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The Evolution of ERP Systems

ERP (Enterprise Resource Planning) systems are essential to modern businesses these days. They are used to organise business processes from finance to customer service to HR to data security. So, it’s hard to imagine the modern business landscape without the use of ERP systems, but this article is going to take a look at the phenomenal evolution that’s taken place since the early days of ERP computing. So, let’s dive right in.

Mainframe to Cloud Based

In the early days of ERP systems, they were primarily mainframe-based solutions that were used by large corporations to manage their business processes. These systems were typically designed to handle a specific business process, such as inventory management or accounting, and they required significant IT infrastructure to operate. Over time, ERP systems evolved to become more client-server-based, and then web-based solutions that could be accessed from anywhere. More recently, with the rise of cloud computing, ERP systems are increasingly being offered as cloud-based solutions that can be accessed from any device with an internet connection. This evolution has enabled businesses to implement ERP more cost-effectively, allowing small/mid-size businesses to use specifically tailored systems, such as Acumatica Cloud ERP.

Single Module to Comprehensive Suites

Back in the day, ERP systems were typically single-module solutions that focused on specific business processes, such as inventory management or accounting. Over time, ERP systems evolved to become comprehensive suites that could manage all aspects of a business’s operations, including finance, supply chain management, human resources, and more. These comprehensive ERP suites offer a more holistic view of a business’s operations, which enables companies to make more informed decisions and improve overall performance. By consolidating all business processes into a single system, ERP suites can also help businesses streamline their operations, reduce redundancies, and eliminate data silos. This evolution from single-module systems to comprehensive ERP suites has made ERP systems an indispensable tool for businesses looking to improve their operations and stay competitive in today’s fast-paced business environment.

On-Premises to SaaS

The first ERP systems were typically installed on-premises, which required significant IT infrastructure and maintenance costs. ERP systems are now increasingly offered as Software-as-a-Service (SaaS) solutions, which are more affordable and easier to implement. What’s more, SaaS ERP systems typically offer flexible pricing models and require a less upfront investment.

From Customisation to Configuration

Early ERP systems were primarily focused on managing transactional data, such as orders, invoices, and payments. Modern ERP systems are designed to provide more sophisticated analytics and reporting capabilities that can help businesses make more informed decisions and improve their overall performance. Configurable ERP systems are also typically easier to upgrade and scale, making them more flexible and adaptable to changing business needs. This shift from customisation to configuration has made ERP systems more accessible and affordable for businesses of all sizes, while still enabling them to meet their specific business needs.

From Transactional to Analytical

In the early days, ERP systems were highly customised solutions that required significant time and resources to implement. Modern ERP systems are designed to be highly configurable, which means that they can be easily customised to meet the specific needs of a business without requiring extensive coding or programming. This analytical approach enables businesses to make data-driven decisions, identify growth opportunities, and optimise their operations for maximum efficiency. Many modern ERP systems also offer advanced analytics capabilities, such as predictive modelling, artificial intelligence, and machine learning, which can help businesses uncover hidden insights and make more informed decisions.

Top Advantages Of Software as a Service For Your Business

When it comes to business software, there are two main types: on-premise and software as a service (SaaS). With on-premise software, businesses have to install the software onto their own servers.

This requires purchasing and maintaining physical infrastructure, such as computers and networking equipment. SaaS, on the other hand, is cloud-based software that is hosted by the provider.

This means businesses don’t have to worry about anything except accessing the software through a web browser.

Here are some advantages of using SaaS for your business:

Saves Time

Probably the biggest advantage of using SaaS is that it saves time. With on-premise software, businesses have to spend time installing and setting up the software. With SaaS, there is no installation or setup required. You can simply create an account and start using the software. In addition, SaaS is updated automatically, so you don’t have to worry about downloading and installing updates. If you were thinking about implementing SaaS to your business structure, it is important that you get an estimate first from a software development company.

This will help you make sure that it is the best decision for you and will save your business time and money in the long run.

Saves Money

In addition to the previous point, SaaS also saves businesses money. As mentioned, there is no need to purchase or maintain physical infrastructure when using SaaS. In addition, SaaS is usually subscription-based, so you only have to pay for what you use. With on-premise software, you often have to pay for licenses even if you’re not using the software. In addition, SaaS providers usually have economies of scale, so they can offer their services at a lower cost than on-premise software.

It is important to compare the cost of on-premise software and SaaS before making a decision, however, the SaaS should be much more affordable.

Easy to Use

Another advantage of SaaS is that it is easy to use. On-premise software can be complex and difficult to use, especially for businesses that don’t have IT staff. With SaaS, there is no need for complex installation or setup. You can simply log in and start using the software. In addition, SaaS providers usually offer training and support to help you get started.

When you purchase SaaS, you should make sure that the provider offers these services.

Flawless Updates

As mentioned, SaaS is updated automatically, so you don’t have to worry about downloading and installing updates. This is a big advantage over on-premise software, which can be difficult to update. With SaaS, you can be confident that you’re always using the latest version of the software. This can be especially important when using software for mission-critical tasks. In addition, SaaS providers often release new features and enhancements on a regular basis.

This can be a big advantage for businesses that want to stay ahead of the competition.

Backups and Data Recovery

If you live in an area that is prone to natural disasters, then you know how important it is to have a backup plan. With SaaS, your data is stored in the cloud, so it can be easily recovered if there is a disaster. This is a big advantage over on-premise software, which often requires manual backups.

In addition, SaaS providers often have redundant backups, so you can be confident that your data is safe.

Safety and Security

In addition to backups and data recovery, SaaS also offers safety and security. With on-premise software, your data is stored on your own servers. This means that if your servers are hacked, then your data could be compromised. With SaaS, your data is stored in the cloud, so it is much more secure. Even if a cyber attack happens, your data will be safe.

Also, SaaS applications have built-in security features that protect your data from unauthorised access. So, you can rest assured that your data is safe and secure when you use a SaaS application.

Long-Term Client Relationships

Finally, when you use SaaS, you can build long-term relationships with your clients. With on-premise software, you often have to sign lengthy contracts. With SaaS, you can offer your clients a month-to-month subscription. This means that your clients are not locked into a long-term contract. They can cancel at any time. This can be a big advantage for businesses that want to build long-term relationships with their clients.

Now that you know the top advantages of SaaS, you can see why it is such a popular choice for businesses. If you’re looking for a new software solution, then be sure to consider SaaS. It can save you time, money, and provide you with a number of other benefits.