ERPs are brilliant.

As a solution that integrates everything across your organisation – from finance and accounting to inventory and supply chain management, human resources and much more – ERPs are making business better. 

But you probably already know that. What you might not know is how the newest generation of cloud-based ERPs are transforming business.

Gone are the days of on-premises servers. Instead, by harnessing the internet, your team has the ability to work seamlessly anywhere in the world, in and on different parts of your business, and not miss a beat.  

Here are five great reasons to choose a cloud-based ERP for your business.

1. The cost is lower than an on-premises solution

Let’s consider your on-premises ERP. You’ve got a high initial investment of the internal server hardware itself, as well as the controlled environment you need to keep it free of dust, debris, and sticky fingers. Then there’s the software and its upgrades, patches and backups – all of which need contracted people to maintain. Even once you’ve got the hefty upfront investment taken care of, the ongoing maintenance can be unpredictable and costly. It just doesn’t cut the mustard today. 

Cloud-based ERPs do away with most of the above. After your initial investment in the implementation and data migration from your old system, the only thing you pay is your licensing and any additional features you want added on later. Sorted. No ongoing maintenance, no sectioned-off room somewhere in the building, and you’ll get upgrades as soon as they become available.

The subscription model turns a potentially expensive project into a more manageable and predictable operating expense that’s easier to account for at the end of the year. Plus, you can easily scale your ERP up and down according to your needs, so you’re future proofing your business without having to pay in advance.

2. A cloud ERP optimises your resources

In the same way ATMs freed up bank tellers from cash dispensing and let them do more meaningful client work, ERPs have the potential to handle some of the more old-school parts of your business so you can get the most out of your people. Manual re-entry? Gone. Paper forms from the site that have to be scanned and re-typed in the office? No more. Cloud ERPs work seamlessly anywhere there’s an internet connection – and let’s face it, that’s almost anywhere now. 

Also consider that on-premises ERPs often suffer from something called “version lock”. That’s where you can’t change or upgrade processes because the hardware or software can’t handle it, or the changes are deemed too risky. The result is that your people end up constrained by out-of-date solutions, reducing productivity and locking you in step with the past. 

Plus, maintaining these older, on-premises ERPs requires skilled and often expensive IT professionals on call to maintain them. And that’s not just a drain on your margin. It’s also a waste of your people. 

When part of broader strategic objectives, a great cloud-based ERP can help you optimise your resources – your time, your money, and most importantly, your people – to work on the business, not just in it.

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3. You’ll get up to speed faster – and that’s great for your ROI

Implementing any ERP has to be justified by the bottom line, and CFOs and other financial decision-makers who want to reduce expenditures will be paying close attention to the ROI of any project. 

Cloud ERPs realise their ROI sooner than any other model. Firstly, you’ve got the lower and more predictable costs of the subscription model. But also, once implemented, and your data transferred over, you can take advantage of awesome computing power instantly.  

Add to that the opportunity benefits, like those freed-up people who can do more meaningful work, and you’re hitting the ground running. One client, having implemented NetSuite, has saved two to three FTEs and cut days off the company’s billing process, saving time and costs as well as improving the customer experience. It’s just good business. 

4. Cloud ERPs scale with you

Scaling up can be a risky move – especially if your old systems struggle to meet new demands, or worse, aren’t scalable at all. Servers can be slow to operate and quick to crash, and errors can accumulate as you try to add on parts that weren’t designed to work together. 

With a cloud ERP, you’re not limited to on-premises connections or a fixed number of staff or responsibilities. You can add new people to your team, unlock features as you need them, and grow your business without having to invest in more hardware.  

In general, your ERP will have more features that you’ll need at the start. You’ll only pay for what you use – but those features are there and waiting for you if and when you’re ready (and when they support your objectives). That’s why it’s so important to work with your ERP implementation partner to get the right tools and systems for your business. 

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5. How about better financial decision making?

As a business, you’re expected to maintain meticulous financial records to ensure you stay compliant and avoid costly fees or legal consequences. No matter the market conditions, you need to know exactly what’s going on in your business at any time. 

Whether you use a laptop, a smartphone, or a tablet, cloud ERPs mean you can input, compile and collaborate on data from different locations, using the same software. 

That’s not just a boon for your operations. It also gives you real-time access to your data so you can make the right decisions at the right time. Since applications and data are hosted and handled in a central cloud location, your data is always up to date. It’s one source of truth for your organisation, removing the bottlenecks of various software integration points and reducing the chance of inaccurate data for reporting and forecasts. 

Now's the time to turn the cloud

Cloud ERPs are more economical, show faster returns, scale better, and give you a better view of your business so you can make better decisions. If you want to succeed in the 21st century, then a cloud-based ERP will take you in the right direction. 

If you’re ready to start talking to the experts in ERPs then reach out to us at Fusion5 and discover which solution will help your business grow today and in the future. 

Keen to learn more? We’ve got you covered, with free weekly ERP comparisons, case studies, and insights delivered to your inbox over the next eight weeks. Get the ERP newsletter. 

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