This article covers What is ERP software? Difference between On-premise & Cloud ERP Solution? Enterprise resource planning (ERP) software helps organizations to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. As various processes are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and beyond, ERP Software helps streamlining these processes by sharing database that supports multiple functions used by different business units.
ERP software also offers some degree of synchronized reporting and automation. Instead of forcing employees to maintain separate databases and spreadsheets that have to be manually merged to generate reports, some ERP solutions allow staff to pull reports from one system. For instance, with sales orders automatically flowing into the financial system without any manual re-keying, the order management department can process orders more quickly and accurately, and the finance department can close the books faster.On-Premise ERP Vs Cloud ERP
On-Premise ERP – It is installed locally, on a company’s own computers and servers. On-premise ERP systems usually require large upfront and ongoing investments to purchase and manage the software and the related hardware, servers, and facilities necessary to run it. If your company doesn’t have a large or experienced IT staff, you may also have to also invest more time and money in additional personnel and train them. Furthermore, you need to re-implement various customizations and integrations that your business installed on your previous software in case you upgrade ERP Software.
Cloud ERP – It is hosted on the vendor’s servers and accessed through a web browser. For cloud-based ERP, initial costs are typically much lower because you simply implement the software to your requirements and then access it through your computer’s internet connection. The cloud ERP provider hosts and maintains all of the IT infrastructure for you, ensures the system is always running, that the data is secure, and that product enhancements are rolled out painlessly to your solution without breaking your previously implemented customizations.