Unlike the on-premises network, cloud ERP refers to a cloud platform used by sellers through the internet. If you don’t know yet, ERP stands for Enterprise Resource Planning. The good thing about cloud ERP is that it helps in automating and integrating operational and financial aspects important for a business.
Aside from that, it is also important software that business owners can use as a source of necessary data, which includes supply chain, order, and inventory management. Moreover, cloud ERP also helps with the overall business fulfillment, distribution, production, and procurement.
With this in mind, all business units should have free access to all available ERP systems. This is because this aspect is beneficial for delivering real-time and unified data. The good thing about cloud ERP is that you can access it easily as long as you have a browser and a good internet connection.
Defining Cloud ERP Software
Compared to an on-premises system, cloud ER software offers better sets of features with little to no disadvantages. This is possible because it is software hosted by sellers and often a type of service offered to businesses.
Considering that cloud-based ERP allows businesses to assess and monitor several necessary information in real-time, it is expected that its demand will continue to grow over time.
All cloud ERPs are equipped with features essential for accounting and financial functionalities. With that in mind, many businesses use different ERP applications or modules depending on their industry type.
The following are some of the basic cloud ERP applications you may access:
- MRP or Material Requirements Planning
- Project Management
- Supply Chain Management
- Order Management
- Inventory Management
- CRP or Customer Relationship Management
- HRMS or Human Resource Management Software
- HCM or Human Capital Management
- Accounting and Financials
Should You Use Cloud ERP Software?
If you are new in the business industry, you may be asking whether investing in cloud ERP software is a wise move. To help you decide, below are some of the important key points you may consider.
Implementation time is the biggest problem among new ERP solutions. This factor has a massive effect on the time value and downtime of a business. Compared to the on-premises, many business owners claim that their business runs smoother when using a cloud ERP system. This is possible because you don’t need to train or hire IT employees. Beyond that, you can set up the hardware conveniently.
You can easily improve your business using cloud-based ER solutions because you don’t need to use more servers to accommodate a higher number of subsidiaries, locations, or users. This means that the growth of cloud ERPs can significantly affect the standing of your business in the market.
There is no doubt that keeping on-premises ERP software up-to-date requires more time and money. This is because you may need to hire an IT specialist to get the job done. On the other hand, cloud-based ERP systems can be updated in less than half an hour. Aside from that, the upgrading process happens during off-hours. Thus, it won’t cause any disruptions to business activities.
Strong Access and Resilience
Malfunctioning on-premises hardware may cause frustrations among business owners. This is because transferring important information to another storage system may require some time. However, when using a cloud-based ERP system, you can ensure that important data is stored in secure data centers that are geographically and redundantly dispersed.
Doing so will also help you to share essential business data and information conveniently and hassle-free. This is a vital factor since a lot of operations these days work online. In line with that, many companies are looking for strategies to streamline and automate business processes successfully.
Security, Compliance, and Disaster Recovery
Storing your company data in an external vendor can make it prone to crashes. One of the reasons why cloud-based ERP system is patronized by many company owners is because it ensures to store data more securely.
In addition, cloud ERP also ensures that all the essential information is backed up regularly. Beyond that, the vendor is also equipped with practiced and well-prepared approaches when a disastrous situation occurs.
Software or hardware failure usually happens on on-premises ERP solutions. This usually results in huge data loss that could adversely affect the whole company. But, this may be prevented only if the on-premises ERP solution has either a business continuity plan or a disaster recovery plan.
One of the good things about cloud ERP providers is that they provide the organization and the vendor data encryption services. But keep in mind that company owners are legible for accessing and managing cloud ERP devices, such as mobile phones or desktop computers.
Agility and Customizations
Aside from being a good tool to scale an organization, all cloud-based ERP solutions are ideal to use because of their customization feature. This means that you can change some of its components depending on how your business evolves and grows over time.
Even though on-premises ERP software has a customization feature, it is only limited to the present software. Thus, upgrading its components to suit the future version may take up a lot of work. This is why most business owners decline to update their on-premise ERP solutions.
In addition, you can also integrate cloud ERP systems with other products that are also cloud- or internet-based. Beyond that, you don’t need additional hardware to add new modules to your cloud ERP system. With that in mind, you can keep your business proactive, which is highly adaptive to recent market changes and customer trends.
To conclude, cloud-based ERP solutions are designed to help business and company owners to remain proactive in this constantly changing industry. Aside from that, these cloud ERP systems can be used by either small, medium, or large-sized enterprises worldwide.
The best thing about these ERP solutions is that they can automate and integrate operational and financial functions, which usually results in lower supply chain costs. Moreover, they also offer you real-time data monitoring.