If you are wondering about what is ERP softwares, then, reading this article is to finish is a good idea. This article contains everything you need to know regarding the definition of the ERP software. As an addition, you will also be given a list of the different types of ESP that you might want to know. Well, let us check out the details now, shall we?
What is the ERP software?
The first thing we are going to discuss here is about the definition of what ERP is. It is an abbreviation which stands for Enterprise Resource Planning and it is a type of software which is used by many kinds of organizations and companies to keep their functions on a check and to keep the business run efficiently by using a system which is both centralized as well as organized. The companies which use it are usually using it to manage the system so that the manufacturing and distribution parts are able to work properly. Aside from business organizations, other kinds of organizations can use it as well, such as construction, a nonprofit organization, as well as healthcare. Since they need to manage the staffs or employees who work at them as well as their costumer and inventory data, using ESP will make their efforts easier. By using ERP, you can store different data into one database and it allows different departments to work together by utilizing the same information.
Types of ERP
Now that you have figured out what is ERP softwares, then, it is time for you to learn about the different types of ERP. Since the dynamics of ERP is very fluid and the factors used to classify are very diverse, classifying it into different types can be an exhausting task. Different aspects to classify it are the levels of function, the size of the business, and how it is deployed. However, though, to make this article stay simple, ERP can be grouped as the following list.
- Generalist. This type is the most commonly used type of ERP. Legacy and cloud ERP are mostly categorized into this type. Processing data across different industries is the main ability of this one and it is rich in customization and integration options so that any industries can use it. The market which offers this type is also the largest.
- Vertical. Vertical ERP are usually designed to meet the requirements of the industrial companies. The vendors are usually startups which focus to fulfill the niche. The niches are construction, fashion retails, and more.
- Small business. This is the solution needed by small businesses. The features are often to be downgraded and it only provides a few business processes. Other features are often dropped or neglected. For example, it only has functions which provide you the option to accounting information as well as Human Resources Management with no other features. This kind of ERP is usually very light in size and it is, therefore, suitable for small businesses.
Open-source. This is the type of ERP which occupies the smallest fraction of the market. However, most of them are highly flexible and is able to integrate other applications. Their usability is usually top-notch since they are highly customizable. Well, that was what is ERP softwares and the types