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Market overview: Which ERP systems are there?

Directly to the ERP overview

The times when the range of ERP systems on the software market was still quite clear are long gone. Meanwhile, the well-known cutthroat competition prevails here as well, with which the various ERP manufacturers are confronted. While the number of modern ERP programs for large companies is still relatively manageable, it is already much more difficult to keep track of what is on offer for small and medium-sized companies.

What is ERP

ERP is the abbreviation for Enterprise Resource Planning (= business resource planning). Within this field one deals with operational factors of production of a company like that efficient as possible too to plan, to Taxes and to check. This can be, for example, the following resources:

  • Materials

  • capital

  • Resources

  • job

  • staff

Often times, ERP programs are used with ERP systems equated. The extensive company software can do a lot more and serves numerous requirements of large companies or corporations. A ERP solution is used to map the flow of goods in a company's business process. It is therefore limited to the areas of warehousing, logistics and disposition. In contrast, ERP software sets its own main emphasis rather on the planning and integration all relevant data for the whole Resource planning.

What are the characteristics of an ERP system?

Different industries also have different requirements for an ERP system or ERP program. It is all the better if a solution can be adapted to the respective branch of industry or the size of the company. ERP systems are mostly for this reason modular built up. That means that establishments individual software modules can be combined with one another according to their individual needs. Subsequently, ERP programs ensure that all functions have a central database linked together. So is one efficient planning of the ERP processes over all Levels and Departments of the company.

ERP programs are now offered in different versions by ERP manufacturers. With regard to technical provision, companies can choose between two software models:

  1. On-premise software (License and usage model for locally installed computer programs) is mostly used in large companies and corporations, as these can be set up specifically for a company and can map the complexity and requirements well.

  2. SaaS solutions (Online programs or cloud ERP systems) are ideal for SMEs, as they can be set up more quickly and at the same time take industry-specific requirements into account.

In addition, there is now the possibility of hybrid ERP programs to use. This means that some parts of the system are operated in-house (on-premise), while other areas are available for processing in the cloud. Hybrid ERP solutions combine the advantages of both models and are particularly interesting for medium-sized companies.

This is what our ERP guide is all about

If you want to use an Enterprise Resource Planning System as business software in your company, you face the challenge of making the right choice. You have to find the optimal solution for your company from the wide range of products available on the market. Our ERP advisor including a market overview makes the selection process easier for you and helps you to ultimately make the right decision for your company.

Which are the best ERP manufacturers?

Nowadays, ERP systems are used successfully in numerous companies - regardless of the industry or the size of the company. The range of different ERP manufacturers on the market is wide and the range of ERP software in Germany is correspondingly confusing. Therefore, in the following, we give you a detailed ERP market overview of the various system houses and their market shares that offer modern solutions in the field of enterprise resource planning.

An ERP market overview

LEGEND

SAGE was founded in Newcastle in 1981. In 2000, the ERP manufacturer moved into the eBusiness division and two years later into human resource management and customer relationship management (CRM). Meanwhile, SAGE is the third largest provider of business software and services. To this day, he has developed into a large, globally active manufacturer of business software that advertises medium-sized companies with products and offers various ERP systems.

deltra business software

In 2008, the ERP system manufacturer deltra set itself the task of developing software solutions that meet the requirements of modern companies. The ERP software provider is alongside ERP software (WaWi) innovative all-in-one solutions in the field of enterprise resource planning to disposal. These are especially suitable for SMEs as well as for the self-employed, freelancers, craftsmen and service providers.

SAP

SAP was founded in 1972 with the aim of developing standard user software for real-time processing. Just one year later, the software group completed the first financial accounting system, which was continuously developed. Over time, new modules were added. These Modularity was the founder's business idea from the start and is still today Trademark of the manufacturer. SAP is the largest ERP provider in our overview and the one with the largest market share both in Germany and worldwide. Thanks to the continuous expansion of the product portfolio, SAP now offers offers comprehensive e-business solutions that enable cross-company collaboration and meet high requirements.

Oracle

The American ERP manufacturer Oracle offers Enterprise and application software tailored to various branches of industry and economy, Internet platforms, server and storage systems, data and cloud solutions and related services. The company's beginnings go back to the 1970s when Oracle began creating and setting up databases. Today, numerous leading global corporations are among the users of Oracle solutions in the ERP sector.

Scopevisio

Scopevisio AG has been developing a functional and integrated system since it was founded in 2007 Cloud software for medium-sized companieswhich is able to map business processes holistically and consistently. The solution from the ERP manufacturer is suitable for companies of different sizes - from a few to many hundreds of employees. This is how Scopevisio manages to make the business solutions accessible to a broad market.

lexbizz

The lexbizz cloud ERP system completely covers the requirements of medium-sized companies: from finance and inventory management to CRM and project controlling to field service management and e-commerce. Thanks to its modular structure, the Business processes of all company areas in one system can be mapped. Numerous interfaces offer companies the opportunity to expand lexbizz at will and to network with their own markets. In this way, the ERP system becomes a 360 ° company software.

myfactory

myfactory started with software in the cloud when it was founded in 2009 and developed SaaS applications right from the start. On-premise programs followed only later. The ERP system provider from Germany is currently providing a comprehensive ERP product solution with a wide range of modules available for more specific requirements. In addition, the portfolio also includes various industry solutions for different company sizes.

weclapp

Weclapp GmbH was founded in 2008. Since then she has been developing browser-based and modular business software systems for SMEs. In addition, the ERP manufacturer provides modern software-as-a-service applications from our market overview, which companies can use flexibly via the Internet. weclapp is one of the leading ERP developers in the field of cloud ERP systems.

Microsoft

Microsoft has the Microsoft Dynamics ERP program decades of experience in business software. The ERP system provider helps small and medium-sized companies with its fully integrated business solutions to automate business processes between employees, customers, suppliers and partners. The products guarantee companies from all industries comprehensive support.

Infor

The ERP manufacturer Infor, founded in 2002, is one of the world's largest providers of ERP systems. Besides ERP programs, Infor offers a wide range following Software solutions to: CRM, Enterprise Asset Management (EAM), Product Lifecycle Management (PLM), Supplier Relationship Management (SRM), Supply Chain Management (SCM), Financial Management and Performance Management. You can also get a solution for Service Oriented Architecture (SOA) from this ERP provider.

DATEV

Ten years after the founding of DATEV in 1966, the software provider from Nuremberg began building and expanding its own network for remote data transmission between the law firm and the data center. Since then, the company has stood for high-quality software solutions and IT services and is one of the most experienced providers in this field. The solutions are particularly suitable for Tax consultants, auditors, lawyers and companies. Today DATEV also provides a compact ERP solution for business processes.

Other relevant manufacturers of ERP systems are:

  • Asseco Solutions

  • abas software

  • embedded projects

  • proALPHA Business Solutions

Overview of the market shares of some large ERP providers in Germany

How do I make the right ERP selection?
An overview of recommended ERP programs

In the following ERP overview, we will introduce you to the different solutions from ERP manufacturers in more detail. We explain which functions the programs are characterized by and which ones target group or industry specific features they can score. Our ERP systems list is the ideal basis for making a comprehensive comparison. This enables you to better decide which enterprise resource planning solution is suitable for you and your company and, in the end, makes it easier for you to make an ERP selection.

  • Centrally control all ERP processes in the company

  • Software can be expanded modularly

  • quick adaptation to changed requirements

  • Highly flexible ERP software

  • Multi-client, foreign language and foreign currency capability

  • Fixed desktop ERP and cloud variant available

  • Industry-neutral ERP solution

  • Software can be expanded as required to include industry-specific functionalities

  • Companies can choose from more than 200 applications from certified SAGE partners with in-depth industry knowledge

  • easy-to-use ERP application

  • decades of experience in the development of business software

  • Software can be flexibly adapted to new requirements at any time

  • Also suitable as a small ERP solution for connecting business partners and branches

  • More than 550 add-on solutions from various software partners

  • Can be used in any sector

  • Programs can easily cover 25 different industries

  • 360 ° business software in the cloud, in which all data come together and are available in real time

  • The integrated ERP modules cover the entire range of business applications

  • Connection to third-party systems through interfaces

  • Work anywhere and anytime thanks to modern cloud technology

  • Industry-independent ERP system

  • can be expanded to include industry-specific functions as required

DATEV: DATEV Mittelstand pro
  • The right solution for companies that do their financial accounting in-house

  • Numerous commercial functionalities

  • uncomplicated data exchange with the tax advisor

  • highest security standards for the storage and archiving of sensitive company data & data transmission

  • Ideal for tax consultants, auditors and lawyers

  • Companies can choose from numerous industry packages that are tailored to the special needs of their branch of industry (e.g. hospitality, car companies, personnel service providers and many more)

Portfolio / software solution
  • ERP system of the year 2017

  • Easily scalable ERP solution for growing companies

  • Numerous software integrations and add-ons for individual adjustments to company-internal needs

  • Data is stored in Germany in accordance with strict data protection regulations

  • Modern collaboration functions included

Special features / advantages
  • weclapp can be used in many industries

  • Provider provides comprehensive all-round packages for IT service providers, agencies and consultants

  • The manufacturer also offers a comprehensive ERP software package for retailers, producers and online shops

  • Acquire or obtain licenses in the public as well as in the private cloud

  • myfactory.Mobile: direct access via tablet or smartphone while on the go

  • Collaboration tools for project and document management, communication as well as task and appointment management

  • Thanks to the H4ERP solution, companies can operate websites and online shops without any problems

  • Primarily aimed at companies from the trade, production and service sectors

  • Cross-industry use of the ERP software

  • Special requirements of individual industries are specifically implemented in the industry solutions of specialized myfactory partners

  • supports companies in handling the complexity of their supply chain

  • optimize operational processes

  • Software can be used across locations

  • Extensive partner network with extensions and add-ons

  • Ideally tailored to the requirements of complex manufacturing, sales and service companies (e.g. automotive, mechanical and plant engineering, high-tech and electronics, aerospace, etc.)

  • Special industry solutions available for other branches of the economy

Microsoft: Microsoft Dynamics NAV
  • Adaptable to the needs of companies

  • ERP provider has a worldwide partner network to support companies with extensive know-how from various industries

  • ergonomic user interface that many users already know from common office applications

  • short training periods guaranteed

  • ERP system is transaction-safe and extremely stable

  • ERP software is suitable for companies from all industries

  • Extensive range of certified industry and additional solutions (e.g. for mechanical engineering, plant engineering, medical technology, trade, service providers, etc.)

  • Pure cloud philosophy of the ERP provider: Employees receive current information in real time

  • The provider's business and tax law know-how helps to improve internal company processes

  • ERP system can be assembled individually

  • GoBD-compliant

  • writes procedural documentation in the background and archives documents in a legally secure manner

  • Can be used in any sector

  • Companies from all branches of industry can benefit from the use of the ERP system

Oracle: JDEdwards EnterpriseOne
  • Provider offers IT solutions which companies can adapt to their specific business requirements and expand as desired

  • Over 80 modules to support different business processes

  • Software can easily grow with any company

  • ERP system with a comprehensive range of industries

  • There are numerous industry solutions for different areas (e.g. consumer goods, manufacturing, resource-intensive industries, projects and services)

deltra Business Software: orgaMAX
  • Flexible all-in-one solution

  • The provider offers a basic module that contains all the important functions that a modern ERP system needs

  • Optionally, companies can expand the software to include an invoice and / or inventory management module according to their individual requirements

  • various program extensions can be booked

  • the solution can easily grow with every company

  • Above all, it meets the needs of small businesses

  • Primarily suitable for freelancers, the self-employed and craftsmen

What are the main differences between the solutions from the ERP software selection?

Many programs from our ERP selection are each characterized by special industry orientations, so that they are primarily suitable for specific branches of the economy. Basically, there are also many similarities between the various solutions from our ERP system overview. Most of them are for example modularly expandable.

You have the option of adding modules and functions to your ERP software at any time if you wish.So you can adapt this to the requirements and needs of your business customize. Many manufacturers from our ERP selection also offer various program extensions and additional add-ons in their product portfolio, with which you can achieve even better industry coverage of your ERP software and are optimally equipped to achieve your corporate goals.

Requirements: Which ERP system is suitable for which company size?

When you are looking for a suitable ERP system for your company, you should first and foremost make sure that the business software is used organization, structure and size Fits your company. You should therefore deal directly with the scope of services, the functions and the ERP processes that need to be mapped. This is the only way to find the ideal solution for your company structure.

In recent years, not only large corporations have been able to benefit from the many advantages of an ERP implementation. There are also plenty of ERP solutions on the market for small and medium-sized companies. These are geared towards the needs of SMEs and help them to plan, control and uniformly map their business processes much more efficiently.

Which ERP systems are there for small, medium-sized and large corporations?

Every company has different requirements for an ERP system. Accordingly, small companies also need different ERP solutions than large corporations. Since the number of ERP solutions for SMEs has increased rapidly in recent years, every company can now find a suitable Enterprise Resource Planning system for their individual application.

Basically everyone represents ERP providers different ERP program packages each with its own scope of services available. However, most modern ERP software solutions - regardless of whether they are for SMEs or large corporations - have one crucial point in common: They are modular built up.

This means that companies with different requirements for ERP programs can in principle select exactly the one from various modules and functionsthat perfectly meet your individual needs. Every company can easily find a suitable ERP solution and put together the right business software from the individual modules.

Nevertheless, there is ERP software that is generally more suitable for small businesses due to its more manageable scope, while more extensive ERP software programs are better geared towards medium-sized companies or corporations. Especially for large companies and corporations, for example, offer the products of the following ERP manufacturers:

ERP solutions for the Middle class provide the following providers, among others:

Regardless, cloud ERP systems are ideal for small businesses. The web-based solutions meet the requirements of smaller companies for an ERP system very well. This is due to the fact that these are usually characterized by a streamlined scope of services as well as a clear and functional software interface distinguish.

In this way, all structures remain clear and simple and help you get started with the new ERP software. The advantage: You don't need an ERP expert to be able to operate the system. You will find your way around an ERP for SMEs faster than in a complex ERP system such as SAP.

They are also suitable Cloud ERP systems perfect for use on road. This means that they can also be used as an ERP solution for startups and small businesses that travel a lot or work flexibly from different locations. Well-known cloud ERP providers for small and medium-sized companies such as Scopevisio, myfactory or deltra Business Software provide powerful online solutions in their product portfolio.

In the following Overview can you see it, which providers for which company sizes are suitable:

medium-sized companies
proALPHA
Business Solutions

Which companies benefit from modern ERP software?

Every company that invests in ERP software - whether small, medium-sized or large - can basically benefit equally from the use of modern business software. In particular the increasing Competitive pressure in medium-sized companies is driving more and more SMEs to introduce ERP solutions in order to be technically on par or even to benefit from a competitive advantage. Powerful ERP solutions can provide excellent support to medium-sized and small businesses in improving their business processes automate and flexible to react to current requirements in the area of ​​ERP.

Modularly structured ERP solutions, which SMEs can tailor precisely to their individual ERP requirements, are usually also able to grow with the company. Fast-growing companies such as Startups from the use of an ERP system. Thanks to their modular structure and their Scalability So current ERP programs support almost every company shape and size.

The most important ERP functions and modules at a glance

Today, ERP software is comprehensive business software with the corresponding ERP functions and modules. These enable all relevant To efficiently map business processes in one system. Modern ERP programs today include the following Basic modules:

  • Merchandise management and logistics

  • production

  • Finances

  • human Resource

The particular advantage of an ERP system: All ERP functions and modules are linked to one another via the central database. That means: You can access all data across modules. Complex data transfers are therefore not necessary. So is one efficient process planning, control and monitoring guaranteed across all levels and departments of a company.

Merchandise management and logistics

A modern ERP solution has a module for inventory management (WaWi) and logistics. This area of ​​application includes functions for the following tasks:

  • Incoming and outgoing goods processing

  • Material data management

  • Order and invoice processing

  • Consumables handling

In addition, ERP systems in the warehouse and logistics areas often provide practical special functions for production planning and control, as well as for procurement and scheduling. In combination, they make for one efficient warehousing and a precise one Stock overview.

production

Production is one of the core areas, at least in industrial companies. The range of tasks can be mapped in a special basic module of the ERP software. The most important basic functions for production include:

  • Material requirements planning

  • Sales and production planning

  • Work plan and parts list management

  • Workplace and resource management

  • Production order approval and execution

Since the production planning and control (PPS) is an important part of business software, owns ERP software for production Interfaces with many other business areas - for example with sales or procurement.

Finances

ERP software also simplifies and automates numerous tasks in the finance and accounting of a company. In most cases, functions for the following tasks are available in the corresponding module:

  • Payments

  • Reminders

  • Depreciation

  • Assets and liabilities

  • Change of year-end closing and fiscal year

  • Etc.

Modern ERP programs therefore make your daily work in accounting much easier. This saves you a considerable amount of work.

human Resource

Most ERP programs also have a basic module that the departments Payroll accounting and Human Resources (HR) covers. Thanks to special functions, efficient employee management is ensured in your company. Here are some examples:

  • Staffing and relocation

  • Career planning

  • Personnel development

  • Calculation and billing of charges

  • Salary adjustment

In addition, ERP often includes its own time recording, with which all work, personnel and machine times can be entered clearly.

ERP programs: Additional modules and functions offer further advantages

If you purchase ERP software for your company, you can choose from more Additional modules choose with many helpful functions.

CRM (Customer Relationship Management)

Modern online ERP systems usually contain a comprehensive CRM solution. That means: ERP programs are in the areas distribution, marketing and service already equipped with corresponding functions for customer relationship management.

The particular advantage: Thanks to the interaction of the functions in the entire ERP system, you can call up all important customer data from a central point. This guarantees first-class customer service.

Project management and controlling

In addition, additional modules for project management and controlling enable the establishment of an efficient and reliable information system. If you use this regularly and in a targeted manner, you will benefit from an optimal one Basis for strategic company decisions.

Cross-departmental functions

In addition, a modern ERP system usually offers this practical one Cross-departmental ERP functions:

  • Document and workflow management

  • E-commerce connections and interfaces

  • Archiving and database management

  • Reporting and data warehouse

Thanks to this huge range of modules and functions, ERP manufacturers are now able to offer companies fully integrated ERP systems.

For which industries does an ERP solution make sense?

Since enterprise resource planning systems can map the business processes of a company in their entirety, they can be found in companies of all sizes and industries. However, an ERP solution can only bring you the desired success if it perfectly covers the industry-specific requirements of your company and efficiently maps the ERP processes.

Industry coverage of ERP solutions

The business processes of companies from different branches of the economy often differ considerably. A mechanical engineering company, for example, works completely differently than a company that is active in the field of e-commerce or e-business. That is why it is essential that one ERP software can be adapted to the individual requirements of each company can.

Companies that have decided to use an ERP solution now mainly use standard software. In addition to its modular structure, this offers the advantage that at any time as you wish various extensions booked can be. The programs are also able to optimally cover the industry-specific requirements of companies from different branches of the economy. Product comparisons show that today approx. 73% of the ERP systems available on the market can be used in any sector are.

To the strongly represented target groups of ERP solutions include, for example, companies from these industries:

More than 60% of the ERP software solutions on the market are able to cover the special needs of mechanical engineering and trade. In addition, the following branches of industry benefit from a high level of industry coverage:

78% of the industrial sector uses an industry-specific ERP solution. In other economic sectors - such as logistics, handicrafts or construction - the industry coverage of ERP software is lower. It can be observed here that predominantly too industry-neutral business software is grasped.

Important for many companies: the adaptation of the ERP solution to industry-specific requirements

Since some industries have very special requirements for an ERP system, there are special ERP industries-Solutions. These are mostly program extensions that are tailored to the respective industry and that the ERP providers offer in addition to conventional standard software from their product portfolio. Often there are ERP solutions from partner companies who have in-depth expertise in specific branches of the economy. The result are corporate solutions for the respective industry, such as:

  • ERP for Medical technology, chemistry and Pharma

  • ERP for IT service provider

  • ERP systems for the Construction industry

  • ERP solutions for the Food- and Cosmetics industry

  • ERP software for Printing houses

  • ERP for Insurance

  • ERP for the Electronics industry

  • ERP systems for the Wholesale

  • ERP software for the Mail order

By using industry software, you can optimally adapt your ERP solution to the specifics of your respective economic sector. In this way you can ensure that your needs are met and that the investment in an ERP system is worthwhile.

ERP as an open source solution - an alternative to paid business software?

Can't afford to implement a well-known ERP system or do you have simpler requirements for company software? You don't need extensive functions, but a tight, functional ERP system? In addition to fee-based ERP systems, there is a whole range of flexible and, above all, inexpensive ERP open source programs. These offer you many powerful functions and are easy on the wallet at the same time. But can open source ERP systems basically keep up with paid enterprise resource planning systems?

What is open source ERP software - and what is the difference to ERP freeware?

Implementing an ERP system is a major headache for many companies. Because an ERP implementation is often too much of a burden in relation to the budget, takes significantly too much time or simply does not work according to plan. For this reason, so-called open source ERP systems are becoming more and more important in the field of enterprise resource planning. Open source software - OSS for short - called open or free program solutions, which you can often use for free without incurring license fees.

The difference between open source ERP and freeware

  • ERP freeware: is a copyrighted ERP software that you can use freely and free of charge, but for which you do not receive any processing permission.

  • Open source ERP software: has a freely accessible source code that you can modify as you wish in order to adapt the program to your company-internal needs. You can also distribute the source code of OSS software in a modified form. ERP freeware is out of the question for such customizing.

Since open source business software is usually available free of charge, the open source ERP providers earn in particular through:

  • Services

  • ERP implementation

  • Customizing

  • Training

  • Support

Many providers also charge maintenance fees at regular intervals. The saved license costs are partly covered by service and maintenance costs.

Which open source ERP systems are there?

ADempiere is particularly suitable for small and medium-sized enterprises (SMEs). The ERP open source program covers a wide range of modules and functions from - including in the areas of Supply Chain Management (SCM) and Customer Relationship Management (CRM). This enables you to conveniently manage your purchasing, warehousing, sales and accounting processes in a single solution. ADempiere runs on Windows, MacOS and Linux as well as on all common smartphones and tablets. You can get the software in the form of a ERP system demo testing.

Odoo is an open source business software that, in contrast to complex ERP systems, is characterized by a particularly simple and user-friendly user interface. At the same time, the program is equipped with all the important modules you need for efficient enterprise resource planning: purchasing, manufacturing, project management, billing, inventory management, accounting. Because all of these Modules communicate with each other they are able to provide information to be exchanged seamlessly and efficiently.

Apache OFBiz includes modules for manufacturing, inventory management, catalog management, human resources, accounting, CRM and e-commerce. You can use the open source ERP software uncomplicated Tailor to your individual requirements. It was primarily designed for medium-sized and large companies E-commerce interface just like the backend applications, you can try out an ERP software demo and find out whether the program is also suitable for mapping your existing IT and business processes.

OpenZ is a web-based system that you can access through your web browser. This means that you can use the ERP solution anywhere and on any device.The modern open source program integrates all functionalities for important ERP tasks: purchasing, production, inventory management, online trading, project management, finance, sales, CRM and much more. With the help of Customizing you can adapt the open source company software individually to the needs of your company.

WebERP works - as the name suggests - via your web browser. Specifically, this open source business software is a platform-independent cloud ERP system, which is geared towards the areas of wholesale, sales and manufacturing and with which you can comfortably carry out all tasks in business management and accounting. You also have the option of using the program with a Point of sale system for multi-store retail management or with a E-commerce module equip. Here, too, you can test a demo version in advance.

Who will benefit most from using an ERP open source system?

By using ERP solutions from the open source area, you can basically benefit from the following Benefits benefit:

  • You are not dependent on an external ERP provider.

  • Because you have free access to the source code are open source ERPs scalable and can be adapted to the individual requirements of your company.

  • Don't be afraid of violating your license.

  • In the Users- There are number no restrictions, d. H. Any number of your employees can use the open source ERP system.

  • Since an open source ERP software is easy on the wallet, you can deal with great monetary benefits Savings calculate.

  • You have the option of open source business software unlimited to use.

The wide range of open source ERPs basically provides a suitable solution for almost every company. Primarily fast growing companies benefit the use of the open source model. The open source solutions are also ideal for founders and start-ups

  1. tight budget and / or

  2. manageable requirements.

However, if you are considering purchasing an open source ERP solution, you should also definitely consider the disadvantages, such as:

  • In terms of functionality Open source ERPs cannot hold a candle to the well-known, fee-based ERP systems. SMEs and larger corporations usually make the better choice if they purchase a program from a well-known ERP provider for their company from the outset. Often there is still a lot of catching up to do with open source projects when it comes to issues such as module size, performance and reliability.

  • An open source solution is usually inexpensive at first glance. However, it can also very time-consuming and therefore cost-intensive as soon as you get this "Customize", so adapt to the requirements of your company. For this you need an IT specialist who integrates the necessary functions in the source code. In most cases, you have to rely on experienced programmers, who in turn incur additional costs.

  • Should also be done once while working with an open source ERP system Problems show up, you usually have no liability claim and face another problem that, in the worst case, creates additional costs.

ERP in the cloud vs. on-premise software - what advantages and disadvantages do both business solutions offer?

Are you unsure whether an ERP system in the cloud or an on-premise solution is better for your company? The business processes in your company can basically be optimally covered and automated by both program models. Nevertheless, the different system variants are each characterized by different ones Advantages and disadvantages out. A more detailed one comparison can help you make the right ERP selection in the end.

The differences between ERP in the cloud and on-premise systems

What is on-premise ERP?

Basically, on-premise software is a computer program that works on a server basis. In order to be able to put an on-premise ERP into operation in your company, you have to meet certain requirements:

  1. you need own hardware in the form of company computers. You have to install the ERP solution locally on this.

  2. Commissioning an on-premise program is not possible without you in your company own data center set up or alternatively in a data center of an external provider Rent a server.

What is cloud ERP?

In contrast to an on-premise system, you do not have to install ERP in the cloud locally on your company computers. Everything you need instead for commissioning:

  • a stable internet connection

  • a working one Web browser

ERP in the cloud is usually offered to you by the corresponding providers in the form of a service. For this reason, a cloud ERP system usually also follows a special rental model. For you, this means that an ERP cloud provider provides you with all the hardware components you need to start up a web-based ERP system as part of a monthly flat rate. In addition, the provider also takes care of maintenance work, repairs and updates.

The advantages and disadvantages of on-premise ERP at a glance

When is an on-premise ERP the right choice for me?

Are you thinking of using an on-premise system in your company? A locally installed ERP software is the right solution for your company under the following conditions:

  • You want from external software providers independently stay.

  • You already operate your own or rented hardware or have one in your company suitable IT infrastructure.

  • The administration You prefer to take over your ERP system yourself.

  • You employ in your company own IT specialists with the necessary know-how to take care of the commissioning of the ERP system and to carry out maintenance work on all system components.

  • You want to be able to use the program at any time internal company requirements adapt or expand it with additional functionalities.

  • To the data backup would you like to take care of yourself.

  • You have a sufficient big budget available for purchasing an on-premise ERP.

The advantages and disadvantages of ERP in the cloud at a glance

When is an ERP in the cloud the right choice for me?

Think an online ERP system is the best choice for your company? A web-based ERP solution is ideal for you if the following statements apply to you:

  • It is important to you that you and your employees always Independent of time and place can access all ERP data.

  • You are more likely to low budget for the purchase of an enterprise resource planning system.

  • So far there is in your company no suitable IT infrastructure for ERP operations.

  • This is how you would like to implement and commission your enterprise resource planning system small effort as possible.

  • You want to forego lengthy software installations, maintenance costs, etc. Save operating costs.

  • You would like to do without your own IT department in order to carry out commissioning, maintenance work and updates no effort whatsoever to have.

  • You value predictable ERP costs and therefore prefer to invest in a model in which all services are included in a monthly flat rate.

FAQ: Frequently asked questions about ERP systems

When purchasing an ERP system, not only the manufacturer, the software itself and the functions play a role. There are usually further questions that need to be clarified. Here you will find the most frequently asked questions with answers.

ERP implementation: How do I successfully implement ERP software in my company?

Whether an ERP system is profitable for your company in the long term depends largely on its successful implementation. With ERP integration, there are often difficulties in adapting the real business processes to the new automated ERP processes. This can be avoided with a guide that specifies the ERP implementation step by step. Use these phases as a guide when planning:

Pre-project phase: Collect and document all important business and system processes in your company before implementing ERP. Analyze these precisely and evaluate them with regard to the different functions of an ERP software. In this way you can assign each process correctly.

Project team: Include your employees in the planned ERP implementation as early as possible in order to encourage their identification and motivation. Appoint a competent ERP project team.

Project goals: Set all project goals in writing and announce them to the company. Also put together with your project team realistic times for the goals the ERP implementation. A priority list will help you break down the project into manageable sections.

Specifications: It is common for the ERP providers you are considering to receive a so-called needs analysis in the form of a specification sheet. Here are the pure software requirements for the ERP implementation held. You can later select the necessary ERP functions and modules based on the specification sheet.

Project start phase: Invite ERP providers to present the services of their ERP system to you. On the basis of the requirements worked out in the specification sheet, the project team can examine possible programs and select the right one.

Actual data: For the ERP implementation, comprehensible and maintained actual data be available. An ideal way of determining and evaluating this is operating data acquisition (BDE).

Specification book: The selected ERP provider draws up the specifications based on the requirements of the specification. All defined business processes and their implementation are detailed here. The actual ERP integration does not begin until you have approved the functional specification.

Project start: After you have meticulously checked the specifications and found them to be good, you order the ERP integration from the selected ERP manufacturer.

Test phase: Your project team should enter the master data in a test environment, which will later also be fed into the actual ERP system. On the basis of this test data, all scenarios of everyday business can be run through. In the test environment, possible hurdles emerge that can be eliminated directly.

ERP integration: Approximately four weeks before going live, all company data is imported into the new ERP system.

Real start: From the day of the switchover, the new ERP software runs completely under full load. During this time it becomes clear whether the project management was successful or not. Be prepared for the due date of the System changeover about four weeks of unrest awaits your company.

Know-how transfer: After the first critical weeks of ERP implementation, start doing more Train employees and, if necessary, to fill positions. Everyone involved should now also rework the necessary documentation in a disciplined manner.

Project follow-up support: About three to six months after the ERP implementation, it becomes apparent whether evaluations are missing. It is therefore important that your employees familiarize themselves with the numerous Lists and statistics of the ERP system employ.

In practice, what your process model looks like should depend on the project context, the ERP provider and your individual objectives. The above list gives you at least a first impression of what to expect before and during an ERP implementation.

Should I get an ERP consultant on board for support?

Statistically, every fourth ERP implementation fails because companies carry out important project phases without the helping hand of an ERP consultant. The reason: only a few companies have the necessary know-how to select and implement ERP solutions without external support.

That alone shows that it makes sense for companies to get an ERP consultant on board. A trained ERP consultant can give you competent advice and support before, during and after the ERP implementation:

  • He brings comprehensive know-how in the areas of business administration and enterprise resource planning.

  • He's opposite the ERP vendors independently.

  • He can judgewhich ERP provider best suits your company.

  • He can get you through his Experience and knowledge of the market Avoid falling for cost traps so that you can save large amounts.

  • He supported You when creating the specification sheet and know what needs to be considered in the test phase.

  • He can do that Conduct ERP training.

  • He creates obstacles in dealing with the ERP system out of the way.

  • He gives helpful tips and tricks for a quick look at the essentials.

In short: with the help of an ERP consultant, you are well prepared for the diverse challenges of an ERP implementation. You avoid high unplanned costs and the failure of the entire ERP project.

ERP system and accounting: can I write off my ERP software?

Yes, you have the option of your ERP system deductible for tax purposes. In principle, ERP solutions are assigned to the standard software area. That means: an ERP software is discontinuing Intangible fixed assets requiring capitalization that you can copy. However, there are a few things you need to consider when writing down your ERP system.

Useful life

The financial administration writes a for ERP software Useful life of five years in front.

Depreciation period

The depreciation period begins as soon as the business software is operational.

acquisition cost

The expenses incurred in connection with the process of ERP implementation (implementation) are to be treated as incidental acquisition costs for depreciation. This includes:

  • Customizing (adaptation of the ERP system to the requirements of your company)

  • Program changes

  • Program extensions

Manufacturing costs

If individual software is created during the implementation, the expenses for it must be booked as production costs.

Business expenses

If your company develops the ERP system itself, the expenses for it represent immediately deductible operating expenses.