Mar09

Enterprise Resource Planning Software: How ERP System Could 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 big organizations and they’re also used within the small-scale businesses. Small scale industries, in accordance with the definition, have less than ten million employees and they need 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 businesses only.

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

Microsoft Windows ERP applications has been widely acclaimed and is used by just about all large and medium scale companies throughout the world. Though many companies have switched to Windows since it provides better compatibility with many third party applications and so forth. Many experts feel that if ERP applications is to be employed by the tiny businesses, then it would be better to use open source ERP applications that has many advantages such as multi-tenancy, open development environment, higher scalability, minimal cost, availability of new extensions and so on. However, the consumers of these open source ERP applications must be sure about the licensing arrangement, they can’t just run the system with no consent or other legal responsibility. Despite the fact that there are lots of advantages of using such open source ERP applications, it is expensive in comparison to Microsoft Windows ERP software.

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 done by hiring a telecommuting staff who will act as an intermediary between the organization and the ERP software. This way, many benefits are obtained by the business concerning cost saving, reduction in travel and time, productivity improvement, availability of latest software upgrades etc.. However, you can’t afford to employ such personnel whose fees will be three times more than the cost of a Windows ERP software.

Another option 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 web portals in an attempt to improve the online image of the company. In this case, the system needs to be accessed 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 is going to provide you with all the basic features of a traditional ERP system without the high costs and without compromising on the essential functionality. All the modern ERP packages come with several other features that make them attractive to many companies.

There’s another option available to organizations if they want to save money and yet can get all the necessary features of ERP software. In cases like this, they can decide to use Windows servers for ERP hosted or system software from third party vendors. This will enable them to use their current network infrastructure for obtaining the ERP software without any extra expenditure.

Even if you’re planning to purchase ERP software from third party vendors, you should ensure that the expense of implementation is minimal. This is one aspect where many companies get into trouble. When they buy the software, they think it will be installed in their whole infrastructure without any additional costs. In actuality, many companies find out to their cost disadvantage later when they need to spend a lot on ERP hardware, software and other maintenance expenses. So, before purchasing any software from vendors, be sure you don’t fall into this snare.

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

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