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     * Product Lifecycle Management
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     * Application Development and Integration
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     * Intelligent Technologies
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WHAT IS CLOUD ERP?

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Time for an ERP Upgrade? A Guide to Replacing Your Legacy ERP System
Next

What Is ERP?
What Is Cloud ERP?
Time for an ERP Upgrade? A Guide to Replacing Your Legacy ERP System
Tips for Evaluating ERP Software
Planning Your Cloud ERP Deployment
ERP Implementation Best Practices to Reduce Risk and Costs

The term enterprise resource planning (ERP) was introduced in the 1990s to
describe software that automates business processes across a company – from
financials to distribution and manufacturing. In those early days, ERP systems
were typically implemented on the clients’ own servers in their data centers.

A couple of decades later, cloud technology was introduced, making it possible
to deliver software  through the Internet. ERP became available not only on
premise but as a software-as-a-service (SaaS) application, accessed on a monthly
lease basis rather than through outright purchase. However, there’s much more to
cloud based ERP than the delivery and pricing model. Its advanced features and
flexibility make it an essential ingredient for success in the digital age.


WHY CLOUD ERP?

For more than 25 years, ERP systems have delivered value to organizations,
helping them boost productivity and gain insights. But now, the entire world
(and the competition) has changed.

Today, customers expect faster delivery of products and services, nonstop
product and service improvements, greater reliability, and lower costs.
Businesses often need look beyond their walls to ensure the best value for
customers. They work virtually with a wide array of partners – for production,
product distribution, sales management, service, support, and even core business
processes. As a result, they need software that not only helps them handle
internal processes but also manage business networks all over the world.

Legacy ERP systems can’t keep up with the complex requirements of businesses
today. Older systems are difficult to adapt to change, are expensive to
maintain, and are unlikely to help companies comply with evolving regulations.
Designed for a simpler landscape, most legacy ERP systems fail to deliver the
speed, flexibility, and intelligence that companies need to operate in new, more
agile ways.


Discover the benefits of a cloud ERP system.


HOW DID SAAS ERP EVOLVE?

In the early 2000s, “cloud” applications primarily focused on standalone
solutions, such as customer relationship management (CRM), marketing automation,
and expense travel management. 

By the mid-2000s, cloud based ERP solutions were introduced by leading business
software providers. Many of these early cloud ERP systems had limited
functionality and were not fundamentally designed for the cloud. Cloud ERP
solutions were slow to be accepted by midsize businesses as they were inflexible
and could not support the speed of change, nor the depth of function required.
They also couldn’t integrate with or connect to different systems or data –
limiting the scope of change and growth for businesses.

Today’s modern ERP systems have changed dramatically, as has the acceptance and
adoption curve for cloud ERP. Yet, it’s still critical to separate those ERP
systems designed for the cloud and those that simply operate on the cloud.

History of cloud ERP – download the infographic to get the full story of the
evolution of ERP from on premise to the cloud.


WHY IS CLOUD ERP SO IMPORTANT TO FAST-GROWING COMPANIES?

There are three key reasons why cloud ERP is particularly critical for
fast-growing, midsize businesses.

 1. Improved agility: Agility is particularly important to midsize companies
    with growth potential. These companies are often specialists in their
    industries, working in a small, related set of industry verticals such as
    aerospace job shop metal fabrication or distribution service to restaurants.
    They have deep customer and vendor relationships. To grow rapidly, they need
    to seize opportunities – adding new locations, introducing new products and
    services, making acquisitions, or responding to competitor failures. 
    
    An old system that is not flexible and easily expandable will constrain
    growth because it can’t provide information needed for decisions quickly
    enough. If a company relies on independent reporting systems – many of which
    are based on Excel spreadsheets – it’s difficult for departments to share
    information and work together to meet common, time-sensitive goals.

 2. Visibility into cash flow: In midsize companies, top management tends to be
    very cost conscious. Unlike larger companies that manage quarterly budgets,
    the lifeblood of medium businesses is cash flow – and improving profit
    margin is often a top priority. Building balance sheet reserves – and
    fueling growth – requires a careful eye on working capital, operating
    expenses, and investments.
    
    While all midsize companies have some type of accounting or ERP system, many
    of these systems fail to deliver immediate cash flow and vital profitability
    information. They often don’t meet the current needs of the business or
    integrate with other systems. What’s more, these legacy systems are usually
    not enhanced with new features – or even maintained and supported – by
    vendors who have shifted their focus to the cloud.

 3. Ease of application integration: Midsize businesses have typically been
    quick to adopt point solutions for specific operational needs – such as call
    center software or field service systems – but slow to change their backbone
    ERP. However, adding these “bolt on” solutions has added great expense and
    complexity because these tools don’t easily connect to the ERP system. Now,
    modern cloud ERP is changing all of that – causing more and more growing
    companies to reevaluate their ERP choice. Increasingly, companies are opting
    for the easy integration, scalability, and agility that comes with cloud
    ERP.

TRY A MODERN CLOUD ERP SOLUTION

Test SAP S/4HANA Cloud and see the benefits of an intelligent ERP system
firsthand.

Free trial


WHAT ARE THE TOP 10 BENEFITS OF CLOUD ERP?

Companies that have made the move to modern cloud ERP do so based on these
benefits and capabilities:

The top benefits of a modern cloud ERP system
 1.  Lower costs: With a subscription service, there’s no upfront purchase cost
     for hardware or ERP software. Ongoing IT and related staff costs are also
     lower as upgrade and maintenance expenses are handled by the provider. Cost
     savings can be significant – particularly with a public cloud deployment.
 2.  Fast, flexible implementation: Ramp-up for a cloud ERP system is much
     quicker as your SaaS supplier handles hardware and software installations
     and provides dedicated staff with data center management expertise. Like
     consumer mobile apps, cloud ERP business applications can be configured
     easily. The intuitive user interface makes learning to use the app fast and
     easy – speeding time to productivity and allowing businesses to seize
     opportunity.
 3.  Business improvement: Many businesses move to cloud ERP to improve
     operations, change outdated processes, and introduce new capabilities that
     support best business practices. Cloud ERP improves and speeds up not only
     finance and accounting practices, but business operations across the
     company – and can even extend beyond to business partners and networks.
 4.  Simplicity and automation: With a modern cloud ERP, companies can
     consolidate standalone legacy applications, standardize and integrate all
     existing and new applications, and eliminate the use of disconnected
     systems with information spread across Excel spreadsheets.
 5.  New functionality: SaaS providers deliver new functionality and application
     improvements to all companies that use their software through continuous
     upgrades, as well as several new larger releases per year. Since updates
     are delivered to everyone at once, you never miss an opportunity while
     waiting for a vendor to update your custom ERP system. Also, if user
     companies identify similar requirements, they can push the vendor for
     changes. As a result, the overall pace of innovation is more responsive –
     and a lot faster.
 6.  Better insights: Modern cloud ERP systems have been architected to unlock
     Big Data so you can access information hidden within large and complex data
     sets. And while legacy ERP systems provide reporting tools, they do not
     offer the deep, integrated analytics available through the cloud – and
     these are the key to better decision-making. The ability to see trends,
     predict changes, and automate processes improves resource usage and vastly
     enhances customer service.
 7.  Support for mobile ERP: Businesses must now provide information access to
     employees, subcontractors, vendors, and customers – anywhere, at any time.
     This requires secure mobile device support. Mobile capabilities are built
     into SaaS ERP products rather than added as an afterthought. Modern user
     interfaces (UI) with a responsive design to fit mobile screens are key for
     users.
 8.  Access to new technologies: Intelligent technologies are being built into
     modern SaaS ERP solutions to improve productivity. These technologies
     include artificial intelligence (AI), machine learning, and the Internet of
     Things (IoT), which allows devices such as machines or sensors to feed data
     back to applications through the cloud for up-to-date status information.
 9.  Deeper security: With ERP cloud systems, security and data backups are
     handled by full-time, professional security experts. Cloud vendors
     typically have the best data security available; security breaches in large
     and midsize companies occur primarily with on-premise systems.  Because
     cloud ERP systems are more complete, connected, and collaborative, they
     avoid vulnerability at points of integration and reduce risks associated
     with a multi-vendor landscape.
 10. Scalability: As growth can be hard to forecast, scalability is important.
     With a SaaS solution, you can simply add additional computing power or data
     storage capacity if you experience rapid growth, rather than incurring a
     large capital expense.

> Modern cloud ERP systems improve workflow with streamlined business processes,
> helping businesses provide better customer service, identify upsell
> opportunities, and improve the order-to-cash cycle.


TYPES OF CLOUD ERP

Are all cloud ERP solutions the same? No, there are big differences,
particularly in how ERP cloud systems are deployed, managed, monitored, and
maintained, as well as in their global reach and their security. 

Choose the ERP deployment option that is best for your business by considering
your current landscape and investments, your business complexity, and your
capacity, as well as your desire for change.

There are three different types of cloud ERP:

 1. Public cloud
 2. Private cloud
 3. Hybrid cloud

How ERP systems are deployed: types of ERP deployment include on premise as well
as different hosting models in the cloud.


IS CLOUD ERP SECURE?

With all the news about data breaches and viruses, it is valid to ask if cloud
ERP is secure. No system is impossible to break into; however, the degree
of security that your system has depends on how it was deployed and who manages
it.

Here are some key points to consider:

 * Data theft: This is one of the hottest topics in the news where large
   companies have had their data files stolen and their customers’ private
   information compromised. Digging into the details of the data breaches,
   however, it’s more common to find that the data was stored on the company’s
   premises, not in the cloud.
 * Data loss: Losing whole files is a terrible thing, but it can happen with
   natural disasters, when data is inadvertently erased, or when a system
   crashes. The only thing that can restore your data is having it backed up
   regularly and often. With cloud ERP, the infrastructure providers have
   off-site backups done regularly and redundantly. When you have a loss of
   data, it can be easily restored to get the system back up and running
   quickly.
 * Security: Having the right level of security is of utmost importance. Midsize
   businesses typically have a limited IT staff and that staff typically takes
   care of the infrastructure, system updates, and user issues. Very few midsize
   businesses have a full-time IT security staff. With a reputable cloud ERP
   provider, midsize companies automatically have full-time professional
   security experts on call 24×7 to make sure all security updates and
   procedures are maintained.

Given the above, cloud ERP presents a more secure option than on-premise
deployment for midsize businesses.


THERE’S NO TIME LIKE THE PRESENT

Cloud ERP is a proven, mature solution being used today by thousands of
companies around the world (probably by many of your competitors).

Businesses that choose cloud ERP can fast track their transformation efforts by
having immediate, ongoing access to the tools that can drive change and the
flexibility and power to leverage them as opportunities arise. 

For growing companies, the transition to cloud is an inevitable step in taking
their businesses to the next level. The rewards of faster processes, better
information, and rapid ROI can be verified by analyst reports (from Gartner,
Aberdeen, Forrester, and others) and through customer success stories in
industries like yours.

THINKING ABOUT REPLACING YOUR LEGACY ERP SYSTEM?

Explore tips on replacing your legacy ERP and calculating your possible ROI.

Learn more
Cloud Computing
Digital Transformation
Digitalization
ERP
Midsize Companies
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WHAT IS ERP?


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