Organizations tend to realize they need an appropriate ERP solution when they begin to feel the inadequacy of their current business systems. As pain points begin to emerge and the gap widens between software capabilities and actual business process competency requirements and they begin to realize that their growth opportunities and competitive ability are compromised by a lack of system integration and low visibility & access to real-time data. The desire for increased functionality to tackle these challenges leads to the search for a new ERP software. Moreover, regulation and compliance needs like DSCSA and new streams of business like e-commerce pose serious integration issues that can only be tackled by a comprehensive ERP solution.
Organizations with scalability and high growth needs require agility for growth and may be able to leverage the relevant advantages offered by a cloud ERP that allows rapid deployment.
If your field team requires remote functionality on mobile and smart devices to view data, create approvals, and to interact, then your organization has critical business access needs for the mobile platform too and a cloud ERP solution can help in this regard. Due to its web-based nature, a cloud ERP tends to have native access to mobile devices.
Costs of using a cloud ERP solution when compared to the costs of using an on-premise ERP solution over a 10-year period are much less but the difference levels out over a 20 year period. However, the important point to note is that the on-premise system may most possibly be obsolete by then and if the high upfront license fee be compared with the future value of its cost burden, it might paint a totally different picture. Also cloud ERP systems are constantly updated with business regulations & requirements in an automated manner so that they remain relevant even in the future.
Cloud ERP offerings have an advantage with more rapid deployment with little more required than a sufficient Internet connection, user training and a good web browser.
As per a PWC report, the cloud promises a new way to address ERP’s key challenges for large scale adoption with special relevance for small businesses:
- Cost: A cloud ERP is not purchased with a prohibitive acquisition fee. Cloud-based ERP implementations are paid for through a flexible subscription model, which includes just the software and also the hosting and support costs. Thus, the initial capital expenditure required for implementation is significantly lower than for traditional systems, and operating costs would be lower as well. Cloud-based providers can scale up their functionality as an organization’s needs evolve. Vendors are responsible for maintaining both the hardware and the software that includes automated security patches, upgrades etc. They also provide the necessary backups, system monitoring, and user support. Overall, the total cost of ownership for a cloud-based solution can be half of that for traditional on-premise solutions over a 10-year period. Migration costs of migrating to a cloud ERP are also not prohibitive and most solution providers help in easy migration to their solution.
- Quick deployment: A major drawback of both in-house and hosted ERP systems is that solution providers use existing templates that must be customized and configured to match a company’s actual processes. Implementations typically take months and sometimes years. Cloud-based solutions, on the other hand, offer a basic configuration with a pre-set range of options that are designed to meet the requirements of most businesses — an approach that can significantly reduce deployment time while still addressing the most critical needs of the organization. The time it takes to roll out a cloud-based ERP system is determined not by the time required to build the system, but by the time needed to realign any affected business processes and migrate from the existing processes. In a cloud ERP, companies must revamp their business practices to fit the solution which can significantly reduce complexity. And despite the limits on configuration, cloud-based systems are designed to let companies quickly add new business functionalities with high availability and easy disaster recovery.
- Flexibility and scalability: Vendors have been developing new ways for companies to acquire additional software and functions without going through the usual software delivery process. This makes cloud-based systems even more appropriate for companies with its suite of inherent and compatible tools with minimal integration issues. There is a certain degree of flexibility and scalability inbuilt into the cloud ERP solution to cater all business scenarios and needs.
Business size can play a role in determining the right solution fit. Cloud ERP can works well for small and mid-sized players due to the lesser degree of operational complexity. Lower user counts, data volumes and transaction volumes may translate into lower subscription pricing for cloud-based services that is attractive for SMB’s.
Larger businesses may also want to consider cloud ERP for hybrid or two-tier ERP configurations that can help reduce costs and provide agility between business units. Larger businesses with high customization needs and those that generate very high data volumes and require handling a large number of transactions may still prefer on-premise or hybrid systems. As speeds of the internet and the solutions based on it continue to improve, the cloud may become the preferred choice even for them. Already some of the bigger players are moving or are considering adopting the cloud.
We at VersAccounts have created a secure cloud based one stop comprehensive ERP solution. It has been created to take care of all the business needs and concerns for operating your business effectively. It addresses key issues of the small business domain in the most effective manner possible. It is affordable and targeted towards SMB’s and is backed by a promise of dedicated support. It is being used by clients in diverse verticals and could help you redefine the way you operate and grow your business.
Our solution is designed for fast growing businesses, between $1-$50M in annual revenue, looking to upgrade business management solutions like entry-level accounting products or mid-tier legacy on-premise ERP systems or even those looking at comprehensive and affordable ERP solutions. Our solution is built to be capable, affordable and easy to use by small and mid-sized businesses.
With the VersAccounts ERP solution, you can have project management, multi-entity accounting, purchasing & order management, distribution, production, customer relationship management (CRM), e-commerce, multi-channel retail, advanced inventory management, reporting & BI, document management, security, mobility, global relevance, pre-existing 3rd party integration and DSCSA compliant functionalities built into one solution for easy operability across your business functions. There are customization options with easy migration from and compatibility with respect to other systems preexisting or in the business environment.
Built from the ground up on the latest cloud and mobile technology, the VersAccounts Cloud ERP system allows businesses to automate and optimize their operations across multiple companies, countries, and currencies with one integrated ERP system.
We will help you in a structured manner to migrate your data seamlessly from Epicor, Infor, QuickBooks, Microsoft Dynamics, MYOB, Sage, SAP Business One etc when you make the decision.
To know more, please visit www.versaccounts.com or contact us directly.
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