Types of ERP software


ERP software is a huge milestone in the field of management services. Businesses prefer using a systematic mechanism for their business instead of a random management system.


ERP software has different types and features, based upon the size and nature of the business. 


Different ERP software providers offer different types of software, integrated with different modules suitable for their clients.


The classification of ERP software is based on different factors. Two major factors include:


  • Type of ERP software based on the size of the business
  • Type of ERP software based on the industry specification


Type of ERP software based on the size of business:


ERP software has different types based on the size of the organization. Each of the types functions the same, but some additional functionalities are added in different types of ERP software based on the size of the business. 


  • Tier I
  • Upper Tier II
  • Lower Tier II
  • Tier III 


Tier I:


Tier I ERP software is designed for large-sized businesses. Businesses that use Tier I ERP software are structurally complex and have a sophisticated business. Tier I ERP software is designed to manage complex businesses, they are integrated with extra features to cope with rapid scalability and rapidly developing business processes.


Moreover, businesses with exposure to multiple industries and multiple units used Tier I ERP software.  


Upper Tier II:


Upper Tier II ERP software is preferred by small and medium-sized enterprises. Businesses that use upper Tier II ERP software have exposure to more than one industry and have more than one unit.


Upper Tier II ERP software is integrated with different management modules to manage business resources like HRM, CRM, and FRM.


Lower Tier II:


Lower Tier II ERP software is also used by small and medium-sized businesses. Businesses that used Lower Tier II ERP software are smaller in revenue size and are simpler in business structure.


Moreover, lower Tier II ERP software is used by businesses that have exposure to one industry and have one unit.


Tier III: 


Tier III ERP software is only used by small-sized businesses. Businesses with only one industry and one unit use tier III.


Tier III ERP software is designed to manage small resources. It can formulate businesses that are low in revenue and lesser in resources. 



Type of ERP software based on the industry specification:


Another factor that distributes the ERP software into different types is industry specification.


Different industries demand different types of ERP software. The specification of ERP software varies in different industries. For example, a manufacturing business needs a different type of ERP software and a service-based business needs another type of ERP software. These specifications vary as the nature of the business changes. 

Business types and their ERP software:


Following the most common types of business:


  • Manufacturing
  • Distribution
  • Servicing


ERP software for the manufacturing business:


The manufacturing business is the most complex business model. It requires a lot of processes running at once. From procurement of raw material to production, from production to packaging. Other than that, sales, marketing, finance, and human resource management are commonly active departments. All the processes are managed at once.


Moreover, an increase in the size of the manufacturing business increases the complexity of business management.


To centralize the management process and monitor the whole business, ERP software is used by manufacturing businesses.


It is observed that manufacturing businesses that implement ERP software for their business describe it as successful. According to a survey, 67% of the manufacturing business that uses ERP software consider it a success. 


Other than that, centralized data collection and reporting help managers with better decisions especially for manufacturing businesses.  


ERP software for distribution businesses:


A second common business type is the distribution business. This business type requires strong connectivity between all its units, to make sure that the business is running seamlessly. Hundreds of thousands of vehicles, tens of loading and unloading points, hundreds of clients, and thousands of employees and contractors, the distribution industry is a difficult business to manage.


ERP software providers develop some advanced features specially designed to manage distribution businesses. Moreover, the data collections and communication modules are upgraded to avoid any distress in the business process. 


Data from every line and point can be observed in runtime through ERP software designed for manufacturing businesses.


ERP for servicing business: 


Servicing business is a rapidly expanding industry. With the increase in the size of the industry the complexity of the business process increases. Problems related to business management arise because the servicing business industry includes thousands of people and clients.  


Management is always a concern for businesses and when the business includes different resources the complexity of business management increases. To  manage the business resources business started to use ERP software.


ERP software enhances the productivity of the business process and helps organizations to manage their resources efficiently.


Other than that, ERP software for servicing businesses has included advanced performance evaluation tools and data analytical modules that can help decision-makers in better decision-making.


Cloud-based ERP software and On-premises ERP software: 


Another categorization of ERP software is on-premises and cloud-based ERP software. The major difference between each type is their database and mode of installation & operations.


Cloud-based ERP software has a cloud-based database that records all the data on the cloud. Moreover, cloud-based ERP software can be accessed remotely and does not require on-premises installation.   


On the other hand, on-premises ERP software requires an on-premises system installation. It cannot be accessed remotely and does not have a cloud-based database.


 CISERP; a complete management solution for every business: 


CISERP is a complete solution for business management. Businesses all over Pakistan have chosen CISERP as their ERP software.


CISERP is integrated with different modules to effectively contribute to the efficient management of a business’s resources. 


With 30 years of excellence and trust, CISERP is the best cloud-based ERP software in Pakistan.