What are the Types of ERP?
Enterprise Resource Planning (ERP) software is essentially a suite of applications that are necessary for the proper management of crucial business processes.
ERP software is an integrated approach to business processes and the entire supply chain management comprising of core business processes which are purchasing, inventory, accounting, sales, customer service, human resources and Customer Relationship Management for securing and keeping he business of new as well as current customers.
What is ERP and Its Types?
Over the last few years, Enterprise Resource Planning software solutions have gained a lot of popularity in the business world and are used across various stages of resource planning. Its centralized and wholesome approach towards catering to business processes has attracted businesses of all sizes.
Making use of ERP services, a relevant employee can not only collect and store data, but also manage and interpret data and make important, database-driven decisions. ERP software aims to create advantages, automate and optimize manual processes and make cross-departmental operations to run smoothly, thereby lowering costs and increasing efficiency and profitability.
Despite the popularity, there are still a number of businesses working without one, and unaware of what ERP Software has in store for them. It is about time that these business companies select, invest and implement an ERP software.
If your business is among such companies, then this article is written to save you from wasting any further resources into generating lesser output than you should be. This article will provide you an insight into the various types of ERP and their features and benefits.
Types of ERP Solutions
If we categorize ERP solutions on the basis of the ERP business goals like operational size and complexity of the enterprises being served, then they will be classified into 4 different tiers.
- Tier I ERP Solutions
These ERP solutions support global enterprises of large scale and handle all their internationalization issues. These issues include language, currency, and accounting rules, etc. Looking at Tier 1 ERPs like Oracle vs. SAP, SAP vs. ServiceNow, and Microsoft and SAP ERP, and comparing the features, pricing, and supported modules can help you identify which system is best suited to your company.
- Tier I Government ERP Solutions
These ERP solutions support large-scale, government agencies and handle all the procurement processes and government accounting, etc. Oracle or SAP is a better ERP to serve this purpose.
- Tier II ERP Solutions
Like Tier I solutions, Tier II ERP characteristics support large-scale enterprises too, however they lack global reach even when operating in multiple countries. Therefore, it can be said that these solutions work as standalone entities of large global enterprises.
- Tier II Government ERP Solutions
These ERP solutions too focus on large-scale yet without-global reach enterprises, mostly some federal or state and local governments. This Tier includes Tyler Technologies.
- Tier III ERP Solutions
The ERP solutions in this tier support medium sized enterprises, therefore these deal with a single alphabet and lesser currency types and languages and currencies but only a single alphabet.
There are almost 100 ERP solutions that are categorized as Tier III.
- Tier IV ERP Solutions
Tier IV solutions are designed specifically for small-sized ERP implementation and timeframes for companies with limited operations and budget.
How Many Types of ERP are There?
Over the recent few years Cloud ERP has been all the rage and comparisons of the cost aspect with on-premises ERPs, it costs 30% less. New ERP system have been specially curated for the cloud, as well as creating cloud versions of previously existing ERP software. There are two main types of cloud ERP:
- ERP as a Service
No user can access the source code nor customize it, however they can configure it and operate on the same code base.
ERP as a service has three key benefits:
1. Unlike on-premises ERP, which according to some studies has additional maintenance and support costs that range from 10 to 20 percent of the original license fee, it costs lesser.
2. The vendor cannot be pressurized into writing a tailor code for a firm.
3. It is easier to upgrade.
- ERP in an IaaS Cloud
Enterprises that wish to operate in the cloud and rely on custom code, need to move to an IaaS provider. And Iaas provider relocates their servers.
What are the ERP Packages?
Traditionally, there is a difference between accounting software and ERP software. This difference can be identified by comparing the functionalities of each. While accounting software deals with accounting transactions, ERP software is a resource management software that provides other functionalities not offered by the former and while ERP is challenging to implement and train properly for, it also creates many benefits.
Accounting software deals payrolls, accounts payable, accounts receivable, etc. A true ERP software tracks tangible and intangible assets, and financial and human resources, product lifespans, and customer relations etc. More complex finances are among the reasons a company undertakes an ERP implementation.
However, in today’s market, this difference has started to fade and both Accounting Software and ERP Packages are being perceived as synonymous. Currently, some of the most popular ERP Accounting Packages are:
- Epicor 9
- Macola ES
- Microsoft Dynamics NAV
- Microsoft Dynamics GP
- Sage 100
- Sage 300
- SAP Business One
What are the Common ERP Systems?
If reading about the importance of an ERP system has made you realize that your organization needs one, especially since, according to Terillium, 77 % of the American population owns smartphones, and the mobile capabilities of ERP are steadily climbing uphill. It’s time you your research for selecting one that fits your business needs.
While the ‘best’ choice of ERP software depends on your personal preferences and business requirements, you can make the process simpler by exploring the features of software options opted for by other companies in your domain of work.
Based on the success of those companies, their ratings for that software, the software’s features, and pricing, you can shortlist the names you want to give a shot. To make it even easier for you, we have curated a list of some popular names.
Here are the names of a few common ERP systems:
- Epicor Kinetic
- Microsoft Dynamics 365
- Oracle ERP Cloud
- Oracle NetSuite
- Sage Business Cloud
- SAP Business One
What are the Types of ERP?
An enterprise resource planning system integrates data and organizational processes and it has several types, of which the top ones are:
- Epicor ERP
- Microsoft Dynamics 365 and GP
- NetSuite ERP
- Oracle Cloud ERP
- Sage Intacct