by A well-designed ERP system can automate processes, improve accessibility and save costs. However, when choosing an ERP, businesses should look at the long-term cost and not just a periodic payment.
When migrating to a cloud-based ERP, companies can access world-class software without the capital constraints of onsite systems. Additionally, a cloud deployment model makes updates automatic.
Streamlined Processes
Automating manual business processes saves time and money, allowing enterprises to focus on growth. An ERP system enables users to create workflows that reduce redundant tasks and eliminates the need for manual data entry. This improves overall operational efficiency and eliminates errors. It also helps to free up the workforce so they can focus on strategic objectives.
A cloud-based ERP solution enables remote team members to access the software from anywhere with an Internet connection, which is vitally important in post-COVID business environments where more teams work remotely than ever. In addition, it enables easy and secure login for all users from any connectable device, regardless of location or time zone.
An ERP system can help businesses optimize inventory costs through better inventory planning and tracking. It can also improve cash flow through invoicing and collections features. These benefits result in significant operational and capital expense savings for the company.
AI and ML are playing an increasingly important role in the security of cloud ERP systems. For example, ML technology can analyze large amounts of data to detect patterns that may indicate fraud, such as financial transfers from an employee’s account to an overseas bank or payments made to vendors with whom the company has never done business.
The unified data and analytics capabilities of an ERP system help companies to identify and understand their most profitable customers, which can help them to tailor their product offerings and customer service to meet those needs. It can also help them to find ways to increase project profitability through a more accurate assessment of resource allocation and utilization.
Real-Time Access to Data
Many companies struggle with internal communication as various departments may not have access to the same information. Cloud ERP provides a single source of truth where all departments can work together and share data and applications with ease. Additionally, all information is in real time with built in analytics features. This allows teams to do information drill-downs for critical decision making and brings BI capabilities into the organization.
Cloud-based ERP systems also reduce both operational and capital expenditures through a software-as-a-service (SaaS) delivery model. SaaS shifts the upfront costs of an enterprise-level ERP system to a recurring monthly expense, eliminating much of the hardware and software associated with traditional on-premise solutions.
This also eliminates the need to continually update hardware and software, further reducing OpEx and CapEx expenses. Plus, a world-class SaaS ERP vendor will automatically patch and update the system several times a year and provide regular feature and capability updates.
With cloud ERP, all data is updated in real-time. This ensures that customer service teams have up-to-the-minute shipping information that matches what salespeople are telling customers, leading to better service and happier customers. It also means that the finance department can quickly see what is happening in accounting with real-time information that reflects all transactions and activity. This eliminates the need to wait until the end of a month to reconcile financial accounts and gives all departments a unified picture of the company.
Enhanced Security
The centralized nature of cloud ERP systems enables more secure access to data for employees. Data is also encrypted between the company and its vendors, providing protection from hackers. Additionally, data is stored in redundant servers at the cloud vendor, making it more difficult for hackers to reach and disrupt a company’s systems.
Businesses can also rely on their cloud-based ERP vendors to provide disaster recovery and business continuity solutions. This protects their information from data loss, which could occur if an in-house system experiences hardware failure or is hit by a natural disaster, fire, or break-in.
Cloud-based ERP also eliminates the need to invest in hardware or software upgrades. Instead, businesses will either pay a monthly fee or follow a pay-per-use model for their cloud-based ERP system. This allows companies to focus their resources on new opportunities, rather than putting money into updating existing hardware and software.
Cloud-based ERP can also be more easily scaled to meet the needs of a growing business. Because local servers aren’t needed, new units can be added to a company’s system more quickly than with an on-premise solution. This is especially beneficial for midsize businesses, which often have more growth potential than their larger counterparts. These companies may be able to capitalize on niches in their markets, enter new countries, or offer more flexible service options to consumers.
Flexibility
Cloud ERP enables employees to access and update data anywhere with an Internet connection, on any device. This improves collaboration, communication, and decision-making for distributed teams. It also reduces reliance on local servers and hardware, enabling enterprises to save money on IT infrastructure, hardware upgrades, and repairs.
With the right integrations, cloud-based ERP can connect with other systems that enable innovation and improve efficiencies. This includes AI and ML technologies that automate processes and help companies take advantage of new opportunities, including increasing revenue through sales and marketing efforts, cutting costs through operational efficiency, and expanding product offerings through innovation.
In addition, a cloud-based system is easier to upgrade as the business grows. Adding a new user is as simple as obtaining a new license for the software, and there’s no need to purchase or install additional hardware to handle the additional workload.
Cloud-based ERP offers built-in disaster prevention and recovery to prevent downtime, reduce risk, and automatically shift operations to backup systems when a failure is detected. It also provides security measures that protect information from cyber threats, including secure gateways for remote access, document management systems to prevent downloads of sensitive data, and a centralized archival system to ensure regulatory compliance. These features are especially important for companies that operate in multiple locations, where the ERP system will need to handle data from different regions with different rules and regulations.
