What Is Cloud ERP, and Why Should You Use It?

Having near-countless software tools at your disposal is both a blessing and a curse. While you can find an app for anything, you can quickly find yourself switching between programs, struggling to get a complete picture. Cloud ERP platforms offer a potential solution.

What Is Cloud ERP?

Enterprise resource planning (ERP) software provides a single, consolidated point to view and manage your company’s data and core processes. It lets you see your capital, materials, employees, equipment and more across every department so you can make more informed management decisions. Many solutions also include features that automate some tasks to streamline your work further.

Common ERP components and functions include:

• Customer relationship management (CRM)
• Inventory management
• Financial reports
• Billing
• Supply chain data
• Human resource management

Cloud ERP brings the many advantages of cloud computing to this software. It offers all the same functionality but uses a cloud-based, software-as-a-service (SaaS) model instead of having you download and install anything on on-premise devices. That way, you can access and interact with these tools and data from anywhere.

Cloud ERP Advantages

Using cloud ERP over an on-premise solution has many advantages. Most notably, you can use it without needing to be in a physical office. Whether you work from home or are on the go, you can pull up these platforms on your laptop or phone, helping you work faster and be more flexible.

Unlike on-premise ERP, cloud solutions also have little to no hardware requirements. That, alongside the lack of any maintenance needs, helps lower IT costs. It also makes it easier to scale these solutions as the company grows.

Having one place to see and manage everything also helps fight IT sprawl. The average organization today has 254 SaaS apps, but only 45% of these programs see regular use. Using one consolidated solution instead of multiple standalone ones reduces this waste. That will also help you save time you’d otherwise spend switching between solutions.

Cloud ERP’s visibility also makes it easier to optimize your organization. With a single source of truth for all operations and data, you can see how and where your company can improve. You’ll also be able to respond to any emerging issues faster.

Choosing and Using a Cloud ERP Solution

Now that you know why you should use cloud ERP, there are some things to keep in mind when choosing and implementing this software. To find the best solution for you, start by writing out what you want from it. Determine your goals and how you’ll use the software, then look for ERP providers with features that align with those requirements.

Remember that these solutions are only as helpful as your data is accurate. Make sure your data is organized and clean so you’ll get the most accurate insights from your ERP solution.

It’s important to keep cybersecurity in mind, too. Cloud security is one of the biggest security trends today, as these tools require different steps to protect than on-premise solutions. Look for an ERP provider with a good cybersecurity track record and ensure your IT team knows how to secure these tools before implementing them.

Finally, remember that any tool’s effectiveness depends on its users. Train everyone on how to use the cloud ERP solution and encourage them to ask questions. Gather feedback throughout the whole process to see if there are other features you should use or better ways to implement the system.

Make the Most of Your Data

ERP is a critical tool for many businesses, and cloud ERP takes it to the next level. Now that you know about this software and how you can benefit from it, you can use it to take more control over your business. Fully capitalize on your data with a cloud ERP solution today.