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Pros & Cons of Enterprise-wide Application to Cloud

Do more with less. Out-innovate the competition. Reinvent your business. Keep expanding partnerships and building new channels of business, because today’s suppliers may not be around tomorrow.

In uncertain times, this is a lot of pressure. Undoubtedly, there are pros & cons of moving enterprise-wide application to cloud, but to stay adaptable and gain the visibility needed to overcome the common challenges of doing business, cloud-based ERP platforms such as SAP ByDesign simply make sense.

Those who have already completed the move have seen the ultimate benefits of cloud ERP: operational agility, greater collaboration, and real-time analytics that generate strategic insights. It’s how companies do more with less, reinvent their businesses on the fly, and keep expanding.


Is Cloud ERP Better Than On-Premise ERP?

Although the cloud is more popular than ever, some businesses have stubbornly clung to their on-premise ERP systems, and there are some valid reasons to do so. For one, if they’ve made a large capital investment in a system on-site, it might be tough to justify starting over again. Cloud-based solutions are offered on a subscription-fee basis, however, making them an affordable operational expense without sacrificing any functionality.

Cloud connectivity is also an issue for some. If you’re operating in an area with an unstable internet connection, moving to the cloud could feel risky. And some businesses worry about the cybersecurity implications of moving to the cloud.

Some business owners ultimately want to retain an on-premise solution because they feel they have greater control over their ERP system and data that way. With this control, however, comes ongoing, complicated hardware and software maintenance and greater reliance on IT for support. On-premise systems also hinder mobility—something that is a necessity in the modern workforce. Cloud ERP has been a game-changer with its shorter implementation time, reduced need for internal IT support, and less intense maintenance needs.

There are many benefits of cloud systems such as SAP ByDesign.

Strategic Benefits of Cloud ERP Systems

Cloud-based solutions are increasingly a better solution for businesses looking for agility, process efficiency, and visibility. All of these gains meet the need to do more with less in uncertain times.


Greater Agility To Take Advantage of New Opportunities

In the past year alone, we’ve seen business conditions change in big ways, with supply shipments going haywire and demand proving volatile. In the wake of the Great Resignation of 2021, labor forces are evolving quickly.

Businesses have to stay as agile as possible to approach major changes in business conditions proactively and avoid disruption. Cloud-based ERP helps empower users—even remote workers on the go—to respond quickly to a changing environment. This agility can be a key to greater productivity and efficiency.

Flexibility can be just as important as agility, and flexibility is a key attribute of cloud-based ERP. These platforms come with out-of-the-box business processes that can be adapted easily to an organization’s specific needs. As a result, resources can be scaled up and down as needed to meet the needs of the business today while providing growth capacity in the future.


Enterprise-Wide Collaboration for More Effective Processes

Different workers have different pieces of knowledge that are important to the whole of the business. To make the most of their information, they must have the ability to collaborate easily with each other in real time and be able to access whatever data format or channel they need.

One of the benefits of cloud ERP systems is that they resolve issues of uncertainty, missing data, and siloed processes by providing one central repository of data that is accessible across the entire organization. This gives businesses the ability to take productivity to the next level, improve communications both internally and with external customers, and take advantage of new opportunities as they arise.

Furthermore, smaller businesses can leverage cloud-based platforms to integrate with ecommerce channels and connect to online supplier networks just as easily as larger firms can, which aids competitiveness.


360-Degree Visibility into All Areas of the Organization

People’s decisions are only as strong as their knowledge of what’s going on. A company’s reputation can hinge on quick resolution of customer payment problems, quality issues, low inventory, vendor bottlenecks, and so on. Visibility becomes even more critical as a business grows and its supply chain becomes more complex.

A cloud ERP system provides crystal-clear, on-demand reports through simple dashboards that can be accessed anywhere the user happens to be, as long as there is an internet connection. This kind of accessibility gives everyone the data they need to keep business operations moving more quickly and efficiently.


The Time Is Now to Shift Enterprise-Wide Applications to Cloud

Any solution will come with its own pros and cons, but the advantages that cloud-based ERP offers make it nearly a no-brainer in today’s business climate.

Fast-growing midmarket businesses can benefit from a complete, simple-to-use, and affordable cloud-based ERP solution such as SAP ByDesign. It comes out of the box with pre-configured business processes and best practices but still retains the ability for customization.

Read about the role of ERP System In Accounting

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