Many small businesses assume that they are too small to implement an ERP system. Some small businesses consider ERP unaffordable and inaccessible for them. But these claims are bogus. Small businesses can reap abundant benefits with cloud ERP implementation. Now businesses are realizing its vast importance and are adopting it to achieve success and to stay competitive in the business landscape. In this blog, let’s learn about the advantages of cloud ERP for small businesses.
What is Cloud ERP?
Cloud ERP software is a modern solution for managing day-to-day business activities efficiently. It is a secure server with multiple functionalities to manage and control all the business processes. It runs on any device with an accelerated internet service. A cloud-based system has the capability to manage a business’ cost savings to streamline operations and data-driven decision-making.
In addition, this advanced system integrates every department under a single roof. This will boost communication and collaboration among distinct business functions. Plus, data sharing becomes easy and there will be less room for errors. It is a cost-effective option for companies of all sizes.
Cloud ERP can be categorized into two types – private cloud and software as a service(SaaS). The private cloud ERP is managed by the IT team of the company. The hardware and software of this system are located in the office premises. The initial implementation cost is expensive. If the employees want access to this system remotely, then they have to rely on third-party support.
SaaS ERP is a browser-enabled system. It can be accessed from anywhere and from any device with an internet service. This system is highly beneficial for companies with remote workforces, field technicians and businesses with multiple branches.
Cloud ERP Software – A Game Changer for SMEs
We have all witnessed the impacts of the pandemic covid 19 on businesses. Due to the government-imposed lockdown, many businesses were affected. SMEs that had ERP were immediately able to adapt to the remote working conditions despite the lockdown. The cloud-based solution was very helpful as it helped to continue operations without any bottlenecks.
Cloud ERP just needs a browser and an internet connection to manage. It has the capability to manage all the business applications, operating systems, servers and networks using a cloud computing vendor.
Further, cloud technology helps in working from anywhere remotely – it helps to manage the entire team seamlessly including customers and vendors. It also helps the business to gain control of all the operations without any physical presence. Cloud ERP ensures that the business is achieving success continuously and helps the SMEs to stay competitive.
Cloud ERP to make smart decisions
We have learned previously that cloud ERP will help in gaining full control of business operations. Apart from that, it has features such as real-time insights and interactive dashboards which will help SMEs to track data from any location. For example, in real-time, the business can track sales and revenue functions from anywhere and from any device. It will help in making marketing decisions accurately.
Another example of real-time insights is that it can help fetch inventory data in real-time which will help in making decisions regarding the procurement of raw materials, and the supply chain. So, the cloud-based ERP integrates all the business processes such as finance, procurement, financials, production, supply chain, and human resources. This will help in gaining control of all the business aspects.
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Benefits of Cloud ERP for SMEs
Cloud ERP is beneficial for businesses of every size. We witnessed during the pandemic, its importance during those tough times. Listed below are some of the benefits of cloud ERP.
1. Affordable initial investment – Compared to on-premise, the cloud solution for the initial investment is cost-friendly. SMEs have a small budget, so they can opt for the cloud system.
2. Lesser technical staff implication – Deploying the cloud for the business is the best option as it eliminates the additional cost required for installing and integrating additional hardware to support the ERP. Plus, businesses don’t have the hassle of hiring technical staff to support the applications. This will reduce the costs.
3. Subscription benefits to business – Implementing cloud solutions on a subscription basis will avoid all unexpected costs. This is applicable to SaaS(Software-as-a-service) services. It is beneficial for the company, as it helps in keeping track of the expenses on a monthly basis.
4. Robust security – Cloud systems are the go-to solution when it comes to security. It has multiple segments of protection and permit requirements to access data. Only authorized users can access data. Plus, it controls the data accessibility to the new users. This will reduce the risks of cyber security threats and data breaches.
5. Economical maintenance cost – Compared to on-premise, the cost of the SaaS services is less.
6. Seamless integration – The integration of cloud ERP to the business processes is less complex when compared to on-premise. ERP vendors will promptly assess the implementation process which will help in faster implementation.
7. Fast and Agile – Market conditions keep fluctuating from time to time, so it is unpredictable. How will cloud ERP help in such scenarios? It helps in fetching reports of the current market in real time which will help the stakeholders and the business owners to respond to the requirements of the clients immediately. This will provide a competitive advantage.
8. Flexibility and accessibility – The greatest benefit of cloud ERP is to render accessibility from any device and from any location. In addition, it reduces all the obstacles that are hindering innovation. This will help the business to provide new classes of applications and services.
9. Accelerates productivity – If the business has deployed cloud ERP, they don’t have to be concerned about the maintenance, implication, software etc. as most of the technical functions are taken care of by the ERP vendor. So, the users can focus more on innovation and value-added tasks.
10. Continuous and automatic upgrades – Upgrades are provided by the ERP vendor and the upgrades can be done automatically and at lower costs due to single-source system and multi-tenancy features. It will enhance organizational capabilities as the upgrades are done by the vendors based on the paid subscriptions.
Conclusion
Finally, cloud ERP solutions have been a revolution for businesses to achieve scalability, streamlined options, and decision-making abilities and offer cost-saving capabilities. Its adoption will empower SMEs to achieve a competitive advantage and help in adapting to the changing market conditions.
Author’s Bio:
Sneha Rakte is a specialist in communication who excels at recognizing client requirements. She produces persuasive sales copy and high-converting content. She currently works with Sage Software Solutions, an industry leader in supplying small and medium-sized enterprises in India with high-quality ERP software and CRM solutions.