This is a guest post by Vivek Gururani, senior marketing manager at Dynamics Square.
Cloud-based technologies are booming and revolutionising the ways businesses deal with their customers and initiate smooth operations. There are various such technologies, but when it comes to impeccable business management, I believe cloud-based ERP is the most popular and useful technology that exists around us, pushing our business towards growth while eliminating redundancies in business operations.
You might agree with me when I say, "A cloud-based ERP system can be the stepping stone for the sustainable growth of a business." Many business owners or decision makers agree with this statement because they understand that modern problems require modern solutions. If we try to tackle modern issues with traditional solutions, it might break the entire system or damage it directly or indirectly.
According to a recent report shared by Vantage market research - Cloud ERP Market Size is projected to reach USD 47,760.01 Million by 2028.
Many businesses are opting for advanced ERP systems rather than going with the traditional ways of doing business. And this is a good thing because such systems can manage entire processes and operations, utilising AI (artificial intelligence) and BI (business intelligence) to offer automation capabilities. Before learning the core benefits that make a business profitable, let's find out what exactly an ERP is.
What is an ERP?
Basically, ERP (Enterprise Resource Planning) is a business management solution built specifically for a purpose. The purpose might be to manage entire processes of the business or to manage a specific kind of operation (financial or supply chain).
Currently, there are various ERP solutions available to help businesses fulfill their business management needs. Some of the leading cloud-based ERP software are Microsoft Dynamics 365, NetSuite, Sage, Oracle, and more that help business owners streamline their entire business on the go.
The performance of an ERP is heavily based on the type of server deployment. In general, there are three types of server deployment available:
- Cloud-based ERP: It is based on the SaaS (software-as-a-service) model, where the servers of an ERP are located in the cloud.
- On-premises ERP: In this case, the servers of the ERP are located inside the company's premises using its own resources. The investment cost is low when compared to cloud-based ERP.
- Hybrid: This technology uses a mix of cloud and on-premises options to fulfil requirements. Basically, businesses secure this option to host the most secure data using their own resources and supervise the rest of the processes using the cloud.
What is a cloud-based ERP?
I propose that cloud-based ERPs are the most suitable option to tackle modern business needs. Being a convenient and economical option, cloud-based ERPs offer immense capabilities to help businesses achieve growth, scalability, and profitability.
The cloud service provider manages all the updates, upgrades, and maintenance of the servers in place of the organisation itself. It eliminates the efforts and resources a business invests in installing and maintaining the server.
The best part about using a cloud-based ERP is the flexibility to manage and control any process from anywhere and at any time without any kind of restrictions. Additionally, such solutions reduce capital and operational expenses by eliminating the need to purchase software, hardware, and IT requirements.
Top 5 Benefits of a Cloud-Based ERP
Below are some of the core benefits you can expect from a cloud-based ERP.
1. Easy to Customise
All businesses are unique, and so are their operational processes. The cloud ERP can accommodate a range of businesses and offer desired customisations to cope with their needs and operations, resulting in increased productivity and efficiency. Also, you can easily customise your system later with the growth of the organisation.
2. Integrations on the Go
Integration is the key to increasing overall productivity. Most of the time, a standard ERP is not enough to deal with all business issues. Here, integrations can help businesses build an ERP that suits their requirements and fulfils their business needs. For example, an integration of Microsoft Outlook can enhance the ability to send email and arrange various events.
3. Scale with your Growth
When businesses grow, their complexity grows too at a rapid rate. This leads to users frequently facing a lot of issues including lags while performing a task, performance issues while processing data, collaboration issues, and so on. These issues can be addressed by upgrading or implementing a new system with the needed specifications and with cloud-based ERP, it can be done anytime by contacting the right implementation partner.
4. Effective Implementation
Acquiring an on-premises ERP solution is more drawn-out and time-consuming than implementing cloud-based systems. But you have to decide what suits your business best. Cloud systems are incredibly fast to install and configure by nature, so provided you have done your due diligence ahead of time, cloud ERP can be up and running almost immediately.
5. Access Real-time Insights
Cloud ERP solutions allow users to access any data from anytime and anywhere using any platform, whether mobile, PC, or web. Further, users can manage and supervise any process in real-time, enabling them to make data-driven decisions for enhanced performance.
The Most Practical Reasons to Choose a Cloud-Based ERP
If you are unsure about whether to choose a cloud-based ERP or opt for other options, here are the top 5 reasons to choose a cloud-based ERP.
1. Enhance Productivity
An easy-to-use system equals increased productivity—that's what you can expect with cloud ERP. With less downtime, you can keep your processes running smoothly without any interruptions. Additionally, cloud ERP allows for a higher degree of automation. Since the data is stored securely in the cloud, you can avail yourself of most of the critical processes anytime.
2. Built in AI and BI
Such ERPs come with a bunch of modern technologies, including AI, BI, IoT, and mixed reality, to help you automate most of the recurring and manual tasks.
3. Affordable
One of the best things about cloud ERP is that it's easy and affordable to implement. You don't need to spend money on expensive hardware or pay someone to maintain it because the implementation partner takes care of all that. This means you can use your budget, efforts, time, and resources to improve your business in other ways.
4. Safe and Secure
The data stored on the servers of an ERP solution is a critical asset for the business. So, the data would be 100% encrypted and secured from any kind of malware attack. Cloud ERP providers have high standards for security and often offer better security services than businesses could afford to provide in-house, so you can be confident that your data will be well-protected.
5. Enhanced Collaboration
Based on the type of license, users can collaborate with each other for a more constructive view of the process. They can utilise the accurate real-time data insights and take decisions based on them for more profitability.
In summary, a successful ERP implementation can future-proof your business. With regular updates and new features, you can be sure that your system will always be up to date. This can give you a competitive edge and help you keep up with the latest industry trends.
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