ERP, Enterprise Resource Planning has gained popularity all around the world and ERP systems are the backbone of any modern organization. But ERP systems are not just restricted to big organizations and they’re also used within the small-scale businesses. Small scale industries, in accordance with the definition, have less than ten thousand employees and they need ERP systems that can deal with the small volume of business. In other words ERP does not have to be restricted to big and reputed organisations only.
In Malaysia, too, many small scale businesses have ERP systems. They’ve developed their own ERP system and although there are many similarities and differences between these two systems, there are also some major differences. The government of Malaysia has taken plenty of time in deciding the future course of organisation charting and it is due to this same reason that the government is attempting to develop its own ERP system. There are two types of ERP system – ERP based on Microsoft Windows platform and ERP based on the Java platform. But the choice between both of these systems depends on the local scenario of the company or the requirement of the business.
Microsoft Windows ERP software has been widely acclaimed and is used by just about all large and medium scale companies throughout the world. Though a number of companies have switched to Windows because it provides better compatibility with many third party applications and so on. Many experts believe if ERP applications is to be employed by the tiny businesses, then it would be better to use open source ERP applications which has many benefits like multi-tenancy, open development environment, higher scalability, minimal cost, access to new extensions and so forth. However, the consumers of these open source ERP applications must be certain about the licensing agreement, they cannot just run the system without any consent or other legal obligation. Despite the fact that there are lots of advantages of using such open source ERP applications, it is expensive compared to Microsoft Windows ERP program.
The second option is to use either Blackberry software or Apple iPhone based smartphones for accessing the ERP system from a remote site. This can easily be done by employing a telecommuting staff who will act as an intermediary between the organization and the ERP program. This way, many benefits are obtained by the business in terms of cost saving, decrease in travel and time, productivity enhancement, availability of latest software upgrades etc.. However, you cannot afford to hire such personnel whose fees will be three times greater than the cost of a Windows ERP program.
Another option available for many companies is to use web enabled ERP software that is not installed in the computer system on the local level. A number of businesses have made their web portals in a bid to enhance the online image of the corporation. In cases like this, the system needs to be accessed from remote locations and can be operated from either a laptop or mobile device. Such systems require a whole lot of customization and so the cost will be bit higher. However, it will supply you with the basic features of a conventional ERP system without the high costs and without compromising on the required functionality. All the contemporary ERP packages come with several other features which make them attractive to a lot of companies.
There’s another option available to organizations if they want to save money and yet can get all the necessary features of ERP software. In this case, they can opt to use Windows servers for ERP hosted or system applications from third party vendors. This will allow them to use their existing network infrastructure for obtaining the ERP software with no extra expenditure.
Even if you’re planning to buy ERP software from third party vendors, you need to ensure that the cost of implementation is minimal. This is one aspect where many companies get into trouble. When they buy the software, they believe it will be installed in their whole infrastructure without any additional costs. In actuality, many companies find out to their cost disadvantage later when they need to spend a lot on ERP hardware, software and other maintenance expenses. So, before buying any software from vendors, be certain you don’t fall into this snare.
Enterprise resource planning software is an essential component of any company today. If your organization is still running without one, now’s the right time to equip yourself with you. As a business person, you want to weigh the benefits that have an ERP system against the expense of implementation. If you think the complete cost of implementing an ERP is lower than the cost of buying the software, you should definitely buy one for your company.