Types of ERP Systems: How to Make the Right Choice

An Enterprise Resource Planning (ERP) system is a business management software designed to create an integrated system that manages critical business processes. It's all about centralised data and centralised systems, moving beyond basic record-keeping to a comprehensive data management approach.

The type of ERP matters because different industries have wildly different needs: from manufacturing and office technology to professional services, transportation, logistics, energy, government, and medical sectors. While all ERPs might have some common features like accounting and tracking customers, the real benefit is the industry-specific functionality built to serve unique business sectors. 

Take manufacturing, for instance. You need advanced features like job scheduling, MRP requirements, and complex inventory management. Compare that to professional services, who don't need inventory tracking or supply chain oversight.

Modern ERP systems are designed to specialise, offering workflows tailored to your specific industry. A one-size-fits-all system might meet some of your needs, but an industry-specific ERP can support all your unique business processes now and as you grow.

Enterprise resource planning software enable businesses to manage their entire operational ecosystem, from initial lead management through to final financial transactions, from within a centralised platform rather than operating in data silos. ERP connects across all business functions, providing timely and accurate business intelligence.

ERP modules allow organisations to connect disparate functions and isolated data points across their business to create a cohesive whole that supports strategic decision-making, from automating accounting processes to human resources to order management. An ERP software system removes the guesswork from planning and enables companies to make informed, forward-looking choices on financial health and business performance.

For instance, manufacturing-industry software helps businesses streamline processes by tracking key industry metrics like resource capability, material requirements, accurate supply chain pricing, and production efficiency.

Different types of ERP exist because not all businesses are the same. Every industry has unique workflows, requirements, and operational needs.

For manufacturing, you need advanced job scheduling and inventory tracking. Office technology providers need tools focused on field service and asset reporting. A generic ERP system might work for awhile, but it won't be as efficient or scale with your operation. Businesses need solutions that understand your specific business processes that provides real-time data.

Instead of forcing your business to adapt to a one-size-fits-all solution, specialised ERP modules are designed to fit your exact business model, providing workflows that make sense for your industry.

When choosing an ERP system, the first thing you need to look at is your business sector. Which one speaks your language?

You've got to consider your business size and complexity. Are you a small to medium business, or a multi-continent enterprise? The system needs to match where you are now, and where you're going. That means understanding your IT capabilities, data security and compliance needs.

Find a trusted software vendor that understands your industry. Your ERP should be customised to fit your business, not something you have to adjust your business to.

Industry-specific ERP systems provide tailored workflows and specialised features designed precisely for a particular business sector, whereas generic ERP software can be cheaper and require less time to implement.

With a specialised ERP system, you're provided with standardised workflows, specific for your industry.

In manufacturing, for example, ERP modules would be managing jobs, scheduling, MRP, inventory control and supply chain management. A feature in manufacturing ERP modules is the ability to track serial and lot numbers for critical components, something a steel manufacturer requires.

A specialised ERP system saves you headaches down the line. Industry-specific ERP systems are built with standardised workflows that are often strategic best practice to support your industry. Other examples that generic ERP applications can't do - historical version control for production designs, multiple warehouse tracking, and automated supply chain procurement.

Find an ERP system that matches your specific industry's unique workflows, compliance requirements, and operational complexities.

Industry-specific ERP modules offer:

• Standardised workflows specific to your industry
• Reduced need for extensive customisation
• Built-in features tailored to specific business sectors
• Advanced functionality for specific industry needs
• Structured approach with strategic workflows
• Easier to implement
• Better alignment with industry-specific processes

A generic system is like trying to run your business on Excel - you can do almost anything, but there's no structure or strategy. You'll be forever making workarounds to fit your processes.

These ERP systems often lack the functionality that are critical for complete efficient business operations. You'll may spend more time trying to make the system work for you, rather than the system working for your business.

Generic ERP software also doesn't understand the nuanced requirements of specific industries. Often they fall short when it comes to the specialised needs of different business sectors.

Whether you're in manufacturing, office technology or another industry, a generic system will always feel like a compromise, forcing you to adapt your business processes to fit the software.

ECI Solutions is focused on empowering small to medium-sized businesses, providing ERP systems that are comprehensive and tailored to specific industries. We're not trying to be a one-size-fits-all solution.

Our approach is about providing businesses with a system that suits their unique workflows, whether you're a discrete manufacturer, a job shop or supplying office technology. 

We're proud that all our support and implementation teams are based locally, which means when you need help, you're talking to someone who understands your local business and industry.

Our ERP systems aren't just software, we're your enterprise resource planning partner that can grow and adapt with your business.

Business size should be a consideration when choosing an ERP system. Are you a small to medium business looking to grow? Or a multi-continent, multi-industry corporation? Each requires a different approach.

It is vital to find an ERP system that can grow with you without paying for functionality you don't need. Either way your ERP software needs to be flexible, scalable, and aligned with your specific business needs.

Do you have an existing system that you want to change over to? Or are you going from a

Another question to consider is what type of system is going to suit your IT capabilities. A cloud based ERP system gives you powerful computing resources at a fraction of the cost, compared to an on-premise solution where you're managing every aspect of your IT infrastructure.

For defence industries, an on-premise solution may be preferable however keep in mind you're taking on responsibility for managing the entire system. You're managing data security, handling backups, and keeping the system updated.

Cloud ERP systems are different. You have access to powerful data centres with the complex IT responsibilities handled by the ERP vendor. No more worrying about updates, security patches, or massive hardware investments. Cloud ERP systems are generally more secure as updates can be rolled out faster.

When it comes to ERP software, you've got different pricing models and budget ranges. Some enterprise resource planning systems cost the same per license. Others are tiered where the more licenses you buy, the cheaper each one becomes. With ERP solutions like M1 and JobBOSS2, it's straightforward - one user license provides access to everything.

Budget is important when searching for ERP software, you don't want to pay more than you need to but equally, the cheapest option isn't the best option to get the best 'bang for your buck'. ECI Solutions caters to small and medium businesses and the pricing model reflects affordability with the right industry functionality.

Find a price point and licensing model that makes sense for your business. Find a system that allows your entire team to work effectively, while delivering a successful erp implementation that doesn't burn a hole in your pocket.

When choosing the right type of ERP system, consider your business sector. Regulatory compliance in certain sectors can have specific requirements such as traceability or quality control.

This is where functionality is critical. Industry-specific ERP software should give you the tools you need to manage these compliance requirements in the one system.

When it comes to modern ERP solutions, the more features and depth a system has, the more training will be required during your implementation.

You need an ERP software provider that can show you how your existing workflows will work within the technology to fully understand how your new system will function. The ERP vendor’s job is to help you understand how a comprehensive ERP system can simplify these complex workflows, making your business more efficient and strategic.

To ensure training isn't overwhelming, your ERP vendor should approach training in stages that map to the ERP modules being implemented.

If you’re wondering if it's time to change your ERP, there are a few indicators. You need to understand whether your current ERP is supporting your business or becoming a roadblock to your success.

• Growth. Maybe you started with five employees and now you're at 200. Suddenly, your system can't keep up.
• Diversification. Have you shifted from manufacturing to services? From services to manufacturing? Your ERP needs to be as adaptable as your business.
• True costs. Does your financial data give you the complete picture or just snapshot?
• Stock visibility. If you don't know accurately what you've got to work with, how do you know what you can deliver.
• Disconnected systems. One for accounting, another for inventory, and another to manage customers? Fragmented systems stop you from gaining valuable insights into your business.

A lack of integrated reporting, poor understanding of profitability, and inefficient operations are clear indicators that you need a more sophisticated, integrated ERP system to drive operational efficiency and strategic growth.

To ensure a successful ERP implementation, businesses need to commit time and resources. This isn't something you can just casually do. Put time in your calendar.

ERP implementations need key people actively involved. Not just sitting in meetings, but really engaged. These are the people who understand the nuts and bolts of the business processes. If they're not fully committed, the project will drag.

Make sure people are involved who have power to make change otherwise the ERP deployment is going to be a reflection of your outdated legacy systems rather than an opportunity to employ best practices.

Maintaining momentum is everything. Demonstrate the wins, keep people focused, and remember this is short term pain for long term gain.