Importance of Cloud ERP Software in Organizations

Both cloud ERP and on-premise ERP have their own set of benefits. The structure and business strategy of your organization will decide the best choice for you. 

Despite the fact that this article focuses on the benefits of cloud ERP, it is not superior to on-premise or hybrid cloud environments in any way. How well you conduct your project before, during, and after implementation determines the benefits of any technology. 

The following is a non-technical perspective on why certain companies want to use cloud ERP: 

1. Improvements in Business Intelligence 

Businesses can access data from anywhere using cloud technology, which eliminates the need for complex technical configurations or a large IT staff. In the last two years, the number of businesses using cloud-based business intelligence (BI) has doubled. 

2. Faster Implementation 

Cloud ERP systems take longer to integrate than on-premise ERP systems. The technical environment for cloud technologies can be set up in as little as 24 hours. 

This frees up time for businesses to focus on the business side of transition. Shift management and enterprise process management require the same amount of time and effort whether you use cloud or on-premise ERP. 

3. Ability to Focus on Your Core Competencies 

Many businesses lack sufficient IT personnel or are unable to afford the same facilities and resources as cloud service providers. IT skills aren’t necessarily a core competency of an enterprise if they are sufficient. 

Cloud technology allows businesses to outsource their IT functions and focus on their core market. 

Retailers, for example, choose to focus more on the customer experience. 

4. Cost Savings 

On-premise technology has a higher initial cost than cloud technology. Despite the fact that subscription costs add up over time, many CFOs are more concerned with lowering capital costs than operating costs. These CFOs can select a multi-tenant cloud to save money in the long run. Since the fixed infrastructure costs of on-premise ERP cannot be spread over enough volume to warrant the price, cloud ERP can be less expensive in the long run for smaller companies than on-premise ERP. 

5. End User Buy In 

Since cloud technology is more modern and easier to use than on-premise software, employees can embrace it more quickly. This isn’t to say that end-user training and a communications plan aren’t essential. It just means they’ll have to deal with less resistance. Some corporate cultures are more receptive to cloud ERP than others. 

6. Strong Data Security 

Since cloud providers usually have very secure hosting environments, many companies are moving to cloud ERP to avoid security breaches. Some CIOs are worried about cloud security, but they are unaware of how security-conscious cloud ERP vendors can be due to the high stakes. Since cloud vendors have a large number of customers and are easy targets for hackers, they stand to lose a lot of money. This can seem to be a disadvantage, but in many cases, it forces vendors to implement sophisticated security measures. 

Cloud ERP Best Practices 

Despite the fact that there are many compelling reasons to use cloud ERP, any technology project carries a high degree of risk. Before switching to the cloud, Panorama’s ERP consultants will help you understand your business strategy and digital strategy. We’ll make sure the deployment model you choose is in line with your objectives.