There is a before and an after when it comes to cloud ERP. More than just an ERP upgrade, a multi-tenant cloud ERP solution modernizes business and deeply impacts the capabilities and growth potential of an organization. Businesses that migrate from on-premise ERP come out changed.
The move from on-premise to a multi-tenant cloud solution such as SAP Cloud ERP can feel daunting. But the good news is that one advantage of cloud ERP is the easier rollout. Organizations that migrate from on-premise ERP to a multi-tenant cloud solution discover that it wasn’t as painful as the last time they changed systems.
That said, migration still isn’t a small task. There are better ways and worse ways you can make the jump.
Multi-tenant cloud solutions such as SAP Cloud ERP come with many benefits over on-premise, legacy solutions.
Some of the key benefits of migration from on-premise ERP to a cloud environment include:
Future-proofing. A multi-tenant cloud ERP remains current with all technological and business trends. When new technology emerges (artificial intelligence, anyone?), your system is automatically ready for it because cloud ERP architecture is modular and constantly updated by the vendor.
Connectivity. Cloud ERP more natively connects with online marketplaces, suppliers, retailer systems, and other cloud services. Everything related to your business is connected in a single system, and easily.
Real-time visibility. Because data automatically flows into the system in real-time, operational visibility is substantially improved. At a glance, you and your colleagues can know what’s going on with the business in real-time.
Scalability. Like all cloud solutions, multi-tenant cloud ERP is infinitely scalable. You can start with what you need today, and both add capacity and additional capabilities later as your business grows. There are no limits or the need for future ERP migrations.
Lower total cost of ownership. You pay for only what you need, and there’s no infrastructure or hardware maintenance costs associated with your system. Cloud ERP saves money.
When you migrate from on-premise ERP to a multi-tenant cloud solution, the first and most important step is solid planning. Specifically, your organization must develop a clear strategy that balances technical execution with business transformation because cloud ERP is about more than just new technology.
The most effective approach for a business that migrates from on-premise ERP to the cloud will start with a thorough assessment of current processes. All existing processes must be captured and understood so analogues can be developed on the new cloud solution.
In many cases, bespoke internal processes will be replaced with standard industry workflows. This migration and business transformation can only occur when existing processes are clearly documented and understood before setup, however.
Customizations and data quality should be reviewed and understood as well. Good multi-tenant cloud ERP solutions allow for customization via a plugin architecture, but the migration from on-premise ERP to a cloud solution is a good opportunity to abandon customization and embrace standard solutions wherever possible. Understanding data quality before migration also informs rollout timelines and helps your organization prepare for the data cleansing that will be required.
Finally, your organization should review existing integration points during the planning phase. This will help you determine what connections should be retained, optimized, or retired.
There are five key priorities you should stress when you migrate from on-premise ERP to a multi-tenant cloud solution.
1. Adoption of Standardized Best Practices
Most of your core business processes are not actually unique. Every business handles invoices and fulfillment, balances the books and manages employees. So instead of reinventing the wheel, you can upgrade business processes and simplify operations through the use of standardized, industry best practice workflows that come built into cloud ERP by default.
Multi-tenant cloud ERP supports customization, but it functions best when your organization standardizes. This move to standard business processes can help modernize and transform your operations as part of the migration process.
2. Phased Implementation
Since ERP encompasses all parts of your business, there’s much to move and spin up when you migrate from on-premise ERP to a cloud solution. Experience has shown us that migration projects work best when they are completed in phases instead of all at once.
As part of a phased implementation approach, start by moving over only a few key areas of the business, such as finance and fulfillment. Once these functions are running smoothly in the system, then progressively move over the rest of the business in stages. This cuts down on operational disruption, and it allows your project team the time to ensure each part of the business has what it needs and is functioning smoothly on the new system before shifting focus.
3. Strong Change Management
Because multi-tenant cloud ERP transforms a business, organizational change management plays an important role in the migration process. Sally in payroll must both understand and embrace the new ways of working.
When you migrate from on-premise ERP to the cloud, it is therefore critical that your business has a change management plan in place from day one. Throughout the ERP implementation process, your business should communicate both the need for change and the new process that will be implemented.
4. Comprehensive User Training
A move to the cloud is not done when the technology and business processes have been successfully moved. Training employees on the new system is a key part of any ERP migration.
So, as your business migrates from on-premise ERP to the cloud, you should clearly define and roll out a program for onboarding users to the system. This training should use actual business data and processes, and be tailored for each job role.
5. Complete Data Cleansing
Garbage in, garbage out. Over the years, your legacy ERP likely has accumulated messy and unstructured data that should be addressed before it flows into the new system. Your migration to a new system is an opportunity to clean up the mess and enable greater system accuracy.
Data cleansing should be a clear phase in your plan as you migrate from on-premise ERP to the new cloud solution.
Any system migration takes work. But as we mentioned above, the move to a multi-tenant cloud ERP is easier than what your business experienced the last time it put a system in place.
That is because multi-tenant ERP is designed for easier migration. Programs such as SAP GROW Fast give you tools and guidance for making the jump with a lot less pain. Our structured, fit-to-standard approach to ERP implementation also helps your business migrate from on-premise ERP to a new cloud solution in as little as 90 days.
You don’t need years for business transformation through cloud ERP; you just need months.
For more about the migration journey or for answers to your specific ERP questions, contact one of our experienced consultants by calling us at (801) 642-0123 or writing info@nbs-us.com.