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ERP or Enterprise Resource Planning software is an essential tool modern companies use to consolidate data and streamline their processes. And cloud-based ERP software has many advantages over the on-premises type, including being more efficient, flexible, and cost-effective. This post will explore cloud-based ERP software and the extensive range of benefits it can provide for your business.
What is Cloud-Based ERP Software?
But first, you need a basic understanding of cloud-based ERP software to visualize its potential advantages to your business. Cloud-based ERP software is a system or platform that users can access remotely that integrates and automates key processes within an organization. Depending on the capabilities of ERP software, companies can use it to integrate finance, human resources, manufacturing, operations, maintenance, and many more.
Every ERP software system has applications unique to an organization’s product or services, process flow, type of industry, etc. But a typical cloud-based ERP software can do the following:
- Connect the different systems used by individual departments within an organization
- Provides a secure platform for users to collect, organize, analyze, and share digital data
- Enables remote access to digital information through applications on mobile devices
Advantages of using Cloud-Based ERP Software
The following sections enumerate the potential benefits of using cloud-based ERP software. The extent of these benefits may differ depending on the ERP system type, your business requirements, and your implementation process.
1. Data Security
It is a common misconception that cloud-based data storage is prone to security risks. This misconception is the reason some companies still cling to obsolete manual on-premises management systems. In fact, cloud-based data is significantly more secure than manual systems because they have limited and trackable users. You can better control information sharing or prevent fraudulent access or data breaches by giving various levels of access to users.
Cloud-based ERP software also allows you to transfer data through a platform more secure than email, external devices, or other channels. Furthermore, hiring third-party companies to oversee system maintenance and security updates increases data security. These companies can closely monitor the transfer of data and regularly update system protection, thus providing an extra layer of data security.
2. Data Accuracy
The secure yet accessible platform provided by cloud-based ERP software eliminates redundancies and reduces the potential for error. Due to the different systems used by separate departments within an organization, data can take varying formats. By connecting these systems into one platform, you can easily standardize the data, remove duplicates, and check for accuracy. You can also make reports in consistent formats across different systems, making planning and decision-making faster among the departments of the whole organization.
Organizations nowadays recognize that separate departments require data from other departments. With cloud-based ERP software, easy-to-search digital data from one system is now available whenever needed by another system. The finance department, for example, can work with data from the operations system without the need to comb through multiple spreadsheets, or worse, error-prone physical paper files.
3. Optimized IT
An organization using an on-premises ERP system relies on its information technology or IT department to keep a close watch on its system operations. A cloud-based ERP, however, can free up time for your IT team to focus on other responsibilities aside from maintaining your ERP system. Your IT team can, for example, devote more time to providing more satisfactory hardware and software support for your personnel. The team can also focus on developing valuable IT strategies that improve the company’s IT infrastructure, functionality, and governance.
4. Scalability
A business is bound to grow and as such, its processes must grow with it. Cloud-based ERP software has the flexibility and adaptability that on-premises systems do not have. A cloud-based ERP system allows businesses to add applications and users as they scale up or modify their operations. In other words, there is no need to purchase a new cloud-based ERP system if you expand your operations or modify your business. Cloud-based ERP software is easy to update or reconfigure to suit your business’s changing needs. With an on-premises system, you are limited by your server size and must make substantial investments in larger servers as you grow.
5. Mobility
Cloud-based ERP software allows users to access data at any time from any device or location. In an era of remote work and instant information, the company wins if they let work follow their employees wherever they go. With cloud-based ERP software, a user from any department can work together seamlessly anywhere, whether they are in the office, in the field, or even when working from home.
6. Increased Efficiency
Digital and accessible information through cloud-based ERP software significantly improves operational efficiency across the entire organization. For one, this software reduces information delay and inaccuracies, which are the main reasons for inefficient operations. Another is that by having correct and accessible data, strategic planners can develop more effective ways to achieve company goals in a shorter time and use fewer resources.
7. Cost Reduction
Picture this: a smarter approach that frees you from the burden of hefty upfront costs. Say goodbye to the days of sinking massive capital into ERP systems. Instead, step into a world where they seamlessly transform from a massive one-time expense to a much smaller ongoing operational cost. Opting for cloud-based ERP software means you are cutting not just hardware and infrastructure expenses, but also reducing the costs of setting up and maintaining on-premises servers and systems.
While there is an initial investment in cloud-based ERP software, it results in total cost reduction in the long term. Eliminating manual data entry, paper filing, and similar processes easily cuts down on considerable administrative and operational costs. Cloud-based ERP software also allows companies to study important metrics and identify areas to cut costs or improve spending. Concisely, this strategy is not just a financial breakthrough; it is an open door for nimble companies aiming to skyrocket without heavy financial anchors.
8. Increased Productivity
The streamlined processes resulting from using cloud-based ERP software increase employee and asset productivity. Without tedious manual data management tasks, employees have more time to accomplish more tasks. Asset productivity, which relies on accurate monitoring and analysis, also increases due to the integration and digitization that cloud-based ERP software provides.
9. End User Management
A user-friendly platform like cloud-based ERP software makes it easier to train users and manage their work. Unlike manual and often complicated data and project management systems, cloud-based ERP software is up to date with current application interfaces. This ease-of-use results in a smaller learning curve and shorter training periods for users.
10. Faster Implementation
In as little as 24 hours, you can complete the technical setup for your cloud-based ERP software. Any new system implemented within an organization requires proper coordination and planning. The deployment and implementation of cloud-based ERP software is far less complicated. Often, the software provider comes with an implementation team to help you get started. Then, every department, regardless of its weaknesses and strengths, can coordinate and plan easily with other departments. Thus, there is more transparent communication, better cooperation, and faster implementation of the system.
11. Increased Collaboration
Imagine a business ecosystem where information flows seamlessly like a well-choreographed dance. Cloud-based ERP software takes center stage in breaking down the walls of data silos that often hold companies back. No longer are valuable insights trapped in isolated corners – this modern marvel connects departments, processes, and people, allowing data to travel effortlessly across the organization.
With better data sharing, cloud-based ERP software fosters cross-departmental collaboration. Increasing the connectivity between departments makes them more likely to offer help to each other or work together to reach a common goal. By working together, departments discover new perspectives and new ways of using data previously unrecognized or underutilized because only one department has access to them. With cloud-powered ERP, collaboration blooms, decision-making sharpens, and the entire company moves in harmony toward its goals. It is the digital symphony that turns fragmented data into a unified masterpiece.
12. Streamlined Compliance with Regulations
Having a treasure trove of accurate, readily accessible records might sound like a secret weapon – and it is, especially when it comes to navigating the labyrinth of regulations that your company must toe the line with. Think of it as your compliance compass. But wait, there is more: imagine having tools that let you craft tailor-made reports effortlessly within the software itself. It is like having a compliance co-pilot that not only keeps track of your journey but also helps you adjust your route as needed. And here is the real kicker – with all your information organized and at your fingertips, you become a shining star in the auditor’s eyes. They get everything they need, right there, without lengthy searches.
Wrangling compliance might want to tame a wild beast, especially in tightly regulated industries, but fear not – cloud-based ERP software swoops in to make the impossible, well, quite doable.
Go Cloud-Based with Redlist
Visit https://www.getredlist.com/demo/
Going cloud-based is the only option for a business to stay competitive, future-proof, and meet the demands of the times. If your business needs a lubrication and maintenance-focused system that is easily integrated with any system out there, the best choice is Redlist. To experience how Redlist integrates with your current systems, request a free demo now!
