Enterprise resource planning (ERP) systems became popular as businesses realized they could increase efficiency through automation and improve decision-making by providing organization-wide visibility.
Today’s ERP systems integrate and automate essential financial and operational business functions and provide a single source of data insights from sources and financial reporting. Modern ERP systems also deliver inventory, order and supply chain management and help with procurement, production, distribution and fulfillment. Companies may choose to include human resource management software (HRMS) and customer relationship management (CRM) and ecommerce capabilities.
ERP provides the real-time reporting and analysis capabilities considered critical to the success of businesses of all types.
Types of ERP systems: Today, there are two primary deployment models for ERP. On-premises ERP software is hosted on private servers and managed by dedicated IT resources. Cloud ERP, a category that includes SaaS, is the fastest growing deployment type and comes with a number of advantages.
SaaS ERP is a type of cloud-based ERP software that is sold through a monthly, per-user subscription and is distributed as a service through the internet. SaaS ERP runs on a vendor’s servers.
A core benefit of SaaS ERP systems is that it is meant to be easy to use out of the box and the vendor maintains the systems updates. In SaaS ERP, vendors typically only offer standard features with little to no room for customization. It also helps promote the security of your system and lower IT costs.
There are a few benefits to using a SaaS ERP:
The advantages of ERP SaaS are important for an organization that plans to expand its field of activity or for an organization that is now in growth. It doesn’t require additional IT resources and infrastructure and as the organization grows, the SaaS solution can also be expanded in order to meet the new requirements.
A SaaS ERP system allows businesses to stay on the cutting edge and on par with competitors because all customers are always on the latest version. It also opens the door to integrate with a vast array of other cloud solutions—not just core systems like CRM and HRMS, but data analytics and visualization tools. This is where the power of cloud computing really shines: It puts all these insights in one place, and everyone can see the latest data with any connected computer, smartphone or tablet.