ERP is business application software, typically a suite of integrated applications. An ERP system can significantly improve company’s efficiency and productivity by integrating accounting and finance with sales, manufacturing, human resources, and other functions and help it take growth to next level. Over the years, the software has become more powerful and versatile. Today, the ERP Industry seems to be reaching at inflection point with cloud based systems posing a big threat to the established on Premise software
So with cloud based systems taking off, what are the benefits of implanting it? Well, here are 5 benefits to get you started:
First and foremost, since all SaaS services are offered on a subscription basis, there are no unexpected costs. Customers know exactly how much the system will cost them this month, next month and every other month which is a very appealing prospect especially for smaller businesses whose funds tend to be considerably smaller. Even if the prices for the SaaS system do increase, they don’t tend to increase by a great deal.
Management and setup of an SaaS system are all the responsibility of the vendor so there no real setup or installation process. Most parts of the system will come preconfigured and ready to be setup integrate into your business. This results in a much faster and simpler setup process which ultimately lead to a faster ROI since initial costs are lower.
Lower initial costs
Since an SaaS system requires very little in the way peripherals and such technology normally found in the average non cloud based ERP solution, the costs of running an SaaS system are much lower as well. The only maintenance cost to the customer would be the wage packet given to the employees using the software. What’s more, most ERP vendors allow for additional users to easily be added into the SaaS system without the need for any additional technology to be implemented so the system can expand easily if you ever need it to.
Running an in house system means brings with it the added responsibility of dealing with any problems that may occur such as on-site hardware implications, software problems and network issues which makes troubleshooting an error somewhat difficult. However, with an SaaS system all of this is the vendor’s responsibility so the customer does not need to worry about any problems that may occur.
Anywhere, anytime information access
Free your employees from a specific computer or location. With a cloud based ERP system employees can access your system from any approved computer or location. All that is required to stay connected is an Internet connection.
“For the next five years, we will see the deployment of what we call hybrid-ERP, a mix of on-premise and the cloud,” where company can pick some functions to move on cloud and others they can keep on premises only. Business should ask their ERP Vendors about their cloud deployment options. Working together, ERP Partner and Business can decide which functions of the software could be moved over to the cloud first.