Exploring the advantages of cloud-based ERP systems

Posted on Monday April 24, 2023

Businesses have always relied on enterprise resource planning (ERP) systems to consolidate and organize information throughout the organization. Although on-premises solutions help businesses operate more efficiently, they have some limitations, particularly in cost, agility, and maintenance. Cloud-based ERP systems address many challenges associated with on-premises solutions and offer several advantages over their on-site counterparts.

So, what exactly is cloud-based ERP, and why would an organization consider adopting it?

What is cloud-based ERP?

Cloud-based ERP is a type of software that allows businesses to manage their operations, resources, and data through a centralized system that is hosted and managed by a third-party provider, who is responsible for maintaining the hardware, security, and upgrades of the system.

This system is accessible over the internet, enabling users to access their ERP software and data from anywhere with an internet connection. This eliminates the need for businesses to invest in on-premises hardware and IT resources to manage their ERP system, which can lead to significant cost savings.

What are the benefits of cloud-based ERP?

Cloud-based ERP systems offer a range of benefits, such as:

Cost savings Cloud-based ERP systems typically require less upfront investment in hardware and IT resources, reducing the total cost of ownership. This allows businesses to reallocate resources toward other critical areas of their operations.

Scalability Cloud-based ERP systems can quickly scale up or down as the business grows or changes, making it easier to accommodate evolving business needs. The ability to add or remove users, features, and functionalities can be done quickly and easily, ensuring that the system stays aligned with business goals.

Flexibility Cloud-based ERP systems provide greater flexibility in terms of access and integration with other systems. Users can access the system from anywhere with an internet connection, and the system can be integrated with other cloud-based or on-premises systems as needed.

Enhanced security Typically, cloud-based ERP providers have more robust security measures in place than many businesses could afford on their own. This includes regular backups, disaster recovery plans, and advanced encryption methods to protect sensitive data from natural disasters, cyberattacks, and human error.

Real-time data Cloud-based ERP systems provide real-time access to data, such as inventory levels and order status to financial metrics and customer behavior. This allows businesses to make more informed decisions quickly.

Improved collaboration Investing in a cloud-based ERP system can help improve collaboration and communication between different departments and locations. Users can access the same information from anywhere in real time, reducing the need for manual data entry and the risk of errors.

If you are thinking about implementing a cloud-based ERP system, but are unsure of where to begin, give us a call today. Our experts can assist you in finding the most suitable solution for your requirements.