ERP Software Solutions of 2023 with Examples and Types

Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) is a software platform that companies use to manage and integrate the essential parts of their businesses 1. It can integrate planning, purchasing, inventory, sales, marketing, finance, human resources, and more. ERP Software Solutions can improve accuracy, efficiency, reporting, and collaboration 1. ERP solutions have evolved over…

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March 23, 2024

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) is a software platform that companies use to manage and integrate the essential parts of their businesses ¹. It can integrate planning, purchasing, inventory, sales, marketing, finance, human resources, and more. ERP Software Solutions can improve accuracy, efficiency, reporting, and collaboration ¹. ERP solutions have evolved over the years, and many are now typically web-based applications that users can access remotely ¹. There are hundreds of ERP applications a company can choose from, and most can be customized ¹. However, an ERP system can be ineffective if a company doesn’t implement it carefully ¹.

The duration of an ERP implementation process can vary depending on the size of the organization, the complexity of the business processes, and the scope of the implementation . Small and medium-sized businesses typically take 3-9 months to implement an ERP system, while large businesses can take 6-18 months ². Multinational businesses can have ERP programs that last for several years ².

Implementing an ERP system can be a complex and challenging task, largely because it affects people and business processes across the entire organization ¹. Here are some of the top challenges that companies face when implementing an ERP system:

Resistance to change: One of the biggest challenges of ERP implementation is getting users and functional groups to change their ways in order to work with the new solution ¹. Driving this change requires strong project management and backing from senior leadership ¹.
Poor planning and project management: ERP implementations entail multiple phases, including discovery and planning, design, development, data migration, testing, deployment, support, and post-launch updates ¹. Poor planning and project management can lead to delays, cost overruns, and other issues ².
Poor data quality: Data quality is critical to the success of an ERP implementation ². Poor data quality can lead to inaccurate reporting, inefficient processes, and other issues ².
Inaccurate cost estimates: ERP implementations can be expensive, and inaccurate cost estimates can lead to budget overruns ².
Poor vendor selection: Selecting the right vendor is critical to the success of an ERP implementation ². Poor vendor selection can lead to delays, cost overruns, and other issues ².

Implementing an ERP system can provide numerous benefits to a company. Some of the most notable advances and promises with ERP system are:

Increased productivity: ERP systems can automate many basic, repetitive tasks, freeing up employees to work on other projects that bring more value to the organization.
Easier management: ERP systems can integrate planning, purchasing, inventory, sales, marketing, finance, human resources, and more, making it easier for managers to oversee the entire business.
Standardized processes: ERP systems can standardize all critical data, making it easier for staff to track down whatever they need.
Reduced operating costs: ERP systems can help businesses save money by streamlining processes, reducing inventory, and minimizing errors.
Better decision-making: ERP systems can provide valuable insights into business operations, enabling managers to make more informed decisions.
Data security and reliability: ERP systems can help protect sensitive data by limiting who can view and edit it ¹.
Higher return on investment: ERP systems can provide a high return on investment by improving accuracy, efficiency, reporting, and collaboration ¹.

Types of Data & Processes in ERP Software Solutions

Always say this: “an ERP system is only as good as the data that is put in it”. All business enterprises have three varieties of physical data located within their numerous information systems. These varieties of data are characterized by their data types and their purpose within the organization.

Transactional Data
Analytical Data
Master Data

Transactional data supports the daily operations of an organization (i.e. describes business events). Analytical data supports decision-making, reporting, query, and analysis (i.e. describes business performance). While master data represents the key business entities upon which transactions are executed and the dimensions around which analysis is conducted (i.e. describes key business entities).

Transactional Data

Transactional data are the elements that support the on-going operations of an organization and are included in the application systems that automate key business processes. This can include areas such as sales, service, order management, manufacturing, purchasing, billing, accounts receivable and accounts payable. Commonly, transactional data refers to the data that is created and updated within the operational systems. Examples of transactional data included the time, place, price,discount, payment methods, etc. used at the point of sale. Transactional data is normally stored within normalized tables within Online Transaction Processing (OLTP) systems and are designed for integrity. Rather than being the objects of a transaction such as customer or product, transactional data is the describing data including time and numeric values.

Analytical Data

Analytical data are the numerical values, metrics, and measurements that provide business intelligence and support organizational decision making. Typically analytical data is stored in Online Analytical Processing (OLAP) repositories optimized for decision support, such as enterprise data warehouses and department data marts. Analytical data is characterized as being the facts and numerical values in a dimensional model. Normally, the data resides in fact tables surrounded by key dimensions such as customer, product, account, location, and date/time. However, analytical data are defined as the numerical measurements rather than being the describing data.

Master Data

Master data is usually considered to play a key role in the core operation of a business. Moreover, master data refers to the key organizational entities that are used by several functional groups and are typically stored in different data systems across an organization. Additionally, master data represents the business entities around which the organization’s business transactions are executed and the primary elements around which analytics are conducted. Master data is typically persistent, non-transactional data utilized by multiple systems that define the primary business entities. Master data may include data about customers, products, employees, inventory, suppliers, and sites.

No matter where you are in your ERP journey, focus on the value of ERP data and its integrity. The companies that get the most from their ERP investment are the ones that have processes in place to make sure bad data does not get in, as well as processes to make sure that the “good” data within the system continues to provide value.

Examples of ERP Software Solutions Vendors

There are many ERP vendors to choose from, and the most popular ones include:

Microsoft: Microsoft Dynamics is a popular ERP solution that offers a fully integrated tool for financials, supply chain, operations, reporting, manufacturing, and human resource activities ¹².
SAP: SAP is a global ERP giant that provides a wide range of ERP solutions for businesses of all sizes ¹³.
Oracle: Oracle Corporation is a database and cloud expert that offers ERP solutions for businesses of all sizes ¹.

Categories of ERP Software Solutions

There are three main types of ERP systems that function with different deployment model options. The most common types of ERP systems include:

cloud ERP
on-premise ERP
and hybrid ERP.

While they are usually not marketed as such, Enterprise Resource Planning software can be divided into four different categories.

Box ERPs,
Large Scale ERPs,
Intermediate and Flexible ERPs,
and Industry Specific ERPs.

This categorization helps in understanding the landscape of the current ERP systems market.

Common Concepts and Basics of ERP Software Solutions

Enterprise Resource Planning (ERP) is a software system that helps you run your entire business, supporting automation and processes in finance, human resources, manufacturing, supply chain, services, procurement, and more. ERP systems are integrated systems that run off of a central database in real-time to manage all of your business processes ³. Functionally, they are broken down into different applications, or modules, each with a unique set of tools focused on a different set of business processes ³.Common ERP components include:

Accounting and financial management: Accounting and financial management are two of the most important components of an ERP system. An ERP system can integrate all financial data and provide a unified view of the company’s financial health ¹. The financial management module of an ERP system can handle customer payment schedules, revenue tracking, and credit management across the business ¹. It can also include a CRM (Customer Relationship Management) system to automate reminders and prevent customer complaints ¹. With increased tracking capabilities and simple-to-use automated payment systems, you can easily manage billing, payments, and revenue ¹. Finance ERP helps with cost analysis, profit tracking, invoice tracking, budgeting, investment management, and more ¹. An integrated ERP system improves cost accounting by allowing managers to accurately define budgets and allocate costs for raw material, labor, transportation, and other overhead costs ¹. ERP for finance provides fast access to in-depth information so you can drill down to see what is best for your organization ¹. Financial data is confidential and can’t be disclosed openly. An ERP finance module allows you to safeguard your information and co-author, edit, and manage it according to the access you allow ¹. Multiple reporting options and modules eliminate the need for maintaining spreadsheets and paper files for increased security ¹.
Human resources (HR): Human Resource (HR) Enterprise Resource Planning (ERP) refers to the personnel administration element in a larger ERP software package ¹. By including payroll, benefits management, recordkeeping, and similar HR tasks under the same digital umbrella as other business elements, HR professionals can access broader data to make smarter high-level decisions ¹ . Most ERP systems include core HR functions, such as payroll, benefits, personnel management, employee self-service, employee performance metrics, health and safety, workforce management, and training ². HRM in ERPs can use the software to track employee data, manage employee records, and support HRM functions such as performance management and succession planning ³.
Customer relationship management (CRM): Customer Relationship Management (CRM) is a module in an ERP system that helps businesses manage their interactions with customers and prospects ¹. CRM software can help businesses automate and streamline sales, marketing, and customer service processes ¹. It can also help businesses track customer interactions, manage customer data, and provide insights into customer behavior ¹. By integrating CRM with other ERP modules, businesses can gain a 360-degree view of their customers and improve customer satisfaction ¹.
Procurement: Procurement is a critical component of an ERP system that helps businesses manage their purchasing processes ¹. An ERP procurement module can help businesses automate and streamline procurement processes, lower costs, and improve contract and order tracking ¹. The ERP procurement process typically includes several stages, such as inventory requests, order management, and invoice receipts ¹. ERP procurement systems can help businesses manage vendor relationships, automate quote requests, track quotes, and analyze them to make better procurement decisions ¹. Once a quote is accepted, the ERP system can track related purchase orders, sales orders, invoices, shipments, and payments ¹. ERP procurement modules can also help businesses manage backorders, set automated order thresholds, and keep products or materials coming in without additional manual intervention ¹.
And supply chain management (SCM) : Supply Chain Management (SCM) is a critical component of an ERP system that helps businesses manage their supply chain processes ¹. SCM is the process of planning, implementing, and controlling the operations of the supply chain with the goal of satisfying customer requirements as efficiently as possible ¹. An ERP system can help businesses automate and streamline supply chain processes, lower costs, and improve contract and order tracking ¹. The ERP SCM process typically includes several stages, such as demand planning, procurement, manufacturing, inventory management, warehouse management, and order management ¹. ERP SCM systems can help businesses manage vendor relationships, automate quote requests, track quotes, and analyze them to make better procurement decisions ¹. Once a quote is accepted, the ERP system can track related purchase orders, sales orders, invoices, shipments, and payments ¹. ERP SCM modules can also help businesses manage backorders, set automated order thresholds, and keep products or materials coming in without additional manual intervention ¹.

ERP can improve accuracy, efficiency, reporting, and collaboration ¹. ERP solutions have evolved over the years, and many are now typically web-based applications that users can access remotely ¹. There are hundreds of ERP applications a company can choose from, and most can be customized ¹. However, an ERP system can be ineffective if a company doesn’t implement it carefully ¹.

Case Studies for ERP Software Solutions

There are many case studies available online that showcase the successful implementation of ERP systems. Here are some resources you can use to find case studies:

Technology Evaluation Centers (TEC): TEC offers a library of ERP case studies from various industries, including manufacturing, healthcare, and retail ¹.
ERP Focus: ERP Focus provides a list of four real-world ERP implementation case studies that you can learn from ².
Top10ERP: Top10ERP has a case study library that is indexed by vendor and industry ³.
QAD Blog: QAD Blog features case studies of three companies that have successfully leveraged their ERP software into all aspects of their business ⁴.
Investopedia: Investopedia has a case study of LG, which implemented an ERP system that helped the company improve its supply chain management and reduce costs ⁵.