In the rapidly evolving world of software development, businesses are constantly seeking ways to streamline operations, improve efficiency, and stay competitive. One of the most significant advancements in this realm is the advent of Cloud ERP software. This technology has revolutionised how organisations manage their resources and operations, providing a unified platform that integrates various business functions.
This blog post delves into the intricacies of Cloud ERP software, highlighting its role in fostering resilience and agility in organisations. Whether you’re a seasoned software developer or a business owner looking to optimise your operations, this post offers valuable insights into the benefits and workings of Cloud ERP software.
Understanding Cloud ERP Software
Cloud ERP, or Enterprise Resource Planning, is a type of software that operates on a vendor’s cloud platform, allowing businesses to access it via the internet. It integrates and automates essential business functions such as financial and operational tasks, providing a unified source of data. This includes aspects like inventory management, order processing, and supply chain management. It also aids in procurement, production, distribution, and fulfilment.
Being hosted by the ERP vendor and provided as a service to businesses, cloud ERP software supports the same or even superior functionality as on-premises systems but without most of the downsides, such as upfront licensing fees. The demand for cloud-based ERP systems is on the rise due to their ability to access and analyse vast amounts of data in near real-time.
The Working Mechanism of Cloud ERP
Cloud ERP systems operate using a combination of technologies connected by high-speed internet networks. The cloud ERP is always online, with security updates managed by the ERP provider. This means that your team only needs to focus on using the ERP and its underlying data. This can result in a lower cost of ownership compared to older ERP systems hosted on company-owned servers.
Cloud-based ERPs offer almost limitless scalability and enable your team to access any information they need wherever their work takes them. Key features include accessing customer information, sales histories, financial data, human resources management tools, live operating metrics, supply chain status, and more.
7 ways cloud ERP helps organisation build resilience and agility
1. Enables Remote Workforce Management and Collaboration
Cloud ERP software is accessible from anywhere with an internet connection. This means that employees can access necessary data and collaborate with their colleagues regardless of their physical location. This flexibility is particularly beneficial in today’s work environment where remote work is becoming more common.
2. Complies with Accounting Standards and Regulatory Requirements
Cloud ERP systems are designed to comply with various accounting standards and regulatory requirements. This means that businesses can ensure they are always in compliance with the latest regulations, reducing the risk of penalties and enhancing their reputation with customers and stakeholders.
3. Provides a Unified and Accurate Picture of the Business
By integrating various business functions such as finance, sales, inventory, and customer relationship management, cloud ERP software provides a unified view of the business. This means that all departments within the organisation have access to the same data, ensuring consistency and accuracy in decision-making.
4. Drives Quick Reaction Times
With real-time data and analytics, cloud ERP systems enable businesses to react quickly to changes in the business environment. For example, if there is a sudden increase in demand for a particular product, the business can quickly ramp up production to meet this demand.
5. Reduces Operational Risk
By automating processes and providing real-time visibility into operations, cloud ERP systems can help reduce operational risk. For example, automated data entry reduces the risk of human error, while real-time visibility into operations allows businesses to identify and address issues before they become major problems.
6. Tracks Unit Economics, Customer and Project Profitability
Cloud ERP systems provide detailed insights into unit economics (the revenue and costs associated with a particular business model expressed on a per unit basis), customer profitability (the profit that a firm makes from serving a customer), and project profitability (the profit that a firm makes from a particular project). These insights can help businesses make informed decisions about where to focus their resources.
7. Helps Companies Scale and Adapt
With their scalability and flexibility, cloud ERP systems support business growth and help companies adapt to changing business needs. For example, as a business grows, it can easily add more users to the system or expand its functionality to meet new business requirements.
The Future of Cloud ERP
Cloud-based enterprise resource planning (ERP) systems have brought about a revolution in how companies operate and innovate. By centralising various functions like finance, inventory management, human resources, manufacturing, and customer relationship management into a single integrated application maintained by a third-party provider, cloud-based ERP solutions offer numerous benefits.
The future promises improvements from AI and ML, IoT integration, and systems that separate front-end development from back-end system development. According to some reports, 35% of cloud implementations are still on-premises, suggesting a large untapped customer base for cloud-based ERP systems.
Top Cloud ERP Software in 2023
Here are some of the top cloud ERP software in 2023 according to various sources:
- Microsoft Dynamics 365 Business Central: Best overall
- SAP Business One Professional: Best for customization
- SYSPRO: Best for manufacturing businesses
- QT9: Best for real-time reporting
- Epicor Prophet 21 ERP: Best for distributors
- Oracle NetSuite OneWorld: Best for global companies
Cloud ERP software has become an indispensable tool for businesses aiming to streamline their operations and enhance efficiency. With its ability to integrate various business functions into one platform accessible from anywhere, it offers significant advantages over traditional on-premises systems.
It’s an investment that can propel your business to new heights of efficiency and productivity. If you’re ready to take the next step in your digital transformation journey, Verbat is here to help. With our expertise in software development and cloud solutions, we can guide you in implementing a Cloud ERP system tailored to your business needs. Contact us today to learn more about how we can help you harness the power of Cloud ERP.