The Advantages of Running your ERP Off-Premise During the COVID-19 Era

The Advantages of Running your ERP Off-Premise During the COVID-19 Era

Huiwen Wu 18/12/2020 1
The Advantages of Running your ERP Off-Premise During the COVID-19 Era

Are you looking to upgrade your business workflow, especially with the ongoing COVID-19 pandemic?

If so, then let us enlighten you about enterprise resource planning (ERP) which is an automated solution that interconnects all the departments in a business, improving operational efficiency, controlling costs, which in turn leads to increased profits. There are two types of ERP solutions, which are on-premise ERP and cloud ERP solutions. The main difference between the two lies in how the software is deployed and accessed. For on-premise ERP solutions, they are installed on local physical servers that are leased, or owned, by the business whereas cloud-based ERP software is deployed on the cloud and is accessed through the web. In the former, the client is the one who installs the hardware, running the system, and that means handling most of the issues with the software, and in the latter, the cloud-computing provider is the one responsible for running the software. This means that the business owners have some tough decisions to make when choosing the deployment method they want. In this article though, we will focus on the cloud-based ERP solutions by looking at their benefits to the businesses, considering the ongoing pandemic.

Lower Start-up Costs 

Cloud-based ERP software normally consist of a monthly or contracted fee or subscription service. Since the system is run through the web, the business owner doesn’t have to invest in physical assets, meaning you will be saving so much money that could be directed to other areas of the business to fight the effects of the pandemic on your business. The system and maintenance costs are included by the software provider as part of the monthly costs. Cloud computing providers also deploy patches, improvements, and service enhancements seamlessly and on a regular basis, thus minimizing the costs and the time required for the small business to benefit from these improvements.

Scalability 

To survive the pandemic, small businesses do need a full-service ERP system, as it will help the business navigate all the disruptions. However, this may not be always the case. There may come a time where you find that you don’t need certain specific features, while you need others, depending on the size of the business, mode of production, final product as well other key factors. Now, cloud-based ERP systems offer absolute flexibility in terms of scalability. This is of course keeping in mind that different businesses have different needs, and that means the cloud servers should be able to cater to all these needs. The flexibility saves on cost, reduces training, and shortens the adoption time as well as the learning curve. As the business grows, it can increase the access to the ERP systems by purchasing additional ‘seats’ from the cloud computing provider, and if there are any features that need to be added, they can be added incrementally.

Flexibility 

Cloud-based ERP software is super flexible in that the backup is automated. And in case there is an occurrence of natural disasters, the systems provide an inherent plan for restart since production data, as well as the production system, are still available and accessible. When you compare with on-premise ERPs, businesses have to send data to manually backup the data or send it to a reserve site to realize the same benefit.

Increased ERP Performance

One thing about on-premise ERP solution is that you will need to properly set up and maintain everything needed to function efficiently, meaning that if something goes wrong, then the performance suffers greatly. But with a cloud-based solution, the provider will be the one taking care of hosting the solution. And with the knowledge that your system is being maintained by an expert not only gives you some peace of mind, but you are also assured that your ERP should perform at its peak performance. This is exactly what your business needs to have considering all the other disruptions that have been experienced due to the pandemic.

Reduced Technical Staff Implication 

Since cloud-based ERP systems eliminate all the complexities and costs of installing and integrating additional ERP hardware, businesses that adopt them don’t need to hire additional staff to support and maintain the application on a regular basis. This is actually a very important benefit since businesses are doing all they can to cut on costs due to the economic impact brought by COVID-19. So, finding an off-premise ERP system that is as agile as Cloud One, which not only helps your business to remain afloat during these uncertain times but also allows you to reduce your spending is by far the best thing that could happen to your business.

Faster Implementation 

Comparing on-premise systems with cloud-based ERP systems, the latter is faster to implement. Unlike on-premise systems, which require a hefty and lengthy implementation process, configuring the technical environment for cloud technology can actually be done in as little as 24 hours. This allows businesses more time to focus on their transformation. You should know that change management as well as business process management do need the same time and resources, regardless of whether you are implementing on-premise or cloud ERP systems.

End-User Buy-In 

The thing is, with the ongoing pandemic, your remote-working employees need a cloud ERP more than ever. Cloud ERP systems tend to be more modern and are considerably easier to use when compared to on-premise systems, which means that the employees are quicker to embrace them. This doesn’t eliminate the need for training or a communication plan, it just means that there might be less resistance from the employees.

To wrap it up, while there are compelling reasons to implement cloud-based ERP, you shouldn’t forget that all technology initiatives do come with certain drawbacks. So, before implementing the technology, make sure that you understand your digital and business needs so as to figure out exactly what strategies and systems you need. As the trend of digitalisation accelerates in face of the COVID-19 pandemic, it is not difficult to understand why more and more companies have already opted for enterprise cloud adoption.

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  • John McDonnell

    ERP systems are an asset for many firms.

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Huiwen Wu

Social Expert

Huiwen is an experienced entrepreneur based in London. She completed her bachelor and master's degrees at Tongji University, ESSEC Business School and the London School of Economics.

   

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