How Cloud ERP Software Shapes the Future of Business Management

Cloud computing is here to stay. All new applications and business software have a robust backup of the cloud. There is no exaggeration in mentioning that the cloud concept has changed the way we do business significantly. Talking about its role in the ERP solution, all types of business models can leverage its benefits like reducing costs and increasing productivity. As per the research, the Cloud ERP market is expected to reach USD 47760 million by the end of 2028.

Today, the corporate world witnesses a paradigm shift from on-premise systems to cloud ERP software. The reason is simple. Legacy on-premise systems require huge investments in hardware, maintenance, and periodic upgrades. Integration of the cloud-based ERP solution in an existing business management system can enable companies to get rid of these expenses. Let’s understand the key reasons why cloud ERP is the future of business management. 

Before discussing all the key tangible benefits of cloud ERP for business management, let’s have a brief introduction to this revolutionary concept. 

Cloud ERP- Brief Introduction

Simply put, cloud ERP is a robust, cloud-based business management system with various features related to different departments of an organisation. It is essential software that can manage and store crucial business functions and information from all the departments ranging from sales to finance and inventory to production. The cloud ERP solution is accessible through the Internet as and when necessary and acts as a single platform for all corporate data. 

Remote data centres host cloud ERP solutions. Cloud software vendors own these data centres across the world and are responsible for the application, servers, data storage, version updates, and other related aspects. Data centres for hosting cloud ERP solutions are designed to minimise downtime and maximise the performance of the solution. Many vendors offer cloud ERP as SaaS (Software as a Service) where the end-users can use it through the Internet. 

Usually, cloud ERP solutions are based on subscriptions. In other words, companies need to pay a monthly or annual fee to use these solutions. However, unlike the on-premise ERP software, cloud ERP does not need any additional purchase or maintenance. Also, companies need to pay only for those features that they utilise for business management. Let’s go through its key business benefits.     

Major Ways Cloud ERP Can Shape the Future of Business Management

Cloud ERP solutions contribute to streamlining the workflow and simplifying the complexities of modern businesses. Globally, many companies have got impressive results after implementing cloud-based ERP solutions. Here we mention the top nine aspects that prove that cloud ERP is the future of business management. 

Streamlines Processes

It is a noteworthy benefit and one of the most common reasons for cloud ERP implementation. On one hand, on-premises ERP deployment is a time-consuming and complex process, the cloud-based ERP is relatively quick and easy to integrate into the system. Cloud-powered ERP systems are more responsive and adaptable as compared to their legacy counterparts. Cloud ERPs can streamline processes and contribute to bringing automation to repetitive tasks. It can increase the efficiency and productivity of modern businesses and drive them toward expansion.

Reduces Costs

Cloud-powered ERP systems require less initial capital than on-premise ERP systems. Also, it is fair to mention that cloud-driven ERP is free from cost overrun and implementation issues that require more investment. The SaaS model of this ERP can drive modern businesses toward a bright future in a cost-effective manner. 

Apart from implementation costs, companies can save big on hardware and infrastructure while switching to cloud ERP. In a way, the total upfront investment is less than on-premises ERP, and the ‘pay as you use’ model can further save costs on features, regular maintenance, and update. 

Secures Data

Many cloud solution providers offer encryption and other security features to ensure the safety of your confidential corporate data. The Cloud ERP facilitates data access as and when necessary, however, businesses can keep control of accessibility based on hierarchies. Data security is highly essential today and tomorrow alike. As cloud-ERP software has several security features, your business can use it for a long period while safeguarding the data. Also, top ERP systems based on the cloud have a suite of security tools and a team of dedicated and expert professionals to ensure data security. 

Improves Visibility

Transparency, visibility, and accountability are three pillars of business management. Cloud ERP can foster these aspects effectively throughout all the departments. Cloud ERP solutions have-

• Project management tools for strengthening collaboration and communication

• Reporting feature for getting financial and performance reports as and when necessary

• Seamless and instant data access with improved data sharing

• Inventory monitoring feature for effective tracking and managing the supply chain

A cloud service provider can offer customised features also to improve the performance and various services. Finally, it is possible to maintain the same visibility and transparency with the expansion of businesses with the help of Cloud ERPs. 

Increases Scalability

On-premise ERP systems have one major drawback- these systems are not scalable enough to support expansion and grabbing opportunities.  Other issues of these legacy ERP systems are update-related challenges and hardware issues. 

All cloud-based ERP solutions are free from these issues. They offer scalability options for businesses of all sizes. As a result, growing businesses can ensure growth through expansion or M&As. It is easier to add more users and necessary licenses when the cloud ERP is implemented in the business system. 

Enhances Mobility

As per a recent survey, as many as 84 percent of emerging businesses feel that mobile technology can have a positive impact on productivity. Therefore, a cloud ERP solution with mobile access can work wonders. 

When it comes to mobility or mobile access, cloud ERP enables businesses to get advanced and sophisticated control of mobile devices. With centralised data access and real-time information, cloud ERP can remove barriers to communication and mobility effectively. Remote employees and multiple plants can leverage all the benefits of mobility with a mobile-enabled cloud ERP solution.  

Ease of Operations

Any cloud-based software is easy-to-update and offers ease of processes every time. Regular updates are imperative to fix security issues, data vulnerabilities, and bugs. Compared to traditional ERPs, cloud ERPs take less time in adding new features and security patches. 

Modern ERP solutions have automatic upgrading processes that can reduce downtime significantly and businesses can continue their operations even during version updates. A SaaS service provider keeps on upgrading the ERP system regularly with new modules and software updates in the background to avoid any disruption. 

More Flexibility

One of the biggest benefits of cloud ERP systems is they can offer custom solutions for any business model irrespective of their industry sectors. Be it an SAP ERP solution or other reputed cloud-based ERPs, they offer high flexibility to businesses. As a result, your business can remain ready to meet the requirements related to future expansion or customer challenges. 

Every business is unique and cloud ERP software can provide a customised solution to meet all the major needs of businesses. Cloud-based ERP solutions give the necessary flexibility to businesses to grab new opportunities and expand operations. As the cloud concept evolves, new tools and technologies will come to assist entrepreneurs to implement innovative techniques in their business models. 

Decreases Carbon Footprints

Decreasing carbon footprints is one of the core objectives of forward-looking businesses. Energy consumption in an on-premise server room is huge and it is necessary to think of reducing it for achieving more sustainability. 

Many cloud ERP systems are hosted on multitenant servers globally that can handle numerous datasets of different companies. All these companies can save big for their better future in energy consumption while ensuring minimal downtime. Also, companies can contribute to reducing pollution by switching from on-premise ERP to the cloud eventually. 

You need to find the right cloud service provider or cloud ERP vendor to leverage all these benefits for your company. These days, many options are available in the cloud ERP solutions and the right solution can drive growth for your business over the period. 

Concluding Lines

A cloud-ERP software can drive businesses toward growth by reducing operational costs, improving performance, offering data security, and increasing efficiency. However, moving to a cloud-based ERP system from a legacy ERP system is a big move and needs assistance from an expert. Once your business switch to the cloud ERP solution, it can remain ready for increasing competition and challenges in the future.