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ERP and Internet – IoT and ERP

This article is ideal for managers and decision-makers in companies that are considering implementing an Enterprise Resource Planning (ERP) system and those who want to learn more about the integration of ERP with the Internet of Things (IoT). It is also suitable for IT professionals who are involved in the implementation and maintenance of ERP systems and those who want to understand the benefits and challenges of cloud ERP. The article provides an overview of the relationship between ERP and the internet, the benefits of integrating ERP with IoT, the challenges and benefits of cloud ERP, and the selection criteria for choosing an internet-based ERP solution.

ERP and Internet
ERP and Internet

ERP and Internet or Cloud ERP refers to a system that operates on a vendor’s server. Users can access it directly online if they have a stable internet connection and a browser. It is an internet-based ERP. Cloud ERP software is more flexible because of the ease of access. As companies embrace a hybrid system of work, cloud ERP will become inevitable. A hybrid work system includes office and remote work. Hence, remote workers can benefit a lot from ERP and the Internet

Similar to on-premise ERP solutions, cloud enterprise resource planning systems represent a single source of data. They include several business management modules, allowing managers and other stakeholders to access relevant data in real time. An ERP with internet runs on the cloud and does not attract upfront licensing fees. The vendor provides software as a service (SaaS). Later in this article, you will learn the challenges and benefits of cloud ERP.

Internet of Things and ERP

To understand what the Internet of Things ERP system is all about, it is vital to know the meaning of IoT. So, what is the Internet of Things (IoT) all about? It is a network that contains all kinds of internet-enabled physical devices. Hence, IoT can refer to anything, including tablets, mobile phones, computers, laptops, cars, buildings, household appliances, and more. Internet of Things extends the internet connection possibility beyond computers and smartphones. Now when it comes to how the internet can enhance ERP, there is a vital relationship between the two.

Individual devices within the IoT network will provide unstructured data. The ERP software will then organize, analyze, and display this data in a way that users can understand. Internet of Things continues to grow and the main challenge experts have to deal with is data security. As IoT aims to connect millions of devices to the internet, it creates an opportunity for hackers to enhance their craftiness. 

IoT and ERP
IoT and ERP

How Modern ERP integrates using the internet

ERP automates workflows, leading to enhanced operations across the industries. The ERP landscape now is complex because of how swiftly the technology is changing. The process of implementing ERP software for large organizations can take about twenty-four months. Between the start and the end of the process, substantial technology changes can occur. It can be challenging to incorporate most of these technologies into the process because that requires money and expertise. 

So organizations want to focus on a solution that costs much less and is easy to integrate with the internet. The solution that best suits this description is cloud ERP. The ERP software runs in the vendor’s server at a much lower cost when compared to any on-premise ERP system. Companies using this solution do not require hardware to install the system. They also spend less time implementing a SaaS internet ERP solution

Again, users of the Internet of Things ERP do not need to worry about power backup or server maintenance because the vendor should take care of that. Concerning the impact of the internet on ERP systems, we can say that IoT may reduce the implementation time. As IoT development improves, it might soon bring down the cost of implementing the ERP. As IoT is a relatively new development, most companies do not trust it. 

As earlier hinted, IoT makes data security a major concern. Companies investing in ERP systems do not fully trust data that might come from an IoT network. These organizations have confidential data that could make some hackers millions of money. They aim to avoid any security gaps when implementing their ERP and integrating it with the internet.  

Despite the challenge, IoT connectivity can simplify data transmission and allow companies to access data they could previously not find. Cloud ERP software offers scalability so an organization should scale every new IoT device it adds to its network to successfully coordinate internet and ERP software. 

Apart from the data security and privacy risks it poses, IoT and ERP integration is beneficial for customer-facing and back-facing processes. 

What are the benefits of integrating ERP with IoT?

If companies decide to integrate ERP with IoT, they can benefit in the following ways: 

  • Improved data availability and quality – The amount of data available to organizations is increasing rapidly now. However, only a few of those willing to collect big data are ready for the challenges of handling it. By integrating ERP and IoT, companies can enhance data availability and quality. They can then use it for better decision-making processes. 
  • Receive real-time insights – Continuous data streams arising from IoT devices and sensors are valuable insights for a business. Managers can use these actionable insights to improve their decision-making processes. They can also convert their reactive approach into a proactive one.
  • Enhanced operational efficiency – Automation of various tasks can lead to better operational efficiency. That can happen after the integration of ERP with the internet and WWW. After this, a company can avoid missed deliveries, shortage of stock, and related issues. 
  • Better forecasting – IoT and ERP integration simplifies forecasting of consumer purchases and usage of a given product. It provides a direct connection between production and consumption. After analyzing huge quantities of IoT data, companies can make better supply chain decisions. 

Benefits of ERP and Internet (Cloud ERP)

How can a company benefit from implementing a cloud ERP system? As we said earlier, this software runs on a third-party platform instead of the company’s data center or firewall. An internet-based ERP system is:

  • Cost-effective – A company pays the ERP vendor for the services it uses. After the upfront investment, which is small, they do not incur costs for maintaining and updating software.
  • Stability – A cloud ERP is likely to be more stable because the vendor does everything in its power to keep it running. From constant updates to the removal of technical hitches to ensure uptime, a cloud ERP server is unlikely to disappoint users.
  • Mobile accessibility – Companies who hire remote workers or field workers can benefit a lot from using an internet-based ERP program. Workers can access the software from anywhere using internet-enabled devices. 

Challenges for ERP and Internet

Implementers are likely to face some challenges when trying to implement ERP software. These include the following: 

  • Change management – When introducing a major change to an organization, managers expect to deal with resistance. Ensuring that company culture is receptive to new ERP solutions is not easy. It is even harder when introducing an Internet of Things ERP system
  • Multiple devices can be hard to manage – Naturally, IT departments have complex work to do. When a company decides to integrate IoT and ERP, that’s an additional complexity to deal with. Even if the ERP provider runs the software in their server, they do not operate and manage the in-house IT environment. Data integration between the two systems must be impeccable and it is up to the IT workers to achieve this.
  • Teams need time to learn – When it comes to learning a new system such as internet integration technology in ERP, teams need adequate time. They also have to receive sufficient coaching and have tolerance for failure. Without enough financial resources, teams can take longer to learn how the Internet of Things can boost ERP.

Future of Internet ERP with Internet

What does the future hold for Internet ERP? Soon, companies will face compatibility failures due to the continued growth of IoT. They will struggle to meet and maintain IoT device standards, certifications, and system environments. Hence, companies may form partnerships to create ideal ecosystems for endless IoT data streams. The growth of the Internet of Things will trigger the accumulation of big data that will be harder to handle. Hence, it is likely that the future will bring new data processing software to help analyze the bulk data. IoT is hard to trust because of the possibility of causing data security and privacy issues. For that reason, companies will develop robust security solutions to increase data safety and confidentiality. 

Selection criteria for the Internet-based ERP

When selecting the best cloud ERP, what factors should a company consider? As there are many software solutions at their disposal, companies need specific selection criteria for Internet ERP. First of all, they must get an industry-specific internet-based ERP package. To get it, a company should consider its role in its niche industry. Retailers, manufacturers, and distributors have specific solutions that match their roles. It is also vital to reflect on the security model that a vendor uses to protect the client’s cloud system. Lastly, make sure you know the benefits that your company could get from using a particular internet-based solution.

Types of Internet ERP

There are different kinds of cloud ERP systems. It is upon your company to study the impact of the internet on ERP and choose the best solution. First, there are cloud models that use on-premise ERP infrastructure. These are known as private cloud ERP solutions that have on-premise and private cloud properties. A private cloud is an expensive cloud option to implement and run, unfortunately. 

The service as a Service (SaaS) cloud option is the best form of cloud ERP for small businesses. It is easy to implement initially because the vendor does it all on your behalf. However, you have to meet regular subscription payments. The proprietary cloud refers to similar to a private cloud only that the software vendor hosts data patches in their servers. It is cheaper and easier to deploy than on-premise private cloud solutions. Small enterprises can scale their proprietary cloud and they expand and grow. 


The integration of ERP with the internet and IoT has the potential to bring significant benefits to companies, such as improved data availability and quality, real-time insights, enhanced operational efficiency, and better forecasting. However, implementing an internet-based ERP system also comes with challenges, such as change management, managing multiple devices, and the need for teams to have time to learn. Companies need to carefully consider their specific needs and choose an internet-based ERP solution that fits their industry, security requirements, and budget. The future of internet ERP is likely to bring new data processing software and security solutions to handle the growing demand for IoT data.

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Ximple ERP for Small Business – SME

Small businesses can scale up their operations by obtaining an ERP for small businesses. ERP (Enterprise Resource Planning) software covers all areas of business management. It has different modules, and you can choose the ones that meet the needs of your business. Some modules include marketing, accounting and finance, human capital management, customer relationships management, project management, warehouse management, sales order management, supply chain management, and inventory management.

It is possible to configure ERP software in such a way that it covers all areas of your business. Many small businesses have limited financial resources. So they have to plan their expenditures based on the available finances. When choosing the best ERP system for small business entities, consider finances and more. But which software is the best choice for your SME, and how can you find it? We will attempt to answer these questions throughout this article.

ERP for Small Business
ERP for Small Business

Best ERP for small businesses

The best ERP business solution should meet all the needs of your business. Before choosing software, study all aspects of your enterprise and identify the gaps you can fill with ERP software. The top considerations when selecting the best ERP software for small business facilities include:

  • Your industry – Currently, there is a suitable ERP solution for virtually every industry. An industry-specific tool is easy to customize to match your needs. It is also the most appropriate choice because the manufacturer made it with your specific needs in mind.
  • Cloud Configuration – In these modern times, all businesses want to own a website and search for new leads online. Again, the majority of companies decided to try remote working when the coronavirus came. There are more than enough reasons to put your business operations online if you have not done that. You can start by buying small business cloud ERP software. Cloud ERP is easy to install, making it the most practical option for a small business. 
  • Open source – An affordable resource planning tool is the admiration of every small business owner. Although it has limited ERP modules and functions, it can still meet the needs of your small enterprise. 
Best ERP for small businesses
Best ERP for Small Businesses

ERP applications for small business

There are many ERP tools to choose from. However, you need to know the actual use of ERP in business when selecting the best. Are there specific roles you struggle to do without the software? Can ERP tackle these challenges effectively? You need to understand the ERP’s impact on business operations. Here is how you can apply Enterprise Resource Planning.

  • Accounting and finance – A business of any size needs to capture every transaction it encounters daily. Through proper bookkeeping, you can account for every cent, manage the allocation of resources, and release accurate financial reports. 
  • Business Intelligence – This module can help your small enterprise analyze and report relevant data to streamline decision-making.
  • Customer Relationships Management – Your small business relations with customers, are crucial. You must strive to maintain a good relationship with your customers all the time. Luckily, you do not have to buy a separate CRM software tool when a similar module is in ERP software.
  • Human Capital Management – Human resources are some of the most crucial assets of a business of any size. To manage the affairs of your human resources well, you can pick one of the best ERP business systems. The software has an HCM module that can let you administer payroll issues.
  • Inventory management – To keep the operations of your business running, you must ensure proper inventory management. With ERP, you can see the movement of your stock to know when to replenish the units.
  • Marketing – A marketing module can help you with attribution. You can see how your marketing campaigns are going to decide where to allocate a bigger budget. An ERP for a small business can simplify your marketing role.

You can have many business modules in ERP. However, it would be best to consider that the more modules you have, the more expensive the software may become. So it would help if you chose a few applications that matter to your business. 

Cloud ERP systems for small business

A modern cloud ERP solution is better than any legacy system because it has more advanced features. Besides the typical applications, you can access features like collaboration, advanced analytics, mobile device support, etc. Additionally, cloud solutions offer scalability. When your small business begins to grow, more back-office functions might crop up.

You cannot resist buying a scalable ERP tool with more customers to serve, extra currencies to process, and additional suppliers to trade with. This is a software product that you do not need to replace soon. If you want to be smart when running a business, choose cloud ERP because it is more cost-effective.  Featuring an affordable one-time subscription, cloud ERP keeps your initial ERP cost low. Remember that ERP cost for small business entities matters a lot because your resources are limited. If you deploy an on-premise legacy system, it will require considerable capital expense now and in the future because you have to maintain it.

Best ERP software for small and medium enterprises

Note that cloud platforms for small and medium enterprises differ in some ways. When choosing the perfect one for your needs, consider the differences in these models. 

  • Hosted Single Tenant – Another name for this model is SaaS(Software-as-a-Service). Therefore the ERP software vendor will host the solution in a server found in their data center. It provides privacy because you do not have to share. 
  • Multi-tenant SaaS – The other name for this model is the public cloud. It means that a single vendor server hosts all customers. However, there are no security loopholes; however, each client’s ERP application data is safe from intruders.
  • A private cloud requires you to purchase and become the owner of an ERP software system for small businesses. A private cloud does not stay on a server at a physical site. Its home is intangible as it runs on a cloud infrastructure leased from a third party.

Based on what we have stated above, which model would you like to buy for your small or medium-sized business? The most appropriate cloud-based ERP software for small business operations is the multi-tenant SaaS. It is cost-effective and the simplest to set up and install. Even if it does not offer the same privacy level as the other two options, the multi-tenant SaaS is easy to update and use. It is the vendor who does the most complicated job for small business owners. ERP for small enterprises

As we have hinted above, the most appropriate ERP for small enterprises is the multi-tenant SaaS. It is a cost-effective solution because you do not have to buy or install anything. It is the vendor who runs, safeguards, and maintains their server. It is their job to make sure that you are using the most current software version.

This model is still the best because you can continue to use it when your business grows. If you are not good at IT activities, the multi-tenant SaaS model is ideal for you. Some enterprises still cannot operate a paid ERP tool. In such a situation, the most appropriate solutions are open-source software tools. Open-source ERP comes with a source code.

Another option is the Free Proprietary small businesses ERP. Although these versions do not have all functions, they can meet the needs of some small enterprises. They can be a good alternative when you cannot afford Proprietary ERP tools like cloud ERP for small businesses.

Best small business cloud ERP

When considering the best cloud ERP for your small business, what capabilities are a must-choose? The built-in capabilities of a cloud infrastructure matter a lot. The features of different cloud-based ERP solutions are diverse and unique. So, which ones do you need? 

  • Unwavering security – When your critical business data is online, it is vulnerable to theft. So, select a tool that provides multi-level security, automated data backup and recovery, and reliable data centers.
  • Mobility – Remote workers will depend heavily on your cloud ERP business software. As a result, you need to check the compatibility of your software with mobile devices like smartphones and tablets.
  • User-friendly – Some of your ERP users do not have IT knowledge. So it would help if you considered them as you select an appropriate cloud ERP.
  • Collaboration – When work teams join forces and share information, they become more productive. Even a simple ERP for SME organizations should allow social collaboration.
  • Easier integration – Do not choose cloud ERP solutions that cannot work flawlessly with your applications. Focus on how easy it would be to connect to other data sources from your ERP.

Small Business ERP for Grow Business

Small companies are the majority in most countries. To ensure that your company stands out from the crowd of same-size enterprises, you need the best web-based ERP for small business entities. It will address specific functions that are important to your organization.

Since there are several options out there, you may require help when selecting the best option. If we have to mention a few reliable products, then we would recommend Ximple Solutions ERP ahead of any other. Explore it now to see how comprehensive and practical it is for small companies. Other options worth mentioning include Acumatica, Sage 100 Cloud, Sap Business ByDesign, and Oracle Netsuite ERP.

To conclude, we hope you have learned valuable tips from this article. Now you know why we use ERP in business management. Make sure you buy the one that can satisfy every business need you have. It should be cost-friendly, of course, and run on a cloud infrastructure.

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