What is ERP? Basic Guide about ERP

Enterprise Resource Planning (ERP) is an essential system in every business. You know what the acronym stands for, but do you know what it really means? Let us define ERP as the basis of the whole company processes, which includes procurement, services, supply chain, manufacturing, finance, and a lot more. With an ERP system, you can store these essentials in one system.

Even though ERP is a modernized system for businesses, it remains simple and easy to use. One good thing about ERP is that it uses the newest and highest-quality technologies like AI (Artificial Intelligence) and machine learning. These technologies are used to offer business efficiency, visibility, and intelligence.

How Does Enterprise Resource Planning System Work

The ERP system comprises different enterprise resource planning applications, enabling the business to have easy and convenient access to these applications.

Each software you can find in this system is meant to perform a single work of a single business aspect. What’s more? This system allows you to use more than one application, which you think can help you reach your goals. In this case, the well-known modules include logistics, human resources, sales, and finance. You can also find applications or modules that are designed to be used in one particular industry.

What are the Advantages of Using ERP

The following are six of the several benefits that your business can get from using an ERP system. These are the following:

  1. Higher Productivity – Considering that this system allows you to store all business information and use several modules or applications, you can now automate and streamline every process happening within the organization.
  2. Deeper Insights – With an ERP system, you can have easy access to one source of information, get rid of the details silos, and establish high-quality answers to the questions related to your business.
  3. Improved Agility – The ERP system allows you to have real-time access to business data and perform efficient operations. In connection to this, you can easily determine and grab new opportunities coming for your business.
  4. Simpler IT – As we mentioned earlier, ERP systems have integrated modules and applications that you can store in a single database. This means that your business can have a simpler IT while easing the workload of your employees and staff.
  5. Lower Risk – This new system allows you to improve the control and visibility of your business. Aside from that, you can ensure that your company complies and follow all the regulatory requirements. If there is a possible risk, the ERP system will notify you about it, enabling you to establish a good solution or prevent it before it happens.
  6. Accelerated Reporting – With an ERP system, you can share financial reports and monitor the business results with ease and convenience. Unlike other business systems, ERP helps you to boost real-time performance.

Different Types of ERP Systems

There are several ways you can deploy a modernized ERP system. You can do it on a private or public cloud or in other combined scenarios with a mixed environment. The following are the different forms of ERP systems you can integrate into your business.

Cloud ERP

The first type of ERP system is the cloud ERP. It is in the form of an application that needs to be installed on a cloud computing platform of the provider. The provider will take charge of handling the system maintenance. This Cloud ERP allows you to use it on either private or public cloud. This is one of the popular forms of ERP system considering that it can be availed at a low upfront price.

On-Premise ERP

If you are looking for a more traditional model, then an On-Premise ERP is for you. This is a perfect tool where you can deploy software under your supervision. You can install your desired ERP software at the location you want. Your staff is responsible for maintaining and installing both software and hardware.

Hybrid ERP

The hybrid model of ERP system is used by the companies if they want to use both Cloud ERP and On-Premise ERP in their business. This means that you can access your business information either on-premise or in the cloud. In some cases, this type of ERP is defined as a two-tier ERP.

ERP System for Any Business Size

ERP system is not only meant for large companies. This is intended for any business size. This means that whether you are running a large, midsize, or small business, you can integrate an ERP system into your business. Aside from that, you can also enjoy having company- and industry-based advantages that will surely help your business to succeed.

Small Business ERP

Small business ERP gives you a wide range of functionalities aside from spreadsheets. Not only that, but it also helps in managing each factor in your company ranging from customer relationships, sales, business operations to financials.

Mid-Market ERP

These days, there is also an ERP system designed for mid-market businesses. These establishments will get benefits from using an ERP, which includes rapid deployment, built-in analytics, supply chain management, and a lot more. The mid-market ERP system is equipped with several tools that can help your business scale to grow and improve. You can make your business more competitive without spending a lot. What’s more? You can use it without following any complex procedures.

Enterprise ERP

If you are running a large-sized company that has a subsidiary or global operations, then you need a market-leading and robust ERP system. An Enterprise ERP is packed with machine analytics, learning, intelligent automation, and other top-notch features.


To conclude, an ERP system is an ideal tool for business owners. It is available in three different sizes, including enterprise ERP, mid-market ERP, and small business ERP. This is a great tool that you can deploy on a hybrid scenario, in the cloud or on-premise. This will always depend on the needs of your business. You can integrate it with your current business databases, which can make your business reach its success.