Are you considering cloud-based ERP systems for manufacturing?
ERP in the cloud offers a low cost, high performance alternative to on-premise enterprise software – with less effort and risk. Today’s cloud-based ERP solutions securely and reliably deliver all the capabilities manufacturers need to improve response time, meet compliance requirements, increase customer satisfaction and drive measurable performance.
Cloud-based solutions and services are easy to deploy, integrate and upgrade — and they don’t require additional investment in IT infrastructure and staff. Cloud-based ERP systems offer high availability and predictable expense, helping you minimize your risk while maximizing return on investment. Bringing your manufacturing business into the cloud can be especially beneficial for businesses that anticipate rapid growth, have limited IT infrastructure, seasonal spikes or multiple locations. Cloud-based ERP solutions also free up your existing IT resources to focus on other key high-value business initiatives.
Cloud-based ERP may not be a fit for every business – and on-premise ERP is not going away. Still, cloud is a key consideration in any ERP strategy. A cost-benefit analysis can help determine if cloud is right for you. Often, a guided analysis uncovers hidden costs that can be easily eliminated with a cloud ERP solution.
Strategic’s ten key considerations for your cloud-based ERP strategy:
1) Time to migrate or upgrade: When your system is at the point in the ERP lifecycle where you’re considering an upgrade or migration, it’s a great time to rethink your ERP strategy and consider moving to the cloud.
2) Industry-specific requirements: Recently, ERP SaaS adoption has picked up considerably in life sciences and other sectors that require strong compliance capabilities. Be careful though — not all cloud-based ERP solutions provide compliance capabilities. QAD Adaptive ERP does offer a single tenant, private cloud solution that is unique in the industry.
3) Infrastructure tradeoffs: By limiting the need for extensive IT infrastructure, cloud ERP can help reduce network costs. Considerations include compliance, security and ensuring adequate bandwidth and Internet access.
4) Know your clouds: The two major types of clouds are: private, for the exclusive use of an organization, which is typically single tenant; and public, multi-tenant. Companies can only maintain change control of their cloud environment in a private, single tenant cloud environment.
5) Consider a hybrid approach: Another option is for companies to consider a hybrid deployment, in which a combination of on premise and cloud-based ERP is used. According to a recent study, 93% of enterprises currently use cloud-based solutions, and use of hybrid cloud systems increased from 19% to 57% in one year.
6) Cost considerations: One reason cloud ERP is an economical solution for small-and-medium-size businesses or start-up companies is relatively low initial entry cost. Implementation, consulting and overall total cost of ownership (TCO) are all more attractive with cloud-based ERP solutions.
7) Accessibility needs: Cloud-based ERP provides tremendous flexibility in terms of enabling user access anytime, anywhere and on any device in most cases.
8) IT resources: Even with all the right skill-sets, on premise ERP requires far more resources than a cloud deployment. For many, the convenience of cloud deployment helps the IT team extend their reach and capability.
9) Customizations: Manufacturers in industries in which highly complex operations are necessary might require a greater degree of customization than possible with a public multi-tenant cloud environment. A private cloud ERP, such as QAD’s Adaptive ERP solution, is best suited to specialized enterprises that need a high degree of customization.
10) Fast time to value: Faster deployment means faster return on investment (ROI) from system and process improvements.