For those new to the world of ERP, Enterprise Resource Planning (ERP) software is a platform that integrates a company’s processes into a single system. For years it’s been a go-to business management solution for companies seeking to connect their organization, simplify their workflows and automate their operations. Wondering if an ERP system is right for your business? There are clear signs you can be on the lookout for—signs such as dealing with siloed data, running into storage limits and spending too much time on workarounds.
If these signs hit close to home, then it might be time to consider an ERP system. With the help of an expert consulting partner (like us!), you can begin the hunt for the right ERP solution. And what you’ll quickly discover is that you’ll have a few choices to make, including how to deploy your solution.
Today’s ERP systems can be deployed in a number of ways. Let’s take a look at these varying ERP deployment options and the benefits of each.
What is ERP Deployment?
Simply put, ERP deployment is the way the software is delivered to users. With the help of your consulting partner, you’ll determine the scope and scale of your ERP project. Once you do, you’ll know which of the common deployment methods noted below will work best for your requirements.
Common Deployment Methods
For those implementing ERP software, the most popular deployment options include public or private cloud, on-premises and hybrid. Below we take a closer look.
1. Cloud ERP
Cloud ERP solutions are delivered in the cloud via the internet as a subscription service. According to Bloomberg analysts, ERP “may be the next big growth driver in the Software-as-a-Service (SaaS) market,” and they expect enterprises “to choose a mix of public-and-private cloud products.”
These expectations may stem from the fact that public and private cloud ERP deployment offers businesses the following business-enhancing benefits:
- Lower upfront costs as there is no need for a significant investment in hardware or software licenses and the software provider or host maintains, updates and upgrades the software.
- Increased scalability and flexibility due to fewer hardware and software limitations.
- Greater collaboration and accessibility because team members can access the site and organizational data from anywhere and at any time.
And cloud ERP deployment offers superior data safety as cloud providers invest in world-class security measures and have teams of security experts on hand.
2. On-Premise ERP
In comparison to cloud ERP deployments, on-premise ERP deployments require the expensive purchase of software and hardware. The hardware is installed by the business’ IT staff on a private server in a location the business owns or rents.
With an on-premise deployment, the business is in the driver’s seat when it comes to maintaining, securing and updating the system. This absolute control over everything related to their ERP is one of the main reasons businesses opt for this traditional deployment method. Additionally, on-premise ERP solutions work well for businesses in highly controlled industries with strict regulatory or legal constraints.
3. Hybrid ERP
With a hybrid ERP deployment, businesses combine cloud and on-premise deployment models. This model is typically seen in companies that already have an on-premise solution and want to expand functionality using the cloud.
For example, a business may utilize an on-premise ERP solution to manage large-scale corporate functions but cloud-based modules to manage departmental processes, such as Customer Relationship Management (CRM) software to capture customer data for a sales or services team.
Businesses may also use a hybrid ERP model as a stepping stone to a fully cloud-based enterprise or to adhere to security requirements that demand on-premise applications.
Choosing the Right Deployment Option
By now, you understand the various ERP deployment options, but you may be wondering how to figure out which option makes the most sense for your business.
This is where your consulting partner’s expertise comes in handy. Together, you’ll do extensive, thorough research into each option, taking into consideration your current and future needs.
For instance, are you a fast-growing company ready to expand? Then cloud ERP may be best for its scalability. Perhaps your business is bound by strict regulations (e.g., GDPR or HIPPA) or you want to set up your own security protocols. If so, then on-premise ERP is the way to go. Or, you’re interested in moving to the cloud, but are not ready to shift your entire business model. A hybrid ERP deployment gives you the best of both worlds.
Your consulting partner will steer you in the right direction by helping you think about your company’s current and future needs. They’ll factor in essential requirements, like functionality, price and the overall software capabilities. They will also work to find out how the ERP solution or solutions you’re looking at are deployed (some ERP solutions are only deployed in the cloud, while others can accommodate all three methods mentioned above).
Customer Deployment Examples
Let’s take a look at some of these deployment models in practice:
Industrial Specialty Services (ISS)
James Craig, CEO of ISS, explains, “[Our] primary idea was to create a solution that was designed around the cloud. It was a critical element because we wanted to get away from maintaining servers or being responsible for them.”
ISS formed when a private equity group acquired a business unit from its parent company in the energy services industry. As the CEO of the newly formed company, Craig was faced with the monumental task of forming a management team, hiring personnel, establishing the entire back office and setting up the network infrastructure. And he had to complete it while working through the pandemic and a hurricane.
Because Craig had already deployed ERP solution Acumatica before with another company, he and his team knew Acumatica was the right choice. “Acumatica leads the pack. It’s a fully integrated package that doesn’t need a lot of customization.”
After implementing Acumatica remotely, ISS experienced impressive benefits, including capturing critical data in real time, gaining an easy-to-use and intuitive interface that attracted employees and having the ability to add additional Acumatica modules and third-party applications as needed. And the company’s goal to triple in size in five years (or less) is easily within reach.
“We won’t need much more (infrastructure) to add a similar-sized company,” Craig says. “As far as the back office goes, we can absorb a majority of employees, and only need maybe two people in admin roles to handle safety requirements.”
High Bar Brands
High Bar Brands, which supplies the commercial vehicle industry with innovative after-market solutions, is comprised of three brands: Minimizer, Premier Manufacturing and Viking.
The company wanted to merge the brands into a single operating entity, and one of the steps was to eradicate their separate legacy ERP products used at each company and implement a single, comprehensive ERP solution that could support full manufacturing capabilities, multiple locations and out-of-the-box functionality. And VP of Operations Jim Richards had one more requirement.
Says Richards, “A cloud-based, subscription-as-a-service application was another requirement. We always want to run the most current version of the software to take advantage of new features.”
“We always want to run the most current version of the software to take advantage of new features.”
Jim Richards, VP of Operations, High Bar Brands
NexTec worked with High Bar Brands to go live on its new ERP solution on time, under budget and with very few customizations.
Conclusion
Selecting the right ERP solution for your growing business is tough. Now that you know more about the various deployment models, you’re hopefully better equipped to begin the ERP selection process and choose the right solution (and deployment) for your business.
Don’t forget: NexTec’s consultants are here to help. Learn more about our solutions then reach out when you’re ready for a demo!