What are the Different Types of ERP Systems?

  • November 15, 2022
  • Jhansi Rani
  • 0
Published On November 15, 2022
Several companies are transforming digitally to automate processes, reduce manual work, upgrade legacy systems and practices, and streamline workflows. ERP Systems provide an integrated suite of applications that help you manage and automate several business processes, such as finance, accounting, human resources, sales, customer support, and inventory. ERP systems have a modular structure but serve as a unified database for the entire organization.

Different Types of ERP Systems

Different types of ERP systems are available in the market, making it time-consuming to look through them and find the one that best fits your requirements. We have listed some of the main types into which ERP solutions are classified:

Custom Solutions

Custom ERP systems can be built by an ERP development company of your choice and can be tailored to your specific requirements, industry, or business processes.

Readymade Solutions

A readymade or off-the-shelf ERP solution is a pre-built package with advanced capabilities out-of-the-box, and you can configure it according to your needs.

Cloud Solutions

Cloud-based ERP solutions are hosted on servers belonging to the cloud provider that can be accessed over the internet. It is easier to measure the long-term cost as cloud software is based on a recurring pay-as-you-go model. It is usually the best option for small businesses due to the low upfront costs. Cloud-based ERP solutions like Oracle Fusion Cloud ERP can be implemented quicker than on-premises counterparts, and you won’t need specialized IT resources to maintain the system as the cloud provider handles maintenance.

On-Premises Solutions

On-premise ERP solutions are installed on your servers and hardware. The pricing is determined based on the company size and the number of users, and the entire license cost is paid upfront. You control the system and can customize every aspect of the solution, but you need IT experts to regularly maintain and update your software.

Hybrid Solutions

Hybrid solutions combine different ERP systems, allowing you to modify or enhance your ERP solutions by developing new modules or integrating custom features. You can also opt for a combination of on-premises ERP solutions with a private or public cloud for storage, computing, or networking.

Generic Solutions

Generic enterprise resource planning software provides various functionality for organizations across multiple industries. Generic systems offer sound financial management and accounting tools but offer much for operations. A generic ERP works well as the first system for niche businesses that don’t have specialized processes and typically costs less than industry-specific ERP systems.

Industry-Specific Solutions

Industry-specific ERP solutions are tailored to a niche industry or vertical like manufacturing or distribution. They provide basic modules and tools with additional features suited to a specific sector that generic ERP solutions do not offer. Industry-specific solutions have dedicated features and tools to complete tasks unique to particular industries. You might have to integrate third-party solutions or develop a custom solution from scratch to perform the same functions as a generic solution.

ERP for Small Businesses

Small businesses with less complex operations generally don’t need a full-fledged system with advanced functionality. Moreover, small companies usually have tight budgets and opt for a lightweight ERP that might lack some features or modules but fits the requirement. Cloud-based ERP solutions like Oracle Fusion Cloud ERP are perfect for small companies as they provide the essential tools and features at a lower upfront cost. You do not need a specialized IT team to maintain it, as the vendor manages everything. You can also expand the system and add new functionality whenever your business demands it.

ERP for Midsize Businesses

Midsize companies usually evaluate new ERP solutions when they outgrow their existing disconnected systems. They seek to automate manual processes and improve visibility into operations. Midsize organizations typically don’t require a lot of customization, but those that do should opt for a custom ERP solution. Oracle Fusion Cloud ERP is a good fit for midsize organizations as well.

ERP for Large Enterprises

Large enterprises usually opt for on-premises or hybrid ERP solutions as they offer better control and functionality. They can connect different departments and share information with other teams across locations. Companies with global operations can also standardize their processes and workflows and ensure employee access to the needed databases and tools. Enterprise-level ERP solutions typically have extensive modules, tools, and features that can be customized and extended to meet unique requirements.


Several ERP solutions are available in the market with specialized modules that can transform your operations and maximize efficiency. End-to-end suites like Oracle Cloud Applications can automate, integrate, and house all your business information in a centralized system, allowing you to store, manage, analyze, and share data across the organization in real-time. Cloud-based ERP solutions like Oracle Fusion Cloud ERP are modular, flexible, and well-equipped to address the needs of organizations of all sizes in any industry.
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