Most companies that consider Enterprise Resource Planning (ERP) implementation often envision it to be an on-premise solution, something that will be installed across computers and other devices within an organization. On-premise ERP is extensive, expensive and quite often, resource draining as well. Recently, with the advent of cloud computing, ERP is rapidly morphing into a cloud-only enterprise solution.
Cloud ERP, as it is popularly known, is offered by ERP vendors, and clients can access the system using browsers or applications. Offered as Software-as-a-Service (SaaS), cloud ERP is stored and managed in the Internet-based cloud on servers managed by the ERP vendor. This negates the need for on-premise implementation which requires certain recommended technical specifications and security measures, apart from huge investments.
In short, with minimal investment cloud ERP makes use of cloud servers to provide enterprise solutions that can be accessed over the web. Understandably, many start-ups and even older businesses are moving towards cloud ERP from on-premise solutions, for good reasons. Let us take a look at some of the important benefits of cloud ERP:
1. Lower investment and scalability
With cloud ERP, companies can invest lesser than they would have for an on-premise system. As capital expenditures are reduced, businesses can focus on competing with larger organizations, achieving flexibility and scalability. For example, a small bakery can use cloud ERP to enhance deliveries and customer service. In turn, the bakery can achieve scalability and compete with larger industrial bakers.
2. Reduced IT expenditure and improved performance
If the company already has an IT department, it will not have to burden its IT division employees with ERP-related processes. Cloud ERP is managed and offered as a service by the ERP vendor. This also means, clients receive regular updates, while disaster recovery and routine backups are handled by the ERP provider. For example, the above-mentioned bakery can focus on introducing new flavors and items instead of worrying about ERP updates and backups.
3. Ease of implementation and use
Cloud ERP does not require extensive procedures like a routine on-premise installation would. With a little training or assistance provided by the vendor, one can just log in and start using ERP. Contemporary enterprise solutions are also more user-friendly, resulting in ease of use and enhanced performance. Using the same example above, the bakery will not need to purchase new computers to install the ERP. The owners will just need to use the existing Internet connection to log into their ERP.
4. Automation democratized
It is often believed that ERP is only meant for larger and more successful companies which can afford a full-suite ERP installation. Cloud ERP brings customized ERP solutions at an affordable rate, thanks to which, even smaller companies and firms can automate their business processes. The bakery above can gain competitive advantage over the larger industrial bakers because of its personalized customer service and improved deliveries.
Cloud ERP brings technology to those who really need it
Certainly, cloud computing has enabled thousands of small companies to achieve their dreams of automating their business processes and gain competitive advantage over larger players. Previously, this would have been unthinkable.
Cloud ERP enables every enterprise — small, big or large — to become smarter and more automated so that both scalability and productivity are achieved. With such hassle-free and automated business processes, one can finally begin to concentrate on their core business activities, which is what is required to innovate and progress further.
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