An enterprise resource planning system (ERP) is a vital part of any company's operation. It supports critical functions such as accounting, financial reporting, manufacturing, inventory management, supply chain management, and human resources. The first ERP systems, as we know them today, were created around 1990. This was before smartphones, before graphical interfaces and before the internet became public-facing worldwide.
It is not easy to change your backbone whether you are a person or a business. Many modern, internet-driven, and growing businesses still rely on decade-old ERP systems that were built when business processes needed to be adapted to the ERP. Relying on on-premises legacy ERP systems can lead to inefficiencies that can directly impact a company’s bottom line.
Modernizing ERP systems is a priority for businesses that are looking to grow. To streamline operations and ensure that they are always running the latest version of ERP software, more businesses are migrating to the cloud-based ERP solution. This is a critical requirement for modern ERP. Gartner, a research firm that coined "enterprise resource plan" in the 1990s estimates that 53% of all ERP systems were cloud-based in 2021. The cloud will also increase its share of ERP installations to 58% by 2024.
Modernizing your ERP system can be a challenge. It is important to know what ERP modernization means for your business and how to modernize your ERP systems in the most efficient way.
What is ERP modernization?
Modernizing ERP starts with upgrading an ERP system to a newer version and then migrating from on-premises ERP to cloud-based ERP. ERP Modernization can be done for many reasons. These include removing inefficiencies, better-supporting business growth, better meeting business requirements, and improving the ease of use. All these reasons revolve around flexibility and choice.
Consider the example of employees who need to access business data remotely while on the go. Cloud-based ERP solutions are required to allow users to log into their accounts from anywhere, on any device. Mobile access to data makes teams more productive and agile which, in turn, increases their business' competitiveness.
An organization may choose to have all its business functionality from one ERP software provider, allowing for flexibility and choice.
Cloud ERP: How can it deliver modernization and mitigate risk?
Modernization of ERP systems is becoming more popular due to new technologies and business changes. Cloud-based ERP solutions can do much more than just modernize business operations. They remove barriers between data sources and teams, which transforms how employees in your company make decisions. This makes it possible for your teams to collaborate and work more efficiently, which in turn leads to improved enterprise productivity and better customer experiences.
Here are seven ways cloud-based ERP solutions can modernize your business.
Cloud ERP systems automate and simplify business workflows. This includes an accounting system, financial reporting, vendor and inventory management, and HR tools. They also provide a consistent interface between business processes across departments which makes it easier for employees to work efficiently and simplify their lives.
Increased data visibility
ERP systems are the core of your business operations. They store and manage data from many critical processes such as accounting and supply chains, warehouse inventory, human resources, and logistics. Modern ERP systems enable companies to consolidate all this data in one location. This allows business leaders to make more informed decisions based on a better view of their operations.
Secure access and utilization of data are one of the key reasons modernization is important. These days, businesses are becoming increasingly data-driven. Data that is valuable becomes more susceptible to cyber-attacks.
Modern cloud-based ERP software provides a multilayered security architecture model. This allows you to create user-specific authorization so that only authorized personnel can access the database. You can also keep track of user activity to prevent unauthorized access and data breaches.
Stress-free customer delivery
ERP modernization, like any other technology transformation, is ultimately driven by the desire to better serve customers. Customers, directly and indirectly, benefit from improved business processes. This is dependent on the ERP system's ability to allow teams to access mission-critical data and make decisions. Cloud-based systems consolidate all this information in one place. This makes customer-facing teams more flexible and less likely to make mistakes, allowing them to deliver better customer experiences.
Modern cloud-based ERP systems can reduce or eliminate upfront expenses. Instead of paying upfront costs, businesses pay recurring fees to access their ERP software. They also get automatic updates to the most recent version. When delivered as software-as-a-service (SaaS), a cloud ERP also automates many back-end processes, including the transfer of ERP data between systems like finance and sales, or between procurement and supply chain management.
Seamless integrations with other technology
Cloud-based ERP systems can also be integrated with third-party IT systems, such as your CRM solutions for marketing or your talent management system for HR. These seamless integrations allow these teams to operate more efficiently and make informed decisions without having to deal with the IT headaches associated with patchwork ERP integrations.
The cloud platform can help you to eliminate the need for IT staff and hardware. Your ERP solutions company will only need to charge a monthly or annual subscription. This is enough to ensure that your ERP system runs smoothly and has no downtime.
A cloud ERP system is more flexible than an on-premise solution. You can purchase what you need right now and then scale up or down as needed. The system can rapidly adapt to meet the needs of your business, including users and operations.
Modernize your ERP system with Microsoft Business Central:
To reap the benefits of ERP modernization is among the primary reasons for many growth-oriented companies switching to the cloud-based Microsoft Business Central. SMEs who utilize Microsoft Business Central see benefits all around, from internal improvements like better efficiency and decision-making to improved experiences for workers that increase productivity and employee retention to enhanced customer service, and better cash flow.
ERP modernization is becoming a popular option for companies of all sizes and industries that wish to be more productive, agile, and cost-efficient. Cloud-based ERP systems offer the best option for ERP modernization. They eliminate many of the implementation costs and timelines that make traditional ERP upgrades challenging. Additionally, they allow for flexibility and give you more options in the ERP implementation process. ERP modernization in the cloud makes ERP solutions for small businesses a real differentiation, making it more scalable and adaptable to market changes in the growing competition.
For more information about cloud-based ERP Microsoft Business Central, contact us today
Ravi has over ten years of expertise, focusing on ERP development, strategy building, and solutions to challenging business issues. He has also recently gained experience in information technology-related tasks such as cloud server management & integration formulation strategy, SAP S/4 HANA, and Microsoft Dynamics 365 Business Central installation. Ravi Karda has completed various unique assignments for business process re-engineering, standard operating procedure design and implementation, and organizational policy drafting for middle-level organizations.
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