Cloud ERP solutions are considered as the most innovative way to manage business operations, streamlining their processes while automating their workflows. Organizations should leverage cloud technology to unify their disparate departments to bring consistency in the information sharing across different departments. Cloud ERP helps small businesses to start at low cost, delivering flexibility, scalability, & ease to keep pace with innovation.
Before listing the benefits of cloud ERP, let me define it. Cloud ERP is a type of software as a service (SaaS) which is hosted on a cloud computing platform. Cloud ERP enables users to share and transfer data across business departments via the internet in real time. Cloud-based ERP also comes with availability, backup and disaster recovery plans from providers to reduce interruptions to the software.
Benefits of Cloud ERP for Businesses
Low Barrier to Entry:- Cloud ERP solutions such as Microsoft Dynamics 365 Business Central are available as software as a service (SaaS) products with monthly billing model. Such ERP solutions enable smaller and mid-sized companies to start with Enterprise Resource Planning software as they have a much lower barrier to entry than on-premise systems. In the cloud ERP solution, the software is hosted by the vendor company. So, the organizations don’t require the IT staff, servers, hardware, software and other equipment which are, in fact, a necessity in an on-premise solution. Cloud model involves low upfront costs as payments are often made on a monthly subscription basis.
Better Business Intelligence:- Cloud BI adoption provides useful insights into the sales and marketing departments in real-time, enabling them to understand and improve the customer journey. The different systems such as finance, accounting, manufacturing, supply, chain, inventory, etc are connected in the cloud ERP solutions, enabling executives, managers and other corporate end users to analyzing data and Key Performance Indicators to make informed decisions. Business Intelligence (BI) consists of a range of tools, applications, and methodologies that enables organizations to create reports, dashboards and data visualizations to make the analytical results available to corporate decision-makers, as well as operational workers.
Real Time Data:- Cloud ERP enables you to have real-time visibility of data through data synchronization across the business. Cloud ERP eliminates several manual processes such as email reports around, make changes on local copies, then email back, in hopes that someone’s updating a master copy… somewhere. Cloud ERP offers real-time KPI information such as task allocation to resources, inventory performance, etc enabling you to manage the business efficiently.
Data Security:- Generally, the servers of the on-premise systems are kept at the physical location (inside the organization) that are easily accessible by staff members. Furthermore, data backups for disastrous recovery are some concerns. At times, organizations end up emailing sensitive financial and business data without password protection or even carry it around on USB devices without any form of password protection. In cloud-based ERP systems, data is stored in high-security server sites, with inbuilt backup and redundancy. Furthermore, access to data is available with approved sign-in. After that, there are different levels to access data, as assigned to their roles. Encryption, robust password policies, IP address restriction, role-level access restrictions, and idle disconnection policies are few best practices which cloud ERP vendors use to secure data. Moreover, Cloud ERP such as Microsoft Dynamics 365 Business Central is safely hosted in the cloud by Microsoft with data centers located at different places to ensure disaster recovery & business continuity.
Updates & Maintenance:- Cloud solution frees you from routine maintenance and updates, enabling you to focus on more strategic projects and growth opportunities. The maintenance and update cost is generally included in your subscription fees. Cloud ERP solution such as Microsoft Dynamics 365 Business Central will be updated on a monthly basis while major updating will take place semi-annually.
Quick Implementations:– Cloud ERP is fast to implement with minimum downtime for upgrades. The implementation of on-premise ERP takes more time, more IT effort, and more management of the entire process.
Collaboration and Document Control:- Traditional file sharing includes emailing on a report or listing of information. Furthermore, with team members saving documents to drives, making changes and emailing, ends up into multiple documents. You, further, need to combine these documents manually and hope that all the information has come together accurately. Cloud solution enables your team to comment and make changes on one central database of information. This effortlessly streamlines your collaboration and unifies your information.
Easily Scalable:- Cloud ERP provides you the flexibility to scale up painlessly as per your changing business needs. In case of on-premise, businesses need extra servers and equipment installation to enhance the usage. In cloud solution, businesses can simply add resources based on their requirements by paying more for their subscription.