ERP Solutions

ERP solutions, or integrated enterprise resource planning business solutions, were implemented by many large companies in the early 1990s and have been a fixture in these companies (also some universities and government agencies) for nearly two decades. ERP solutions were originally purchased and installed by large enterprises in the manufacturing sector as a means of coordinating diverse business functions and scheduling the delivery of raw materials to the shop floor. Manufacturers also required a planning system that would allow them to track lots and control inventory and distribution. ERP solutions were designed to meet this market need, and over time they provided other appealing advantages as well. By unifying software platforms across multiple departments, ERP solutions could allow multiple departments to access the same databases and make updates to the shared data in real time. ERP solutions also allowed multiple diverse users to run applications from the same server architecture, using interfaces that all provided the same look and feel. Complex data conversions were no longer needed to transfer information between business units and departments, and even skill sets could be moved easily throughout an enterprise, since employees were all trained on the same software system. ERP solutions offered a welcome transformation in the manufacturing sector, and soon implementations were occurring in other business sectors as well.

The first early ERP solutions were met with mixed results, and some failed due to a variety of reasons including poorly identified company needs and inefficient employee training. But as a general concept, ERP solutions were a widespread success, and by the end of the 1990s, many businesses recognized a need to free themselves from isolated outmoded legacy software systems and rushed to implement ERP solutions before the end of the millennium. By 2005, almost all large enterprises that wanted ERP solutions had them, and the most established providers began turning their attention to small and mid-sized business markets. But in order to appeal to smaller companies, these large vendors have had to customize their products and services to fit smaller budgets. Meanwhile, they face competitive pressure on several fronts. A host of small ERP solutions providers have appeared on the landscape, offering lean, efficient affordable product packages often complete with industry specific business functions. In addition to these appealing small providers, hosting services are now available that can allow small business owners to rent rather than buy data housing space on a shared server. This allows business owners to gain the same returns, since they’re running the same applications, but they can greatly reduce the costs incurred by purchasing and maintaining their own software architectures. ERP solutions are no longer out of reach for small businesses, and the future of the small business ERP market looks bright.

Erin Sweeney

Written by :

tracey boxer