March 8, 2022
As technology continues to evolve, enterprises of all sizes are considering cloud ERP. The related popularity is largely a result of factors including cost, reliability, speed, and ease of access.
ERP software systems are usually one of the most significant investments a company can make. Not only is it a major financial decision, but it is also a practical one that can impact all parts of your business including accounting, human resources, manufacturing, marketing, etc. But, before selecting a new system, businesses should research currently available solutions and ERP trends in the near future.
ERP, stands for enterprise resource planning, a type of software used by organizations to manage information across departments. Cloud ERP refers to software and tools that are offered and managed in the cloud, rather than the business hosting their system on-site. To achieve growth, companies need advanced, globally-connected, and continuously updated software tools and systems that let them focus more of their time and energy on growth initiatives rather than managing their daily IT affairs. That’s where cloud ERP comes in.
Cloud ERP is now more popular than ever among businesses. But why?
Scalability: Cloud ERP enables businesses to scale their operations. It allows teams and partners to access information globally as well as benefit from world-class security and monitoring, which allows you to grow rapidly without worrying about security.
Rapid updates and upgrades: In the case of cloud-based ERPs, updates are considerably faster and easier. The update process is another area in which cloud ERP systems offer major improvements over traditional on-premises ERP systems. With a cloud ERP, you’ll be able to update and upgrade your software and tools instantly and continuously, so you don’t have to worry about keeping up with the latest technology. On top of that, you don’t have to spend time updating your system as you would with an on-premises ERP system and you don’t have to hire someone to do it for you.
Cost transparency: Cloud ERP systems are transparent and predictable when it comes to cost. You can either subscribe on a monthly basis or pay per use of a SaaS model. Moreover, cloud ERP does not incur unexpected costs related to software updates and tech upgrades, since they are handled by the vendor.
Fast, flexible implementation: Cloud ERP systems are much easier and faster to implement because SaaS providers handle the hardware and software installations and provide dedicated data center, management staff. Cloud-based ERP applications can be configured easily, and the intuitive user interface makes learning the app fun and easy – allowing businesses to be more productive and take advantage of opportunities.
Improved Productivity: By automating the process of data entry, ERP, therefore, eliminates time-consuming and tedious tasks within the software and allows users to perform large calculations instantly. It saves the team members more time and increases your ROI in terms of workers. As a result, your business will be more productive, efficient, and profitable.
Enhanced accessibility, mobility, & usability: Cloud ERP offers several advantages over other ERP deployments. As your ERP system is managed in the cloud and is global-ready, your team has access to the tools they need from anywhere whenever they have an Internet connection and a phone. The information can be accessed in real-time, so key business decisions can be taken without requiring everyone to be in the same room or to access the ERP system from the same location. This approach helps you build a more agile team and the increased accessibility and collaboration boost productivity both inside and outside the organization.
Personalized Customer Experience: Customer satisfaction is important in this digital era and a better way to enhance customer satisfaction is to supply customer-centric products and services. As cloud-based ERPs normally come with Customer Relationship Management (CRM) tools or one that’s easily integrated, it’s possible to achieve this easily. The CRM works in tandem with ERP to integrate data from all business operations.
Security standards and compliance: Cloud-based ERP has world-class security support and customer protection. Cloud-based ERP systems handle data backups, disaster recovery, and security with ease. As cloud ERP systems are more complete, connected, and collaborative, they avoid vulnerability at the points of integration and reduce risks associated with a multi-vendor landscape, providing you with greater uptime and peace of mind.
Reduce your business’ carbon footprint: Many businesses don’t stop to think about the amount of energy that an on-premises server room consumes. Of course, saving energy can also be quite beneficial. ERP systems hosted on cloud servers are often multitenant, which consolidates multiple clients onto dedicated servers that manage storage and bandwidth efficiency. Despite the small number of businesses switching from on-premises ERP to the cloud, it is actually a big deal in the future for many companies to head in this direction.
Business leaders are now obliged to push traditional boundaries, in these critical times in light of an increase in cloud spending. According to Forbes, cloud ERP spending will reach more than $258 billion by the mid of 2022. In light of all this, it is evident that the cloud is reshaping ERP landscapes. Businesses of all sizes and from various sectors seem to be taking advantage of the cloud revolution. Yet the question that remains is whether businesses are ready to lead the transition.