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What are the Different Types of ERP Systems?

Types of ERP Systems

An Introduction to the most Popular Types of ERP Systems

What if there was a tool that allowed you to integrate, automate, and store all the business-related information and functions in a single centralized area? You would then be able to manage, collect, interpret and share the data across various departments within the company in real-time. If that sounds like something you are looking for, you are in luck! All the functions mentioned above are taken care of by the various types of ERP systems available today.

ERP systems can be industry-specific or general, and you can also find ERP systems that are specially designed for businesses of various sizes. All the different ERP systems and modules fulfill specific roles, and if you are planning to implement an ERP system, you would need to find the system or module that fits your business the best.

What are the Types of ERP Systems?

Before we get into the types of ERP systems, we should briefly discuss what ERP stands for and what it does. Enterprise Resource Planning, also known as ERP, is business process management software, designed for optimizing business processes. It provides a system of centralized and integrated applications that help you automate and manage a diverse range of business operations, which include inventory management, sales, accounting, and human resources.

Unlike individual software designed for specific tasks, ERP is an integrated system that ties multiple business processes together and also promotes the sharing of data between them. It not only reduces the duplication of data but also improves the overall quality of data. Efficient ERP systems allow organizations to save time and enjoy increased profitability and efficiency.

Several different types of ERP systems are available today, and each of them plays a crucial role in business operations management. However, classifying ERP systems into specific categories can be difficult due to the fluid nature of ERP dynamics and the range of factors that affect them. Instead, we can group ERP systems by business size, functional levels, and deployment to give you a sense of the various types.

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1. Small Business ERP

These are typically off-the-shelf on-premise or cloud ERP solutions. More often than not, these ERP systems are modularized to include pared-down features. That means they are reduced to their simplest form with no unnecessary features. Small business ERPs don’t deliver fully integrated systems. Instead, they serve one or two primary business processes and leave out the rest. For instance, you may find a small business ERP solution that features accounting and human resource management options only. It may offer additional options for supply chain management, inventory, or CRM, but that would likely increase the cost. Because of this, small business ERPs are often described as lightweight ERPs.


  • Small business ERPs are usually designed to be reasonable and suitable for the budget constraints of small businesses.
  • They can be easily scaled up or down based on the requirements of the business.
  • Small business ERPs can be customized to meet exact business requirements and processes.


  • Small business ERPs may not have as many evolved features as larger enterprise-level ERPs.
  • The level of customer support and assistance may be lacking compared to larger ERP providers.
  • Small business ERPs may not have industry-specific functionality needed by businesses in niche industries.

2. Vertical ERPs

Vertical ERPs are industry-specific, and the vendors are typically startups and small-scale companies that want to focus on a niche such as retail fashion, supermarket distribution, or construction. As the name suggests, vertical ERPs are designed specifically to address the requirements of a particular industry, and they support clearly-defined business processes that are unique to a specific sector.


  • Vertical ERPs are designed to cater to the specific needs and processes of a particular industry, providing specialized features.
  • They often have built-in compliance features that ensure businesses adhere to industry-specific regulations and standards.
  • Vertical ERPs streamline industry-specific processes, leading to increased efficiency and productivity.


  • Vertical ERPs may be less flexible compared to generalist ERPs, as they are tailored for specific industries and may not easily adapt customizations.
  • Vertical ERPs can be more expensive than generalist ERPs due to their specialized nature.
  • The range of vertical ERPs available may be limited compared to generalist ERPs, making it harder to find the right fit for a business.
Different types of ERP

3. Open-Source ERPs

Open-source ERPs occupy a tiny fraction of the entire ERP market, but if you have an in-house tech team in your company, these ERPs solutions may offer you the flexibility of developing and integrating your apps into the ERP. Open-source is the best ERP system for developers because they increase usability and user adoption by churning out highly customized processes.


  • Open-source ERPs are generally free to use, making them an affordable option for businesses with limited budgets.
  • It provide the flexibility to modify and customize the ERP system to suit specific business needs.
  • Open-source ERPs often have vibrant communities of developers and users who contribute to ongoing improvements, bug fixes, and support.


  • Implementing and maintaining open-source ERPs can require technical expertise and resources.
  • The level of professional support may be limited compared to commercial ERP providers.
  • Open-source ERPs may face integration challenges with other proprietary or legacy systems, requiring additional development efforts.

4. Generalist ERPs

Many cloud and legacy ERP solutions are generalists. These systems are capable of adapting to various processes across industries, and they also have strong integration and customization capabilities that allow them to fulfill a range of industry requirements. It goes without saying that the generalist ERP market is the largest and the vendors that offer it are also some of the biggest names in the industry. These are some of the most common types of ERP systems that you will find in today’s market. You may find a range of ERP solutions that fall under these groups, but the specific names of the ERP solutions or their features may vary based on what the particular vendor is offering.


  • Generalist ERPs offer a comprehensive suite of features that can cater to various business functions like finance, HR, supply chain, etc.
  • They are designed to support the growth and expansion of businesses.
  • Generalist ERPs are offered by well-established vendors with extensive support systems and resources.


  • Generalist ERPs can be more expensive, especially for small businesses, due to the broad range of features they provide.
  • The extensive features and functionalities of generalist ERPs can make them complex to implement and navigate.
  • While generalist ERPs offer customization options, they may not be as flexible as specialized ERPs in accommodating specific industry requirements.

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Find the Best ERP Systems for Your Needs

With business processes becoming more and more complex, the need for capable and efficient ERP systems is continually increasing. Furthermore, the COVID-19 pandemic has forced companies to adjust to the largely unfamiliar territory of remote work infrastructure. Although some companies have been able to make that transition fairly smoothly, organizations with complex business processes have found it rather difficult.

In this scenario, the best way to keep the business running efficiently is to rely on cloud ERP solutions. Though most businesses today have some form of ERP system in place already, those that do not should seriously consider investing in it. If you are struggling to find an affordable yet high-quality ERP solution that will suit your business needs perfectly, get in touch with iTrobes.

Check Out iTrobes for Custom ERP Solutions

iTrobes is one of the leading custom software development companies in India with a keen focus on helping businesses reach their full potential. Since our inception, we have developed a range of innovative solutions to simplify business processes and maximize profits in the long run. We can not only help you learn more about your ERP needs, but we can also help you choose the best solution.

Our custom ERP solutions are suitable for businesses of all sizes and types. Whether you own a startup or a large enterprise, we can help you find the most reliable ERP solution based on your needs and budgetary constraints. We can implement and customize the systems so that they function to their fullest potential. To know more about the type of ERP systems we offer, get in touch with us today. Give us a call or drop us an email with your query!