What is Cloud ERP?

Planning and managing business operations hasn’t remained a task anymore. Rather, the task is now choosing the perfect management model for your business. As there is no perfect size that fits all, the perfect answer also doesn’t exist. Instead, the organizations have to create one for themselves. 

Currently, with numerous options available, such as on-premise ERP, cloud ERP, hybrid ERP, and many more, how would you know if your choice is the one that you need? Well, an informative page can help you with data for logical decision-making. Here is what you can expect from the current blog regarding cloud ERP. 

Key Takeaways: 

• About Cloud ERP
• Features of Cloud ERP
• Concepts in Cloud ERP 
• Types of Cloud ERP Software
• Benefits of Cloud ERP
• How Does Cloud ERP Work? 
• Challenges of Cloud ERP
• Get Your ERP with Onboard 
• FAQs About Cloud ERP

About Cloud ERP

Enterprise Resource Planning, or ERP, is a software solution commonly incorporated by organizations to streamline their operations, enhance decision-making, automate tasks and manage daily activities. It plays a critical part in project management, risk management, compliance, procurement, accounting, customer interactions and supply chain operations. Cloud ERP is just the cloud-based version of the mentioned ERP that allows for greater ease of access. 

It involves data storage on a third-party cloud service provider. Thus, it is remotely accessible to employees anytime and anywhere. Generally, it also comes with wide compatibility, i.e., on phones and computers. With no ownership of the software, the organizations need to pay only an annual or monthly subscription basis. Hence, the service thus taken does not involve hardware or setup costs. Rather, it automatically includes maintenance, innovations, security and upgrades. The cloud ERP is received as a ‘Software as a Solution (SaaS)’ service. 

Features of Cloud ERP 

Cloud ERP is a helpful solution that comes along with different features, as listed below: 

• The cloud ERP offers flexibility to use as per the requirement owing to its being a SaaS model. With variable subscription models provided, organizations can choose to find the best model through usage or meet their seasonal needs. 
• Cloud ERP service is available with a customization option as well. Organizations can choose to select the modules or features they need. 
• The SaaS offers a user-friendly interface and is easy to use. Employees can easily adopt the solution in their daily practice, offering them an easy transition to new methods while also saving their time. 
• Cloud ERP is provided with state-of-the-art data security. Encryption and other controls, along with regulatory laws, protect sensitive data from being hacked or stolen. 
• Remote accessibility eliminates the need for physical presence at a specific location to avail of the service. If the employees are on the go for office purposes or working remotely, cloud access always provides real-time updates, removing any hindrance to productivity. 

Concepts in Cloud ERP

Some important concepts in cloud ERP are essential to be known. They are: 

Deployment Options: This refers to how the organization wants to use the ERP software, i.e., in which form or variety. The types here include cloud, on-premise, hybrid ERP, single or multi-tenant SaaS and others. 

SaaS ERP: Here, the organizations get the service as access to software on the cloud. This means that organizations will not have ownership or control over the software. Their work will be limited to operations on the cloud. 

End-to-end security: The term indicates encryption of data during transit from the cloud to the organization and vice versa. It ensures data privacy through the usage of algorithms and other state-of-the-art techniques.  

Shared Infrastructure: It involves a shared network. The privacy concerns are addressed through role-based access. It is generally opted to lower the deployment costs. 

Types of Cloud ERP Software

There are also different types of cloud ERP software. You need to know them before deciding on which one fits your organization. So, they are: 

Single Tenant SaaS

Here, the tenant or service taker receives a single SaaS service. It offers better control and more customization options compared to its counterpart (multi-tenant). Data protection is also comparatively higher. Further, this type is beneficial in times of disaster recovery as well. 

Multi-Tenant SaaS

Beneficial for saving costs, the multi-tenant SaaS includes sharing a single code base among all the takers. It is a popular option that provides each organization with its own service space for data storage. It includes flexible subscription plans. Further, the upgrades here don’t interfere with customers’ productivity. 

Public Hosted Cloud ERP

In this type, a single vendor manages the cloud ERP software that runs on a remote server. Here, the resources and infrastructure are commonly available to the users, unlike multi-tenant SaaS. 

Private Cloud ERP 

Here, a single user gets access to a single cloud ERP software. It involves no sharing and allows expansion as per the organization’s needs. 

Hybrid Cloud ERP 

Here, organizations find the combined option, i.e., on-premise and cloud components. Organizations can use both features as needed. 

Benefits of Cloud ERP

Cloud ERP software offers numerous advantages to organizations by streamlining their process and enhancing productivity. More of what you must expect includes: 

Quick Access 

As mentioned, cloud ERP does not come along with physical hardware requiring setup or any other time-consuming and costly installation procedures. Rather, it is a Software as a Service (SaaS) that is available for usage in a few easy steps. Hence, organizations that require the use of the service on an urgent basis can benefit from this option. The simple requirements include an internet connection and a device to log in to the ERP system. 

Enhanced Security 

Cloud ERP systems are provided with the latest technological security. They are constantly updated as well with security features, further taking their security a step ahead. Further, the data storage exists at several locations, easing taking back the access on losing it. 

Eliminates Storage Issues 

The data storage on the cloud further contributes by removing infrastructure and physical storage costs. With easy access anywhere and anytime, the chances of data loss are minimal. Moreover, access can also be restored earlier than retrieving data from damaged physical devices. 

Scalability 

Cloud ERP, similar to its ERP counterpart, offers ease in scalability as well. Hence, regardless of how big you aim to grow, the problem of changing the ERP system will never arise. The expandability is easier. 

Automatic Updates and Backup 

As the updates are the service provider’s responsibility, the buying organizations do not need to engage their technical teams to worry about this aspect. Further, the backups are also automated as the system is purely cloud-based. Hence, time, effort, and productivity are saved through the service. 

Additional Assistance 

The presence of additional features, based on availability in cloud ERP, can assist further in organizational tasks. With features, we are considering the presence of AI, which can offer intelligent insights, provide data-based forecasting and contribute to decision-making based on reliable data. It can also be beneficial in fraud detection, enhancing the organization’s functionality. 

How Does Cloud ERP Work?

Here is how cloud ERP is implemented on taking the service: 

Choosing the plan: As stated, the cloud ERP is available as a subscription plan. The organizations choose the one better suited for them. It can be on a monthly, quarterly, or annual basis, depending on the service provider. 

Account Setup: Once the subscription is taken, the setup process begins. It involves specifying the details as per the organizational needs. It includes setting up the different organizational roles, which determines the amount of access each member will get. It also includes setting up the accounts, workflows or other tasks and personalizing the modules of different departments. 

Data Setup: The organization’s necessary data needs to be transferred or set up on the new ERP system. The service provider will guide you on securely easing the process. 

Application Integration: The organizations then head to integration with applications used in different departments. It includes customer relationship software, ecommerce platforms and other third-party software. It is generally carried out with the help of APIs. 

Training: The employees are then educated on how to use the software service for their respective purposes. The training can be done through any of the multiple methods, such as videos, written documents, online or physically present interaction sessions. 

Software maintenance: The task is completely the service provider’s responsibility. They provide all the updates, fix bugs, patch security and release new features. Any other issues can be directly communicated with the provider for resolution. 

Challenges of Cloud ERP

The cloud ERP isn’t all about a silver lining. There exist dark clouds, too. Let’s explore that part as well:

• A subscription-based model in cloud ERP is beneficial for short durations. If you are planning the same for a longer duration, the overall cost incurred to the company may go up. A proper estimate and calculations should be made based on the duration for which you are planning to use it. 
• Lack of control over updates can be challenging; however, the frequency isn’t going to be high enough. In general, the problems are caused by major updates or influences on commonly used functions. Employees will not get time to adapt to newer settings but will have to learn instantly. This may impact productivity. 
• Since cloud ERP is accessible over the internet, good connectivity is highly mandatory. For areas with poor internet connectivity or during downtime, the work is going to be compromised. 
• While data security is top-notch in cloud ERP, the presence of third-party providers should not be ignored. Compromise or faults from their end may impact the organization’s functions. 

Streamline Your Switch to ERP with Onboard

Cloud ERP is a cost-effective solution that helps organizations smoothen their functionalities and management. Aiding in effective management without the requirement of hardware and software-based installations and other mess, the cloud ERP is a common choice among organizations. Further, being loaded with features like the highest data security, customization options, user-friendly interface and remote access, it generally has all that a company needs. 

If you are impressed with the options it provides and if they suit your requirements, now is the time to step ahead and make a choice. Choose the best-fit software for your organization and connect with Onboard to help you with the ERP training program. With over 25 years of experience, our team is composed of experts who excel in customer satisfaction. Connect now!

Common Questions About Cloud ERP

Q1. What areas need focus when moving to cloud ERP?

The changes need to be well-handled, with common instances of resistance to change and fear of the unknown being common in employees. Communication and training are the easiest ways to get out of the issue. Further, the data migration method must be understood beforehand as it is a time-consuming and complicated process. 

Q2. What factors can help organizations choose the best Cloud ERP software for the organization?

Organizations can decide based on factors such as the type of features, functionality, and capabilities required from the ERP software. They must also emphasize on user experience, integration options, scalability, vendor reputation and cost incurred. 

Q3. Who are the top cloud ERP providers? 

Some prominent and common cloud ERP software providers include Dynamics 365, SAP s/4HANA, Oracle ERP and others.