Towards the beginning, when Enterprise Resource Planning (ERP) software first came into the market, it was primarily designed for inventory management. Today however, ERP systems have evolved to encompass a lot of other back and front office functions such as Customer Relationship Management (CRM), order and inventory management, Supply Chain Management (SCM), sales, HR, finance, accounting, etc.
ERP systems tie together and define a plethora of these business processes enabling the flow of data between them. In this way, ERP systems provide data integrity with a “single source of truth.”
Add cloud computing to it, and you’ve got a cloud-based ERP system – which is offered to businesses via a subscription model by cloud vendors, making it a cost effective alternative to on-premise systems (no hardware to purchase, etc.) On a cloud server, the capabilities of ERP software are easily accessible from any device that connects to the Internet, making it easier to maintain because there is no on-premise upkeep required.
In today’s digital environment where business teams and employees can collaborate on important documents, spreadsheets, etc. and enter important data from remote locations – ERP software is most efficient when it’s utilized via the cloud.
One of the greatest benefits of cloud ERP software is access to real-time analytics. This allows companies to see important information as it becomes available, so you can rest easy knowing that the data you’re looking at is always relevant and up-to-date. Real-time analytics can help you when making critical business decisions and ensures process optimization.
Some people are skeptical about cloud security, they think that cloud encryption isn’t secure enough or that it’s an easy target for hackers. In reality however, cloud ERP software provides solid security to businesses of all sizes. You never have to worry about data getting backed by a third party, as the system tracks all activity and fully encrypts data stored within the ERP.
Better Decision Making
Similar to having access to real-time analytics, a clutter-free and easily understandable interface of cloud ERP software can help you make better, more informed business decisions for your company. With spreadsheets, charts, and graphs available with the click of a button, you can more readily make crucial decisions that will help business processes move along smoothly.
What’s great about the cloud is that as long as you have Internet access, all the data and information you need is readily available to you from any location, at any time. A cloud system stores and operates everything remotely, so even if employees are spread across the country they can still input data in real-time from any connectible device (laptop, smartphone, tablet, etc.).
Low Operating Costs
As mentioned previously, on-premise ERP systems need manual and continuous maintenance to keep up with hardware and software updates, which can negatively impact your company’s budget. Compare that to cloud ERP, and you’ve got a way lower cost of operating. Cloud vendors provide ERP solutions as a subscription model – Software-as-a-Service (SaaS) – these costs are reasonable and generally customized to work around your company’s budget.
Cloud ERP software also scales easily, as it adjusts the entire infrastructure to the necessary size for each stage in your development as a company. With onsite infrastructure, scaling can be a costly and complicated aspect of business, so the cloud just simplifies this entire process for you.
Since cloud ERP is a subscription-based model, service support is available 24/7 for any issues that might arise. On-premise hosting typically requires the additional purchase of a support package, but as a cloud-based ERP service subscriber, you can access the support you need around the clock.
Looking for more? Download our ERP buyers guide for free and compare the top-24 products available on the market with full page vendor profiles. The guide includes four key capabilities to look for in an ERP solution, plus five questions to ask yourself and five questions to ask the software provider before purchasing. It’s the perfect resource for anyone looking to find right ERP for their business/organization.