What Is Cloud ERP & Why Do Businesses Need It?

Table of Content

What is Cloud ERP
Benefits of Cloud ERP
Challenges of Cloud ERP
Choosing the Right Cloud ERP Solution
Conclusion

What is Cloud ERP?

Cloud Enterprise Resource Planning, or cloud ERP, represents a modern approach to managing and integrating various core business processes and functions. In contrast to traditional ERP systems that are installed on-site, cloud ERP runs on cloud computing infrastructure, where data and software are remotely hosted and managed by an outside vendor.

Enterprise Resource Planning system is fundamentally a centralised centre for handling key corporate operations, including manufacturing, supply chain management, finance, and customer relationship management (CRM).

Benefits of Cloud ERP

benefit cloud erp - What Is Cloud ERP & Why Do Businesses Need It?

Scalability and Flexibility

Perhaps the biggest advantage of cloud ERP is its scalability and flexibility. Companies’ needs evolve as they expand, and an ERP cloud computing solution is a great option for expanding enterprises because it can be expanded or contracted as needed. Businesses using cloud-based ERP can also select the features and modules they require and only pay for what they use. This saves money on software that businesses don’t require, enabling them to run more effectively.

Cost-effectiveness

Cloud ERP requires less hardware and IT staff on-site. Businesses are able to direct funding towards other aspects of their operations when hardware expenses are lower. Furthermore, the implementation and maintenance costs of cloud ERP systems are generally lower than those of traditional ERP systems.

Accessibility

Cloud-based ERP can be accessed on any device, at any time, and from any location. Users may easily access the Cloud-based ERP platform from anywhere, whether at work, home, or on the go, assuring uninterrupted workflow and optimising operational effectiveness.

Increased Collaboration

ERP cloud computing software promotes collaboration among employees, departments, and locations. This allows businesses to operate more efficiently, with real-time updates, document sharing, and task management.

Automatic updates

Cloud ERP providers will automatically apply updates without interfering with your business, saving you the time and effort that comes with manual updates.

Improved Data Security

Since data is stored in the cloud while using cloud-based ERP, it is less vulnurable to physical theft or damage. In order to protect sensitive data, cloud ERP providers are also dedicated to data security and will put security measures in place like firewalls and data encryption.

Real-Time Data Updates

Cloud ERP provides real-time data updates, making it possible to analyse corporate data right away. This implies that your company can act on the data insights and swiftly identify areas that require improvement.

Integration

Cloud-based ERP integrates easily with other business applications which can help companies unlock new opportunities for growth and optimisation, leveraging the power of interconnected systems to maximise their competitive advantage.

Access to the Latest Technology

Cloud ERP vendors make significant investments in technology to give their customers access to the newest and greatest capabilities. This implies that companies utilising ERP cloud computing software won’t have to shell out cash for pricey hardware or software updates because they’ll constantly have access to the newest features and technologies.

Challenges of Cloud ERP

Security concerns: Despite significant investments made by cloud service providers in strong security protocols, cyberattacks can still target the cloud. Because of this, companies need to put in place extra security measures like encryption and multi-factor authentication in order to reduce risks and properly protect their data.

Vendor lock-in: It can be difficult and expensive for a company to move to a different cloud ERP supplier once it has committed to one. The main causes of this include data migration difficulties and integration complications, which can cause operational disruptions and extra costs. In order to reduce the risk associated with vendor lock-in, firms should carefully assess possible vendors and take scalability and flexibility into account when making decisions.

Reliance on internet connectivity: In order for cloud-based ERP systems to perform at their best, they need a dependable internet connection, and any interruptions might reduce output and cause operational difficulties. Businesses should investigate several connectivity solutions, such redundant internet connections or hybrid cloud installations, to reduce this risk and provide uninterrupted access to vital corporate data and apps.

Potential for hidden costs: Although cloud-based ERP solutions usually have open pricing structures, extra functionality, data storage fees, or unforeseen usage charges could have hidden prices. Businesses should perform in-depth cost evaluations and negotiate explicit conditions with their cloud ERP supplier to ensure complete visibility and control over their expenditure in order to prevent unpleasant surprises.

Choosing the Right Cloud ERP Solution

Consider your business needs and requirements

Start by evaluating the particular demands and requirements of your company. Determine the main areas that can be improved with a cloud-based ERP solution: scalability to handle expansion, easy integration with current systems, and strong data security to safeguard private data. Knowing these priorities can help you make decisions and guarantee that the solution you select closely complies with your company’s goals.

Evaluate different cloud ERP vendors

Conduct comprehensive research to explore the offerings of various cloud ERP vendors in the market. Think over things like the vendor’s track record, depth of features, industry experience, and scalability possibilities. Seek out suppliers who can efficiently fulfil your unique requirements and who have a track record of accomplishment in your sector. Making detailed inquiries of possible vendors and requesting quotes can give you important information about their capabilities and assist you in making a well-informed choice.

Get a free trial or demo

Take advantage of cloud ERP suppliers’ free trials or demos before committing to a long-term plan. You will be able to examine the software’s features, user interface, and usability directly during this practical experience. Pay special attention to aspects like inventory monitoring, financial management, and reporting capabilities that are important to your company’s operations. Talk to the vendor’s support staff about any queries or issues you may have and assess how quick they are to respond and how knowledgeable they are about helping customers.

Talk to other businesses that are using cloud ERP

Consult with companies in your sector who have already adopted ERP cloud computing solutions for references and suggestions. Learning from their experiences, difficulties, and lessons gained can give you insightful information and help you foresee any roadblocks on your own implementation journey. Inquire specifically about the timeframes for implementation, integration difficulties, continued support, and general level of satisfaction with the selected solution.

Conclusion

In conclusion, cloud-based ERP is a cost-effective, scalable, and flexible solution that can improve collaboration and provide real-time data and insights to help businesses make better decisions. While there are challenges associated with cloud ERP, such as security concerns and hidden costs, selecting the right cloud ERP solution can be a game-changer for your business.

Experience the power of Cloud ERP with Synergix Technologies! Our fully integrated, customisable cloud-based ERP systems have already satisfied over 600 clients and serve over 30,000 users in Singapore. Plus, as an IMDA pre-approved vendor, qualified enterprises can receive up to 50% of qualifying costs. Contact us now for a free demo!