While many companies rely on operational and finance software to run their businesses, most have limited capabilities to help organizations foster future growth. ERP (Enterprise Resource Planning) software helps businesses manage day-to-day business activities and control the flow of data between different business systems. Cloud ERP software represents a step forward in helping organizations meet changing business needs.
What is cloud ERP software?
Traditional ERP platforms often operate as separate entities and do not always coordinate with other systems. IT departments had to set up complex code modules to meet the specific business needs of the organization.
Modern cloud-based ERP systems combine disparate processes into a fluid ecosystem. They connect with other productivity tools, e-commerce platforms and customer engagement solutions to help businesses uncover insights to optimize business operations.
Traditional cloud ERP software is installed in a company's server infrastructure. The company's IT department is responsible for updating and maintaining the ERP to keep the information current.
Cloud-based ERP eliminates the need for companies to maintain proprietary servers. Instead, information is stored in the cloud and shared between different departments. All ERP platforms store data in a shared database that supports multiple functions. Employees in the organizational field use the same information to complete business tasks without extensive changes to cloud ERP.
What benefits does cloud ERP systems offer?
ERP systems are used by all types of businesses. However, manufacturing companies use their platforms differently than the financial sector. A good ERP cloud solution can fit into any industry and help increase productivity and efficiency.
It enables organizations to simplify essential business functions, automate manual tasks and identify opportunities to improve current business processes.
Let's see how businesses of all sizes can benefit from cloud ERP software.
Any ERP platform needs regular updates to maintain optimal system performance or address issues such as security vulnerabilities. Completing these tasks in an on-premises ERP system consumes a lot of IT time and resources. If something goes wrong, end users may experience issues such as using a different or incomplete new software version.
Cloud ERP systems help companies avoid issues related to missing updates. If you sign up for a cloud ERP platform such as Dynamics 365, it is Microsoft's responsibility to ensure your version is up to date. This means less disruption to day-to-day business. Users are often alerted to important updates and training opportunities.
2. Less Maintenance Cost
Another benefit of a cloud ERP platform over an on-premises setup is reduced implementation costs. Not a lot of hardware is bought for a server. Cloud ERP systems are a cost-effective option for small and midsize businesses that don't have the resources to set up an extensive server setup.
Businesses don't have to think about hiring experts for maintenance or upgrades. If your business wants to expand, simply upgrade your current ERP subscription tier. Cloud ERP providers host and manage the software used to maintain the system and provide ongoing support.
3. Faster Deployment
Setting up an on-premises ERP takes time and a lot of effort. This can lead to extended company downtime, especially if projects are not completed on time. A cloud-based ERP platform can be up and running quickly because you don't have to worry about setting up any hardware. In some cases, you can set up a cloud ERP in just a few days.
4. Be more flexible
The problem with many legacy systems is that organizations find it difficult to extend them to support business growth. Most modern cloud ERP software systems are equipped with technologies such as artificial intelligence (AI) and machine learning (ML). These capabilities help organizations spot trends and make data-driven business decisions.
Cloud ERP systems often have integrations for use with other cloud-based business tools. You can create reports from a central data store and create seamless workflows for employees.
5. Better Accessibility
Recovering from a disaster that causes hardware failure can result in extended business downtime and costly repairs. Cloud-based ERP systems use servers located in geographically distinct data centers. This helps businesses maintain access to information on the Internet, which in turn helps keep business running.
6. 100% uptime production systems
Today with a global user base, everyone wants to achieve 100% uptime for their Production systems and provides both backup and disaster recovery for your ERP, in one solution. This solution offers clients an affordable and comprehensive solution to ensure their ERP systems are readily available in case of system issues or disasters. It gives them an alternative to traditional backup and disaster recovery solutions.
Most cloud platform architectures support without much hassle. The only pre-requisite is to have a good technical team who can support it.
Considerations for using cloud ERP software
Businesses should consider the potential challenges posed by deploying cloud ERP software, including:
- ♦ Migration issues arising from migrating from traditional on-premises ERP systems to cloud-based systems.
- ♦ There may be resistance from key stakeholders, including IT admins worried about losing full control over various back-end processes.
- ♦ Need to comply with strict cybersecurity restrictions or address industry-specific regulatory compliance issues.
It helps to work with an ERP cloud provider that has experience dealing with these issues. Without experienced mentoring, even the most talented IT professionals can struggle. Transitioning to a more modern way of doing business is easier with experts guiding your business through potential obstacles.
Get help setting up your cloud ERP system
Great Innovus can help you realize your desire to transform into a more efficient way of doing business. We can help you leverage cloud ERP systems and simplify the way your business operates. Learn more about what Great Innovus can do for you by scheduling a consultation to discuss potential solutions.