It used to be that when deploying an ERP system, there were many constraints such as it being monolithic, highly customized, and expensive to implement and maintain. Today’s need for responsiveness and agility has increased the need for more flexible deployment options.
There are now multiple ERP deployment strategies: single-system, cloud-based, operational, peer, hybrid, and multi-level approaches. These choices allow an organization to move some or all of its business operations to a new or existing ERP quickly and inexpensively. This provides the organization with enhanced support of business growth and powerful new tools for easy configuration.
Though on-premise installations are most common, cloud-based ERP is growing in popularity. On-premise ERP allows the organization to install the software and run on dedicated servers in-house. The organization owns and services the hardware’s infrastructure and software licenses. Cloud-based ERP is becoming a more popular option for smaller companies. This allows them to deploy a world-class solution in the most cost-effective manner but not own the hardware and software licenses, instead leaving the managing of the IT to the experts. Large companies that are expanding globally are starting to implement cloud-based ERP so they can have consistent business processes in all locations.
Flexibility in setting up a new ERP system is making new business systems attractive to owners who want to select which hosting option is best for their company. The intrinsic complexity of ERP systems, combined with the technological advances and widely variable business practices, can make the choice of a deployment model difficult and confusing. Make sure you spend time with your IT VAR or Consultant and explore what options are best for your business.
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Your ERP Might Be a Productivity Killer