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 5 Key Benefits of Switching to Cloud ERP
Cloud ERP

Innovations in business technology have led to the development of Cloud Enterprise Resource Planning (ERP). It seeks to empower companies with the capability to improve their business operations, especially in the area of collecting and processing the voluminous data brought about by the current business environment that is heading towards more data-driven operations.

Therefore, companies have been adopting Cloud ERP – compared to more traditional on-premises ERP solutions, Cloud ERP is easier to maintain and is a better long-term investment that businesses can utilize and remain competitive in a data-focused market.

That said, should your business make the switch to Cloud ERP? Let’s take a more in-depth look at five key benefits Cloud ERP brings to your operations:


Better Resource Allocation


One of the main reasons why businesses adopt Cloud ERP is to help them reduce operating costs. Previous On-Premises ERP solutions often needed to be installed on-site; this leads to operational expenses such as the purchasing of hardware such as computers and physical data warehouses as well as hiring IT staff and technicians to ensure they are installed properly. Then there is also the issue of purchasing the licenses of On-Premises ERP software to ensure the installed hardware are working properly – all these incur additional expenses.


As such, investing in Cloud ERP solutions helps companies to better allocate their budget. For instance, switching to Cloud ERP systems eliminates persistent IT labor costs since there is no need for a physical data warehouses and other infrastructure that need to be maintained; data processed from business operations will be collected and secured within the cloud. Meanwhile, Cloud ERP system providers have their IT specialists who are on hand to provide the necessary support for business management.

Furthermore, Cloud ERP systems is a long-term asset for companies because it enables them to remain competitive in their respective markets. This is due to Cloud ERP systems having industry-compliant measures that the system providers maintain regularly.

Once the Cloud ERP solutions are properly implemented within a company’s business processes, higher management can then focus on other more critical areas in their business that need to be improved such as employee training, product research and development, marketing, sales, and other facets.


Integrated Business Processes


Cloud ERP solutions help companies integrate their various business operations, thus making them more efficient. This is done by implementing automated systems that collect, process, and record data in less time than it takes compared to conventional means.

Conventional business processes tend to take a long time to communicate information between important channels within the workflow, especially when using outdated means. Cloud ERP systems improve this issue by incorporating connectivity tools between participants in different stages of the supply chain. This way, personnel in these stations can divulge important information and updates in real-time, which allows for more timely decision-making and execution.

Moreover, implementing Cloud ERP systems into business process takes less time to complete than on-premises ERP systems. For management, this means more time to focus on more important areas in production or delivery to ensure the daily set goal is accomplished. As a result, business with integrated processes experience improved productivity in their daily operations since all parts of their workflow are working in unison.


More Adaptable Business Operations


Going deeper into business operations, Cloud ERP solutions allow a company’s processes the ability to adapt to a dynamic market. Since business practices continue to change with currently available technology to improve the way they conduct business, Cloud ERP gives companies the support it needs to remain competitive and react accordingly to marketplace disruption.

For instance, most companies typically observe industry standard practices when it comes to interfacing or transacting with other businesses. This includes using accredited software that would process orders and track payments; Cloud ERP solutions deploy standardized applications such as analytics and other collaborative tools that make transacting between companies more convenient.

When it comes to adapting to the market, Cloud ERP systems enable business leaders to swiftly act to instances wherein their business operations need to scale up or down, depending on market demand or whether they plan to target a wider audience or expand their operations locally or globally. This ability to scale business processes up or down can also be used to test out different functionality improvements without compromising the current workflow.

As for software compatibility is concerned, most Cloud ERP systems often include patch updates to their applications that are synced via regularly scheduled maintenance. This is done to ensure their tools are always working to full capacity, especially in production areas whose processes are highly dependent on such controls performing optimally.


Improved Data and Business Process Accessibility and Accuracy


Much like early ERP solutions, Cloud ERP systems help integrate a company’s business operations to allow more fluid and streamline processes. The difference here is that Cloud ERP systems fully utilize the internet – end users such as management, business owners, and partners can readily access pertinent information regarding various segments of business operations. Most ERP Cloud systems also have mobility options in the form of apps that can access the database remotely, so long as the user has an internet connection.

Speaking of data, Cloud ERP solutions also generate more accurate information, which is essential for management. The data collated can be monitored in real-time and are properly organized for quicker analysis – invoices and purchase orders can be obtained quicker, making it easier to track if they are paid or not.

Having the correct information allows higher management to have a better view of how particular areas of the workflow are performing and make the necessary decisions to address or further improve their operations.


Increased Information Security


For most companies, improved access to data via Cloud ERP systems also posits the question of data security, and rightfully so, since the internet can be used by anyone who can connect into it. So, how does a Cloud-based ERP system address this issue?

Cloud ERP systems employ external and internal security protocols to safeguard a company’s valuable database. External threats often breach ERP security measures because the ERP software is not up-to-date, which leave them vulnerable to advanced attacks. To counteract this, Cloud ERP system providers often release new software updates that prevent malicious viruses and other cybersecurity threats.


Internally, accessing business data requires the creation of an account which is typically assigned by management to their respective employees. From here, management and the Cloud ERP system install varying levels of authorization to accounts that can access certain data.


From a legal perspective, most Cloud ERP systems also observe to government-mandated regulations when it comes to handling sensitive information. For example, customers’ credit card numbers, social security numbers, and other personal information are recorded and heavily encrypted so that they can only be accessed by authorized personnel.


There are many more benefits Cloud ERP systems can offer to businesses who wish to integrate their respective processes into the Cloud. If you wish to determine if your company can take advantage of Cloud ERP solutions, complete the business process assessment. Once completed, we can then assist you in looking for the best-fit Cloud ERP solution for your business operations.



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 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP
 5 Key Benefits of Switching to Cloud ERP