As your company grows, you will have to move to an enterprise resource planning (ERP) system. Not only that, but you will need to decide how you will deploy this new ERP system―on-premises or in the cloud.
ERP Cloud solutions are becoming more common for small-to-medium businesses (SMBs). They have a lower cost of entry compared to on-premises solutions. They provide a flexible, agile, up-to-date ERP software solution that is configurable, quickly implemented, and scalable, allowing SMBs to support their expansion and growth strategies.
But there are still several small-to-medium businesses that have gone the on-premises route, and their reasons are valid. So how do you know which ERP solution is right for your growing company?
1. Makes Digital Transformation Easy So You Can Keep Up with an Ever-Changing Marketplace. While legacy ERP applications have been vexing users and distracting IT departments, the world has changed. A flurry of new business, pricing, and usage models have emerged. The sharing economy, a workforce that demands flexibility, subscription-based pricing, transformative technologies (IoT, AI, machine learning, blockchain), the quick path to ubiquitousness of mobile devices, etc. all require a level of functionality (and their corresponding KPIs) that on-premises ERP solutions don’t support and may require a long wait to get. In addition, ever-evolving accounting standards and regulations call for new processes and calculations. Moreover, a new generation of financial professionals expects that the digital tools that they have at their disposal in their personal lives will be available in their work tools as well. The right ERP Cloud can deliver the same level of mobile and social collaboration that employees are accustomed to, plus all the functionality required to address quickly changing business models. This is the real value proposition of an always up-to-date modern ERP Cloud.
2. Achieve Sustainable and Profitable Growth. Connectivity causes markets to both shrink and expand. All markets are now reachable to even the smallest of companies, and your company’s reach has grown exponentially. SMBs can quickly expand into new markets both domestically and globally—if they have the right foundation. This is where on-premises ERP solutions can gum up the cogs in the growth machine; many don’t offer the localizations to support the distinct accounting, reporting, and compliance requirements of new geographies. And you may wait a long time to get that functionality out-of-box. With ERP Cloud, companies gain access to new functionality every 90 days (or so), and the release process is seamless. ERP Cloud can scale to keep pace with your company’s growth, letting you enter new markets quickly and easily—without an oversized upfront investment and time-consuming implementations. Add to this the ease with which they allow you to align with demand, the way they handle the impact of mergers and/or acquisitions, and the transparency they afford if your firm is considering going public. All this (and more) is why smart finance professionals turn to ERP Cloud to “future-proof” their organizations, allowing them to grow with confidence and sustain that growth in a way their business can support.
3. Realizing Operational Efficiency. While finance departments have been struggling to extend the life of legacy ERP solutions—and are using multiple point solutions to plug functionality gaps—the rest of the company has been reaping the benefits of cloud software, infrastructure, and/or platform delivery. It is time for the finance department to catch up. By moving to ERP Cloud, growing companies can gain a reliable, unified, end-to-end view of operations, standardize on a single solution with a single data model, avoid time-consuming and expensive on-premises upgrades and patches, and (if desired) establish a shared services model that provides core financial and operational support to the entire organization. Best of all, they can do so with confidence that critical financial data will remain secure since the best cloud vendors 1) spend far more to ensure safe environments and 2) provide patches and upgrades almost seamlessly to plug those gaps.