10 May 2016
ERP's importance continues to grow
Enterprise resource planning (ERP) is a software that allows organizations to manage their business processes. Through time, the role of ERP has transitioned from back office activities to the integration of business processes.
Conventionally, ERP software are largely used for back office operations which include production, accounting, inventory control and order management. An ERP software consists of multiple software modules and each ERP module is focused on a single area of business process such as material purchasing, finance, HR and marketing.
These modules can be prepared in accordance with the requirement of the company. ERP software can either be deployed on premise or can be cloud based. Managing resources efficiently and integration of organizational activities are the major features of ERP software. Implementation of ERP increases operational efficiency which consequentially provides a competitive edge to businesses.
Increasing operational complexity and rapid changes in business models are major challenges for today’s businesses. To overcome these challenges, business organizations are rapidly adopting ERP software. Furthermore, growing competition compels organizations to adapt ERP software and remain competitive in the market.
High implementation cost, availability of open source applications and tough competition are the major challenges for the ERP market. Cloud enabled ERP software have opened-up numerous opportunities for the market as it renders more flexibility to the businesses.
Cloud deployment is expected to grow dynamically in the near future due to the low IT cost associated with it. Hybrid deployment would boost the market growth due to security related reasons.