BEST SAAS ERP SOLUTIONS FOR BUSINESS TO CHOOSE IN 2021
9 min
Apr 02 2021
Nikita L Best Saas ERP Solutions for Business to Choose in 2021
Nikita LBusiness analyst
Alex K Best Saas ERP Solutions for Business to Choose in 2021
Alex KTechnical writer
A comprehensive overview of ERP systems, along with their main features. ✓SaaS ERP and custom solutions comparison: learn what's best for your business.

SAAS ERP SYSTEMS EXPLAINED. WHAT IS BEST FOR YOUR BUSINESS?

What is SaaS ERP? To answer this question, let's have a look at the terminology. An ERP system is primarily a tool for improving enterprise management's efficiency and quality. It enables users to make strategic and tactical decisions based on automated processing of up-to-date and reliable information. At the same time, an ERP system is not only a tool for business but also its maintenance technology.
There are different models and solutions for your company's ERP system implementation. Out-of-box products offer ready and simple solutions for an immediate start; they come with a lower initial budget due to the SaaS model. A cloud ERP is one of the most popular types of ready products. They come in handy for new small companies and startups as a temporary solution for an ERP system. On the other hand, many companies require custom solutions designed to solve business-specific problems and perform unique tasks.
This article covers the SaaS model’s key features, application differences, and strong and weak sides.

WHAT IS A SAAS ERP SYSTEM?

An enterprise resource planning system (ERP) is a software package that consists of integrated applications designed to manage day-to-day business processes within an organization. The system's functionality covers a wide range of the company's internal processes: production, distribution, sales, accounting, and personnel management.
The ERP system allows you to standardize the working process, facilitates cooperation and data exchange between departments, and provides the company management with centralized access to any necessary information for easy and effective decision-making.
Erp implementation infographics
Software as a service (SaaS) is a model of providing software licensing with a subscription. SaaS applications are often cloud-based - they run on a SaaS provider server, and users access them through an Internet browser. The vendor is responsible for the software functioning, updates, and technical support for the users.
In other words, the SaaS model provides an out-of-the-box software package, and you pay your cloud service provider as you use it. All basic infrastructure, mid-layer software, application software, and application data are stored in the vendor's data center. The service provider manages hardware and software according to the service agreement and ensures applications’ data availability and security. The ready-to-use packages have the most common functionality, but there are limited options for further improvements.

GOALS ERP SYSTEMS HELP TO ACHIEVE

Goals erp systems help to achieve
The main goal of any ERP system implementation is to optimize the company's expenses and resources. It includes many objectives: common space creation, better department interaction, data exchange customization, easy information access, etc.

1. Automate Business Processes

Customer relations, HR, or financial management - ERP allows you to autopilot all the processes. It helps monitor remote departments and employees and integrates tasks across departments.

2. Make Data-driven Decisions

The ERP system helps you make balanced decisions faster. It offers real-time data for analysis in management, accounting, and marketing. It creates a company-wide information environment and optimizes data access speed.

3. Improve Collaboration

ERP systems ensure prompt and effortless communication between employees and departments. In contrast to using separate databases for each department, constant access to all company data enables employees to collaborate more effectively.
The ERP system implementation also introduces many tools your company may need in the future. Often, companies use only a fraction of all the system's capabilities. However, as the company grows and develops, you can purchase new modules, introduce new solutions, and connect new company divisions.

MAIN FEATURES OF SAAS ERP SYSTEMS

Many businesses consider SaaS-based ERP systems an easy and rapid solution. We can sum up the main features characterizing this type of ERP systems as follows.
In other words, customers don't pay to own the software as such, but rather rent it and use it via the Web-interface. This way, unlike the classic licensing scheme, the customer has relatively low recurring costs and doesn't need to invest significant funds into purchasing the software and hardware platform, deploying the system, or maintaining its operational capability. The customer can also halt the payments if there's temporarily no need to use the software.

SAAS ERP MODEL: STRONG AND WEAK POINTS

Saas erp model strong and weak sides
Like any other solution, the SaaS ERP model has its advantages and downsides. SaaS models can be a perfect way to introduce an ERP system to your employees and refine the company's needs in terms of workflow management.

SaaS ERP Strong Sides

The Saas ERP model boasts the following advantages:

SaaS ERP Weak Sides

The potential downsides for a business may be as follows:
You should always keep in mind that this model is a ready product that targets universal tasks and may not be optimized to solve highly-specific problems. Before deciding on the solution best for your company, you should carefully consider every offer's strong and weak sides.
Saas erp weak sides

WHEN DOES IT MAKE SENSE TO DEVELOP YOUR OWN SOLUTION?

Most SaaS ERP vendors offer ready-made software with the most popular functionality. It's a convenient option for small enterprises, startups, or business owners who only get familiar with ERP systems. This universal feature set meets an average company's needs. However, as the company grows and employees can articulate their specific problems more clearly, most companies need more elaborate tools to help their employees perform business-specific tasks.

Points to Consider

Here are some points that may indicate it’s time to develop a SaaS ERP solution:
In reality, most companies eventually transition to custom ERP systems. Often, it happens after trying several ready-made options. An enterprise's growth and development always bring a better outline of which features your company needs to organize its resource planning system.

Custom vs. SaaS ERP

SaaS ERP systems provide standard functionality. At first, there are many functions (sometimes too many), and you may end up not using some of them and lacking the ones that are vital for your business. Some cloud-based ERP solutions allow a decent level of customizability, which implies further development possibilities. However, at first, you'll have to adjust your company's needs to the system's functionality but not the other way around. Once your company has grown to have unique business processes, you, most likely, will need alternative solutions facilitating your company's particular needs and ready to solve specific problems.

Implementation and Upgrades

Third-party Software Integration

The right choice of EPR services is a crucial step. Ideally, a trusted company not only delivers your product but rather becomes your company's long-term partner providing the system's support and further development.

WHY CHOOSE EXCEED TEAM FOR ERP DEVELOPMENT?

Our customers value Exceed Team for several reasons:
Why choose exceed team for erp development

SUMMARY

The ERP system is a powerful instrument that’s strategically important for the company's management process. It optimizes and automates all the company's activity and ensures data flow between departments. Such software covers all business activities within the company - project management, accounting, risk management and compliance, supply chain operations, and procurement. Today's market offers various models of ERP systems implementation.
Small businesses tend to choose ready SaaS ERP solutions, as they are time- and cost-effective. However, SaaS enterprise resource planning solutions may lack flexibility and some vital business-specific features. At a certain point of the company growth, enterprises look for custom-developed ERP systems designed to address their particular tasks and fit their overall needs.
Cloud ERP system or custom-developed software - choosing a final solution is always a challenging task affecting the company's future. The decision depends on many factors - from the enterprise's internal readiness to re-engineer business processes to the price and time of the ERP system implementation.

SAAS ERP SYSTEMS: FAQ

How Does the SaaS ERP System Benefit Small Businesses?

SaaS ERP systems are usually ready-to-use, out-of-the-box products with standard functionality. It's a good solution for a growing company, as it has low initial costs and an effortless implementation process. The company doesn't need its IT team as the solution's vendor maintains the system's functionality. A cloud-based ERP for small businesses is one of the most popular products of this type.

What Are SaaS ERP Pros and Cons?

Pros:
Cons:

How Long Does the SaaS ERP Implementation Process Take?

SaaS ERP solutions are a good fit for small and new companies, as they are ready for use immediately after purchasing the subscription. They require no extra hardware or deployment. Cloud ERP solutions are considered the fastest and most convenient option.
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