While many companies rely on operational and finance software to conduct business, most are limited in helping organizations facilitate future growth. Enterprise Resource Planning (ERP) software helps organizations manage day-to-day business activities and guide data flow between different company systems. Cloud ERP software represents a step forward in assisting organizations to accommodate changing business needs.
What is Cloud ERP Software?
Older ERP platforms tended to work as separate entities that didn’t always coordinate with other systems. IT departments needed to set up complicated code modules to handle the specific business requirements of an organization.
Modern cloud-based ERP systems pull different processes together to form one fluid ecosystem. They connect to other productivity tools, ecommerce platforms, and customer engagement solutions to help businesses gain insights to optimize company workflows.
Traditional cloud ERP software got housed in a company’s server infrastructure. The company IT department assumed responsibility for updating and servicing the ERP to keep the information current. Cloud-based ERPs eliminate the need for businesses to maintain proprietary servers. Instead, the information gets stored in the cloud and shared across various departments.
All ERP platforms store data in a shared database designed to support multiple functions. Employees working in organizational areas use the same information to complete business tasks without any need to make extensive modifications to the cloud ERP.
What Are the Benefits of Cloud ERP Systems?
ERP systems get used by all types of companies. However, a manufacturing business would use its platform differently than one from the finance sector. A good ERP cloud solution can adapt to any industry and contribute to greater productivity and efficiency. Organizations can use it to streamline essential business functions, automate manual tasks, and discover ways to improve current company processes.
Let’s look at ways organizations of all sizes can benefit from cloud ERP software.
1. Faster Updates
Every ERP platform requires periodic updates to maintain optimal system performance or address issues like security vulnerabilities. Completing those tasks within an on-premises ERP system consumes a lot of IT time and resources. If something goes wrong, end-users could end up with issues like working with different or incomplete new software versions.
Cloud ERP systems help organizations avoid issues related to a lack of updates. If you sign up for a cloud ERP platform like Dynamics 365, it becomes Microsoft’s responsibility to make sure your version remains current. That means fewer disruptions in day-to-day business functions. Users typically receive warnings about significant updates and opportunities for training.
2. Lower Maintenance Costs
Another advantage that cloud ERP platforms have over on-premises setups is the lower implementation cost. There’s no need to purchase a lot of hardware for a server. Cloud ERP systems are a cost-effective option for small and medium-sized businesses without the resources to set up an extensive server setup.
Companies won’t have to think about bringing in specialists to handle maintenance or perform upgrades. If your business wants to expand, it’s as simple as upgrading your current ERP subscription level. Cloud ERP vendors host and manage the software used to maintain the system and provide ongoing support.
3. Quicker Implementation
It takes time and a lot of effort to set up an on-premises ERP. That can lead to extended company downtime, especially if the project is not completed on time. Cloud-based ERP platforms can get up and running quickly as there’s no need to worry about setting up hardware. In some instances, you can have a cloud ERP set up in as little as a few days.
4. More Flexibility
The problem with many legacy systems is that it’s hard for businesses to scale them to support company growth. Most modern cloud ERP software comes with technology like artificial intelligence (AI) and machine learning (ML). Those capabilities help organizations figure out trends and help drive data-based business decisions.
Cloud ERP systems typically come with integrations that work with other cloud-based business tools. You can generate reports from a centralized data repository and create seamless employee workflow experiences.
5. Storage Resilience
Recovering from a disaster that causes a hardware failure can cause extended business downtime and cost a lot of money to fix. Cloud-based ERP systems use servers housed in data centers in geographically disparate locations. That helps companies maintain access to information over the internet, which helps keep business operations moving.
6. Better Accessibility
Company users can log into and access real-time information from a cloud ERP at any point. They can use anything from a dedicated workstation to a remote smart device. Employees working in different locations always have access to the same information, which helps with making business decisions.
What to Consider When it Comes to Cloud ERP Software
Organizations should account for the potential challenges that come with setting up cloud ERP software, including:
- The migration issues that arise from shifting from a legacy on-premises ERP system to one based in the cloud
- The resistance that might arise among key stakeholders, including concerns from IT administrators over losing complete control over various backend processes
- The need to comply with strict cybersecurity restrictions or deal with regulatory compliance for specific industries
It helps to partner with an ERP cloud vendor with experience managing these issues. Even the most talented IT shops may struggle without experienced guidance. Having experts guide your organization through potential roadblocks makes it easier to transition to a more modern way of doing business.
Get Help Setting Up Your Cloud ERP System
Internet eBusiness Solutions can help you achieve your desire to transition to a more efficient way of doing business. We can help you reap the benefits of a cloud ERP system and optimize how your company functions. Learn more about what iES can do for you by setting up a consultation to discuss potential solutions.
