Is cloud ERP really the Smart ERP?
Why is there a need?
Organizations feel the need for a smart ERP solution when they find their current solutions bouquet inadequate . Pain points begin to emerge and the gap widens between software capabilities and actual business process competency requirements. They begin to realize that their growth opportunities and competitive ability are compromised by a lack of system integration and low visibility & poor access to real-time data.
The desire for increased functionality to tackle these challenges leads to the search for a smart ERP software. Moreover, regulation and compliance needs like DSCSA and new streams of business like e-commerce pose serious integration issues.
Organizations with scalability and high growth needs require agility for growth. They need a smart ERP that takes care of that. A cloud ERP is a smart ERP that suits even the pockets of SMBs.
The Benefits of using the right Cloud ERP
Your field team may require remote functionality on mobile and smart devices to view data, create approvals, and to interact. Your organization may have critical business access needs for the mobile platform too. Due to its web-based nature, a cloud ERP tends to have native access to mobile devices.
Costs of using a cloud ERP solution vis a vis an on-premise ERP solution are much less. However, the important point to note is that the on-premise system may most possibly be obsolete after 10 years. Also cloud ERP systems are constantly updated with business regulations & requirements in a future ready automated manner.
The Cost Angle
A cloud ERP does not have a prohibitive acquisition fee. Cloud-based ERP solutions use is paid through a flexible subscription fee. Thus, the initial capital expenditure required for implementation is significantly lower than for traditional systems, and operating costs would be lower as well. Cloud-based providers can scale up their functionality as an organization’s needs evolve. Vendors are responsible for maintaining both the hardware and the software that includes automated security patches, upgrades etc. They also provide the necessary backups, system monitoring, and user support. Overall, the total cost of ownership for a cloud-based solution can be half of that for traditional on-premise solutions over a 10-year period. Migration costs of migrating to a cloud ERP are also not prohibitive and most solution providers help in easy migration to their solution.
A major drawback of both in-house and hosted ERP systems is that solution providers use existing templates that must be customized and configured to match a company’s actual processes. Implementations typically take months and sometimes years. Cloud-based solutions, on the other hand, offer a basic configuration with a pre-set range of options. The time it takes to roll out a cloud-based ERP system is much much less. Cloud-based ERP solutions are designed to let companies quickly add new business functionalities with high availability and easy disaster recovery.
Flexibility and scalability
Vendors have been developing new ways for companies to acquire additional software and functions without going through the usual software delivery process. This makes cloud-based systems even more appropriate for companies with its suite of inherent and compatible tools with minimal integration issues. There is a certain degree of flexibility and scalability inbuilt into the cloud ERP solution to cater all business scenarios and needs.
Finding the Fit
Business size can play a role in determining the right solution fit. Cloud ERP can works well for small and mid-sized players due to the lesser degree of operational complexity. Lower user counts, data volumes and transaction volumes translate into lower subscription pricing for cloud-based services that is attractive for SMB’s.
Larger businesses may also want to consider cloud ERP for hybrid or two-tier ERP configurations that can help reduce costs and provide agility between business units. Larger businesses with high customization needs and those that generate very high data volumes and transactions may still prefer on-premise or hybrid systems. As speeds of the internet and the solutions based on it continue to improve, the cloud may become the preferred choice even for them. Already some of the bigger players are moving or are considering adopting the cloud.
We at VersAccounts have created a secure multi award winning cloud based comprehensive smart ERP solution. It has been created to take care of all the business needs and concerns for operating your business effectively.
Our solution is designed for fast growing businesses, between $1-$50M in annual revenue, looking to upgrade business management solutions. Our solution is built to be capable, affordable and easy to use by small and mid-sized businesses.
There are customization options with easy migration from and compatibility with respect to other systems preexisting or in the business environment.
It allows businesses to automate and optimize their operations across multiple companies, countries, and currencies with one integrated ERP system.
To know more, please visit www.versaccounts.com or contact us directly.
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