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Why ERP in the Cloud model?

ERP  systems (Enterprise Resource Planning) used by an increasing number of  organizations are the solutions that guarantee increased competitiveness  and productivity. Typically, these are key business systems in  companies, but these are usually installed on premises. Is it possible  to get additional benefits from the ERP system as a cloud computing  solution?


ERP  is usually associated with production processes, but solutions used  today also provide work opportunities in all key areas of business  operations: - Corporate financial systems, including general ledger, assets, budget and receivables management; - HR: Human Resource Management System including payroll, recruitment processes, employee revenue tracking; - Supply chain systems for simple demand and supply management; - Production systems, including servers and software for the management of this complex process; - Project Management -  CRM systems propelling sales management mechanisms. In addition to  tracking customer contacts and sales opportunities, the system can also  provide support for marketing and provisioning programs.



Until recently, ERP systems were seen as large, "heavy" operations that  must take place on-site. Today, many organizations moved their  operations to the cloud model ERP system. And despite the fact that  moving ERP resources is not an easy decision, it can help solving many  problems.



ERP as a cloud computing service provide employees and users with  better accessibility to their resources. A securely implemented cloud  service does not increase data’s susceptibility to external threats, but  allows each registered user who has access to the internet, to the  system. From the operational point of view, it is a great benefit for  organizations with geographically dispersed branches, and allows  synchronisation of data from remote sites to the main site. With this  feature, making roll-up reports is much simpler and tracking operations  in global scale becomes a matter of desktop implementation, and not  configuration and maintenance of a WAN.



In addition, ERP systems in the cloud are much easier for integration  with other systems. Cloud systems are designed for better  interoperability and greater access. Combining one ERP system with  another, or with a sub-system is more direct. Reporting and BI can be  combined with the cloud ERP or multiple systems in the same way.



In general, the benefits of using ERP as cloud services are divided  into two categories, either derived from ERP cloud applications or  cloud-based ERP infrastructure. They can be combined in various schemes  with standard applications and infrastructure, but the biggest benefits  are visible only when cloud applications are running on cloud  infrastructure. In this case, systems provide scalability, remote access  without VPN, compatibility over various platforms, do not require  client software, provide the ability of rapid implementation and the  typical cloud characteristic such as charging on the pay-as-you-use  basis, further lowering the IT costs.



An important feature of the cloud ERP approach is to engage all its  users - employees, customers, suppliers - into the business processes.  When, for example, only accounting employees use the system, benefits  are limited because tasks such as reporting are not fully automated.  Cloud applications and infrastructure allow all employees who have  access to internet browser for collaboration and workflows. And, as  Metcalfe states, the more people are connected to an ERP and have impact  on the system, the better operations are placed in time, are more  suitable and comprehensive.