Signs Showing its Time to Switch to Cloud ERP
The on premise ERP systems that many companies use today trace their architectural and operational roots back to the last century. Sure, these systems can be upgraded to mimic modern capabilities. But by the time upgrades are completed usually at great cost both in dollars and effort—the ERP system is capable of meeting only those requirements identified when the project was initiated, and not much of what has changed since then. It is an endless treadmill that makes companies tired and only enriches consultants.
Updating ERP software can look like an intimidating and expensive project, though the gains from increased efficiency and improved operations are beneficial long-term investment. The main reason companies stick to their old software is because of huge hassle which will affect the flow of whole organization. Here are some of the signs you should look upon to understand that you need to switch to cloud ERP.
- Lack of mobility
In today’s time operating with a business model that depends on a centralized office is simply not practicable anymore. Leveraging the potential of this global world, companies are doing work from mobile devices on the road, using tablets, laptops, and phones. A cloud ERP solution turns this mobility into a clear business advantage by providing a seamless transition experience from the office, to home, to mobile, and back. The cloud empowers scalability as you add employees anywhere in the world.
- Maintenance costs are through the roof
If fees and service charges for your on premise ERP system are increasing annually, your potential investments in other business-building capabilities will be limited. But if incrementally increasing maintenance fees and limited-user license fees are adding up as the team’s headcount grows, you may be dealing with an ERP system that doesn’t scale well. ERP should support and streamline your team’s growth, not hinder it or generate more work. Cloud ERP may be expensive but the result from is worth spending investing on.
- Information for decision making is less reliable
On premise ERP systems often include a number of tools and data repositories. This makes having a single source of truth nearly impossible and often results in conflicting answers to critical business questions. You don’t have access to real-time information because when you to dig for up-to-date information; it slows critical decision-making and impairs problem-solving capacity. With the Business Intelligence capabilities available in today’s data-driven business environment (Microsoft’s Power BI, Google Analytics, OData, and so much more), it’s going to be critical to add the value of interpretation and curation to that information. You need to know what parts of your business are working and what aren’t and you need to know fast.
- Difficult meeting up with the current consumer demand
Most organizations find it challenging to keep up with current business demands. Whether they are expanding operations or addressing new customer requirements, companies need robust ERP capabilities that on premise systems cannot efficiently scale to support. Customers, suppliers, and partners expect direct access to billing, shipping, and inventory data. They don’t want to call someone to get this information and you don’t want to generate unnecessary customer service calls. Older systems weren’t designed for multiple user access and tend to be less customer-service oriented. A Cloud ERP solution can provide instant, anywhere access with real-time information. If you’re not providing that business value, your competitors might have an edge on you.
- Adaptation to changing rules and regulations is a hassle
As we know that industry compliance regulations change very often. For many businesses, compliance demands are constantly shifting. The Cloud enables ERP to keep pace with changing compliance information. On premise ERP solutions simply weren’t built for agile business pivots so it would be better to switch to avoid a sudden hit of demand and company would not be able to keep up with the change.
Therefore, to sustain in this competitive business environment you need to make an impact in your overhead, scalability, and growth potential, this is a great time to research Cloud ERP Software and consider the leap. With the time and efficiency gains you’ll almost immediately see, as well as freeing your IT team from the time and cost of maintaining on premise ERP software, you’ll be able to sharpen your focus and shift your budget to mission-critical growth goals.