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What are the benefits of using an online ERP system?
Our company wants to implement an ERP system, and we're currently at the stage where we need to determine whether we should go with an on-premise, or online implementation. So far it seems like cost is the only difference... why else would someone choose to go online vs on-site?
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4 Answers
Fred,
The difference between the two approaches is more than just price. Assuming functionality for both solutions are equal (which isn't likely the case) there is a "gap" between what either software provides as "base" functionality and what you may need. Online applications receive little to no customization to meet your operational requirements. On-site applications are traditionally modified (sometimes heavily) to meet your operational requirements.
The online applications do not require systems administrators, database administrators or network administrators to the extent that on-site systems do. While that results in a cost issue it is also a "strategy" issue: do we consider IT a core competency?
I would like to ask, and welcome your private response at sjchristensen@babblewareinc.com, why does your company 'want' to implement an ERP? Want v. need can be two distinctly different issues.
Steve
Hi Fred,
Would like to add to Steve's answer that on the flip side, online ERPs usually have a small customer base as they are just starting out and may not be very robust. So its important to get your expectations right!
Being a founder of a startup building online ERPs, we always tell our customers that they should be willing accept a few minor hiccups. That does not mean we are not trying hard, but I believe that "under promise, over deliver" is much better than the other way round. So beware of online ERPs that claim too much.
Online ERPs at the moment are for early adopters and people who see the great cost advantage as a good enough reason to use online ERPs.
You are welcome to try our product at a 30-day trial at www.iwebnotes.com and also any private feedback will be welcome at rushabh@iwebnotes.com
cheers!
Rushabh
Each and every business are unique and requirements on management are unique, so a business management software should also be unique. Online ERP is not customizable, people use online ERP doesn't have more access on the software. If you need a good software to manage the business and lead it in the right part, obviously should opt for on-site ERP.
Regards,
Jeyanthi
http://www.multiply.binarch.com - provides ERP for small to medium level business.
91-44-4501-4442
info@binarch.com
Dear Fred,
There is no easy answer. Price, features, customization, ability to maintain systems, data security, strategic control are all aspects you will need to look into.
There have been quite a few online ERPs which have started making a dent in the market of the established on-premise players. Netsuite is my favorite example. Google on it and you will find out about growing popularity of online ERPs.
Lack of customization is an oft repeated argument against online ERPs. Theoretically you can have a customized ERP hosted on web servers and available online but that would take away a lot of cost advantage you get. However "no customization" should not be confused with "no configuration". A good online ERP would allow you to configure the application as per your requirements and should meet 90% of your requirements.
Regards
Chintan Tyagi
EazeWork
http://www.eazework.com
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