When evaluating an ERP system that’s best for your organization, consider core features, cost, the demo and implementation:
Essential Features
Integrations. As a unifying interface, the best ERP system for your company should integrate data from HR, IT, accounting/finance, CRM and whatever other suites your company uses in order to coordinate workflows across these areas of your business.
Shared database. By drawing from one shared database, all connected software systems in the ERP surface real-time data for every user, no matter which module they’re accessing that data from.
Automation. For cross-functional workflows that involve, for example, both HR and accounting, automations help staff in these departments complete repetitive tasks more quickly.
Analytics and reporting. An ERP should deliver actionable business intelligence on internal and external factors that impact the entire business.
Security. Given the sprawl of information circulating in your ERP system, it should keep your data secure. Data encryption, automatic backups, multifactor authentication and system monitoring are just a few examples of security features and measures.
Types of ERP Systems
On-premise. On-premise ERP software is installed on computers and servers within the organization’s offices or physical locations. It is paid upfront via a one-time perpetual license but costs will vary depending on the size of the business. If your organization is dealing with confidential information, this solution is ideal. Not only will you be able to keep information in-house, but you can also customize the module to suit your unique business processes.
Cloud-based. This type of software runs on a network of remote servers—instead of an office-based server. A cloud-based ERP does not need hardware, software or specialized information technology (IT) personnel to manage servers. Moreover, it’s cost-effective, easier to maintain and faster to set up than an on-premise ERP. Despite these advantages, some cloud-based solutions offer less personalization and customizability than on-premise solutions. Rather than owning the software, you must rely on a cloud provider as long as your business depends on it.
Hybrid. Those seeking the best of both worlds can opt for a hybrid ERP, which offers a mix of cloud-based and on-premise ERP solutions. This approach often includes two tiers: an on-premise ERP system for corporate functions (tier 1) and another system to support business units or locations (tier 2). These two tiers combined allow businesses to reduce costs and meet specific needs.
Continue reading on Forbes: Best ERP Systems of 2023
