosted on customer’s servers. We need to know what to consider when choosing a good ERP solution for your 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. 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. Normally, an ERP system that is cloud-based has the flexibility of allowing for what we call connectors to be added to them. Conncetors are important in scaling up the functionality of an ERP solution. Connectors also help to ease communication between an ERP system and other organization’s systems.