Types of ERP Software: Choosing the Right Solution

Various types of ERP software are available, so it is important to understand the different types of ERP software and consider which one best suits your organization's needs. This blog post will provide an overview of the main types of ERP software and what to consider when making the ERP selection for your organization.

The Different Types of ERP Software

When choosing an ERP system, it is essential to consider both your current and future business needs. Technology moves quickly, so you want to ensure you get the most up-to-date features from your vendor. 

You also need to consider vendor selection; make sure they are reliable, have a proven track record, offer excellent customer service, and provide the necessary support. Additionally, when choosing a Cloud-based ERP system, there are added benefits to consider. 

Cloud-based systems are more scalable, require fewer IT resources, and often offer lower costs. With the correct information, selecting an appropriate ERP system for your organization becomes much easier.

On-Premises vs. Cloud-Based ERP

The advantages and disadvantages of both types of ERP should be taken into account when selecting the right type of ERP software for your organization. 

On-premises solutions offer the advantage of more control over security and other features. However, this type of solution may require additional technology investments to ensure compatibility, such as on-site servers or other hardware upgrades. 

In contrast, Cloud-based solutions such as Unit4 offer benefits such as increased agility, scalability, and the ability to access data from anywhere with an internet connection. They also provide easier maintenance, ensuring that the system is always up to date without the need for manual upgrades or patching.

Before choosing an ERP system, evaluating your specific needs and determining which type is best suited to meet them is important. In addition, a thorough vendor selection process should be completed to find the solution that provides the most benefit at the best price.

On-premises

On-premises ERP means you have installed your own server environment at your premises so that you have complete control over its configuration and maintenance. 

On-premises ERP software is typically purchased from a vendor and installed on-site at your organization's location. This means the software is installed on your servers or computers, which you are responsible for maintaining.

You'll also need to consider how much time you want to spend managing upgrades, maintenance, and security of the systems involved in this type of ERP solution. If there are issues with the system (or even if there aren't), you will be directly responsible for supporting all users who access it at any given time within your organization's walls.

Click to read ERP product brochure Gated

Cloud-based ERP

Cloud-based ERP is a subscription service (typically monthly) where the software is hosted in the Cloud by a third-party vendor.

The main benefits of this approach include:

• No upfront capital costs. You only pay for what you use, so there are no large upfront costs to set up and maintain your ERP system.
• Flexibility and scalability. Cloud-based solutions can scale up or down depending on your business needs at any given time, making them ideal for start-ups that may need to scale fast but don't want to invest in expensive hardware or software before they know how big their company will be (or isn't).
• Cloud-based ERP systems are accessed through the Cloud, don't require any additional infrastructure beyond what you already have (such as internet connectivity), and can be accessed from any device.

Evaluating the Total Cost of Ownership (TCO)

Evaluating the Total Cost of Ownership (TCO) of Cloud-based ERP is essential to vendor selection. TCO goes beyond simply analyzing a software license price. It requires factoring in costs associated with implementation, training, maintenance, upgrades, and any additional support that may be necessary. 

While choosing the right ERP can be difficult, analyzing all costs associated with an on-premises solution versus a Cloud-based option is important. The benefits of a Cloud-based ERP include increased flexibility, scalability, and lower upfront costs. With Cloud-based solutions, organizations can pay based on usage and add resources as needed. 

This makes it easier for organizations to remain agile and adapt quickly to changing business needs. Furthermore, there is less need for IT personnel with Cloud-based solutions, which further reduces costs. It is important to carefully consider all aspects of TCO when selecting a vendor and the best type of ERP solution.

The Importance of User Adoption

User adoption is among the most important factors when choosing the right ERP system. Without proper user adoption, it can lead to costly mistakes and mismanagement. When considering vendor selection, you should review the features and capabilities offered by the different vendors and how this will impact users. 

This includes the ability to customize and add features that fit your business needs. You should also consider how long it takes to implement the new system, how difficult it will be to maintain and upgrade, and any other potential problems. 

Taking the time to consider all these factors can save you time and money down the line. Choosing the right ERP for your organization doesn’t have to be difficult, but it does take some research and consideration. 

The key to success is to ensure you are properly informed and choose the system that best fits your company’s and your user’s needs.

How Unit4 can help your organization

If you're in the market for an ERP software solution, all the options available need to be clarified. There are so many out there that it takes time to figure out where to start. One thing is for sure: you don't want to invest money in something that isn't going to be a good fit for your business needs. 

Unit4 is the right ERP software for mid-size organizations. It offers a complete set of business management solutions that are flexible and scalable to meet your needs today and tomorrow.

Unit4’s ERP solutions enable mid-sized businesses to manage their operations more efficiently, increase productivity, and enhance customer service. Check out our ERP product page here or click here to book your demo today.