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What Are The Advantages of a Cloud ERP
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2017-07-31 |
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Drew Jameson |
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Whether your company is a new company or a company that has been in
existence for some time, deciding what Enterprise Resource Planning (ERP) system to use has a major impact on the future growth of the company. The main option a business person has when it comes to this system is the Legacy ERP system or the Cloud ERP system. We should first cover why it is essential for a business, no matter what the size of it is or how long it has been in business, to have a running up-to-date ERP system. An ERP system allows managers to effectively run vital areas of the business which tend to include: purchasing, human resources, accounting, production, and sales. Without any sort of ERP system, it would be difficult or nearly impossible for a company to run effectively internally and externally. In this brief article, we will look at the advantages of a modern company using the Cloud ERP system rather than the more traditional Legacy ERP system.
Technical Advantages
The Cloud ERP system offers many of the same advantages of a Legacy ERP system and more. When having a Cloud ERP system, the system is managed by an outside source whose main business is to manage these systems smoothly and error free. With this being said, the likelihood of a company's ERP system being down is lower with the Cloud system rather than the Legacy system since there are professionals managing it 24/7. Another crucial advantage is the time it frees up for individuals within the company. With the managing of the ERP system being outsourced,
internally the company will have more time to pursue other ideas or other tools that are needed to enhance the business. When deciding to go to a Cloud ERP, the infrastructure and resources are already in place which dramatically reduces the time needed compared to building your own ERP system.
Financial Advantages
Essentially Cloud ERP systems are much cheaper than Legacy ERP systems. A business owner does not need to allocate a large part of the budget to create/maintain/update their ERP system. Instead, monthly payments are made to do all of this. These payments are reasonable and proven to cost less than manually doing all of these tasks. Having a Cloud ERP system also allows for unique, customization to the system that might
have been extremely costly to do on your own
compared to a reasonable, more affordable cost using the Cloud ERP system.
New Opportunities
Transferring to a Cloud ERP system provides opportunities for the business that were not possible with the Legacy ERP system. It provides means for rapid expansion and the support needed to make this happen for the business. It also provides resources and lets you add more individuals to the system easier which proves to be valuable for a changing/growing business. As discussed earlier, this new system also provides time and work scope for IT members that can help the business explore other areas of interest.
Why Move?
Based on the discussion we have been having towards the advantages of the Cloud ERP system. The main reason one should consider moving is the reduction of overall cost associated with the systems. If the company is struggling, the extra cash on hand may prove to save the company, with the company not compromising on the quality of the system. If the company is new and plans on expanding rapidly, the company should move to a Cloud
based ERP because of the time and cost advantages compared to having an internal Legacy ERP system. Any business that is not
extremely large with their own professional IT staff members should consider moving because of the ease of business and cost advantages. A company should heavily consider moving if their system is becoming too much of a financial burden or if their system is out of date. |
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