ERP to Cloud Open Source ERP: The Evolution (Part 2)

ERP Evolution - Union Mercantile Solutions

Main Characteristics of Enterprise Resource Planning:

Central Database

Enter data once into your ERP solution and it can be accessed by any other user. Think of it as a common room for stored ERP information.

Operates in Real Time

Once information is placed into the ERP software, it updates throughout the system, providing up-to-date information in real time for all of its users.


This means that most of your daily business functions and processes should be able to operate within the ERP software.

Types of ERP

There are three different types of ERP implementations – cloud, on premise, and hybrid. Explore the benefits of each and choose the one that makes the most sense for your business.

Cloud ERP

Cloud ERP is deployed by your provider and provides more flexibility, allowing you to access the software no matter where you are so long as you have internet access.

Cloud ERP falls into the “Software as a Service,” commonly referred to as SaaS, category. Saas is a form of delivering centrally hosted applications over the internet as a service. This application is occasionally referred to as web-based, cloud or hosted software. The software is accessed via the internet as opposed to it being installed and maintained. The SaaS provider manages the access to the application which includes security, performance and availability. This business application is also typically accessed through a web browser.

On-Premise ERP

On-premise ERP software is deployed in-house with most access coming through the company’s on-premise local area network with options for remote access.

On-premise ERP solutions have the pedigree and reliability that come with a long history of successful implementations. ERP’s hosted on-premise ensures less vendor dependency too, so you can change different aspects of the system as needed. For small to medium-sized business, this could be an ideal solution due to the easy customization. While cloud solutions are great at integrating with third-party application and systems, they aren’t so good at providing the flexibility when you have your own customized solutions.

Hybrid ERP

A hybrid ERP system is a multi-sourced, modular application environment for the modern, digital, networked enterprise characterized by: Core building block of the entire digital enterprise platform. Act as the foundation for real-time reporting, analytics, and high-velocity transactions.

Hybrid ERP is also called a two-tier model where you have a combination of core on-premise ERP capabilities combined with cloud capabilities in areas such as collaboration, Customer Relationship Management (CRM), and sales. A hybrid ERP system is a multi-sourced, modular application environment for the modern, digital, networked enterprise characterized by:

  • Core building block of the entire digital enterprise platform
  • Act as the foundation for real-time reporting, analytics, and high-velocity transactions
  • Supports content-rich transactions
  • Maintains a consistent flow of data in order to enable sophisticated analytics based on a mix of internal and external data

The Business Value of ERP

One of ERP’s many purposes is to keep the internal processes of a business running smoothly. In other words, ERP streamlines its information. In business terms, streamlining means to improve the efficiency of a business by simplifying and/or eliminating any steps that may be deemed unnecessary by using modern techniques, which in this case is implementing ERP software.

Information “silos” can occur when departments or groups do not share information with other departments within an enterprise. ERP software focuses on breaking down and solving the issue of silos by sharing data across departments in real time and automating common tasks in order to streamline the manufacturing process and spur growth.

Thanks to ERP’s ability to knock the doors of silos down, any and all information placed in to the software, can be accessed by other users depending on how security is setup. Streamlining this information across departments is one key benefit of ERP software that helps enable open communication, easier access to information and business transparency.

At its core, ERP helps employees do their jobs more efficiently by breaking down barriers between business units. More specifically, an ERP solution gives a global, real-time view of data that can enable companies to address concerns proactively and drive improvements.

Benefits of ERP systems

With an ERP solution, employees have access to accurate information that enables them to make better decisions faster. Not only that, but ERP software helps to eliminate redundant processes and systems, dramatically lowering the cost of doing business overall.

It’s impossible to ignore the impact of ERP in today’s business world. As enterprise data and processes are corralled into ERP systems, businesses can align separate departments and improve workflows, resulting in significant bottom-line savings. Examples of specific business benefits include:

  • Eliminate information silos, gain a single source of truth, and get fast answers to mission-critical business questions while getting a better insight
  • Reduced risk through improved data integrity and financial controls and Maximize business visibility and control, ensure compliance with regulatory requirements – and predict and prevent risk.
  • Fast-track business and financial reporting and easily share results. Act on insights and improve performance in real time.
  • Lower operational costs through streamlined business processes and best practices
  • By using integrated ERP applications that share a database, you can simplify IT and give everyone an easier way to work.
  • Enhanced collaboration from users sharing data in contracts, requisitions, and purchase orders
  • Raises collaboration using data sharing and integrated information provides better business intelligence and customer service capabilities; and improves supply chain management.
  • Streamline and automate your core business processes to help everyone in your organization achieve Higher productivity with fewer resources
  • Improved efficiency through a common user experience across many business functions and well-defined business processes
  • boosts efficiencies by automating data collection;
  • Consistent infrastructure from the back office to the front office, with all business activities having the same look and feel
  • Higher user-adoption rates from a common user experience and design
  • Lower management and operational costs through uniform and integrated systems
  • With efficient operations and ready access to real-time data, you can quickly identify and react to new opportunities.
  • enables business growth by managing increasingly complex business processes

Source: Internet