Cloud ERP, the Next Big Shift In Businesses for Agile Process
FREMONT, CA: Enterprise Resource Planning (ERP) remains as the main element of an organization, according to a study by Gartner on ‘Adoption of Cloud ERP 2013 through 2023,’which expects a swift transformation from conventional process of ERP to cloud ERP. The real challenge lies in the shift- how exactly will this happen and how. Companies still remain skeptical on moving their core ERP solutions supporting their financials and supply chain management to cloud.
Cloud technology revolutionizes ERP by breaking the traditional process; high-cost, multi-year complex structure making it impossible for few companies to implement, giving it only 60 per cent success rate. Earlier it was deployed on-premises at client location, recent years has seen a tremendous change in companies like SAP and Oracle who are now offering their services on cloud,which is cost effective and easy implementation cycle.
The benefits drawn by an organization with the implementation of ERP include cost-effective nature where services are provided on pay-as-you-go method by reducing the initial investment capital. Added to this, implementation and operational costs can be paid on the basis of subscription. Cloud comes with another major advantage- easy deployment process. It is flexible to use, increases revenue capital by integrating new features and business functionalities into the software with click of a button along with easy upgrades capabilities and access to latest software.
Cloud ERP comes with better integration facilities throughout the network, by taking advantage of upgradation whenever and wherever it is required by easingmaintenance charges. This reflects inimproved management of data and advanced data back-up options. On the contrary, the shift as mentioned is a complex task; ensuring data security is a challenge since it contains critical financial, accounting, sales, and customer data. Additionally it also limits customization options and integrations where in few instances cloud is not suitable for every enterprise which needs a purpose built ERP to meet their needs.