Types of ERP systems: SaaS vs on-premise

When choosing your ERP, one important decision is how to host it: will you manage the servers yourself (on-premise) or use a cloud-based service (SaaS)?

Each has its own pros and cons to weigh up, and understanding the differences between them clearly is essential for making an informed choice.

On-premise ERP

On-premise ERP systems are installed directly onto an organisation’s internal servers and infrastructure. This deployment model allows businesses complete control over their ERP environment, including system customisation, data management, and security practices.

However, this level of control comes with higher upfront costs, including initial hardware investment, software licensing, ongoing maintenance, and dedicated staffing requirements for IT support. While on-premise solutions can offer considerable flexibility for highly customised processes, they also involve longer deployment timelines and less agility when it comes to updating or scaling the system.

SaaS ERP

Software as a Service (SaaS) ERP solutions are delivered via the cloud, removing the necessity for significant upfront investments in hardware and infrastructure. This model is ideal for organisations seeking flexibility, scalability, and rapid deployment. SaaS ERP systems are supported by the vendor, ensuring automatic updates, real-time security enhancements, and ongoing compliance without placing added burdens on internal IT teams.

Businesses choosing SaaS ERP solutions benefit from reduced implementation times, lower initial costs, predictable subscription-based pricing, and the ability to scale rapidly and seamlessly.

Why choosing the right ERP features is critical

Choosing the right ERP features can make or break your business efficiency, competitive edge, and ability to grow smoothly.

The right ERP system not only streamlines workflows but also enhances productivity by offering powerful insights into organisational performance. It enables businesses to swiftly adapt to technological advancements, regulatory changes, and evolving customer demands, ultimately driving sustainable growth and innovation.

It can also be costly to choose the wrong ERP features, or to underestimate what your organisation needs from an ERP system. For example, the Federal Government announced in 2023 that it was scaling back its failed GovERP project, which ended up costing over $400 million and did not deliver what was intended.

Must-have features in a modern ERP system

When selecting an ERP solution, prioritising these essential features can ensure a successful implementation:

• SaaS and hosted (cloud-based) deployment
• Integrated platform
• Industry-specific configurations
• Robust analytics and reporting
• Mobile access and remote capabilities
• Comprehensive data security and compliance
• Workflow automation
• User-friendly design
• Scalability and innovation
• Predictable and transparent pricing

SaaS and hosted (cloud-based) deployment

Modern ERP solutions like TechnologyOne’s SaaS+ give businesses the flexibility to adapt quickly without heavy upfront costs. Because the system is managed off-site, your IT team can focus less on maintenance and more on strategic priorities.

SaaS deployments significantly reduce the burden on internal IT resources by managing infrastructure externally, allowing your teams to focus on strategic initiatives. Hosted solutions offer seamless updates and a consistently high level of service availability, ensuring business continuity and operational efficiency.

Organisations benefit from the flexibility provided by cloud-hosted ERP systems, which can rapidly scale according to organisational growth or seasonal demand fluctuations. Additionally, the reduced need for physical IT assets contributes significantly to a lower environmental footprint and aligns with modern sustainability goals.

Integrated platform

Having all your key business processes in one ERP system ensures your data is reliable and easy to manage. With TechnologyOne’s 'Power of One', teams across your organisation can collaborate effortlessly, seeing the same accurate information at the same time in one centralised platform.

This integration is particularly valuable in providing executives and operational leaders with a comprehensive view of organisational performance, allowing for informed and agile responses to changing market conditions.

Industry-specific configurations

Pre-configured ERP systems tailored specifically to sectors like education, government, local government, and financial services enhance effectiveness and seamlessly address industry-specific challenges and regulatory requirements.

These tailored configurations significantly reduce implementation times and ensure that the ERP solution effectively supports unique industry workflows and compliance needs.

Additionally, industry-specific ERP solutions provide targeted functionalities designed with sector-specific best practices in mind.

Robust analytics and reporting

Advanced analytics capabilities in ERP software help your business quickly see trends and make smart decisions. With real-time insights, you’ll know exactly how to respond to opportunities and challenges as they arise.

Real-time reporting and visualisation tools integrated within ERP systems allow users across the organisation to access data insights quickly, democratising information and fostering data-driven decision-making at all levels.

Mobile access and remote capabilities

With the rising demand for flexible working environments, ERP solutions must offer mobile-friendly interfaces. These interfaces enable employees to access critical information and perform tasks remotely with ease and efficiency. Mobile ERP capabilities enhance productivity by allowing real-time updates and interactions from any location.

This flexibility not only supports operational continuity but also enhances employee satisfaction and efficiency by providing a consistent user experience regardless of device or location, which is essential in today’s remote and hybrid work environments.

Comprehensive data security and compliance

Data security and regulatory compliance are fundamental requirements of any modern ERP solution. ERP systems manage vast amounts of sensitive information, including financial records, employee data, customer details, and intellectual property. Robust security protocols, such as advanced encryption, multi-factor authentication, and continuous security monitoring, ensure that this critical data is protected against breaches and cyber threats.

Compliance is equally critical, particularly in heavily regulated industries such as government, healthcare, education, and financial services. Modern ERP systems assist organisations in adhering to stringent regulatory standards such as Australia's Information Security Registered Assessors Program (IRAP).

Automated compliance tracking, audit trails, and regular system updates help organisations effortlessly maintain regulatory compliance.

Workflow automation

Automation built into ERP systems makes routine tasks quicker and easier, reducing errors and freeing your staff for more meaningful work. By automating workflows in areas such as finance, procurement, human resources, and asset management, ERP systems reduce manual tasks, minimise errors, and increase efficiency, all while reducing ongoing costs.

This automation allows employees to dedicate more time and resources to strategic, high-value activities rather than administrative tasks. Moreover, automated workflows improve consistency and transparency within operations, enabling clear tracking and accountability at every stage of the process.

User-friendly design

A user-friendly ERP system - characterised by intuitive interfaces, logical navigation, and minimal complexity - means your staff will be happier, learn faster, and get more done. Good design helps people quickly understand the software, reducing frustration and boosting overall productivity.

See our Digital Experience Platform (DxP).

Scalability and innovation

A scalable ERP system grows with your business, preventing costly interruptions or the need for frequent replacements. It easily adapts as your workload increases or your business processes change.

Continuous innovation within ERP systems further ensures they remain relevant and effective in an ever-changing digital environment. Regular updates and feature enhancements provided by SaaS ERP solutions, like TechnologyOne’s SaaS+, enable organisations to adopt the latest technological advancements swiftly.

Predictable and transparent pricing

ERP implementations have historically faced challenges related to unexpected costs and budget overruns. Modern ERP vendors provide transparent and predictable pricing models that mitigate these risks, ensuring organisations can accurately forecast expenses and manage budgets effectively.

Subscription-based models, such as TechnologyOne’s fixed annual pricing, provide clear and predictable cost structures, eliminating hidden fees or unexpected charges. This approach significantly improves budget planning, financial transparency, and overall cost management.

Unlocking business benefits with modern ERP software

With a well-chosen, modern ERP system, your organisation can achieve tangible results: higher productivity, smoother operations, clearer data insights, and cost savings that you’ll notice right away. Read our comprehensive guide below to learn more about each of the main benefits of implementing ERP software.