ERP Software

Compare ERP Software

Enterprise Resource Planning, or ERP, really came about in the 1970s when engineers who had founded SAP in 1972 were attempting to design business data systems. At first, MRP (Material Resource Planning) software was put on the market in 1975; not much later more advanced software, called MRP2, was revealed. ERP can be seen as the outgrowth of both MRP and MRP 2. ERP is a way of integrating organizational data and processes into a central system. ERP systems tend to organize several aspects of a business; in essence it connects information and makes it available to the entire business. For example, an ERP system may organize manufacturing, quality control, manufacturing engineering, parts ordering, accounts payable, or human resources.

In today’s world, it would be almost impossible to run a competitive, efficient business without enterprise resource planning software. The problem, though, is that there is no easy way to compare ERP Software in order to choose the best system. There are countless ERP systems available, each differentiated from another by type of business and size of business.  For example, there is software for banking, defense, health care, legal firms, education, insurance companies and government agencies. Manufacturing businesses are also supported, and these include aerospace, automotive, chemical, high-tech, consumer products, and retail to name but a few. To complicate the matter further a company with a unique requirement can have ERP software customized to meet its specific business needs. The second factor affecting any business that wants to compare ERP software is size. It is true that in the beginning, ERP software was designed for very large businesses, but vendors are now selling systems specific to small and medium-sized businesses.

That being said, there are still some general guidelines to help businesses compare ERP software. To find the best ERP Software System for a particular business it is important to start by listing that company’s functional requirements. That important piece of information is enough to help buyers narrow their choices considerably. The second step is to choose -from among those systems that can handle the required functionality- ERP software designed specifically for that industry. Then, the third step is select from that group the software capable of handling the size of the business –now and later. At this point, the choices should be even more limited and it is time for the fourth step. Businesses should look at the cost of the different software packages still an option and pick out the ones that fit the company budget. From here on, it is a question of talking to other businesses using the ERP software being considered, and then talking to the vendors about on-site demonstrations.

Written by :

Amy Cruz