As the volume of information grows exponentially, when you search ERP on the web, it’s clear that getting the right information is not a job for the faint of heart. ERP is an acronym for Enterprise Resource Planning. To unravel your confusion about what does ERP mean and why small business should choose cloud-based ERP over on-premise. Here are the brief introduction of ERP and comparison chart between cloud-based ERP and on-premise ERP.
Before I get into depth, take a few seconds to think about the essential various processes of businesses need to go through, which encompasses accounting, human resource management, customer relationship management, inventory control management, finance and so on. With the advent of ERP, it streamlines all of the complicated business processes and provides a 360-degree view of how the business performance is. Meanwhile, allowing all of the systems can be assessed through one application with a single interface.
Preparation for small business before implementing an ERP
The rapid emergence of new technologies has lowered the barriers to entry of accessibility and created wider access to information however in some way it makes investing the technology becomes a daunting and overwhelming task for small business. As there are multiple options continues to increase, businesses are faced with the seemingly similar question of which ERP works the best for me? Keep in mind when it comes to the selection of ERP, it’s not a one size fits all approach. There are some key aspects you must clearly identify before implementing an ERP. To define and understand your company’s unique business process is the first step.
- Make sure the organizational chart must be well defined
- Write out the function of each process and prioritize features
- Assign a team to manage and keep track of the progress of implementation
Although there’s nothing as a perfect set of rules which defines your company is ready for the implementation of ERP system, I have prepared a framework for you to know your company better when your business is experiencing more than a few of these signs.
Cloud Vs On-premise: Cloud is eating the world
On-premise is not the only option anymore with the rise of cloud that provides the enterprise the flexibility it never had before: quick response to opportunities and scales up fast to meet variable customer demands. The cloud computing adoption is expected to keep growing, in a recent study by a group of global IT decision-makers, 88% said cloud computing would be a priority over 18 months. As many investors discover the benefits of cloud computing, many are sinking money in investing them in order to tout the value of it. The pervasiveness of cloud adoption has led many vendors relentlessly shift focus from on-premise to cloud solutions, giving the rise of the question “What can the cloud do better than on-premise?” and here’s the answer.
Cloud computing is all about storing and assessing data, programs, and applications you’re using on the web meanwhile all of the hardware and server will be maintained by your vendor. On the other hand, on-premise software is installed on in-house premises and computing infrastructure which requires organization manages and maintains hardware and server on its own.
The key issue holding back small business from investing technology is the concern of maintaining a complex IT Infrastructure. Traditionally, if you didn’t have the right environment and enough hardware and network to support it, a regular software upgrade would burn a hole in your pocket. However, right now the cloud transfers the burden of keeping and managing the system up to date to the vendor, all while tremendously reducing the cost to maintain the infrastructure. Cloud computing adds insights, elevates the small business to the next level and offers many more benefits.
Less investment: As cloud-based ERP is hosted by the vendor, customers have no application of IT infrastructure to set up or upgrade the software. The implementation is only focusing on the configuration of software or if necessary, importing data, providing a pay-as-you-go model with greater scalability and less maintenance cost. Customer only pay a monthly or annual subscription fees for the vendor and if there’s an expansion of the business in the future, additional users can be simply added in with an incremental cost without worrying in investing additional resources which is perfect for small business as it doesn’t require a capital expenditure one shot and at the same time leveraging instant access to resource without high-cost investment.
Fast deployment: The cloud-based ERP is deployed over the internet which only takes hours/days to complete it while on-premise takes longer time as it needs to be installed on servers and each individual PC/laptop.
Greater flexibility: These days, selecting the right technology that not only fulfills the capacity you need today but can also meet tomorrow business expansion needs has become a vital process. Business needs to know they can scale up their operations quickly to drive greater operational efficiencies and scale down quickly if resources are going unused, keeping your business focus on core strategies and stay fit in this competitive world. Cloud-based ERP enables mobility and is accessible on desktop computer and mobile devices. It allows businesses to manage their entire business from their fingertips anytime and anywhere and reduce the barriers to innovation like never before.
Immediate technical support: Customer will be given immediate access to the latest version of the software without worrying about the maintenance, upgrades are all taken care of by the vendors.
Cloud is beyond its day of being something to fear. The industry now is growing by bounds and leaps, customer demands are becoming unpredictable. With the implementation of cloud-based ERP, it allows your data processing power to be available to real-time and let businesses able to churn out the information needed with a simple flip of a switch. It helps small business able to respond quickly to the dynamic needs of customers, providing a competitive edge to outmaneuver the competition.
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