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Factors that Influence the Choice of an ERP Solution Big corporations will normally 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. The problem with this solution, however, is that it usually leads to redundancy of data. File systems have also proved hard to maintain since they require large physical space. Obtaining data from physical files is also usually hard. 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. Any operation a business undertakes is called a business process. 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 provide a single point platform for a business to manage all its resources. A human resource department, for instance, will need to manage employee’s requests such as annual leave and transfers. An ERP system will offer the employee a place to log in their requests. The human resource manager, on the other hand, will be able to see and approve or decline employees’ requests. When things are done in one system like this, the organization is able to monitor all the employee’s requests in one system. A number of ERP solutions are available today for both small and large organizations. These ERP solutions are either hosted on client servers or they can be hosted on the cloud. It is important to understand the key things to look at when making a choice of which ERP to use. Normally, customer hosted ERP solutions will attract more costs because the customer must acquire the hardware required to operate the ERP system. 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 systems are hosted by the vendor on a server that can permit multiple clients to log in and perform tasks related to their organizations. In this way, the customers don’t have to incur the cost of purchasing the hardware needed to host the ERP solution. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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Ease of integration of any enterprise resource planning solution is a key factor to consider. 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.