Enterprise Resource Planning (ERP) means many things to many people, but where everyone would agree is that ERP is the financial lifeblood of the organization.
That’s because it holds the most critical data and processes from supply chain, inventory order management, and accounting, to human resources and customer relationship management (CRM). ERP has the most potential to break down the silos between business divisions by providing a unified view of data across an organization.
As many companies know, traditional ERP systems are notoriously complicated and a challenge to manage, monitor, maintain and upgrade. In the past, few teams would trust a critical system like Enterprise Resource Planning (ERP) to the Cloud. However, as companies face continued demands for increased efficiency, agility and innovation, they are realizing the benefits that cloud-based ERP offers over on-premise ERP.
As reflected in the December 2016 Research and Markets report, the Cloud ERP market will hit $29.84 billion by 2021, a CAGR of 10% from 2016. This growth points to the growth, maturity, and demand in the market.
Are you ready for ERP in the Cloud?
Today’s cloud-based ERP offers several advantages over traditional on-premise ERP, including:
- Agile, just-in-time business processes: Real-time budgeting, sophisticated modeling, and big data analytics mean that you can optimize your business and operate on lean principles.
- Best-in-class security and compliance at lower costs: Multiplying threats and evolving regulatory mandates mean that few in-house IT organizations have the skills, manpower or budgets to keep up. Because of increased agility and economies of scale, Cloud ERP, by contrast, can provide best-in-class security and compliance at lower costs and can more readily comply with new industry regulations, such as International Financial Reporting Standards 15 and Accounting Standards Update 2014-09.
- Easier and faster to deploy: In-house and hosted ERP systems can take months and even years to configure and deploy. As organizations look to spin up new divisions and business units across different verticals or geographies, Cloud ERP provides the flexibility to meet critical needs and implement new business functionality quickly.
- Improved ability to scale with your business growth: Eliminate the costs associated with legacy hardware/software in favor of pay-as-you-go propositions. Cloud ERP provides scalability to match the elastic demands and business growth, adding new features/functions and supporting new users as needed, significantly improving ROI over time.
- Enhanced financial decision making: the flexibility of the Cloud provides organizations with increased agility to tie together data for improved reporting and better decision making.
Be aware that not all Cloud ERP solutions are created equal. The best solutions offer a broad range of deployment options, from software-as-a-service (SaaS) and hosted to on-premise, while ensuring organizations have the flexibility to update ERP systems as their business evolves.
NexTec can help you learn more about your software options and choices between Cloud, on-premise or a hybrid of the two. Contact us and we’ll help you find a solution, tailored to fit your business needs now and in the future.