ERP Value in the Cloud
The value of ERP lies in its ability to help organizations improve efficiency and productivity across many different functions and departments. Among the benefits of ERP are:
- Simplifying an organization’s IT environment by replacing multiple legacy systems, including siloed department applications and spreadsheets, with a unified set of tools. Since cloud ERP uses a single database for the entire enterprise, it breaks down information silos and lets users receive real-time updates.
- Giving employees direct access to accurate information even when it originates in other business areas
- Enabling every department to gain a consistent and unified view of data throughout the company
- Easing daily use of the system because all ERP modules share a single user interface
Cloud computing does not require you to buy hardware infrastructure, so there is no need to allocate investment dollars to additional servers, system administrators, and other costs typically associated with a new onpremise enterprise software purchase. In addition, faster and more iterative implementation approaches further help to reduce up-front costs.
Organizations considering cloud ERP are also attracted by the promise of lower up-front costs and the ability to shift capital expenditures (CAPEX) to operating expenditures (OPEX). In addition, cloud software does not involve separate maintenance fees, as it usually the case with on-premise.
Just as importantly, cloud computing can help your organization adapt more readily to business needs that change over time. Opening remote locations, responding to changing regulations, and transforming strategies are all examples that require the support of flexible business systems.
Financial comparisons between on-premise and cloud ERP often focus on differences in up-front investment, such as lower implementation costs and the CAPEX / OPEX shift. However, the real value lies in helping organizations become more flexible, by taking advantage of information technology to improve operations while increasing innovation and responsiveness to the changing business environment. Cloud-based ERP makes access to these benefits more affordable.
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