The term ERP was first used to signify the wholeness of the system's reach. The ERP solutions system achieved a boom during the 90s and the early 2000 because all firms across the world wanted to integrate and bring in the relatively faster system in operation without any delay. However, post the incorporation of the ERP system there was a slight fall in the rate at which the system was being adopted by companies.
The latest trend in the utilisation of the ERP system is the usage of the application in small and medium businesses. With the help of ERP, small business can achieve quite a high rate of profit making and keep track of the company's state of affairs without any problems whatsoever.
The features and the advantages of the ERP development in small and medium businesses can be explained as follows:
- The ERP solutions for small and medium level businesses are cost efficient and easily affordable. The main reason being that the ERP developers understand the financial limitations of such small business houses and help to create relevant business solutions for them
- The implementing of the ERP solutions is also cost effective making it simpler for the small and medium business houses
- Internet access and other devices' connectivity offered. This makes the integration aspect easier
- ERP development in small and medium level businesses has increased from 4.4% in the year 2001 to 19.6% in the year 2006. In terms of Compound Annual Growth Rate (CAGR), this growth amounted to 34.4% which is quite healthy
- The major focus of any ERP solutions is on the aspect of accounting in the company. With ERP accounting, the accounting aspect in the company is taken care of without any major problems
- The ERP system has the feasibility to run on any hardware conformations
Some of the areas where ERP solutions are employed successfully are:
- Accounting. This is the primary area of concentration of any ERP solutions
- Human Resources
- Control of company's internal access
- Data servicing to enable usage by clients and/or employees
ERP operations require proper planning and co-ordination before they are being incorporated. Well-planned and structured ERP solutions can result in getting out the best output for the small and medium level organisation. However there are also certain disadvantages to ERP development. The same can be listed as follows:
- Highly expensive with respect to overhauling of the organisation's existing technology
- Highly expensive with respect to training required to be provided to the employees
- In case of sharing of data, there could emerge problems between various parties
With the help of ERP solutions, a lot can be achieved. This has been the target of ERP development all along and considering the level of success achieved, it can be said that the ERP program has been a landmark achievement for small and medium business houses.