Enterprise resource planning (ERP) solutions are critical tools that can boost business efficiency. They can also transform a company and help increase its competitiveness. So, it’s no surprise that ERP systems are in demand in today’s hotly contested business environments. Global market growth for ERP systems, for example, was valued at $39,340 million in 2019. It’s projected to reach $86,303 million by 2027 and grow at a CAGR of 9.8% from 2020 to 2027.
This projected growth, however, masks a critical trend in ERP implementations: Nearly 47% of organizations with ERP implementations still use legacy or on-premise ERP solutions. Given Cloud ERP’s benefitsâ€”supports digital transformation, cost-effective to install, deploys faster than on-premise solutions, and so onâ€”it makes you wonder why more organizations aren’t implementing Cloud ERP.
The top three concerns that companies cite for not adopting Cloud ERP are security, costs, and migration complexity. These are legitimate concerns. But choosing the right Cloud-based solution, like Oracle Fusion ERP, can help you deal with these concerns and make the transition easier. So can teaming with a technology partner like CherryRoad. An experienced partner can help you deploy Cloud ERP quickly, cost-effectively, and with minimal disruption.
What is Cloud ERP in Business?
Companies often deploy Cloud ERP to enable and support a business strategy. Cloud-based ERP systems are hosted by an ERP vendor and managed by services partners. That eliminates the need and the hassle of installing a Cloud ERP solution on your servers and maintaining it. It also eliminates the need to buy these solutions. Instead, you can lease them monthly. Nearly 90% of companies selecting a Cloud-based ERP software opted for a SaaS model over a hosted on-premise version.
Another advantage to deploying Cloud ERP is the modular design of the solution. Cloud ERP modules can be integrated seamlessly into your ERP system yet deliver next-generation functionality and a single source of accurate data. Cloud ERP modules also allow you to meet the shifting trends in a marketplace, address future IT needs as you evolve, and tap innovative technology advances while keeping the solution’s foundation. Put simply, modular design saves time and money, and boosts scale, flexibility, and agility.
What are the ERP modules and how do they help businesses grow?
Below are brief descriptions of Cloud ERP modules that many of today’s more powerful systems feature. The first seven are in most, if not all, Cloud-based solutions. The capabilities cited as typical of today’s solutions:
- Accounting/Finance â€” This module not only automates critical accounting/financial functions, but it also manages them in compliance with local tax regulations. Plus, it lets you close the books faster, comply with revenue recognition standards, and provide critical financial data for reports. It even monitors financial transactions with real-time notifications and triggers alerts.
- Order management â€” This module drives operational excellence and customer satisfaction. It also improves customer service, increases profit margins, fulfills orders faster, and simplifies product configuration. Plus, it enables dynamic pricing, orchestrates orders across multiple systems, and enables global order promising.
- Supply Chain Management (SCM) â€” The supply chain module can help you overcome today’s SCM challenges. In addition to orchestrating and connecting every step of an SC process, the module streamlines SCM and provides real-time updates that enable quick decision-making. It also can include other modules like inventory management, asset management, manufacturing, and order management.
- Customer relationship management (CRM) â€” The CRM module helps build solid customer relationships and automates customer/prospect interactions. Capable of storing all customer/prospect information in one database, this module improves customer service by providing employees the information they need at their fingertips when working with customers.
- Human Capital Management (HCM) â€” HCM modules are secure, effective ways to transform a legacy-based back-office. The module streamlines HR processes, reduces redundancy, and eliminates errors. It also provides an integrated Cloud platform for your back office, stores vast amounts of data on employees across the organization, and eliminates duplicate information on spreadsheets.
- Purchasing â€” This module streamlines, simplifies, and automates purchasing. It also speeds up operational processes, such as order and invoice processing, helps confirm orders, and aids in operational contract management with embedded analytics. In short, it helps capture value and shifts you from selling products to delivering solutions.
- Inventory Management â€” This module not only makes tracking inventory across enterprises simpler and easier than with legacy systems. It also enhances customer service and aids companies in making margin decisions. Plus, the module facilitates integration with multiple systems, like logistics, and boosts scalability, and real-time visibility.
More robust and customized Cloud-ERP business applications may also offer these modules:
- Manufacturing â€”Often available with a production management or manufacturing execution system (MES), this module provides a real-time shop floor picture, captures real-time data on items in progress and finished goods, and tracks output against forecasted production. Simply put, the module helps you increase efficiency, lower costs, and enhance manufacturing agility.
- Warehouse Management â€” Every business benefits from an integrated WMS and ERP system. The combination enables you to manage inventory, orders, sales, and customers efficiently and allows employees to work with the same information simultaneously. In short, it gives you the data you need to manage your warehouse economically and cost-effectively.
- Professional service automation â€” This module centralizes data from disparate systems and provides a holistic service business view. Put simply, it helps you see the bigger picture. It also fosters employee collaboration by storing all necessary documents in one place and streamlines the billing process based on rules around the billing cycle.
- Workforce Management â€” Designed more for companies with hourly employees, this module automates the workforce management processes. It speeds data entry for all types of workers, streamlines scheduling with a full set of time tools, and reduces health and safety issues by providing user-friendly tools to report incidents, near misses, and potential hazards.
- Ecommerce â€” The ecommerce module is ideal for companies that want to launch a B2B or B2C ecommerce site quickly, efficiently, and cost-effectively. The module provides a back-end system that integrates seamlessly with retail front-end systems. More importantly, it captures crucial data for enhancing customer experience.
- Marketing automation â€” This module not only enables you to execute and evaluate targeted, multi-phased marketing campaigns across all channelsâ€”email, SMS, web, and social mediaâ€” but it also can increase revenues, in addition to reducing marketing costs and the need to buy pricey third-party tools for your marketing automation needs.
Why Are Cloud ERP Systems Important to Organizations?
Cloud-based ERP solutions are quickly becoming essential business tools. They’re ideal for organizations looking for an advantage over their competitors. Cloud ERP systems provide a unified solution that helps you manage operations across all departments, such as ordering raw materials for manufacturing or calculating staffing hours for human resources. Put another way, it helps you achieve the peak levels of performance you need to maximize success in today’s COVID-19 driven market places.
Plus, Cloud ERP strengthens your organization by providing better business intelligence, increases your focus on core competencies, generates significant cost savings, and support end-user buy-in. When asked to select areas where ERP produced the best ROI, the top three answers in a recent survey chose: reduced IT costs (40%), reduced inventory levels (38%), and reduced cycle time (35%). Benefits like these are hard to dismiss.
Of course, every Cloud ERP implementation has its challenges. But many successful Cloud ERP implementations begin with selecting an experienced, knowledgeable technology partner, like CherryRoad. Choosing the right Cloud-based ERP system, purpose-builtÂ for your requirements requires not only deep technical expertise, but also the know-how to fully leverage the technology investments you have already made.Â Many organizations struggle with getting started because they lack sufficient Cloud expertise to architect enterprise wide solutions that can meet their needs of today as well as tomorrow.
Working with a certified technical partner like CherryRoad can help you migrate to a Cloud ERP platform quickly, efficiently, and with minimal disruption. To request a proposal for our services, email us at firstname.lastname@example.org