Businesses rely on enterprise resource planning (ERP) systems to help automate nearly every business process of the organization. ERP systems can be the most transformative investments a company can make, integrating finance, human resources, sales, operations, to drastically improve productivity and efficiency. Legacy system struggles, maintenance cost, reporting troubles, company growth, and integration needs all point to the need to implement an ERP solution.
If your ERP has yet to transform, or is still going through the process, here are a few common misconceptions to consider.
Cloud ERP vs. On-Premise ERP
Purchasing and managing software and the related hardware, servers, and facilities necessary to run it usually require large upfront capital expense and ongoing operational expenses for on-premise ERP systems. If your company lacks a number of experienced IT staff, you may be required to invest more time and money in additional personnel and training. On-premise systems require an IT team that spends a significant amount of time and money ensuring the system is available when needed. On premise systems cost include significant fixed assets, these include maintenance of computer hardware, data center management, and environmental control systems.
Unfortunately, the opportunity costs associated with on-premise ERP are often neglected and lead to lost value when choosing legacy on-premise ERP over cloud ERP. When evaluating the initial costs for cloud-based ERP, the costs are typically much lower because the software is simply implemented to conform to your requirements. The main benefit of a cloud ERP provider is that suppliers maintain all of the IT infrastructure for you. Cloud ERP systems ensure that the system is always available, the data is secure, and product enhancements to your solution are available without breaking previously implemented solutions.
In addition, cloud ERP also offers a predictable, pay-as-you-go subscription model making planning and cash flow management easier on everyone. This model provides more freedom for your IT resources and gives them the opportunity to focus on innovation and business value.. Overtime those IT savings begin to add up. One industry analyst study found that cloud-based ERP solutions relative to on-premise solutions can cost 50 percent less, over 4 years, than on-site ERP for a 100-employee company.
Today, cyber security is a threat to all business software. On-premise ERP vendors try to appeal to security fears by telling customers who manage the software themselves provides greater levels of security. In order to effectively secure an ERP system, you must dedicate the required resources, but this kind of commitment is simply not viable for most companies.
Cloud ERP systems eliminate the average of an hour of unplanned IT downtime every month, and operate a more efficient, secure cloud system. Netsuite’s cloud ERP system was built for business critical availabilty and has a 99.5% guaranteed uptime.
Solutions and Implementation
The modern cloud ERP solution is configurable and designed to conform to every customer’s unique needs. These solutions are designed to run a single code base and configured to fit specific business scenarios. One of the greatest benefits of cloud based ERP systems is the elimination of systems upgrades as cloud based ERP software is constantly updated. The new features are opt-in, and managing new features and phasing out old software becomes the responsibility of the provider.
As one of the world’s largest cloud ERP solutions, Netsuite is used by more than 40,000 organizations across more than 160 countries. Netsuite offers a variety of services, and its technology platform provides the necessary tools for customizing Netsuite to meet specific business needs for customers, partners, and developers. Netsuite’s offerings include the Netsuite ERP, the world’s most deployed cloud Enterprise Resource Planning solution, and Netsuite OneWorld. Netsuite OneWorld is an integrated, cloud-based ERP application suite created specifically for global businesses.
Netsuite can be used in a vast number of industries, including retail, manufacturing, distribution, and professional services. This versatility adds to the benefits Netsuite offers for many companies, and goes the extra mile to satisfy the needs of the business with its configurable and customizable features.
Explore the opportunities and see if Netsuite is the right solution for your organization through a Tricension Application Assessment.