Scientific Study

What is Cloud ERP: 10 Reasons Why You Need Cloud-Based ERP

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Enterprise resource planning, better known as ERP, is a highly-valued management software that is used to help businesses automate storage, accounting, marketing, management and so forth. What most businesses don’t comprehend is just how valuable a cloud based ERP can be.

Cloud based systems are becoming more and more popular as we progress through our era of technology, so why should businesses be using the cloud with ERP? The main benefit is that you can access stored data remotely through the internet, which can make things easier when you’d like to manage your business from your house, our while traveling. Here are 10 reasons why you need a cloud-based ERP.

  1. The upfront cost. On average, cloud based ERPs generally require a lower investment rate and is set up faster than on premise systems. There is a very no-fuss feeling about cloud ERPs, as you require very little hardware, software, servers, and services – if any at all. It’s a well-known fact, of which most businesses may already know, that on-premise ERP systems usually require an unnecessarily large upfront cost followed by multiple ongoing payments/investments in order to keep the ERP running smoothly. Over time – those IT savings you saved by using a cloud based system add up at an alarming rate. In fact, studies have found that cloud-based ERP’s can cost 50% less than an on-site ERP. (1)


  1. You can monitor your business 24 hours, 7 days a week. Most small/new businesses benefit from cloud-based ERP’s because they don’t require an IT team that must maintain your system (these can be very expensive, and are not necessary for new businesses.) Using the cloud, there is no need to hire someone to constantly observe your system and check it over for performance issues or faults.


  1. As mentioned earlier, you can manage your business anywhere there is internet access, and most importantly – you can rest assured that this data is all 100% secure. You will have the ability to make important business decisions no matter where you are located, whether it be on your laptop, mobile device or tablet. For example, you are sent on your first business trip, a very important one that determines the success of your newly founded business. At the meeting, which is miles away from your head office – you receive the news that your employees have not been paid and there is an issue with your payroll system. No worries! Simply log on to your ERP system from your internet capable device, fix the issue (which may require help from a 24/7 support team) and voila, problem solved. If this had happened with an on-premise ERP, you would have the burden of stress as you fumble around calling IT companies to travel to your office to fix the issue at hand. It’s a very big time and money waster.


  1. Ability for new software and updates. This is a given with any software – there will be updates. Whether that’s for security purposes or functionality reasons, you will have updates you’ll have to engage at some point. A good idea here would be to install your updates (any large ones) overnight. This means you can rest easy knowing you’re not losing any valuable time having to wait for your system to update. While this may sound daunting, it’s actually very good for your business in the long run. For example, new features can be added to your ERP by a simple update downloaded from the ERP’s servers. You couldn’t have this much freedom & functionality with an on-premise ERP. The software wouldn’t allow for such large updates. You’d likely have to hire IT personnel to install the updates, and it would take time and money you can’t afford to lose. Some features could include ecommerce, payroll, analytics and so forth.


  1. Working with other programs in the cloud. This has to be the most important features, as you can manage your whole business (ecommerce, POS, payroll, etc.) right from your phone or advice! Another word for this process is integration, where you allow your system(s) to import data from various other platforms in order to create one super-like ERP. Integration is key with any cloud based system, you may need to export old business files to your new ERP, and having this procedure cloud based makes it incredibly easy to export and import new/old files needed for your business.


  1. This is often the top concern for ERP buyers. With a cloud based ERP – all your financial statistics, trade secrets, employee information and so forth is all stored in servers we know as the cloud. However – these concerns were brought to life when the ‘cloud’ hit the market and began making worldwide headlines. We now have 10+ years of history using the cloud and buyers are now much less skeptical than they used to be. With a cloud based ERP, your data is in your hands, the way it should be. You do however have the chance to allow access to other partners of your business without the hassle of having to go through an expensive IT/Security team. If you’re still not 100% satisfied with the safety aspect, buyers can seek a third-party security team to fully secure your business files. le


  1. With a simple click of a button – you can integrate ecommerce into your ERP and set up who is in control of what. It becomes easier to scale services, also. This becomes an advantage when it’s time to grow your business. If employees in different departments have access to your business’ ERP, they may have the option to create profiles for themselves introducing what they offer to the company and how to contact them. This is also an advantage for the manager of the business, who can allow & restrict access to whatever he/she requires to keep confidential.


  1. The realism of the data. Businesses implementing a cloud based ERP have the opportunity to review their data in a more frequent manner, where they may notice just how much of a wake-up call it is. This may initiate a cleanup process of which the manager(s) may decide to change a few aspects of their business based on the accurately displayed data the manager is now seeing. This can save a lot of time and money in the long run, and is a very important and key factor in any business.


  1. Fewer obligations & responsibilities. It’s no joke that onside hardware malfunctions/complications are almost inevitable, and troubleshooting these issues can be an incredibly frustrating experience. However, with a cloud-based ERP, this is the ERP vendor’s problem, you don’t have to worry about a thing and may continue running your business as per usual.


  1. A main factor why cloud based ERP’s are becoming more and more popular comes from the fact that you have limitless options regarding an ERP system that ticks all the boxes for your company. You may also have the opportunity to talk to an external consultant regarding which ERP system suits your business perfectly. You may very well wish for external ERP experts to choose your system for you, have them set it up and show you the ins and outs of how to drive your business to ultimate success.


The cloud has often been described as an ‘evergreen’ service – where there is no risk whatsoever of this technology ever becoming obsolete, in other words it’s here to stay. As mentioned earlier, there are infinite possibilities when it comes to software updates and introducing new and improved features to your ERP. There’s absolutely no reason to have to rip out your old software and replace it with the new. All of this makes a compelling case on just how beneficial a cloud based ERP can be to your business. There’s one concept that’s recurring throughout all the factors listed in this article – and that is how your business can save time and money by implementing a cloud based ERP. It’s no shock that such a simple process can be so beneficial, and there’s a good reason behind this, which is how the cloud has proved its financial value – a prime factor in any business venture. A lot of the time, and for most businesses / companies – the advantages of cloud based ERP’s far outweigh the negatives.

By implementing a cloud based ERP, you can gain the freedom you deserve when running your business. Although more importantly, you can focus on doing what you do best, selling the products and services your business offers.

Adam Butchart.




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