- March 13, 2019
- Posted by: admin
- Category: Uncategorized
ERP is changing-Over the past several years, I’ve had the opportunity to review almost a dozen enterprise resource planning systems for several web sites. Though I haven’t updated these reviews in a year, there are a number of thoughts about ERP that I would like to share.
One is that the “E” in ERP doesn’t quite stand for the same thing it did ten or so years ago — or in other words, “Enterprise” might not have quite the same definition that it used to. I tend to define an enterprise-type business as one that needs capability, not necessarily capacity. With the emergence of the global economy, there are quite a number of small businesses that still need the capabilities of higher-end software such as multicurrency, supply chain management and other logistics, and quite possibly extensions such as distribution, warehousing, and shop floor management. If a business has some or most of these requirements, odds are that a more basic application, like QuickBooks or similar, probably won’t meet the business’ needs.
At the same time, ERP software is moving downward into the space of basic-level software, at least in affordability. Sure, not every ERP application is going to be affordable to a QuickBooks user. But vendors such as Acumatica and Oracle NetSuite are hard at work trying to make entry into their ecosystem affordable to a wider group of businesses that might be outgrowing their current vendor.
The cloud has a lot to do with this. ERP software has traditionally required a fairly large amount of computing power, expensive in-house equipment, and a built-out IT department to support the application and company. The cost of software aside, that adds up to big bucks. Move that application into the Cloud, and you free up a big chunk of change — money that can be used for other things. That’s one of the major attractions of the Cloud, whether you are running QuickBooks, Xero, Zoho or an ERP like Oracle NetSuite or Acumatica.
One of the repercussions of this movement is that what we used to think of as the mid-market in accounting software is now starting to disappear, morphing into entry-level ERP.
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Article Credit: AT
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