With growth of the business, the process and operations also become complex. It starts taking a lot of time and manual work to perform operations efficiently. But, we must work smartly alongside working hard. ERP will be that smart decision. ERP’s full form is Enterprise Resource Planning. It means automating all the processes and integrate information within an organization. The main goal is to provide effectiveness and productivity in the workflow. An entire system is built in order to achieve that goal. You must know more about what is ERP & how does ERP system works? Not only that, there are different types of ERP system which can be built and implemented.
Although there are different types of ERP, their main objective is same. Besides that, it follows an architecture on which the whole system is built. And, there are different pre-defined ERP modules to solve a particular problem. You should know about all these things before choosing right ERP solution. That’s why we are going to discuss types of ERP systems with their architecture and different ERP modules.
Types of ERP System.
ERP systems are categorized into different types depending upon where they are used and how they are used. One can easily differentiate between them. But, there isn’t any particular type of it. Because you can give it a type as you are using it. We will present you with some popular types of ERP system.
Generic ERP System.
The most basic type is the Generic ERP system. It is so because this type offers to solve the basic problems and perform processes. Although it will provide a lot of functionality it doesn’t perform many operations within an organization. It can be used across industries because it isn’t industry-specific.
It costs less than any other type in short term. But it requires a lot of modification in order to perform advanced processes and operations. This can directly affect cost of the system. The main benefits are that it will increase accurate data, quick decision making, and making processes quicker. So, it is best for beginners to use this system.
Industry-Specific ERP System.
There are some ERP systems that are specially made for a particular industry. Those are called Industry-Specific ERP systems. There will be all the vital tools required for finance, accounting, business, and operation management. Adding to that, there are a number of functions that are specially tailored for your specific industry.
So, it becomes versatile and provides more operational capabilities. With the use of this system, it will become easier to resolve a process and perform operations for the employees. So, using an industry-specific ERP system will be best for your business.
Web-Based ERP System.
An ERP system that is entirely based on the web is called a Web-Based ERP system. This can be accessed from a web browser with the help of the internet. All the data is stored in the company’s facility or any third-party data center. All the users can access that data from anywhere. So, it makes any information easily accessible. Also, there is no need for costly hardware as you can access it through an HTTPS link.
More importantly, a username and password will be generated for every user. So, they can use it to access it. There is no need to worry about compatibility because you don’t require any software for it. The client can directly access the dashboard whenever they want to from their device. The user can buy the license for an entire system or subscribe to it by paying monthly fees.
Cloud-Based ERP System.
Cloud-Based ERP System is often a complete solution for business which can be accessed through the internet. All the information is stored in the cloud. The users just have to log in with their credentials in order to access. As the information is on the cloud, the change can be reflected in real-time. So, there is accurate data and consistent information across an organization.
This type of ERP system is totally managed by the vendor who’ providing the services. All the IT administration will be handled by them. You have to pay per user, pay per usage, or any other payment model which is more suitable. It can handle large size of data and make things efficient.
ERP Architecture & Its Types.
ERP Architecture means the layers of software which are being used in an ERP system. One must have a thorough knowledge of their business process and operations before choosing an architecture. So, it is able to help businesses lower operation cost, speed up the processes and bring efficiency. The ERP system architecture will most probably define the core workflow of a system. There are different types of ERP architecture.
- Layered ERP Architecture: In this architecture, there are different functional layers for operations. It allows you to add the latest technologies with ease. There can be three or four layers. But, the best is to have a three-layered architecture.
- Web Services Architecture: The second type of architecture is Web Services architecture. In this, you will need an internet connection to access any services provided through the web. A lot of customizations can be done in it. Also, the integration of technologies and information becomes easier.
- Service-Oriented Architecture: One business needs different services and modules. This architecture will break your requirements and categorize the solutions as services. Then, an ERP module will be created with all those services.
Other than the above, there is other ERP architecture as Indivisible & Modular too.
Different ERP Modules.
An ERP module is a software or tool which provides a solution for a specific problem. There are some similar problems faced by businesses. For those problems, there are pre-built ERP modules. These modules will help you to quicken up the operations effortlessly.
- Point of Sale (POS) Software.
- Inventory Management.
- Manufacturing & Services Management.
- Human Resources Management.
- Visitor Management.
- Sales & Purchase Management.
- Fleet Management.
If you haven’t found any relevant module, there is no need to worry about it. There are times when custom erp modules have to be built to resolve any problem in any organization.
We are pretty sure that you must have found out good pieces of knowledge about types of erp system and different erp modules & architectures. With non-stop improving the IT field, ERP will become a pure necessity to have. These systems will also help your business flourish because of their versatility. There is a lot of room for customization. So, it can be a personalized solution for everyone.
Types of ERP System FAQs.
What are Three Commonly used Software Modules in ERP Systems?
An ERP system consists of different modules. But, three software modules are commonly used in an ERP system:
- Point of Sale (POS) System.
- Inventory Management System.
- Manufacturing & Services.
What is ERP Modules are needed for a Pharmaceutical Company?
A pharmaceutical company can significantly advantage from the ERP system. Some ERP modules that are required are:
- Manufacturing & Services.
- Inventory Management System.
- Accounting Software.
What are the Four Basic Components of an ERP’s Architecture?
The four basic components of ERP architecture are:
- Operating System.
- Logic Server.
- Functional Layers.
What are The Functional Areas of ERP?
ERP can function in several departments of an organization. The different functional areas of ERP are:
- Human Resources.
What is Cloud Based ERP Solutions?
Cloud-based ERP solution is a type of ERP system that runs on the cloud technology. It doesn’t require any on-premise hardware installation and is managed by your vendor. Moreover, cloud-based ERP allows you to access real-time information and data from anywhere at any time.
How ERP works in an Organization?
An ERP system can contribute to every process and operation in your organization. It allows you to have a central source of information for the departments. Along with that, the processes and operations of an organization get quicker. It increases efficiency and productivity.