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Factors that Influence the Choice of an ERP Solution It is normal for large companies to have several departments. Each of those departments conducts a number of operations on a daily routine. Managing each and every one of those operations can be an uphill task for such companies. In days gone by, such processes were normally monitored by use of physical files. Files, however, come with the disadvantage of duplicating data across departments. Maintaining files is also very difficult since they consume much space. Data retrieval from files is also not always easy. Given the many problems in file systems, there was a need to develop better systems called the Enterprise Resource Planning systems. Enterprise Resource Planning solutions are meant to consolidate various business operations into one place. Any operation undertaken by any enterprise is called a business process. An ERP solution is thus a process management tool for businesses. A company’s resource ranges from office furniture to computers to people to office stationery. ERPs provide a single point platform for a business to manage all its resources. A department like the human resource will need to manage various employee’s requests such as annual leave requests. Through the ERP system, the employee is able to send their request to the human resource department. Once the request has been sent by the employee, the human resource person will then receive and approve it using the ERP system. When things are done in one system like this, the organization is able to monitor all the employee’s requests in one system. Today, there are many ERP solutions which are able to support small and large businesses alike. These ERP solutions are either hosted on client servers or they can be hosted on the cloud. It is required that there is an understanding of important factors that influence the choice of an ERP solution for any organization. Normally, customer hosted ERP solutions will attract more costs because the customer must acquire the hardware required to operate the ERP system. Client hosted ERP solutions also require that in the case of issues, the vendor must be onsite to offer technical support.
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On the other hand, cloud-based ERP systems are hosted by the vendor on a server that can permit multiple clients to log in and perform tasks related to their organizations. In this way, the customers don’t have to incur the cost of purchasing the hardware needed to host the ERP solution. Above this, it is much easier to integrate cloud-based ERP solutions as opposed to customer hosted ERP systems.
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Ease of integration of any enterprise resource planning solution is a key factor to consider. What makes cloud-based ERP solutions ease to integrate is because they allow connectors to be added to them. Connectors are add-ons that can be added to an ERP solution to allow it to extend its functionality. Additionally, connectors are useful in helping ERP systems to exchange data with other systems.

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