This article is relevant for anyone interested in learning about cloud ERP and its benefits, challenges, and future trends. It discusses the advantages of running ERP on the cloud, the different types of cloud-based ERPs, and the implementation process. The article also covers the challenges of cloud ERP adoption and how the ERP industry is evolving. The future of cloud ERP is explored, including the increasing use of advanced technologies like artificial intelligence and machine learning.
Enterprise Resource Planning (ERP) software has existed for a long time. Recently, companies started leveraging cloud-based ERP computing to drive up productivity. In the past, companies were using on-premise or legacy ERP systems. While these still worked, they had some shortfalls. For instance, an on-premise ERP can be rigid and costly to implement, maintain, and upgrade. Also, legacy systems do not support remote working because they live on local servers. In the 21st century, companies are slowly discovering the advantages and disadvantages of cloud computing for an enterprise.
The future of cloud ERP rests on Artificial Intelligence, Remote Collaboration, Machine Learning, Robotics Process Automation, Industrial IoT, and Blockchain which have demonstrated their value to the early adopters who made these technologies a part of their day-to-day activities. The information and intelligence provided by these technologies have added value to the adopters. Modern ERP application development uses modern programming languages and architecture such as Angular, React, Restfull APIs, Microservices, and Java.
Cloud computing entails transferring business services to the cloud to boost innovation, economies of scale, and flexibility. Services related to IT resources like software, databases, bandwidth, networking, servers, analytics, etc. Cloud represents the internet. Cloud computing has many benefits, including:
A cloud ERP analysis can reveal the benefits of abandoning your legacy system. Unlike your on-premise system, a cloud ERP system runs on an internet-based server. There are different types of cloud-based ERPs:
Running a cloud-based ERP for Wholesale Distributors can be beneficial. One of the main advantages is that the initial cost of implementing a cloud ERP is low since the vendor buys software and hardware.
Also, the ongoing costs of running the software are low because you do not need to handle maintenance, support, and upgrading costs.
There are no delays when you choose to get a cloud-based ERP. In about 100 days or less, you can have a properly functioning cloud solution. This can reduce downtime and ensure business continuity.
After installing a cloud system, your remote employees can access it from any region as long as they have a browser and Wi-Fi. Thus, it can help increase their productivity and help boost the profitability of your business.
Cloud solutions vendors have the finances to purchase the latest security technologies and implement them. Small-scale organizations running an on-premise ERP may not afford new ERP technologies.
Lastly, ERP online vendors have reliable disaster planning techniques they can use to recover data loss from software or hardware failure.
Ximple Cloud-based ERP offers a next-generation solution for Wholesale Distributors. Netsuite Cloud ERP provides similar advantages.
Even if ERP cloud software is so beneficial, it has its challenges. Briefly, these include the following:
Have you decided to run ERP on a cloud? Congratulations on that. Before you start, however, take the time to understand what the implementation process entails. Make sure you have the recipe for success. It includes the following:
In the past, companies only had access to on-premise ERP solutions. Now they can run their business processes on the cloud, thanks to cloud computing technology. This alone shows that the industry is changing fast. Current ERP systems support both back-end and front-end functions.
ERP is now easier to integrate with Internet of Things devices, Artificial Intelligence, and Machine Learning. Modern solutions include these capabilities to ensure the user does not incur the cost of adding them.
ERP platforms are now easier to customize to meet business needs as they do not use a lot of coding. We can now uncover what might happen to a business in the future with the predictive analysis trend.
Lastly, ERP providers are starting to offer mobile support via dedicated apps. We expect to see more apps as we trend into the future. This will support remote workers executing their jobs via their mobile gadgets.
In short, Top ERP software future Trends include cloud ERP, ERP Integration with Advanced Technologies, Industry-specific ERP solutions, ERP Software Trends Leading to Digital Transformation, Mobility, Voice, Bots, Collaboration, plug-and-play ERP Integration, and intelligent ERPs (iERP) that use AI and ML for advanced analytics
In the future, ERP vendors will alter their products to meet the technology needs of modern organizations. We might see less coding and more APIs and extensibility tools at work. People who use ERP also use Slack, Zoom, social media platforms, and other applications.
Vendors will continue to make their solutions easier to integrate with other productivity tools. There is the likelihood that the best cloud ERP will skip UX and embrace a more idiot-proof, all-encompassing structure that everyone can understand. Lastly, vertical ERP solutions based on pre-configured templates might shape the future of the ERP industry.
The cloud enterprise resource planning platform (ERP) could be the future. About eighty percent of organizations owned on-premise (legacy) ERP systems in 2009. About two to four years later, most companies had lost interest in legacy systems and were considering cloud ERP adoption. This included at least twenty percent of the best-performing medium-sized companies.
According to the SMB Group’s 2016 report named The Business Technology Performance Connection for SMBs, a shift to cloud ERP began as early as 2010 for some top-performing SMEs. The Aberdeen Group has many resources suggesting that the cloud ERP has many benefits that make its future very bright.
Some reports show that SMBs already using cloud ERP saw a seventeen percent rise in profitability in the past twenty-four months. Companies still using legacy systems got a nine percent profit increase within two years. Cloud ERP improves the delivery of automated notifications and real-time alerts to the status of each process.
We keep seeing new ERP trends, and these will shape its future. After the arrival of the Coronavirus pandemic, many organizations shifted their ERP and other software tools to the cloud. ERP shifts to the cloud among SMEs are of more interest now. Small and medium-sized enterprises are increasingly adopting cloud ERPs than larger organizations.
Additionally, there is a growing IoT(Internet of Things) trend adoption in every industry. That also includes the ERP industry. IoT refers to direct connectivity between computers and other technology gadgets.
Soon, customers will ask for ERP solutions that match their specific sectors to avoid customizations and improve compliance. We expect advanced technologies like Business Intelligence and various reporting tools to increase. These tools will help users navigate disruptive moments and inevitable changes.
Merged solutions or two-tier ERP platforms will soon form a significant part of the industry. These will help companies with many branches run their supply chains better. Other elements like mobile ERP rendering and digital marketing will also shape the ERP industry’s future.
You are ready for a cloud ERP transformation if you are dealing with the following business problems:
The future of cloud ERP is promising, with the industry evolving to meet the technology needs of modern organizations. This includes AI, machine learning, IoT, and blockchain. Cloud computing provides numerous benefits, including cost-effectiveness, scalability, and improved access to data. However, challenges exist, such as resistance to change and the need for proper implementation. ERP providers will continue to make their solutions easier to integrate with other productivity tools and offer more mobile support. The future of the ERP industry will likely see the rise of vertical ERP solutions based on pre-configured templates. The Ximple solution is a leading cloud-based ERP designed for the wholesale distribution industry, simplifying the Omni-channel experience for its users, improving inventory management, and speeding up the digitization journey cost-effectively.