ERP has long been the foundational business system for companies in every industry. Managing day-to-day financial transactions and operational processes, these systems have traditionally been installed on servers set up in small, unventilated rooms with dedicated IT staff attending to them. ERP, as unexciting as it can be, is also absolutely crucial to a company’s success.
With so many systems and apps moving to the cloud, it’s time to ask whether or not ERP is ready to make the move. Many ERP providers, including Microsoft, have been investing hundreds of millions of dollars to help businesses deploy their financial operations in the cloud. But many business leaders are hesitant to jump in with both feet, as there are still question marks surrounding this type of implementation.
In fact, there are companies who are seeing the benefits of a hybrid ERP system, where part of their operations are online (in the cloud) while others remain on-premise. A hybrid approach can reduce IT costs and simplify the ERP system operation, at least in the short term. We will likely see even more of this over the next 3-5 years as cloud ERP deployments become more mature.
Savvy companies understand that the cloud isn’t necessarily all or nothing. There are a host of different applications and tools, including many that are low impact, which can be moved to the cloud. A phased approach is gaining popularity since it allows companies to evaluate how well the cloud roll-out is performing before moving on to other systems.
There are several areas where ERP and the cloud have strong connections:
- Skills/Experience
You must make sure that the talents and abilities of your internal staff match up with the cloud. Cloud computing is a different way of doing one’s day-to-day job, so team members must be well-equipped to handle this change in approach.
- Integrated Systems
How well do your systems, both online and on-premise, work together? Moving to the cloud, at least initially, may not be worth it if you lose efficiencies that were gained from connected systems and the flow of data back and forth between applications.
- Working Together
It is crucial to inform clients and vendors of your use of cloud-based ERP. Building collaborative relationships with these parties leads to long-term success and acceptance of cloud computing as a way of doing business.
BroadPoint helps organizations develop a cloud ERP strategy with strategic, long-term success in mind. Contact us today for a complimentary cloud ERP assessment.
About BroadPoint
BroadPoint Technologies is a business applications consulting firm specializing in implementing and tailoring software solutions for associations, nonprofits, professional services firms and other mid-sized companies. We help our clients make smarter business decisions by understanding their goals and their challenges, so they can better manage their growth. BroadPoint is a gold-certified ERP and CRM partner offering Microsoft Dynamics GP, SL, AX and CRM, and is headquartered just outside Washington, DC.
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