While this post focuses on the benefits of cloud ERP, it is by no means superior to on-premise software or hybrid cloud environments. The benefits you realize from any technology will depend on your project execution before, during and after implementation.
Here is a technology-agnostic perspective on the reasons some organizations choose to implement cloud ERP:
1. Better Business Intelligence
When it comes to data access and data storage, cloud ERP has several advantages over on-premise ERP. Cloud technology is more scalable for storing large amounts of data and can provide access to data gathered by IoT technology.
While researching cloud ERP systems, you’ll likely run across many lists of “top ERP systems.” These lists are often based on the amount of research and development vendors are investing in their products. The most innovative ERP vendors are heavily investing in cloud BI.
2. Faster Implementation
This gives organizations more time to focus on the business side of transformation. Change management and business process management require the same time and resources whether you’re implementing cloud or on-premise ERP.
3. Ability to Focus on Your Core Competencies
Cloud technology allows organizations to outsource their IT function and focus on their core business. Retailers, for example, typically like to dedicate more focus to the customer experience than IT maintenance.
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
4. Cost Savings
For smaller organizations, the long-term cost of cloud ERP may actually be less expensive than on-premise ERP – the fixed infrastructure costs of on-premise ERP can’t be spread over enough volume to justify the cost.
5. End User Buy In
In any technology initiative you should communicate with employees about the benefits of new technology, emphasizing how their jobs will become easier. Are you implementing robotic process automation in conjunction with cloud technology? Focus on how these bots will streamline menial tasks and enable employees to work more efficiently.