More About ERP Systems; Their Different Types and Why Businesses Need Them

More About ERP Systems; Their Different Types and Why Businesses Need Them
J

by John Abraham

Publish Date: 10/04/2024

Last Update: June 13, 2025

Does your business need ERP systems? Do you only have basic knowledge about the topic and you need to know more? There are many other people like you. If you want to be sure if your business needs them, here is your answer, “Yes!”



One thing an ERP system will always do for brands is increase their efficiency and help them handle more tasks. This is when there are more than enough reasons to use it, but there are more.

In this article, I have listed and explained the types of ERP systems and why businesses need them. Let's discuss this topic further!

Types of ERP Systems

There are three types of ERP systems and they have slight differences in functionalities.

There are:

1.    Cloud-Based ERP

Servers are the host of the cloud-based ERP and users can only access it through the internet. Many businesses use it for its low entrance cost, as there’s no need to pay for physical infrastructure maintenance. It also has high scalability and flexibility.

2.    On-Premise ERP

As the name implies, this ERP is not flexible, as it only functions on a premise. This is because it has to be installed on a company's server, making it stay at a position. The level of customization it offers is high, but users have to spend more on future maintenance and others.

3.    Hybrid ERP

This is a combination of the on-premise and cloud-based ERP. Here, some functions are cloud-based and can only be accessed online while others are in-house. This helps users get flexible in their businesses. So, a business can decide to operate with the in-house system for its benefits and the cloud-based.

Why do Businesses Need ERP Systems?

There are a few reasons businesses need ERP systems and some of them are:

1.    Better Work Efficiency

ERP can help improve your work efficiency and speed up your task delivery time. Since it takes up repetitive tasks, it leaves you to focus on more important ones. Saving you time and energy to deliver efficiently. Also, the system delivers accurately on its tasks, helping your business do better.

2.    Save Money

It is cheaper to get one ERP system to work for all the departments in your company than to get software solutions for each of them. This will save you some money here.

Also, the work the system does could be positions occupied by humans and you would have to pay them. Here, you wont need to pay that much to get the tasks done accurately.

3.    Enhanced Decision-Making

Due to the accurate data that the system collects, you can make well-informed decisions in your company. When there is, even the slightest mistake in the data curation, it can mess the entire operation up. This is why you need an ERP system.

4.    Better Compliance and Risk Management

Most ERP systems come with in-built compliance tools to help brands adhere to the set-aside rules of business engagements. So, they cannot go against it even if they want to based on emotions. This helps to reduce risk and errors in business.

5.    Customer Satisfaction

With an efficient workflow, the system will help satisfy your clients. Aside from this, it can stream orders from customers, inventory, shipping, and more, improving customer service.

Using ERP systems effectively improves your business outflow of work and inflow of income. You would have the time for more tasks and spend less to get them done. You can try one today.

If you need some help regarding this topic, you can book a brief no-obligation call with Neoverce here. At Neoverce, help businesses and curators find the best IT solutions they need.

Keep innovating, keep building.