Cloud ERP Software Can Lead to Better Profitability
This post was written by SalesPad partner Technology Management Concepts. We’re delighted to share their insights on the how cloud ERP can bring huge advantages to a growing company.
Improving business processes and customer relationships are two big benefits of using cloud ERP software in sectors like manufacturing, shipping, and distribution.
Moreover, to achieve better profitability, companies are also using analytical software to turn their collections of Big Data into actionable strategies.
Analyzing ‘meaningful’ data
The key is not simply accumulating terabytes of information, but choosing the right analytics for the “fast meaningful processing (of) large data sets.”
With such successful outcomes, it’s not surprising that many companies continue doubling down on analytics. According to a recent Forbes survey of IT execs and decision makers, companies have consistently told us their (the company’s) success increasingly depends on analytics, and more than 90 percent said they plan to increase spending on BI tools.
Today, data analysis methods that rely heavily on legacy programs like Excel come with significant limitations. Financial reports, for example, might be developed around historical data instead of real-time information.
Improving cash-flow management and team collaboration
Savvy business owners are looking to migrate their data to cloud ERP for better accounting, purchasing, and inventory control. As a result, business tasks can be accomplished with fewer data entry errors, better collaboration among team members, and fewer disruptions to the supply chain. Overall cash flow improvements can also mean a better return on equity (ROE).
Consider using an ERP partner to learn more about how deploying ERP software will strongly benefit your business. Ultimately, by integrating cloud technology, productivity increases due to ease-of-use and reduced reliance on IT. There’s no new code necessary for configuration and the software deploys easily.
Once deployed, businesses can update data from their legacy systems without impacting critical functions.
The importance of being earnest in this ‘journey.’
Moreover, according to Forbes, the “journey migrating to hybrid cloud” is directly tied to the important decisions that your company must get right to avoid delaying or derailing the digital initiative.
“A crucial issue that your company’s CIO, CTO, or CFO will constantly face on this journey is how to sustain organizational support for the vision and new target digital operating model. It will require evolving your organization to support an unfolding journey.”
Don’t be too quick to deploy.
Of course, in some cases, businesses will decide to move their applications “as is” (this is also called the “lift and shift” approach). However, doing so can invite any or all of the “existing issues associated with it to the cloud.”
Companies eager to transition from their legacy on-premise systems are still not jumping all-in when migrating to the cloud. In fact, in a recent survey of tech leaders reported on ZDNet, only “12 percent” are signing on to this approach. This reflects a larger percentage (71 percent) surveyed who see their on-premise apps as “mission critical,” and 20 percent aligning their strategies with “SaaS-based” apps in the cloud.
A case for ‘testing and staging’.
Before you take the leap to cloud ERP, make sure you have a test environment first! When it comes to making changes in a system as delicate as your ERP solution, you can’t be too careful. Using a test environment before rolling out any changes to your live database gives you the freedom to take things slowly and carefully.
And if you need a hand with your migration, let us know! We love helping businesses make this transition successfully, and would love to be a part of your success.