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blog | April 07, 2014

The Latest ERP Software Trend: Component-Based Approach

As a child of technology, enterprise resource planning (ERP) software continues to steadily evolve over time. The latest trend, which accelerated during the recent economic downturn, has been to...

By WorkWiseSoftware

As a child of technology, enterprise resource planning (ERP) software continues to steadily evolve over time. The latest trend, which accelerated during the recent economic downturn, has been to move away from the traditional legacy ERP software systems and towards a more component-based (componentized) or modular ERP environment.

In a componentized environment, the colossal legacy ERP system has been redesigned and “modularized,” or broken down into separate functional ERP components or modules. These modules include distinct business processes and applications such as Financials, Planning, Human Resources, Manufacturing, Engineering, Shop Floor and Supply Chain, that can either stand alone or be integrated into one all-encompassing ERP system.

The innovative componentized approach comes with so many benefits it’s easy to understand why it’s gaining steam. Not only does it offer greater flexibility, it also delivers the opportunity for decreased or more controllable costs. Rather than having to upgrade or implement their entire legacy ERP software system, in a component-based ERP environment, businesses can incrementally upgrade or add-on certain modules over time and as needed. The flexibility to add-on modules or upgrade on an as-needed basis saves the company money, offers greater control, and allows for more achievable goals. It also gives businesses the ability to modify strategies more quickly and easily.

There is certainly pressure for change in the ERP software world and it will be interesting to see how everything pans out.

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