Implementing or updating an ERP system is a large venture for any business; however, the improved ability to facilitate operations is well worth the investment. ERPs possess the ability to govern financials, manufacturing, and production, and therefore a good deal of sensitive business data is often held within them. But concerns over data security aren’t stopping companies from moving their ERP operations into the cloud.
The cloud is becoming a staple for businesses large and small, allowing for better scalability, customization, cost, and maintenance of key software systems. Cloud-based alternatives have been gaining momentum across the tech scene for years, allowing for improved operations paired with a lower financial risk. As a great many large companies come on board, cloud-based ERPs are swiftly becoming the norm. Take a look at the key benefits of cloud-based ERP below, as well as where it’s headed in 2016.
Real-time Updates and Cost-effectiveness
Many legacy ERP systems can be a headache to update. Paired with the cost of IT and the maintenance and upkeep of supporting on-premise hardware, older ERP systems are beginning to have a difficult time competing with the latest and greatest cloud offerings. A cloud-based solution offers businesses the ability to pay for only what they use, such as charging on a per-user basis. In comparison, on-premise solutions must often be purchased outright, presenting a hefty financial up-front risk. Alternatively, cloud solutions can often be rented monthly, reducing the cost of implementation and upkeep while offering improved scalability.
Scalability and Performance
In a rapidly changing business environment, scalability and customization are key components to supporting growth. As billing and sales models are adjusted, services are added, business goals are redefined, and new processes are formulated, an ERP must be flexible enough to keep pace while causing minimal strife and struggle within the organization. By providing access via the internet, cloud-based ERP systems offer companies the ability to grow without having to fortify in-house hardware and software platforms or purchase more than they need up-front. Performance issues also become a thing of the past, and efficiency and speed can be maintained regardless of company size.
Companies making acquisitions or mergers can benefit from consolidating all ERP systems into one cohesive, scalable cloud platform. With better information flow between departments, processes can be streamlined and combined to reduce the disparity between the abundance of data sets often encountered in businesses without a centralized ERP system. Accessible from everywhere, a cloud-based solution reduces the need for such redundant data sets or information that is repeatedly handed from one person to another. This can help eliminate the possibility that data integrity becomes compromised somewhere along the line.
The ability to automate more processes can help free up resources, increase accuracy, and lower the overall cost of running the business. Cloud-based ERPs allow for customization that can help take the manual effort out of processes that would otherwise require workarounds and handholding. In addition, by reducing the lag time between updates, businesses are no longer constrained by outdated systems and time-consuming, imperfect processes. Many company workflows can be removed, replaced, or improved by the automation available through the implementation of a cloud-based ERP system.
Enterprises across a great many industries are turning to cloud-based ERP systems to help them scale, streamline, economize, and unify their businesses. Many legacy, on-premise ERP systems are losing their appeal as the cost of updates, maintenance, and customization takes its toll and cloud solutions bear their benefits. In 2016, cloud-based ERPs will continue to add value to their subscribing businesses by reducing the redundancy and duplication of data; lowering the cost of updates, maintenance, and IT support; assisting in a broader application of automation; and increasing data accessibility.