Pros and Cons of Cloud Based ERP Systems
As a key decision maker in your organization, you understand the importance of ensuring that large organizational transformations are successful, add value and cause as little disruption as possible . Failing to budget correctly in your digitization journey can have catastrophic consequences, and you want to plan ahead to make sure you avoid them. SCP, as an expert in digital transformation, understands that completely. So when faced with a number of options in your ERP-upgrade journey, we are here to guide you to the best solution for your business. There are two basic types of ERP: on-site, and cloud. An on-site solution will use local connections to gather data and analyze the effectiveness and productivity of your supply chain, running more traditional processes as well as some digital ones. A cloud ERP, on the other hand, is entirely digital, relying on powerful, online software to gather, store, and process your organization’s data. So, what makes cloud-based ERP so attractive? SCP has put together a handy look at the benefits of cloud ERP, right here.
What Are The Advantages Of Cloud ERP?
Cloud based ERP solutions have several advantages, spanning increases in efficiency and cost-savings, to the complete overhaul and digital transformation of your business’s processes and systems. These advantages complement one another, resulting in a compounding improvement when your ERP is set up effectively and used to the limits of its capabilities. Let’s look at some of the specific advantages of cloud-based ERP:
- Faster Implementation
Cloud based ERP solutions have the advantage of being built for rapid implementation. An on-site or traditional solution leaves you with downtime as the new system is being installed – however, that downtime can be almost completely eliminated with a cloud based ERP, allowing you to continue business-as-usual during the implementation.
- Superior Integration
With integration-platform-as-a-service available for many cloud based ERPs, the advantage is clear: simpler integration of new and legacy applications, regardless of whether your current applications are compatible with the new cloud applications limitless opportunity to grow your business.
- Cost Savings
With a freed-up IT team, and no need for manual maintenance of systems, cloud based ERPs are far more cost-effective than on-site solutions.
There’s no need to pay for the entirety of a system that you don’t need, “just in case”. A cloud-based ERP advantage is that it can be grown or shrunk quickly and efficiently to suit your organization’s needs – without additional installation time or fundamental process shifts. Most cloud-based ERP’s pricing model follows pay-per-use, making them even more cost-effective.
Data housed in the cloud can be accessed at any time, from anywhere on the planet with an internet connection. There is no need for the applications or programs to be installed on the device that you are using – you are even able to login on your phone, wherever you find yourself.
- Data Security
With cloud based ERPs being at higher risk of data security breaches, data security is much more robust.
- Real-Time Data
And finally, cloud based ERP solutions can provide you with instant updates across the breadth of your organization. Possessing the accessibility and speed of the cloud means that you are able to access all data almost as soon as it is uploaded, providing you with real-time visibility of the inner-workings of your organization.
What Are The Challenges Of Cloud ERP?
The main challenges of cloud based ERP solutions are the obstacles to implementation. These include the potential difficulty of training your workforce, ensuring adoption of new systems, and any challenges involved in running two systems simultaneously during the migration process.
As an expert in digital transformation and a certified partner of several cloud based ERP solutions, SCP can assist you implementing the perfect solution for your organization. The advantages of cloud based ERPs are numerous, and utilizing them effectively has the potential to add near-instantaneous value, and kick your growth into overdrive.