ERP Software
The term ERP is used to refer a software application or a set of programs which are created to automate, manage and streamline
all the business processes of an enterprise.
A typical ERP software is anassemble of modules, each module designed and created to streamline a particular set of related processes. This assemble is an integrated system of modules designed to address specific set of tasks.
Developers of ERP software group related business processes into modules to organize the software as per the enterprise requirements. Departments in the enterprise use one or more modules depending on the business activities they perform.
The following are the list of standard modules every ERP software consists of:
Now let us discuss each ERP modules in detail.
Financial Accounting module is a critical component of an ERP software which automates business processes in the finance department of a company.
All the standard Accounting and Finance transactions like Expenditure, Payments and Receipts, Journal Entries, Cash flows, General ledger, Balance sheet, Bank reconciliation andTax management are accomplished in the Financial Accounting module.
If you have used an ERP software you will have noticed that the Finance and Accounting module includes the following features.
Most ERP systems also include payroll and human resources (HR) management module to enhance the management ofHR of an enterprise such as employee attendance, wages, travel expenses and reimbursements, leaves and performance.
The reason for including HR business processes in the financial module is to closely integrate the functions for better results.
Of all the ERP modules, Financial Accounting module is the core module and it integrates with other modules seamlessly.
Some ERP software vendors offer Financial accounting module as an independent module and enterprises which prefer such a design go for it.
An enterprise planning software developer should have a thorough understanding of functional knowledge of Financial Accounting domain to develop Financial Accounting module.
Now the challenge for an ERP developer is to gain accounting knowledge without undergoing accounting courses which are generally meant for accounting professionals.Developers have to shoulder the responsibility of developing the accounting software without compromising on accounting fundamentals such as concept of groups and ledger accounts, chart of accounts, accounting equation and double entry rules.
It is also important that an ERP programmer or an ERP software architect does not get deeply engaged in the finer details of financial accounting rather should be more engaged with the procedural side of the accounting.
Apparently, there is no short cut for it. Pick up this book which will teach you step by step from end to end development of accounting software.
Manufacturing module is also referred to as Engineering module or Production module. The manufacturing module automates the recording process of activities which occur in anentire product life cycle to help businesses make manufacturing more efficient.Briefly Manufacturing module includes the following features:
Note that this module is integrated with SCM and inventory modules especially in areas like product planning and inventory control.
This module handles sales workflows like Sales inquiries, quotations, sales orders and sales invoices. The Sales and CRM modules work together to speed up the sales cycle and to earn more profits for the enterprise.
The CRM module mainly helps to track Customers, Sales reps, Leads, opportunities and Customer issues and support. It also handles Sending Quotations to customers and make them as confirmed Sales Orders. CRM is closely integrated with Sales module to gain more profits.
This module covers key aspects in a supply chain which includes the following features.
This module is usedto track stock levels, stock replenishments, and maintain inventory which are located in various locations using serial numbers and other techniques.
This module manages the business processes related to materials procurement. It maintains vendor lists, quotations, analyzing quotations, purchase orders processing, goodsreceipt notes and stock updates.
This module closely integrates with SCM and Inventory modules.
In addition to these functionalities,there are ERP platforms that include business intelligence, asset management and e-commerce.
In the last 30 to 40 years ERP vendors have specialized in specific verticals such as retail, healthcare, manufacturing, automobile, aerospace and service sectors.
This has enabled vendors to offer advanced features which benefits the enterprises of these specific sectors. The modular technology of software development has revolutionized the design and architecting of ERP software. This has enabled vendors of ERP software to create and offer module based ERP system which are granular in nature and at the same time are well integrated.
This granular and modular systems has led to highly differentiated software making it challenging for ERP procurement by companies. A comparison chart is recommended when a decision which ERP system is to be purchased has to be made.
Before a comparison chart is prepared, two important decisions have to be made.
The first decision is regarding the number of business processes which will be computerized. The basic question to be answered is whether you take the maximum features approach or essential features approach. The second decision is made regarding the ERP budget allocation. The budget calculation should include the initial investment and after sales support and update costs. This will lay the foundation for a proper comparison of software available in the ERP market.
The following list of ERP software are compared here:
Now a day's many free ERP systems are available in the market that are based on open source. Further in this article, I have listed the top most free ERP systems available in the market.
When one sees the phrase open source software they generally assume that the software can be distributed by charging a license fees. This is not true.
When one buys a software product, which is open source software, they get the source code of the product also. However, they are not allowed to distribute it for a license fee. They can share it, enhance the software and use it.
Two important reasons why enterprises choose an open source ERP software are:
The reduced up-front cost and option to enhance it and customize it using in-house resources are the two reasons why enterprises choose open source. Note that it is not always easy to enhance an existing software as resources required and cost involved for these resources can be high. In fact, if the company has no interest in investing in the ERP open source development resources then it should not undertake this venture.
Many non-open source ERP software vendors provide supporting APIs and tools which can be used to customize the software without modifying the core source code of the ERP software.
ERPNext
ERPNext is a free and open-source integrated Enterprise Resource Planning software built on MariaDB database system using a Python based server-side framework. ERPNext has built on Model-View-Controller architecture.
It is used by many users including manufacturers, distributors and service companies. It includes modules such as Accounting, Manufacturing, HR & payroll, Manufacturing, Sales and Purchase and CRM.
ERPNext is a very good competitor to NetSuite, QAD and open source ERP software such as Odoo, Tryton and Openbravo.
ERPNext has been built on the metadata modeling architecture.
ERPNext is available as a Software as a service in addition to user-hosting.
Openbravo ERP
Openbravo is a cloud-based software provider specializing in retail solutions and a cloud-based POS.
It is java-based architecture focuses on two development models:
model-driven development, in which developers describe the application in terms of models rather than code.
model-view-controller, a well established design pattern in which the presentation logic and the business logic are kept isolated.
In the book titled : ASP.Net MVC 5 Application Development Using Entity Framework 6 and VS 2015, the SOM module is completely developed using the model-view-controller pattern using Entity Framework, ASP.Net and C#.
As Openbravo is a could-based system, depolyment and scalability is easier. It also supports responsive design and hence available on any device from anywhere in the world.
Odoo ERP
Odoo is an all-in-one business software including CRM, billing, accounting, manufacturing, warehouse, project management, and inventory.
The Community version is the open source version, while the Enterprise version supplements the Community edition with commercial features and services.
The main Odoo components are the OpenObject framework, about 30 core modules (also called official modules) and more than 5000 community modules.
Odoo uses Python scripting and PostgreSQL database.
Using this you can stream line your operations of Inventory, MRP, Purchase, CRM, POS and sales.
I like and recommend this product as a number of third party tools are available and its professional support.
iDempiere
iDempiere is an open source ERP software which automate the following core Business Processes.
Dolibarr ERP
Dolibarr ERP CRM is an open source, free software package for small and medium companies, NGOs and freelancers.
It includes different features for enterprise resource planning and customer relationship management but also other features for different activities.
It supports a multi-distribution model and standalone application model or as online on a shared or dedicated server or virtual machine.
Dolibarr is of course available as SaaS application on ready to use Cloud services to use it from anywhere, any desktop, tablet or smartphone.
It includes features:
xTuple can run in the cloud or on a local server and supports Windows, Mac, and Linux.
Automate and integrate business processes, such as creating sales orders, scheduling production, maintaining inventory shipping/receiving records, and ensuring all financial data is synchronized.
The first type being a client/server ERP software which works on a set of locally networked computers.
A web based ERP software is hosted on a web server and available for use by independent computer systems with access to internet. The web based ERP software can be accessed using a web browser.
A SAAS ERP software is also a web based ERP software, and is accessed by using a browser but is available for use on a transaction or time basis.
The main purpose of ERP software is to increase efficiency, streamline business processes in each department in the enterprise. This results in increased productivity and gain cost benefits. Let us discuss advantages of ERP software in detail.
Business processes in accounting, sales, marketing, production, and inventory are integrated and comes under one ERP platform.
Accessing data across the enterprise, streamlining cross-departmental workflows becomes easy as compared to a manual system.
Automation of day-to-day tasks like entering data in journal vouchers, sales invoices and generating reports becomes easy.
Real-time Dashboards and reports in ERP provides quick look-ups to key people about performance indicators across the enterprise and managers can drill down to details in a few clicks.
Integration of ERP modules help people to operate in teams and easily collaborate with other teams inside the ERP platform.
Moreover, SaaS ERP further extends coordination through the internet.
The data security system includes firewalls which prevent data breaches such as SQL injections.
The ERP data security is implemented by monitoring the data access locations such as executing SQL queries for CRUD operations, granting user permissions rules by the admin from a single point are two of the many ways in which data security is implemented.
ERP solutions are design to display user activities and undesirable activities can be identified and terminated.
Readily available processed ERP information makes it possible to comply with statutory regulations such as periodic filing of tax returns, environmental regulations and labor regulations .
While the basic purpose of the ERP software system is to record all the activities in the enterprise, today's technologies provide for using the recorded data and coming out with ERP forecasts.
ERP programs written with specific goals sift through the data and come out with forecasts for each department of the enterprise and enable the management to plan based on these forecasts.
Centralized ERP databases which is a common feature of all popular ERP systems enable seamless forecasting.
Data integrity is an important requirement for reliable forecasting and in some verticals industry trends have to be compared with the forecasts for planning and decision making. Latest ERP big data systems enable deep learning and AI tools to deep delve into the data and assist in fraud detection and business intelligence reports.
Big data ERP enables generation of hidden insights to gain competitive advantage.
The maturing of technology has enabled vendors to come out with service based ERP which means ERP software is available as the internet and users can use features of the software as and required andpay for the services used.
As the service based ERP is available on the internet users can access it using any device providing mobility and advanced features.
As ERP systems provide proper recording of all business processes and activities operational costscan be monitored closely and reduced wherever possible.
Timely and proper recording of the data is a prerequisite for identifying wastages and reducing costs.
There are two options for ERP system development. When an enterpriseestablishes a development team or hires one for creating an ERP (Enterprise resource planning) application, the team has two choices.
These solutions are boxed solutions such as SAP,they are ready to use and do not take much time to implement. However, the mandatory implementation and training period is required.
With this, the development team builds the ERP system from scratch. They develop the application keeping in mind the needs of the client and system.
Current ERP software in the market are in advanced stage and continue to grow. The effect of converging technologies also applies to ERP and a major refresh processing is happening.
To leverage ERP systems of the future which are powered by ML algorithms, AI, and IoT, the business management solutions are getting smarter and more versatile.
Integrating IoT with ERP will be the main focus.
IoT sensors in assembly lines can bring data directly into ERP systems. By getting real-time data on product usage, performance, or technical problems of machinery into a centralized ERP database, IoT provides the insights required to improve quality, streamline production processes and lower costs, customize the customer experience, or manage logistics more efficiently.
SaaS ERP is a hosting model for ERP software. Enterprises use ERP software applications which are hosted on a vendor's servers using browsers or smartphones.This type of ERP hosting reducesthe costs of software, hardware and support. Because of these main benefits, many enterprises are preferring to use SAAS based ERP software rather in-house ERP implementations.
SaaS enables Enterprises to use ERP applications functionalities such as reports, UI and dashboards via the cloud. Since any internet-connected device is enough to access the ERP app, one can use it from anywhere and anytime.
This model gives advantages to companies to scale, upgrade, without investing additional hardware and software.
Most of the ERP Vendors are integrating their core modules with AI and machine learning capabilities to make their ERP solutions smarter.This will make enterprises not only automating their repetitive and time-consuming business processes and also get insights of their businesses for future opportunities. By providing effective ways to analyze and use this data, companies better automate functions such as work out production costs and avoid setting loss-making prices for their products, re-orders and replenishment–and more. ML algorithms works on real-time data from various data sources in the ERP system, AI will play an important role for making decisions without extra customization that is no external programming just by using Historical data.
ERP users will come to know about irregularities when we do audit trails or at the account closing time. We could only spot them not take any actions to prevent them.
But now AI tools in the ERP could spot irregular transactions, ones that have incorrect values, or could interest users, and prompt them to review transactions.
ERP software utilizes a centralized database to support all business functions.
However, the data is not always structured for example, the data coming from IoT sensors are unstructuredsteaming data. The data coming in to ERP systems now in different forms. To analyze this type of data, ERP systems with big data analytics capabilities help companies to understand markets, its customers and predict demands.
A typical ERP software is anassemble of modules, each module designed and created to streamline a particular set of related processes. This assemble is an integrated system of modules designed to address specific set of tasks.
Developers of ERP software group related business processes into modules to organize the software as per the enterprise requirements. Departments in the enterprise use one or more modules depending on the business activities they perform.
ERP software modules
The following are the list of standard modules every ERP software consists of:
- Financial Accounting
- Sales and Marketing
- CRM Customer Relational Management
- SCM Supply Chain Management
- Inventory
- Purchase
Now let us discuss each ERP modules in detail.
Financial Accounting module
Financial Accounting module is a critical component of an ERP software which automates business processes in the finance department of a company.
All the standard Accounting and Finance transactions like Expenditure, Payments and Receipts, Journal Entries, Cash flows, General ledger, Balance sheet, Bank reconciliation andTax management are accomplished in the Financial Accounting module.
If you have used an ERP software you will have noticed that the Finance and Accounting module includes the following features.
- Accounts Payable
- Accounts Receivable
- General Ledger
- Journal Vouchers
- Cash Management
- Asset Management
- Financial Statements
Most ERP systems also include payroll and human resources (HR) management module to enhance the management ofHR of an enterprise such as employee attendance, wages, travel expenses and reimbursements, leaves and performance.
The reason for including HR business processes in the financial module is to closely integrate the functions for better results.
Of all the ERP modules, Financial Accounting module is the core module and it integrates with other modules seamlessly.
Some ERP software vendors offer Financial accounting module as an independent module and enterprises which prefer such a design go for it.
An enterprise planning software developer should have a thorough understanding of functional knowledge of Financial Accounting domain to develop Financial Accounting module.
Now the challenge for an ERP developer is to gain accounting knowledge without undergoing accounting courses which are generally meant for accounting professionals.Developers have to shoulder the responsibility of developing the accounting software without compromising on accounting fundamentals such as concept of groups and ledger accounts, chart of accounts, accounting equation and double entry rules.
It is also important that an ERP programmer or an ERP software architect does not get deeply engaged in the finer details of financial accounting rather should be more engaged with the procedural side of the accounting.
Apparently, there is no short cut for it. Pick up this book which will teach you step by step from end to end development of accounting software.
Manufacturing module/ Engineering/ Prtoduction
Manufacturing module is also referred to as Engineering module or Production module. The manufacturing module automates the recording process of activities which occur in anentire product life cycle to help businesses make manufacturing more efficient.Briefly Manufacturing module includes the following features:
- Product planning
- Material sourcing
- Bill of Materials
- Work orders
- Production Scheduling
- Shop floor control
- Work flow management
- Quality control
- Monitoring Manufacturing process
Note that this module is integrated with SCM and inventory modules especially in areas like product planning and inventory control.
Sales module
This module handles sales workflows like Sales inquiries, quotations, sales orders and sales invoices. The Sales and CRM modules work together to speed up the sales cycle and to earn more profits for the enterprise.
CRM — Customer Relational Management
The CRM module mainly helps to track Customers, Sales reps, Leads, opportunities and Customer issues and support. It also handles Sending Quotations to customers and make them as confirmed Sales Orders. CRM is closely integrated with Sales module to gain more profits.
SCM — Supply Chain Management
This module covers key aspects in a supply chain which includes the following features.
- Planning procurement
- Purchase order management for automating purchase order processes, generating and tracking purchase orders
- Delivery schedules
- Maintaining prices
- Product configurations
- Logistic support
- Forecasting which help to reduce costs
- Return management
- Inventory
This module is usedto track stock levels, stock replenishments, and maintain inventory which are located in various locations using serial numbers and other techniques.
Purchase
This module manages the business processes related to materials procurement. It maintains vendor lists, quotations, analyzing quotations, purchase orders processing, goodsreceipt notes and stock updates.
This module closely integrates with SCM and Inventory modules.
In addition to these functionalities,there are ERP platforms that include business intelligence, asset management and e-commerce.
In the last 30 to 40 years ERP vendors have specialized in specific verticals such as retail, healthcare, manufacturing, automobile, aerospace and service sectors.
This has enabled vendors to offer advanced features which benefits the enterprises of these specific sectors. The modular technology of software development has revolutionized the design and architecting of ERP software. This has enabled vendors of ERP software to create and offer module based ERP system which are granular in nature and at the same time are well integrated.
This granular and modular systems has led to highly differentiated software making it challenging for ERP procurement by companies. A comparison chart is recommended when a decision which ERP system is to be purchased has to be made.
Before a comparison chart is prepared, two important decisions have to be made.
The first decision is regarding the number of business processes which will be computerized. The basic question to be answered is whether you take the maximum features approach or essential features approach. The second decision is made regarding the ERP budget allocation. The budget calculation should include the initial investment and after sales support and update costs. This will lay the foundation for a proper comparison of software available in the ERP market.
The following list of ERP software are compared here:
- Oracle NetSuite Demo
- Acumatica cloud ERP Demo
- Syspro Demo
- AccountMate Demo
- Cougar Mountain Denali Summit Demo
- Open Systems Traverse Demo
- SAP Business One Professional Demo
- Epicor ERP Demo
- Sage 300 Demo
- Microsoft Dynamics 365 Demo
Top 4 Free ERP software systems in the market
Now a day's many free ERP systems are available in the market that are based on open source. Further in this article, I have listed the top most free ERP systems available in the market.
What is open source ERP system?
When one sees the phrase open source software they generally assume that the software can be distributed by charging a license fees. This is not true.
When one buys a software product, which is open source software, they get the source code of the product also. However, they are not allowed to distribute it for a license fee. They can share it, enhance the software and use it.
Open source ERP systems benefits
Two important reasons why enterprises choose an open source ERP software are:
The reduced up-front cost and option to enhance it and customize it using in-house resources are the two reasons why enterprises choose open source. Note that it is not always easy to enhance an existing software as resources required and cost involved for these resources can be high. In fact, if the company has no interest in investing in the ERP open source development resources then it should not undertake this venture.
Many non-open source ERP software vendors provide supporting APIs and tools which can be used to customize the software without modifying the core source code of the ERP software.
ERPNext
ERPNext is a free and open-source integrated Enterprise Resource Planning software built on MariaDB database system using a Python based server-side framework. ERPNext has built on Model-View-Controller architecture.
It is used by many users including manufacturers, distributors and service companies. It includes modules such as Accounting, Manufacturing, HR & payroll, Manufacturing, Sales and Purchase and CRM.
ERPNext is a very good competitor to NetSuite, QAD and open source ERP software such as Odoo, Tryton and Openbravo.
ERPNext has been built on the metadata modeling architecture.
ERPNext is available as a Software as a service in addition to user-hosting.
Openbravo ERP
Openbravo is a cloud-based software provider specializing in retail solutions and a cloud-based POS.
It is java-based architecture focuses on two development models:
model-driven development, in which developers describe the application in terms of models rather than code.
model-view-controller, a well established design pattern in which the presentation logic and the business logic are kept isolated.
In the book titled : ASP.Net MVC 5 Application Development Using Entity Framework 6 and VS 2015, the SOM module is completely developed using the model-view-controller pattern using Entity Framework, ASP.Net and C#.
As Openbravo is a could-based system, depolyment and scalability is easier. It also supports responsive design and hence available on any device from anywhere in the world.
Odoo ERP
Odoo is an all-in-one business software including CRM, billing, accounting, manufacturing, warehouse, project management, and inventory.
The Community version is the open source version, while the Enterprise version supplements the Community edition with commercial features and services.
The main Odoo components are the OpenObject framework, about 30 core modules (also called official modules) and more than 5000 community modules.
Odoo uses Python scripting and PostgreSQL database.
Using this you can stream line your operations of Inventory, MRP, Purchase, CRM, POS and sales.
I like and recommend this product as a number of third party tools are available and its professional support.
iDempiere
iDempiere is an open source ERP software which automate the following core Business Processes.
- Accounting
- CRM
- HR
- Inventory modules
- Supply Chain Management
- Inventory
- Product planning
- Warehouse management in multiple location
- CRM
- Project Management
- Financial Accounting
- Asset Management
Dolibarr ERP
Dolibarr ERP CRM is an open source, free software package for small and medium companies, NGOs and freelancers.
It includes different features for enterprise resource planning and customer relationship management but also other features for different activities.
It supports a multi-distribution model and standalone application model or as online on a shared or dedicated server or virtual machine.
Dolibarr is of course available as SaaS application on ready to use Cloud services to use it from anywhere, any desktop, tablet or smartphone.
It includes features:
- CRM / Sales
- Product and Stock
- Marketing
- Finance and Billing
- Productivity
- Human Relationship(HR)
xTuple can run in the cloud or on a local server and supports Windows, Mac, and Linux.
Automate and integrate business processes, such as creating sales orders, scheduling production, maintaining inventory shipping/receiving records, and ensuring all financial data is synchronized.
ERP software can be broadly categorized based on the technology into three types.
The first type being a client/server ERP software which works on a set of locally networked computers.
A web based ERP software is hosted on a web server and available for use by independent computer systems with access to internet. The web based ERP software can be accessed using a web browser.
A SAAS ERP software is also a web based ERP software, and is accessed by using a browser but is available for use on a transaction or time basis.
How ERP software can help companies to grow
The main purpose of ERP software is to increase efficiency, streamline business processes in each department in the enterprise. This results in increased productivity and gain cost benefits. Let us discuss advantages of ERP software in detail.
Improves performance and productivity
Business processes in accounting, sales, marketing, production, and inventory are integrated and comes under one ERP platform.
Accessing data across the enterprise, streamlining cross-departmental workflows becomes easy as compared to a manual system.
Automation of day-to-day tasks like entering data in journal vouchers, sales invoices and generating reports becomes easy.
Real-time Dashboards and reports in ERP provides quick look-ups to key people about performance indicators across the enterprise and managers can drill down to details in a few clicks.
Promotes teamwork
Integration of ERP modules help people to operate in teams and easily collaborate with other teams inside the ERP platform.
Moreover, SaaS ERP further extends coordination through the internet.
Data Security enhanced
The data security system includes firewalls which prevent data breaches such as SQL injections.
The ERP data security is implemented by monitoring the data access locations such as executing SQL queries for CRUD operations, granting user permissions rules by the admin from a single point are two of the many ways in which data security is implemented.
ERP solutions are design to display user activities and undesirable activities can be identified and terminated.
Compliance
Readily available processed ERP information makes it possible to comply with statutory regulations such as periodic filing of tax returns, environmental regulations and labor regulations .
Forecasting
While the basic purpose of the ERP software system is to record all the activities in the enterprise, today's technologies provide for using the recorded data and coming out with ERP forecasts.
ERP programs written with specific goals sift through the data and come out with forecasts for each department of the enterprise and enable the management to plan based on these forecasts.
Centralized ERP databases which is a common feature of all popular ERP systems enable seamless forecasting.
Data integrity is an important requirement for reliable forecasting and in some verticals industry trends have to be compared with the forecasts for planning and decision making. Latest ERP big data systems enable deep learning and AI tools to deep delve into the data and assist in fraud detection and business intelligence reports.
Big data ERP enables generation of hidden insights to gain competitive advantage.
Increases Flexibility
The maturing of technology has enabled vendors to come out with service based ERP which means ERP software is available as the internet and users can use features of the software as and required andpay for the services used.
As the service based ERP is available on the internet users can access it using any device providing mobility and advanced features.
Reduces Costs
As ERP systems provide proper recording of all business processes and activities operational costscan be monitored closely and reduced wherever possible.
Timely and proper recording of the data is a prerequisite for identifying wastages and reducing costs.
ERP Software System implementation
There are two options for ERP system development. When an enterpriseestablishes a development team or hires one for creating an ERP (Enterprise resource planning) application, the team has two choices.
Off-the-shelf ERP solutions
These solutions are boxed solutions such as SAP,they are ready to use and do not take much time to implement. However, the mandatory implementation and training period is required.
Custom ERP application development
With this, the development team builds the ERP system from scratch. They develop the application keeping in mind the needs of the client and system.
Future of ERP Software
Current ERP software in the market are in advanced stage and continue to grow. The effect of converging technologies also applies to ERP and a major refresh processing is happening.
To leverage ERP systems of the future which are powered by ML algorithms, AI, and IoT, the business management solutions are getting smarter and more versatile.
The Internet of Things (IoT)
Integrating IoT with ERP will be the main focus.
IoT sensors in assembly lines can bring data directly into ERP systems. By getting real-time data on product usage, performance, or technical problems of machinery into a centralized ERP database, IoT provides the insights required to improve quality, streamline production processes and lower costs, customize the customer experience, or manage logistics more efficiently.
Software-as-a-Service ERP
SaaS ERP is a hosting model for ERP software. Enterprises use ERP software applications which are hosted on a vendor's servers using browsers or smartphones.This type of ERP hosting reducesthe costs of software, hardware and support. Because of these main benefits, many enterprises are preferring to use SAAS based ERP software rather in-house ERP implementations.
SaaS enables Enterprises to use ERP applications functionalities such as reports, UI and dashboards via the cloud. Since any internet-connected device is enough to access the ERP app, one can use it from anywhere and anytime.
This model gives advantages to companies to scale, upgrade, without investing additional hardware and software.
Artificial Intelligence (AI) and Machine Learning (ML)
Most of the ERP Vendors are integrating their core modules with AI and machine learning capabilities to make their ERP solutions smarter.This will make enterprises not only automating their repetitive and time-consuming business processes and also get insights of their businesses for future opportunities. By providing effective ways to analyze and use this data, companies better automate functions such as work out production costs and avoid setting loss-making prices for their products, re-orders and replenishment–and more. ML algorithms works on real-time data from various data sources in the ERP system, AI will play an important role for making decisions without extra customization that is no external programming just by using Historical data.
ERP users will come to know about irregularities when we do audit trails or at the account closing time. We could only spot them not take any actions to prevent them.
But now AI tools in the ERP could spot irregular transactions, ones that have incorrect values, or could interest users, and prompt them to review transactions.
Big Data
ERP software utilizes a centralized database to support all business functions.
However, the data is not always structured for example, the data coming from IoT sensors are unstructuredsteaming data. The data coming in to ERP systems now in different forms. To analyze this type of data, ERP systems with big data analytics capabilities help companies to understand markets, its customers and predict demands.
