If you’re about to begin ERP selection, and you’re wondering, What types of ERP systems are there?, you’re in luck because, today, we’re going to answer this question at length.
First, it’s important to understand some of the different ways enterprise resource planning (ERP) systems are categorized. Full ERP vs. industry-specific ERP and cloud ERP vs. on-premise ERP are two examples.
The distinction between full ERP vs. industry-specific ERP comes down to whether the system is designed for a variety of industries or is specialized to just one or two. The distinction between cloud ERP and on-premise ERP lies in how the system is installed and maintained.
You can also categorize ERP systems based on the size of business they target. We use the terms Tier I, Tier II and Tier III to differentiate between systems based on the revenue and complexity of the companies they’re targeting.
The 2024 Top 10 ERP Systems Report
What vendors are considering for your ERP implementation? This list is a helpful starting point.
Now that you understand the types of ERP systems, let’s explore what specific systems fit into these categories.
What Types of ERP Systems are There?
These systems are designed for large corporations with more than $750 million in annual revenue. Most enterprises of this size are complex, either due to complex business processes or complexity in their entity structure and consolidation needs. Tier I applications address multiple industries and are highly scalable.
This system gives users actionable insights, enabling them to make informed business decisions. If you’re interested in the differences between SAP and Oracle, be sure to read our SAP vs. Oracle post.
Oracle Cloud ERP
This system relies on a global network of data centers all managed by Oracle. This allows applications to easily be extended to the cloud. The system also integrates machine learning and AI into finance applications.
The CloudSuites feature pre-built industry capabilities along with AI that anticipates, recommends, and derives insights.
Upper Tier II
These systems typically serve small to midsized companies with $250 million to $750 million in annual revenue. Companies of this size may encompass multiple industries and multiple business units.
Microsoft Dynamics 365 for Finance and Operations
This system was re-built in Azure technology, making it a pure SaaS model with other deployment options. It has a strong ecosystem of independent software vendor (ISV) channel partners. If you’re currently running Dynamics AX and are considering an upgrade to Dynamics 365, be sure to read our post, Dynamics AX vs. Dynamics 365.
This pure SaaS ERP system has the ability to scale in order to serve customers ranging from public companies to startups. It includes specialized functionality such as multi-dimensional analysis and industry-specific KPIs that can be accessed in real-time dashboards.
IFS ERP is a cloud-based system that’s perfect for consumer packaged goods companies with a global footprint. It is strong in asset management as well as company-wide project management.
This system provides real-time production and process monitoring to manufacturers. It delivers production management solutions with a full range of supply chain management capabilities.
Lower Tier II
These systems typically serve small to midsized companies with $10 million to $250 million in annual revenue. These companies usually represent only one industry and have a single entity to manage.
This is a niche ERP system for manufacturers in make-to-order, assemble-to-order and engineer-to-order environments. It provides human capital management functionality as well as customer relationship management features.
Microsoft Dynamics 365 Business Central
A flexible and scalable solution for managing a business of any kind, this software can improve your company’s sales and optimize your supply chain. It is built on best practices from Microsoft NAV, GP and SL.
SYSPRO provides a single ERP product with the ability to support process, discrete, and mixed-mode manufacturing. The system includes a machine learning designer allowing non-technical users to easily design their own AI models.
This solution is specifically designed to resolve the operational and regulatory needs of discrete manufacturing firms. It provides functionality that allows tracking of shop floor activities, completions and statuses.
There are hundreds of software providers in this tier serving mostly small businesses. However, there are also some very robust point solutions with niche functionality that are often used to supplement a larger ERP system.
ASC is a supply chain management software that easily integrates with an existing ERP system. It is suitable for warehouse management as it has the ability to utilize mobile, real-time devices at the point of activity. It also is able to eliminate batch-mode reconciliations.
Designed for the public sector, this vendor provides niche applications that can be implemented out-of-the box. The numerous, pre-defined best practices enable rapid deployments.
This solution also has many pre-configured best practices for specific industries. These include professional services, public sector, higher education and non-profit. The vendor has a strong focus on user experience and building strong client relationships.
Determine Your Company’s Goals
Once you understand your company’s goals, you can determine what type of ERP system will help you get there. While this list is a great start, it is by no means a complete list of all the ERP solutions we have found to be strong in functionality.
Panorama’s ERP consultants can illuminate more options for you, and help you understand complex terminology and imprecise buzzwords. We also can help you optimize your processes, outline your ERP requirements and select an ERP system that supports the company you want to become.
If this sounds helpful to you, request a free consultation below.