What is ERP? (Enterprise Resource Planning) | QAD - EU-Vietnam Business Network (EVBN)

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Enterprise Resource Planning software is considered a type of “enterprise application”, which refers to software designed to satisfy the software needs of an organization and improve business performance. There are many different ERP systems available today that range greatly depending on the size, function, and needs of an organization. Types of ERP systems generally refer to deployment options and include cloud ERP, on-premise ERP and hybrid ERP (some systems in the cloud and some on-premise).

Each ERP solution system is often tailored to support different aspects of a business, meet an organization’s business requirements and have different methods of deployment.

In the past, “big business ERP” addressed large organizations that often deployed onsite/on-premise ERP solutions and had an abundance of resources to dedicate to IT and other support to analyze, customize, upgrade and deploy their software solutions.

The phrase “Small Business ERP” or “SME (small and medium-sized enterprise) ERP” commonly referred to ERP software systems with business management applications typically created to meet the specific needs for a small to mid-sized business.

Today, these phrases are used less frequently as the important factor is not company size but determining if the ERP system is effectively addressing current and future business requirements, no matter the size of the organization.It’s imperative that organizations consider and select ERP systems that eliminate the need for costly customizations, adapt to the rapid pace of business change, address future technologies and meet other identified requirements.

There are three main types of ERP systems that function with different deployment model options. The most common types of ERP systems include cloud ERP, on-premise ERP, and hybrid ERP.

On-Premise ERP software is implemented onsite and maintained in physical office space within an organization, hosted on the company’s own computers and servers for full control, support and ownership of the entire system once implemented.
Cloud-based ERP software is a web-based solution, known as Software as a Service (SaaS), where an organization accesses and stores data on any device with an internet connection, usually through the purchase of a subscription. Continual support, updates, training, and flexible customizations supported by the software provider.
“Hybrid” ERP software refers to a combined implementation of cloud-based and on-premise ERP system solutions. The combination of hosting and deployment services vary by provider. These models can provide ERP users the flexibility to migrate between delivery models, or integrate benefits not available existing implementation.

Different ERP vendors support different deployment model options. Combinations of options, often referred to as “hybrid” deployment may offer a combination of hosting and deployment services. These hybrid models can provide users with a flexible ERP solution and integrate benefits that may not have been available within the existing implementation.