Digital transformation is increasingly necessary to maintain competitiveness in the modern age. One key tool of this transformation is cloud-based ERP systems, which for many companies have become the nerve center of all processes and also the cornerstone of company digitization.
In the age of the internet, traditional on-premise ERP systems are reaching their limits. But operating software on your IT infrastructure has its pitfalls too:
- large initial investment into IT hardware and software,
- need to spend time and money on infrastructure maintenance and development,
- need to acquire software updates independently,
- need to have your IT team that will take care of the hardware and software.
These generally do not pose an issue to large companies. However, small companies do not always have the necessary funds and personnel and are, therefore, unable to take advantage of ERP systems' full potential.
This is where cloud-based ERP systems come in as reliable, modern solutions free of all on-premise limitations.
What Are the Key Advantages of Cloud-Based ERP Systems?
Flexibility and Scalability
One of the biggest advantages of cloud-based ERP systems is their ability to grow and change with the company. Unlike traditional on-premise solutions, cloud-based solutions make adding new users, features, or entire modules easy. This scalability is particularly valuable for rapidly growing firms or companies with seasonal fluctuations in demand.
Access to Data in Real Time
Due to cloud-based ERP's online nature, you can access your data anytime from anywhere, even away from your office. All you need is a compatible device and an internet connection. Your employees can access up-to-date information whenever required, especially for managers, whose decision-making is often dependent on the latest data. Ease of access to data also supports more effective collaboration between various departments and branches within the company and thus contributes to the organization's overall efficiency.
Cost Optimisation
Switching to a cloud-based ERP solution often results in major cost savings. There is no need to invest in expensive hardware and its maintenance and operation. The only long-term expense in cloud-based ERP solutions is a regular subscription, which pays for all aspects of the service – from updates to infrastructure maintenance to technical support. The provider takes care of all of that.
Automatic Updates and Innovation
One frequently overlooked but crucial advantage of cloud-based ERP systems is regular, automatic updates. These ensure the company always has access to the latest features and improvements without the need for costly and time-consuming upgrades. This is a key aspect of staying competitive in a rapidly changing technological environment.
Support for Digital Transformation
Cloud-based ERP systems are not just a tool for managing data and processes, but also the core of digitizing the entire company. An on-premise solution lets you free yourself of paper documentation and manual tasks thanks to electronic documents and process automation. Modern cloud-based systems add to that the use of artificial intelligence and machine learning, which enables them to predict market trends, optimize inventory, or identify potential problems before they emerge.
Data Security in the Cloud
Data security is one of the most common fears when contemplating transitioning to a cloud-based solution. However, it is important to understand that cloud service providers invest significant money into securing their systems, often much more than individual companies can afford.
Modern cloud-based ERP systems usually offer advanced security features, such as data encryption, multi-factor authentication, and regular security audits. Cloud-based solutions also involve a robust data backup system to minimize the risk of data loss and quickly correct any breakdowns.
Seyfor OneCore – Example of a Successful Cloud-Based ERP System
Implementing Cloud-Based ERP: Key Steps
Switching to a cloud-based ERP solution is a major project that requires careful preparation and a strategic approach. Key steps include:
- A thorough analysis of the current processes and needs of the company,
- Creation of a detailed migration plan, including a schedule and a budget,
- Choosing a suitable provider and solution,
- Preparing the data for migration,
- Employee training,
- Gradual implementation and testing,
Special attention should be paid to choosing the right partner for the implementation. The ideal partner should have in-depth knowledge in the given branch of industry, experience with similar projects, and the ability to adapt the solution to the company's specific needs.
Want to Learn More?
Are you considering implementing a cloud-based ERP solution and want to know more? Download our e-book called Smart ERP Selection: Strategic Guide for Executives for free. There, you will find, for example:
- the most common company issues and headaches that ERP systems help address,
- explanation of the EMPOWER process,
- how to choose your implementation partner,
- how to write a business case,
- and how the cloud-based OneCore ERP system can help you with all of the above.
If you have any questions, feel free to get in touch. Our experts are here to help.
