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Factors to Consider When Choosing an ERP Software It is normal for large companies to have several departments. Each of these departments has its set of operations that it carries out on a day to day basis. Managing such processes becomes quite hard for such organizations. Traditionally, these operations were managed through file systems. File systems, however, has the main disadvantage of data duplication which leads to redundancy. File systems have also proved hard to maintain since they require large physical space. Retrieval of records from such a system too is not always without hitches. All these problems necessitated the development of Enterprise Resource Planning software. Enterprise Resource Planning systems are created with the goal of merging various business operation to a single place of reference. A business process is any task that a business does. An ERP solution is thus a process management tool for businesses. There are a number of things that fall under the category of company’s resources, such as people, furniture and stationery. ERPs give business the platform they need to manage all their resources from one place. A department like the human resource will need to manage various employee’s requests such as annual leave requests. An ERP solution will allow for the employee to send their request to the human resource department through it. 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. Today, there are many ERP solutions which are able to support small and large businesses alike. These solutions are offered as client hosted or as cloud hosted. It is important to understand the key things to look at when making a choice of which ERP to use. ERP solutions that are hosted on client servers will usually require the customers to buy hardware for running them hence they are thus more expensive to deploy. 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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On the other hand, cloud-based ERP solutions are not hosted by any single customer but by the vendor in a platform that allows different customers to access services specific to their companies. In this way, these ERP systems save the customers the cost of having to purchase hardware to host the system. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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The ability of any ERP solution to be integrated with other systems should always be one of the factors to take into consideration. The ease of integration for cloud-based ERP systems is made possible by the fact that these systems allow for addition of connectors Connectors are added to ERP solutions to scale up its functionalities. The connectors also allow ERP solutions to share data with other systems in an organization.