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What is Enterprise Resource Planning?

Enterprise resource planning (ERP) is a type of software that helps to manage everyday business procedures and operations.  This kind of software also helps collect and organize operational start-to-finish processes. ERP specializes in finance, HR, distribution, manufacturing, service, and the supply chain. ERP applications automate various administrative and operational business processes to increase the firm’s efficiency. In addition, this helps organizations run their operations and allows a company to use a unique feature of enterprise resource planning as the organization continues to expand. 

Software Operational Process

While the software allows managers to view the operational processes under one umbrella, each department has its own system, optimized and customized to fit their specific tasks and needs. Thus, one of the appeals to enterprise resource planning software is the ease of communication it allows between departments – the software collects the necessary information from one department and then makes it available to the others. It also assists the business in discovering insights regarding their previous vendors and past customer experiences. In general, enterprise resource planning applications can eliminate costly duplicates and incompatible technology used by multiple departments. Also, businesses that require real-time data can have a single, unified and comprehensive system of information at their fingertips.

Cloud-Based Enterprise Resource Planning

Many small firms prefer the Cloud ERP. This is because it eliminates the need for IT expenditures. For instance, according to the 2020 research by IDC analyst firm, when using Cloud ERP, server hardware does not have to be purchased, as ERP was implemented in the cloud. Consequently, the number of ERP projects in 2019 will increase to 48.4% in 2024. This percentage may also increase depending on the COVID-19 status surrounding the world by 2024. 

But other small firms may prefer a different approach due to their firm’s needs. For instance, they may desire a warehouse management system (WMS) to handle operational priorities rather than solely corporate functions like accounting.  

Cloud Base Software

A popular Cloud-based ERP is Oracle’s Netsuite because of its broad range of uses and functionalities that allow analysts to receive real-time data. Netsuite has gained popularity due to its integrated WMS, offering more information to execute processes. However, some vendors argue there are significant differences between an ERP hosted on the cloud. One such vendor is IFS, a global option that offers ERP, enterprise asset management (EAM), field service management (FSM), and more. The recently launched IFS Cloud manages all of its applications. The IFS Cloud uses “containers” and application programming interfaces (APIs) to support rapid external and internal integration. IFS Cloud users appreciate how they can make informed decisions within a single data model. In addition, IFS Cloud can be completely open with a computer’s native API. This means the software is written in the same language as the client’s computer, enabling the computer to run much faster and more efficiently. 

Integrated Cloud Options 

Although a Cloud ERP can reduce IT infrastructure costs some ERPs are more effective at doing so than others. To reduce cost, it is best if firms choose a Cloud option with integrated supply chain capabilities. In addition, integration comes with many benefits, such as providing a “checks and balances” system which enables companies to monitor quantities of materials. While these ERPs help determine whether the materials used in the production have been used correctly and ensure that items ready to be shipped to customers have met quality specifications, an integrated ERP system can also assist the business’ security and help ensure that operations align with industry standards. In addition, the firms that offer enterprise resource planning solutions often update their features to help their clients meet the new requirements. 


Since the software can only do so much, the organization of a company must consider how their firms can integrate the software into their own operations and ensure that the work the software is not capable of doing is still completed. In order to prevent and reduce unnecessary expenses, many companies collaborate to ensure the success of enterprise resource planning projects.

EDC has professional cloud-based technical writers and training resources that will ensure you are able to successfully execute and manage your personal cloud transformation by developing cloud computing adoption strategies fit for your operational needs.

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Written by Alexa Do