As business automation becomes a center of focus in the business and corporate sphere, there is no way an intended business owner or manager can overlook the importance of an ERP system. Apart from managing customer experiences, modern businesses must ensure that they operate efficiently and effectively within.
Thanks to technological advancement, there is a range of technologies and software that automate business processes to bring about efficiency. Employee productivity and experiences are also positively impacted by these technologies. Here, we will dive into what a cloud ERP system is and its Benefits.
What is a Cloud ERP system?
ERP (Enterprise Resource Planning) refers to a process undertaken by businesses to centralize, integrate and manage business operations, resources or data using a single system. One can think of an ERP system as an interface that connects all other departments together. ERP software allows all company departments to communicate, share files, and analyze business operations in the pipeline.
Over the years, Enterprise Resource Planning softwares aka ERP solutions have evolved and are now cloud-based. Besides, they cater to automation, and scalability, and can be accessed anywhere and at any time. That brings us to dive into what a cloud ERP system is.
A cloud ERP system is a SaaS ERP software that is accessible remotely (anywhere) and at any time. Cloud ERP software caters to flexibility and efficiency. It also allows collaboration and helps teams stay connected whether entirely working remote, hybrid, or in-office.
Although ERP solutions have been around for decades, the popularity of cloud ERP systems took the industry by storm. A report published by Gartner in 2021 revealed that 60% of companies using ERP systems worldwide were considering switching to cloud ERP options.
Besides the many advantages of cloud ERP systems, affordability is the main motivator of many businesses and companies across the globe. A detailed analysis of the top benefits of a cloud ERP system.
Amazing merits of deploying ERP systems
1. Boosts Performance
The competitiveness of the modern business world has made businesses recognize and leverage technologies to bring about the desired change; especially internally or expand into new markets. Besides, to provide seamless customer experiences, businesses must keep an eye on the ever-rising software like CRM among other tools.
The major advantage of these tools and software like cloud ERP is their capability to allow automation and integration of business processes and data. Employees’ time on repetitive tasks is reduced and optimized for other tasks which may at times be urgent.
Automation also helps businesses streamline operations, and access information and company data more easily. With an off-premises ERP system, business managers can have business operations and information at their fingertips.
It also doesn’t matter how company employees are spread across, they can input data, share information and manage workflows easily. Users can have access whether using a smartphone or a desktop computer via the internet. Besides, the performance can be measured in real-time with relevant key performance indicators.
2. Real-Time Analytics
Almost every business wants to act quickly whether it’s about leveraging a technology to drive growth or staying ahead of the competition. For that, many modern businesses depend on data and insights to make vital decisions and track and keep business operations in check. Real-time data and insights have become more valuable than ever. With an ERP cloud system, business managers can make prompt and informed decisions which can also bring about real-time performance.
Real-time analytics bring about proactiveness and also allow immediate planning and action. Whether the business wants to follow up on its website traffic or customer orders (eCommerce) to forecast future trends, real-time analytics is necessary. Managers can access data and information in real-time which can help to set or track Key Performance Indicators (KPIs) in any industry. With analytics and insights, businesses offer better customer experiences, manage inventory better, and are supported to stay agile.
3. Better Collaboration
Many business activities are interconnected and without a centralized data input or access point, there may be poor planning, errors, and decision making. For companies with inventory, procurement, sales, marketing, and logistics departments, there needs to be a greater degree of collaboration.
Effective collaboration can no longer occur with mere spreadsheets, but with systems like a cloud ERP in place, the entire organization’s activities can stay streamlined. Cloud ERP systems enable different departments to combine multiple systems, content, and data sources at a single table. For a salesman in the marketplace, he can know whether a certain product is available in-store or when the next dispatch will be made.
A cloud ERP system allows integration across the entire organization whether for in-house or remote workers. Concerned personnel can leverage more powerful analytics to collaborate and make better decisions even without being in the same place.
Unlike on-premises ERP systems where a company must purchase hardware and software to host its ERP solution, cloud ERP systems require none of that. Additionally, the company incurs a lot to put up the infrastructure excluding the high electricity charges that a company must bear.
Cloud ERP solutions are subscription-based and you can pay as per your convenience whether monthly or annually. You don’t need to purchase a server to host the solution. If it’s catering to ROI (Return on Investment), a cloud ERP system is a perfect choice. You won’t have to invest in hardware and there is no major downtime to interfere with your business’s operations.
Cloud ERP solutions are very cost-effective and highly flexible and allow third-party integrations compared to on-premises ERP counterparts.
5. Assured Support
On-premises ERP system requires an in-house IT department for system maintenance and upgrades. Although you will surely need the same with a cloud ERP system, the complex tasks like ongoing support, maintenance, and upgrades are handled by the cloud ERP providers.
Unlike on-premises ERP systems, cloud ERP solutions offer rapid updates and upgrades, which helps any business stay at the top of the game. Besides, the vendor ensures top-notch security to your ERP system. There are lower upfront and operating costs and disaster recovery is much more guaranteed with a cloud ERP solution. If you wish to switch, it’s essential to evaluate the benefits and challenges of a cloud ERP system, but all in all, cloud ERP systems are reliable and a top choice for business today.
Want to move faster, cater to innovation, and offer your business a competitive edge, invest in an ERP system. ERP systems have become part of every business worldwide due to the overall reduced cost in setup and implementation as explained here. Whether you’re a startup, small or medium business, it’s best to consult a cloud ERP provider or host to evaluate your business needs, budget, customization, and support required.
Odoo ERP is the best ERP software for manufacturing and therefore the best ERP solutions for small business. We offer customization and implementation of ERP. Nevpro business solutions is one of the top ERP Development companies worldwide.
Jessica Robinson loves to write interesting and knowledgeable blogs regarding business management, education, and life to satiate the curiosity of her lovely readers. Currently, she is serving as a content manager at the ‘Speaking Polymath’. Every piece of content that she writes demonstrates her immense love and passion for her profession.