How Cloud-Based ERP Solutions Help Companies Perform Better (2022)

Cloud Based erp Solutions Perform Better

How Cloud-Based ERP Solutions Help Companies Perform Better (1)

By Kris Blackmon

Enterprise resource planning (ERP) solutions aren’t exactly a hot topic of conversation in the business and technology world these days. The benefits of ERP are well-established: It reduces manual touchpoints, thereby saving time, increasing accuracy, and leading to operational efficiencies. Where 20 years ago on-premise ERP was an exciting new technology that helped businesses hurry toward digital transformation, today it’s much more mundane. It’s a little like password encryption — everyone knows they need it, but compared to all of the other cutting-edge cybersecurity solutions out there, it isn’t all that fun to talk about.

Regardless of its popularity, the efficiencies gained from an ERP solution are very real. Enterprise resource planning tools make all of your disparate systems work together. That sounds simple and straightforward, but it’s more complicated than it seems. Think of all of the different platforms a business uses throughout the day, with all of their interfaces and logins. Where you enter your sales orders is different from where you track invoicing. Where you log help tickets is a different system than where you house customer information. Supply chain, ecommerce, accounting, customer service, marketing, sales, human resources, IT — all of these job functions use different technology solutions, which creates innumerable opportunities for error.

(Video) On-Premises vs. Cloud-Based ERP Solutions

ERP takes those manual touchpoints away, syncs data across all lines of business, and automates the flow of information. Its benefits are significant and almost immediate. They’re also, by and large, old hat and not all that thrilling to talk about.

How Cloud-Based ERP Solutions Help Companies Perform Better (2)

The Conversation about ERP Solutions is Changing

Over the last several years, however, the cloud has gone a long way toward bringing some energy back in the ERP conversation. Cloud gives businesses the ability to consume computing as a service, rather than having to build internal infrastructure to provide and support computing functions, which is a big deal for something as resource-intensive and central to business as ERP. Think of it like that heart-healthy diet we all know we’re supposed to follow: An “on-premise” approach means that you grow the crops, process the ingredients, and fix the meals yourself. With a “cloud-based” philosophy, you place your order and have someone else do the heavy lifting. Sure, you have to take their word for it that all the ingredients are locally sourced, organic, and non-GMO, but it sure makes it a lot easier to make changes if you find there’s a recipe you don’t like or an ingredient you’re allergic to.

Am I saying that talking about ERP is just as boring as talking about whole grains and non-saturated fats? Yes, I am. The power, flexibility, and innovation of the cloud go a long way toward making that conversation more interesting.

How the Cloud Revolutionized ERP Software

Here are five areas where the cloud is breathing new life into the ERP scene.

(Video) Benefits of Cloud Based ERP Solutions

Faster Implementations

It isn’t unusual for a fully customized on-premise ERP solution to take a year or two to develop and implement, which is clearly not ideal in 2018. If a business is still on the exact same trajectory with the same goals and same strategies in two years as it is today, it’s got bigger problems than any ERP can help with. Fast, agile, and nimble are the characteristics for success in business today, and any organization that takes literal years to overhaul business operations has already lost to its competitors.

With a cloud-based ERP solution, implementations take a fraction of the time — often as little as three to six months. And since the ERP is hosted in the cloud instead of in-house servers, it’s a lot easier to maintain a “business as usual” attitude while the solution gets on its feet. Subsequent updates and upgrades are far less painful as well. With cloud ERP, updates can run in the background without locking users out of the system or requiring vast amounts of retooling and retraining after the upgrade is completed. Worries about things such as processing times and adequate data backup processes are no longer the business’s problem. It’s up to the ERP vendor to handle those, thank goodness.

How Cloud-Based ERP Solutions Help Companies Perform Better (3)

Decreased Cost

When you buy an on-premise, in-house ERP solution, you also have to purchase the supporting hardware, hire staff to install and maintain it, and shell out for all the related software licenses. Depending on how big your business is and your existing IT infrastructure, you may also need to invest in extra servers to provide the computing power needed for the ERP to run at its highest function. That’s a lot of dough, especially for smaller organizations.

(Video) Comprehensive Cloud ERP Solutions That Drive Performance For Project-Based Companies

Cloud-based solutions are typically purchased for a flat-rate monthly fee, and access only requires an internet connection. All of the resources needed to actually host the system are taken care of by the provider, which eases pressure on your pocketbook and lowers your stress levels.

Mobile Access

Because cloud applications are accessed via the internet, they’re intrinsically more mobile-friendly than most on-premise solutions. That provides a flexibility that’s critical in today’s business landscape, where so much work is done on smart devices from remote locations. One of on-premise ERP’s biggest value-adds is real-time visibility, which makes sure that work isn’t duplicated and changes to customer records are reflected across the organization as they happen.

With a cloud-based solution, that visibility extends beyond the four walls of your business to any device anywhere that’s tapped into your network. Plus, a cloud ERP solution can far more easily integrate with other mobile APIs, such as those for reporting and analytics, which creates some very interesting customizable business intelligence use cases.

How Cloud-Based ERP Solutions Help Companies Perform Better (4)

Stay Secure

Unless you’re a cybersecurity company (and maybe even then), the chances you’re going to design an on-premise ERP solution that’s as secure as those provided by the big cloud vendors are pretty low. Why would you even want to? The complexities that come along with setting up an ERP can hardly be imagined by someone who hasn’t actually done it. There’s data coming in, data going out, and data sitting in repositories waiting to be accessed, all with varying degrees of security needs. Different regulations apply to different levels of information and different methods of processing it between different applications and different users.

(Video) What is Cloud ERP?

The more variables are thrown into any equation, the trickier it becomes. Since ERP sits at the nexus of all of your business functions with its fingers in almost every pie, any security solution has to take dozens of variables into consideration. If you’re spending all of your time worrying about the security of the data housed in your ERP, you’re not able to fully realize all of the features and benefits such a system provides.

Next Generation Analytics

Done right, an ERP solution can be tapped in to every source of data that feeds into a company’s operations. This includes analytics streams like inventory, sales cycles, buying and price trends, customer support times, time to invoice, and so forth. Historically, this information sits in the system until someone accesses it. Cloud ERP applications contain built-in algorithms that create truly powerful analytical insights. Machine learning capabilities leverage all of that big data housed in the ERP to provide predictive analytics, which can tell a company not only what the data says about where it’s been, but also about where it’s going. We’ve just begun to see the crazy things that modern analytics technologies are going to be able to do, and that deep insight is all powered by the cloud.

ERP solutions can legitimately transform a business, but we’ve known that for decades. The cloud, however, makes everything old new again. The ease of use, real-time visibility, advanced analytics, and easy scaling the cloud brings puts a shiny new layer on every technology, and ERP is no exception. Enterprise resource planning is a cutting-edge conversation again.

How Cloud-Based ERP Solutions Help Companies Perform Better (5)

<p> <strong>Click To Enlarge</strong><br /><br /> <a href="https://www.salesforce.com/products/quote-to-cash/resources/cloud-based-erp-solutions-perform-better/" target="_blank"> <img src="https://www.salesforce.com/content/dam/web/en_us/www/images/hub/service/how-cloud-based%20erp-solutions-help-companies-perform-better-embed.png" alt="How Cloud-Based ERP Solutions Help Companies Perform Better" width="600px" border="0" /></a></p><p>Via <a href="https://www.salesforce.com/products/quote-to-cash/resources/" target="_blank">Salesforce</a> </p>

FAQs

What are some benefits of using a cloud-based system ERP? ›

Some advantages of a cloud ERP solution include:cessary infrastructure is already in place.
  • Lower capital requirements to access innovation. ...
  • Better and faster scalability. ...
  • Automatic upgrades. ...
  • Fewer infrastructure costs. ...
  • Trim operational expenses. ...
  • Dramatically shorter deployment times for better ROI.

How does a cloud ERP solution improve ability to scale of an organization? ›

Additionally, cloud computing helps companies scale with ERP because their system is never out-of-date. SaaS products are managed and regularly updated by the provider, and updates often occur automatically so their customers have the best version of the program at all times.

How does ERP improve business performance? ›

ERP helps to automate various business tasks and processes while increasing efficiency in numerous departments. It also helps to reduce repetitive tasks, allowing more time for other operations. An ERP system helps to streamline business processes by automating manual tasks and improving inventory management.

How cloud technology contributed to the successful of ERP implementation process? ›

Cloud ERP is built to help you scale operations in your company. Using a cloud-based software allows your team and channel partners to access information globally. Channel partners can easily view, take orders, manage inventory, and generate reports from anywhere in the world.

Why is cloud ERP cost effective? ›

Cloud ERP can cater to a large number of users and are flexible, allowing you to scale your business up and down as required easily. This can reduce costs in the long run, as you only pay for the functionality and number of users you require at any given time. On-premises ERP solutions do not have this flexibility.

What are the advantages of cloud-based ERP systems there are more than one answer? ›

Advantages of Cloud-based ERP

With cloud-based solutions, the provider takes care of hosting the solution and the support, so there's no need to hire and train additional IT resources. Scalability: One of the most appealing features of any cloud-based ERP is the ability to easily scale as a company's needs change.

What are the benefits of moving to a cloud-based solution? ›

Benefits of Moving to the Cloud
  • Scalable. Have you ever run into capacity problems using your on-premise infrastructure? ...
  • Reduced Costs. ...
  • Increased Collaboration. ...
  • Increased Flexibility for Employees. ...
  • Security. ...
  • Disaster Recovery.

What is ERP software and why it is important in today's business process? ›

Enterprise Resource Planning (ERP) is business management software that allows an organization to leverage a suite of integrated applications. ERP systems streamline and automate processes, creating a leaner, more accurate and efficient operation. ERP provides complete visibility into core business processes.

Why cloud ERP is the future? ›

The centralized cloud location is easy to access remotely, unlike the legacy system that stays on the business premises. A hosted ERP system is more scalable than a legacy system. The ERP can grow with your business because you can increase or decrease your resources depending on your current circumstances.

What is the purpose of implementing a cloud solution? ›

Cloud technology allows companies and individuals to easily access computer programs and other information that is based at a remote site. Companies and individuals can reduce their overall costs and get by with less computing power by storing the programs and information on remote servers.

What is ERP cloud solutions? ›

Cloud ERP is enterprise resource planning software that is accessible over the Internet. As the IT backbone or “brains” of a company, cloud ERP software provides advanced functionality for all the core processes in an organization.

What are two benefits of a cloud based system? ›

Speed to market: Developing in the cloud enables users to get their applications to market quickly. Data security: Hardware failures do not result in data loss because of networked backups. Savings on equipment: Cloud computing uses remote resources, saving organizations the cost of servers and other equipment.

What is the biggest advantage of using cloud applications? ›

Scalability and flexibility

Cloud computing gives your business more flexibility. You can quickly scale resources and storage up to meet business demands without having to invest in physical infrastructure. Companies don't need to pay for or build the infrastructure needed to support their highest load levels.

What is the most important advantage of cloud based computing? ›

One of the most dynamic advantages of cloud computing is the scalability/flexibility factor. Changes in locally based IT networks require considerable in-house development and testing. This makes for an upfront investment, plus an additional investment every time your needs increase, even if this increase is temporary.

How can cloud improve business? ›

10 Ways in Which Cloud Computing Can Enhance Business Productivity
  1. Enhanced Collaboration. ...
  2. Increased Data Security. ...
  3. Reduced Costs. ...
  4. Remote Operations. ...
  5. Access to the Best Technologies. ...
  6. Free and Timely Upgrades. ...
  7. Easy Data Recovery. ...
  8. Easily Scalable.

Why a cloud solution is better than on premise? ›

Why is cloud better than on-premise? Dubbed better than on-premise due to its flexibility, reliability and security, cloud removes the hassle of maintaining and updating systems, allowing you to invest your time, money and resources into fulfilling your core business strategies.

Why are ERP systems attractive to businesses? ›

Enhance Productivity

If you deploy an appropriate an ERP system for your business, it will automate the most tedious tasks. The central database system within an ERP can automate the most tedious and highly repetitive tasks and enable the system to perform complex calculations within a couple of seconds.

What companies benefit from ERP? ›

Industries that benefit most from ERP
  • Manufacturing.
  • Distribution.
  • Professional Services.
  • Construction.
  • Industrial Services.
  • Healthcare.
  • Automotive Parts.
  • Transport & Logistics.
20 Oct 2021

Why is a good ERP system important? ›

A fully integrated ERP system allows the seamless flow of information across different departments and functions. It also helps to streamline business processes and improve overall business functions.

Which is better cloud ERP or on-premise ERP? ›

Cloud ERP providers offer superior performance, greater accessibility, and improved security. They offer industry-standard data security certifications that comply with PCI DSS and SAS 70 standards. In contrast, their security, data recovery, and backup procedures are more affordable than on-premise ERP solutions.

What is the difference between ERP and cloud ERP? ›

The basic difference between on-premise ERP and cloud ERP is clear: On-premise ERP solutions are installed locally on your company's hardware and servers and then managed by your IT staff while cloud ERP—also called SaaS, or Software-as-a-Service—is provided as a service.

What are the seven reasons of ERP moving on ERP cloud solution? ›

7 Reasons to Consider an ERP Cloud Solution
  • Reason No. 1: Readily Adopt New and Evolving Technologies. ...
  • Reasons No. 2: Attract In-Demand Talent. ...
  • Reason No. 3: Extend the Value of Existing Applications. ...
  • Reason No. 4: Access Better Tools. ...
  • Reason No. 5: Reduce Third-Party Dependencies. ...
  • Reason No. ...
  • Reason No.
9 Nov 2020

What are 3 common reasons to use the cloud? ›

Why use the cloud?
  • File storage: You can store all types of information in the cloud, including files and email. ...
  • File sharing: The cloud makes it easy to share files with several people at the same time. ...
  • Backing up data: You can also use the cloud to protect your files.

What is an example of a cloud ERP? ›

The best cloud-based ERP software is NetSuite ERP, as it automates essential business workflows across multiple industries efficiently. It also provides robust tools for complete accounting, purchase processing, order tracking, as well as advanced modules for warehouse, shipping, fulfillment, and compliance management.

What are the specific advantages and disadvantages of cloud computing for enterprise resource planning ERP? ›

At a glance
ProsCons
You receive round-the-clock support.There is less room for personalization.
Your vendor is often able to offer a higher level of security.Highly complex operations may not suit a cloud-based ERP system.
It is easy to scale up or down to suit the needs of your business.Unwanted upgrades may occur.
2 more rows

Is cloud-based ERP safe? ›

The Cloud ERP solution is safe and secure to use as the Cloud Server Providers ensures its security from any data breach attacks through advanced Firewall protections, Multi-level Encryption, and various other methods.

What are the 4 benefits of cloud computing? ›

Benefits of cloud computing
  • the cost of system upgrades, new hardware and software may be included in your contract.
  • you no longer need to pay wages for expert staff.
  • your energy consumption costs may be reduced.
  • there are fewer time delays.
11 May 2022

What are the advantages of cloud based ERP systems quizlet? ›

-Cloud-based ERP solutions are scalable, meaning it is possible to extend ERP support to new business processes and new business partners (e.g., suppliers) by purchasing new ERP modules.

What are 4 advantages of cloud? ›

Cloud infrastructures support environmental proactivity, powering virtual services rather than physical products and hardware, and cutting down on paper waste, improving energy efficiency, and (given that it allows employees access from anywhere with an internet connection) reducing commuter-related emissions.

What are the three 3 major advantages of cloud computing? ›

Benefits of Cloud Computing
  • Faster time to market. You can spin up new instances or retire them in seconds, allowing developers to accelerate development with quick deployments. ...
  • Scalability and flexibility. ...
  • Cost savings. ...
  • Better collaboration. ...
  • Advanced security. ...
  • Data loss prevention.

What is the biggest advantage of cloud computing? ›

Cloud computing is greener

Rather than having in-house servers and software, businesses can use cloud-based services to access the same applications and data from any computer or device with an internet connection. This eliminates the need for businesses to purchase and maintain their own IT infrastructure.

Why is ERP beneficial to a company? ›

An ERP system allows you to collect, store, and analyze data across your operations in one centralized location, providing a single source of truth and the visibility to act more strategically. That centralized data enables a business to access real-time information and generate more useful reports.

What are the advantages of cloud based ERP systems there are more than one answer? ›

Advantages of Cloud-based ERP

With cloud-based solutions, the provider takes care of hosting the solution and the support, so there's no need to hire and train additional IT resources. Scalability: One of the most appealing features of any cloud-based ERP is the ability to easily scale as a company's needs change.

Why is ERP important to a company? ›

Enterprise Resource Planning (ERP) is business management software that allows an organization to leverage a suite of integrated applications. ERP systems streamline and automate processes, creating a leaner, more accurate and efficient operation. ERP provides complete visibility into core business processes.

What does cloud based ERP mean? ›

What is cloud ERP software? Cloud ERP is enterprise resource planning software that is accessible over the Internet. As the IT backbone or “brains” of a company, cloud ERP software provides advanced functionality for all the core processes in an organization.

What are the benefits of moving to a cloud based solution? ›

Benefits of Moving to the Cloud
  • Scalable. Have you ever run into capacity problems using your on-premise infrastructure? ...
  • Reduced Costs. ...
  • Increased Collaboration. ...
  • Increased Flexibility for Employees. ...
  • Security. ...
  • Disaster Recovery.

What is a benefit of cloud based productivity software? ›

The cloud is a cost-effective option that allows easy access to important company data, saving time in project startups. Most cloud-based services offer a pay-as-you-go model, allowing you to only take advantage of and pay for the services your business needs.

Why is cloud computing important for business? ›

The main reasons why cloud computing is important for business is that it allows organizations to scale, maintain flexibility, and focus their efforts on business operations – not managing complex IT infrastructure. One of the best ways to optimize cloud computing for your business is by working with a cloud partner.

What are three benefits of cloud computing it answers? ›

Cloud computing benefits
  • High Speed – Quick Deployment. ...
  • Automatic Software Updates and Integration. ...
  • Efficiency and Cost Reduction. ...
  • Data Security. ...
  • Scalability. ...
  • Collaboration. ...
  • Unlimited Storage Capacity. ...
  • Back-up and Restore Data.
5 Jul 2018

What are the strengths of the cloud? ›

Pros and Cons of Cloud Storage Back
  • Advantage #1: Disaster Recovery (DR) ...
  • Advantage #2: Access your data anywhere. ...
  • Advantage #3: Low cost. ...
  • Advantage #4: Scalability. ...
  • Advantage #5: Security. ...
  • Disadvantage #1: Lack of total control. ...
  • Disadvantage #2: Difficult to migrate. ...
  • Disadvantage #3: Requires Internet.

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