Choosing the right ERP system that best suits your company and work processes can be challenging in a jungle of different suppliers and system types. Should it be cloud-based, a standard system, or should we build our own system? These are common questions that need to be answered.
On-Prem, cloud, or hybrid
Before the development of the cloud and cloud services, companies had no choice; the ERP system was installed on local computers (on-prem) and only accessible on those computers. Many companies still use an on-prem solution, largely because it offers the ability to have complete control over the system and not be dependent on a supplier. Additionally, on-prem systems provide a higher level of security since sensitive data and information are only accessible from the computers where the system is installed. Many production- and operations-intensive companies opt for on-prem solutions because they cannot afford for the system to go offline. However, they can also be more vulnerable to data loss since the data is only stored internally.
A major advantage of a cloud-based ERP system is that it is easier to maintain. Since the system is often subscription-based, the provider handles all updates, backups, and hardware. However, this also carries the risk of vendor lock-in, where troubleshooting and updates may take longer. Another obvious benefit is that the system is accessible from anywhere, which is crucial for large companies and organizations with multiple offices. It can also increase efficiency, as employees can save time by not being tied to a specific location or computer.
There's also the option to try to get the best of both worlds through a so-called hybrid environment, where system functions are split between on-prem and the cloud. The advantage of a system placed in a hybrid environment is that the company sets the security level and chooses where different parts of the system should be located. With a hybrid environment, you don’t have to compromise on security, while your employees can work in the system from anywhere.
Standard or custom-built
There are many providers that offer different types of standard systems, turnkey solutions with predefined features and processes but with some room for customization. This can be a quick way for smaller companies that have not yet advanced far in their digitalization journey to get started with a new ERP system with the help of an experienced provider.
With technological advancements and best practices allowing for cost-effective and straightforward coding, custom-developed ERP systems have become increasingly common. All the features in a custom system are fully adapted to the company's unique work processes, supporting every part of the business, and enabling companies to optimize work processes and streamline the entire business model. For Mårten Nilsson, business architect and CEO of The ERP Company, the trend is clear:
– It’s already easy and affordable to develop your own systems, and the trend towards even cheaper and easier development will continue. Additionally, companies today are becoming more technically competent in their requirements, with a greater understanding of how the system needs to support the business. We see a future where custom-developed ERP systems are a given for all companies that want to continue to evolve, grow, and make their business model as profitable as possible, says Mårten Nilsson.
Get started: Contact Mårten Nilsson at +46 735 25 65 35 or marten@saasinnova.com
