Enterprise Resource Planning Software: How ERP System Can Benefit You

ERP, Enterprise Resource Planning has gained popularity all around the world and ERP systems are the backbone of any modern organisation. But ERP systems are not just restricted to large organizations and they are also used within the small industries. Small scale industries, in accordance with the definition, have less than ten million employees and they require ERP systems that can deal with the small volume of business. In other words ERP does not need to be restricted to big and reputed organisations only.

In Malaysia, too, many small scale industries have ERP systems. They’ve developed their own ERP system and although there are many similarities and differences between both of these systems, there are also some significant differences. The government of Malaysia has taken plenty of time in determining the future course of organisation charting and it is due to this same reason that the government is trying to develop its own ERP system. There are two different types of ERP system – ERP based on Microsoft Windows platform and ERP based on the Java platform. But the choice between both of these systems depends upon the local scenario of the organization or the requirement of the company.

Microsoft Windows ERP software has been widely acclaimed and is used by just about all large and medium scale companies across the world. Though a number of companies have switched to Windows since it provides better compatibility with many third party programs and so forth. Many experts feel that if ERP software is to be employed by the small companies, then it would be better to use open source ERP applications which has many advantages like multi-tenancy, open development environment, high scalability, minimal cost, availability of new extensions and so forth. However, the consumers of these open source ERP software has to be certain about the licensing arrangement, they cannot just run the system without any consent or other legal obligation. Despite the fact that there are many advantages of using such open source ERP software, it’s expensive compared to Microsoft Windows ERP program.

The second option is to use either Blackberry software or Apple iPhone based smartphones for accessing the ERP system from a remote site. This can easily be achieved by employing a telecommuting staff who will act as an intermediary between the organization and the ERP software. This manner, many benefits are obtained by the company concerning cost saving, decrease in time and travel, productivity improvement, availability of latest software updates etc.. However, you can’t afford to hire such personnel whose charges will be three times more than the expense of a Windows ERP software.

Another alternative available for many companies is to use web enabled ERP software that’s not installed in the computer system on the local level. A number of companies have made their internet portals in an attempt to improve the online image of the company. In cases like this, the system needs to be obtained from remote locations and may be operated from either a laptop or mobile device. Such systems require a lot of customization and so the cost will be little higher. However, it will provide you with the basic features of a traditional ERP system without the high costs and without compromising on the required functionality. All the modern ERP packages come with several other features which make them attractive to a lot of companies.

There is another option available to organizations if they would like to save money and yet can receive all the required characteristics of ERP software. In cases like this, they can decide to use Windows servers for ERP hosted or system applications from third party vendors. This will enable them to use their existing network infrastructure for obtaining the ERP software without any excess expenditure.

Even if you’re planning to purchase ERP software from third party vendors, you need to make certain that the expense of implementation is minimal. This is one aspect where many companies get into trouble. When they buy the software, they believe that it will be installed in their entire infrastructure with no additional costs. In fact, many businesses find out to their cost disadvantage later when they have to spend a lot on ERP hardware, software and other maintenance costs. So, before purchasing any software from vendors, make sure you do not fall into this trap.

Enterprise resource planning software is an essential component of any company today. If your organization is still running without one, now’s the right time to equip yourself with one. As a business person, you want to weigh the benefits that have an ERP system against the expense of implementation. If you think the total cost of implementing an ERP is lower than the cost of buying the software, you should definitely buy one for your organization.