You may wonder, “what difference does it make if your company’s ERP is located in the cloud or not?” This is a valid question, especially when your current ERP is performing effectively, just as it is designed to do.
The answer is that the difference is two-fold. First, there are tangible reasons. This is where the technology of the cloud takes your ERP and business performance to the next level. Then, there are the intangible reasons. Here, the effect of a cloud-based ERP results in smooth efficiency, which may go unnoticed at first, but the increase in productivity and morale brings substantial gains to your overall business performance.
Positive Tangible Effects on Business Performance due to a Cloud-Based ERP
Reallocation of Excess Funds – Moving to a predictable, monthly fee versus the financing, maintenance, and upkeep of high-end infrastructure means funds will be freed-up for other business needs and initiatives, prompting new avenues for growth. Likewise, cloud-based ERP’s are scalable to your needs, so there is no need to spend on unused licenses, which frees up some new funding.
Reduced (and Potentially Eliminated) Downtime – The expense of downtime can be astronomical and detrimental, especially when it’s due to malfunction. Even if the downtime is scheduled for maintenance, it limits employees’ accessibility and can negatively affect clients. The cloud provides consistent uptime, and there is no longer a reason to worry about the system being down.
Increased Cybersecurity – A breach is one of the most destructive and expensive threats in cybersecurity. Cyberattacks can cause a ripple effect throughout the organization and your customer base. With a cloud-based ERP, the security is built-in, updated continuously, and constantly monitored to protect your business.
Intangible Effects on Business Performance due to a Cloud-Based ERP
Improved Customer Relationships – Since cloud-based ERPs have consistent uptime, you and your teams can respond quickly to customer requests, contract negotiation, fulfillment, and overall customer service. This improved response time helps customer retention and business performance, specifically in sales and marketing. Best of all, the ERP maintains detailed customer analytics. These reports are essential for strategic planning in sales and marketing to increase customer acquisitions.
Interdepartmental Coordination and Communication – Cloud-based ERPs create trust throughout the company so that everyone knows the current state of affairs and has access to the most recent and accurate data. This makes daily tasks more streamlined for everyone while working from anywhere.
Motivating Employees and Increasing Productivity – Fewer mistakes due to miscommunication means less frustration. A cloud-based ERP empowers employees to do their jobs and do them well. Efforts are coordinated and efficient. The automation and accessibility provided through a cloud-based ERP reduce repetitive tasks and the time it takes to do them. This time can be reallocated to more critical tasks. The result is an increase and improvement in morale and overall productivity, enabling the business to grow.
Improved Audit Performance –A cloud-based ERP is updated at the source and automatically available for its users. These automatic updates include feature upgrades and changes to compliance and regulations as they occur. This structured means of providing accurate and detailed compliance tracking will improve audits and responses, which in turn improves overall business performance and employee trust.
Cloud-based ERP is not just a management tool; it is a necessity. Contact our expert team of consultants here at DRI to learn how to improve your specific business processes through our Cloud-Based ERP. We can be reached at 412-562-9660, or firstname.lastname@example.org.