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Cloud ERP Software Risks, Benefits, and Implementation Tips
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WorkHub24 Team | July 01 , 2024 | 5 min read
What is Cloud ERP Software?
Cloud ERP allows users to access Enterprise Resource Planning (ERP) software over the Internet. This type of ERP is delivered as a Software as a Service (SaaS) solution, enabling companies to access their business-critical applications from any location at any time.
What is ERP, and How Does it Work?
Enterprise Resource Planning (ERP) helps manage various resources within an organization, such as materials, equipment, employees, and capital. An ERP system integrates multiple departments, including financials, accounting, sales, CRM, and more, into a single, centralized application. This integration facilitates synchronized, company-wide information sharing, ensuring all employees are on the same page.
What is Cloud-Based ERP?
Cloud-based ERP systems offer all the benefits of traditional ERP over the Internet.
- Private Cloud ERP: The necessary hardware and software are physically located at the business’s facility.
- SaaS ERP: Users can access the system from anywhere with an internet connection and a browser-enabled device.
Risks and Benefits of Cloud ERP Software
A cloud-based ERP system comes with some risks, but proper planning can mitigate them. The benefits of cloud ERP far outweigh potential drawbacks, significantly improving business efficiency.
Risks of ERP Investment
- Lack of Leadership Support: Without leadership buy-in, ERP software purchase and implementation may not happen.
- Lack of Organizational Buy-In: If employees are not on board, they may not use the software effectively, preventing the company from reaping the rewards of automated processes.
- Lack of Training: Inadequate training can result in unsatisfactory ERP system use, reducing its potential benefits.
Benefits of Cloud ERP Software
- Increased Efficiency: Simplifies tasks and eliminates manual workarounds.
- Centralized Data Access: Provides an easy-to-access, up-to-date database for all departments and connects multiple systems and applications.
- Accessibility: Accessible from anywhere with an internet connection.
- Automated Workflows: Supports automated processes for approvals and other tasks.
- Customizable Dashboards and Reports: Offers specialized insights for better decision-making.
- Reduced Errors: Minimizes headaches caused by human error or disconnected systems.
- Multi-Company Management: Manages multiple companies with consolidated reporting.
- Vendor-Managed Services: Includes hardware, data servers, IT support, and system updates/upgrades, reducing infrastructure and ongoing maintenance costs.
- Reduced IT Workload: Lessens the workload of in-house IT teams.
- Fast Deployment: Vendor-supported deployment speeds up the process.
- Flexible Licensing: Allows adjustments based on changing needs (e.g., adding/removing applications or users).
- Robust Data Security: Ensures data protection with controlled access, environmental protection, and regular system maintenance.
- Scalability: Adapts to the customer’s growing business needs.
What is the Real Cost of ERP Software?
The overall cost of an ERP system depends on the chosen system and includes several factors:
- Hardware Expenses
- Software Licensing Costs
- Per User Fees
- Initial Implementation, Data Conversion, and Training Costs
- Customization Needs
Hidden Costs:
- Time spent by employees implementing and learning the system.
- Future customizations based on evolving business needs.
- Software upgrades.
- Additional training and consulting.
What is the Real Cost of ERP Software?
- Research: Compare the costs of various ERP solutions. Analyze whether an ERP system is better than simpler software like QuickBooks.
- Evaluation: Compare solutions with input from everyone who will use the system. Use an ERP Comparison Checklist to evaluate productivity, functionality, technology, value, and risk.
- Selection: Ensure the chosen solutions meet the company’s needs, timeline, and budget.
Selecting the Right ERP Software Vendor
Consider the following when evaluating ERP software vendors:
- Customer-centric approach.
- Comprehensive training.
- Ongoing support after going live.
- Accessibility to their team.
- Transparency in sharing their product roadmap.
- Commitment to keeping promises.
With the right ERP vendor, you can ensure a value-driven, benefit-filled implementation.
Support During ERP Implementation
During ERP implementation, it is crucial to have a workflow or process automation system to organize and manage the ERP process. This support will improve the implementation’s effectiveness, reduce unnecessary costs, and allow easy management by non-technical teams, such as for approval processes. This approach ensures that ERP implementation is smooth, efficient, and successful.
Why WorkHub24’s No-Code Approach Wins
WorkHub24’s no-code workflow platform isn’t just an alternative to traditional ERP customization—it’s a better way forward. With lower costs, faster setup, and tools that anyone can use, WorkHub24 makes ERP enhancements simple and effective. For companies looking to boost productivity, reduce complexity, and stay responsive to change, WorkHub24 offers a solution that’s built to meet today’s business needs.
Ready to make your ERP work better for you? Discover how WorkHub24’s no-code platform can help you unlock the full potential of your ERP system. Book a demo today and experience the difference of no-code automation!