What is Cloud ERP | Enterprise Resource Planning
An Overview of ERP and Cloud ERP
Enterprise Resource Planning (ERP) is an integrated suite of applications that helps to automate and support an organization’s business processes. Throughout the entire order-to-cash cycle, ERP provides the end-to-end functionality that growing organizations require to operate effectively. Companies that utilize ERP can improve efficiency, deliver better customer service, support growth and increase their bottom lines.
The cloud takes ERP to a whole new level. Cloud ERP adds in the ability to do business anytime, anywhere, and from any device with internet access. You simply log in securely to your cloud ERP from your web browser. Organizations that utilize the cloud have greater freedom and flexibility.
There’s Value in the Cloud
There are a number of ways the cloud delivers value to you. One of the biggest money and time savers realized with cloud ERP over an on-premise solution is found in its IT infrastructure. Since the solution is hosted in the cloud, you are able to eliminate the costs and efforts associated with purchasing and installing on-premise hardware and hardware management. This not only reduces your IT spend for a new ERP, it also shortens your implementation timeline.
Cloud ERP Options: Private Instance vs. SaaS
Selecting a cloud ERP solution that is offered in a Software as a Service (SaaS) model brings you even greater value. With cloud SaaS ERP, your solution is managed for you, freeing up your IT staff from the time and effort of performing upgrades and system updates. Learn more about the difference between single-tenant cloud-hosted ERP versus multi-tenant SaaS ERP in our article, Cloud-hosted ERP vs. SaaS: Which Choice is Right for You?
Maximize Your IT Spend with Cloud SaaS ERP
Research by the Aberdeen Group shows that companies implementing a cloud SaaS ERP solution see a 21% improvement in profit margins after two years, compared to an 8% improvement when an on-premise ERP was implemented. The same study highlights the the following differences achieved in inventory control:1
|Decrease in Inventory||Improvement in Inventory Turns||Decrease in Stock-to-Sale Ratio|
|Cloud SaaS ERP||17%||62%||28%|
|The SaaS Difference||6%||21%||19%|
Learn more about SaaS ERP benefits in our article, 8 Reasons Distribution Migrates to Cloud SaaS ERP.
Business Today is Mobile, and Your ERP Should Be, Too
We are in the midst of a Mobile Age, with a majority of adults now constantly connected via iPhones, Android devices, tablets, laptop and desktop computers.2 Cloud ERP allows these already connected workers to have the flexibility they need to keep pace with business.
Companies with cloud ERP increase their productivity when they implement a mobile ERP business strategy. Here are a few examples that illustrate how cloud ERP can improve the flow of business:
- Sales teams have real-time access to the company’s data while traveling, such as when they are at a client’s office or tradeshow. Being able to see current data allows Sales to check on client orders and inventory availability, and give accurate product information. Sales can also input orders for immediate fulfillment. They no longer have to compile product and customer data to take along with them, or submit orders via email or fax (which then has to be entered by someone else on the receiving end), or otherwise delay the fulfillment process until returning to the office.
- Orders from web stores and other channels can flow directly into the ERP and to mobile devices held by employees in the warehouse for faster fulfillment.
- When managers are away from the office or traveling, they can still monitor processes and respond to issues before they grow into bigger problems. With access to real-time data on their dashboards, managers can make better, faster decisions, in fact reducing their time-to-decision by 46%.3
Delivering Cloud ERP Securely Over the Web
The cloud has come a long way. An organization’s data and systems are no longer safest in an on-premise environment. In fact, an independent study by researchers with the Aberdeen Group revealed that companies with on-premise ERP saw nearly twice the amount of data loss and security-related downtime as did those on cloud-based ERP.3
It’s hard for companies to maintain adequate system and data protection measures with their on-premise solutions. Using cloud services means that you are utilizing state-of-the-art technology and best practices that provide you and your customers with the highest availability and security. A cloud solution’s proactive measures address the full scope of system and data protection, from system monitoring and preventative maintenance to environmental control and disaster recovery.
Trek Global deploys Trek Cloud ERP on highly secure, reliable and scalable cloud computing platforms through Amazon Web Services (AWS). We have worked with AWS for more than a decade with great success. AWS serves many other Fortune 500 companies and businesses worldwide, and is a leading cloud storage services provider in Gartner’s Magic Quadrant.
Ready for Cloud ERP?
Contact us to discuss cloud ERP options and best-fit solutions for your organization. We would be glad to share more about Trek Global’s solutions, which include private cloud and SaaS ERP options. If you’re just getting started, our consultants can also provide support to your ERP planning process.
1Aberdeen Group. SaaS ERP in Wholesale and Distribution: Enabling Communication Across a Wide Network.
2Pew Research. Mobile Technology Fact Sheet.
3Aberdeen Group. SaaS and Cloud ERP Observations: Is Cloud Right for You?