The term “ERP” (Enterprise Resource Planning) was introduced in the 1990s to describe software that helps manage and automate end-to-end business processes across a company. In the early days, ERP systems were implemented on premise on a clients’ own servers. With the advent of cloud-based computing (also known as Software-as-a-service or SaaS), which allows users to access software via the internet, large ERP systems have also adopted the cloud model.
Similarly, SAP ERP for small businesses have moved to the cloud, providing all the benefits of implementing SAP at a significantly lower cost. The financial benefits of cloud ERP become apparent when one conducts a cloud versus on-premise cost comparison. Let’s dive deeper into the concept of cloud ERP and look at how these platforms can help small businesses achieve their goals.
What Is a Cloud-Based ERP Software?
Simply put, cloud-based ERP software is ERP software that is accessible over the internet. ERP software is often the IT backbone of a company, and it offers advanced and specialized functionalities for all the core processes in an organization.
The software is hosted on a third party, called a provider’s cloud computing platform, and is typically delivered as a service. Customers do not own the software, but instead use it by paying an annual or monthly subscription fee. Using a cloud-based ERP can be beneficial to businesses because there are no upfront hardware costs and all the maintenance, security, upgrades, and storage issues are handled by the platform vendor.
Why Should a Company Use Cloud-Based ERP?
Historically, ERP system implementations have delivered tremendous value to organizations by helping them gain business insights that enhance productivity. As we have moved into the global digital age, businesses are required to keep up with the growing demands of the market.
As a business manager, you’re always on the lookout for products and services that are delivered faster, are improving their standards, and come at lower costs. On-premise ERP systems, designed for simpler landscapes, often struggle to keep up with these growing demands. Cloud ERP software allows companies to handle increasingly complex internal processing, while also helping them manage their business networks all over the world.
Benefits of Using Cloud-Based ERP Softwares
Cloud-based ERP systems use integrated modules for financial management, manufacturing, sales, human resources, and supply chain management. They offer a wide range of benefits such as:
- lower costs
- continuous business improvements
- better insights
- real time access to data, anywhere in the world
- harmonious integration of new technologies
- increases adaptability
- enhanced security
- proper utilization of existing resources
- easy scalability
How Do Cloud Based ERP Softwares Help Small Businesses?
A good cloud ERP system will not only allow intelligent automation of business processes, but will also provide crucial insights using AI and machine learning to drive innovation. Aside from these benefits, there are three major advantages that cloud-based ERP softwares offers to small businesses.
Agility is of utmost importance to a growing business. Companies need to be able to seize opportunities by adding new locations, introducing new products and services, making acquisitions, or responding to competition in the market. By providing real-time access to data across departments, cloud ERP systems give companies the flexibility required to grow their business.
Visibility of Cash Flow
Cash flow is the lifeblood of any growing business. By integrating accounting processes with business operations, cloud ERP software helps increase the availability of information such as working capital, operating expenses, and investments. This helps ensure that everything in the organization is accounted for accurately, ultimately fueling growth.
Small companies must frequently adjust to keep up with growing demands of the market and consumers. Cloud-based ERP solutions–by simplifying integration of new software, processes, and solutions–help with these frequent adjustments.
Cloud-based ERP solutions offer what many growing companies need to achieve their goals. Our dedicated team of experts at NBS are here to answer any of your queries regarding these ERP solutions–reach out to one of our experts today to learn how to take your business to the next level by utilizing these solutions to their full potential.