What Is Cloud-Based ERP? Features, Benefits, and Implementation Guide

For daily seamless operations, businesses need efficient Enterprise Resource Planning [ERP]. However, when business departments aren’t connected, coordination and information sharing become difficult and can eventually affect operations.  Fortunately, a cloud-based ERP can fill this gap by connecting all key operations through a centralised system. 

Cloud-based ERP software not only connects business operations but also manages its processes, so if you are looking for the best cloud ERP for your enterprise, this guide covers everything. 

What Is Cloud-Based ERP?

As the name suggests, “Cloud ERP” hosts a business management system on remote servers that can be easily accessed via the internet. So, companies can integrate different departments and perform automation without installing cloud-based ERP on their servers, and there is no need for on-site maintenance.  

For instance, if your brand sells a few items, the cloud ERP updates inventory records, sends details to the finance department, and generates an invoice as well. Which means the entire process of selling to invoice generation and inventory update to the finance department, everything is automated. This feature decreases manual dependence and ensures highly accurate data. 

At this point, it is significant to understand that there are different cloud-based ERP models, such as private cloud, public cloud, or hybrid cloud, and businesses can opt for the most suitable one as per their infrastructure. 

How Does Cloud ERP Work?

Instead of relying on company servers, cloud ERP software utilizes cloud services for hosting. It can be accessed by company-authorised users only through a compatible mobile app or web browser. The following are the 3 main components of a cloud ERP system: 

• A remote cloud hosting server required for data storage and for workflows to run cloud ERP software. 
• A linked central database stores different company departments’ data, which allows users to access it anytime.  
• App modules dedicated to business processes manage sales, HR, and other business workflows. 

All the above components are connected in Cloud ERP technology; in addition, cloud-based ERP service providers may offer security controls, automated backups, and software updates.

Key Features of Cloud ERP Software

• 1. Financial management
  It monitors all the financial operations of the business and generates detailed reports. 
• 2. Supply chain management
  Cloud ERP stores supply chain data and manages all relevant operations.
• 3. Customer and sales management
  It links customer orders, invoicing data, and sales performance data.
• 4. HR management
  Cloud based ERP retains employee data in a secure environment and manages human resource operations without errors.
• 5. Reporting
  Cloud ERP offers real-time analytics and reports in one dashboard, so managers can evaluate business performance and identify functional needs.
• 6. Automation
  A cloud ERP platform automates business functions, reduces manual labor, and improves efficiency in a cost-effective way.

Key Features of Cloud ERP Software

• 1. Lower Infrastructure Costs
  Conventional ERP systems often need dedicated servers, hardware, and technical staff to maintain the software. However, cloud ERP is more flexible, as it offers virtual servers for data storage and business operations management, which eventually reduces the business’s operational costs.

  Note: Virtual servers come with subscription fees and implementation costs.

• 2. Remote Access
  Cloud ERP provides virtual hosting, which allows company executives to access the system from any location at any time. Thus, making it more feasible for remote-first organizations to operate seamlessly.
• 3. Real-Time Visibility
  Due to central virtual platforms, Cloud ERP allows easy access and real-time visibility of all the data to high-level executives. In this way, they can make well-informed decisions regarding their businesses. 
• 4. Scalability
  Cloud ERP technology is scalable, as it allow companies to change their subscription plans as per their needs. 
• 5. Easy to Maintain
  High-end Cloud ERP service providers like SipSap provide technical assistance and maintaince, which reduces the need of dedicated internal employees server and software management.
• 6. Improved Teamwork
  Linked business workflows assist departments to coordinate with all the teams, which reduces the cost of duplication of work.

Cloud ERP vs. On-Premise ERP

Cloud ERP Implementation

When subscribing to Cloud ERP technology, it is essential to carefully plan instead of simply subscribing. The following are the steps to consider:

1. Evaluate company requirements, such as recent operational bottlenecks, reporting, and central integration requirements.
2. Evaluate Cloud ERP service providers: their customer support, service upgrades, customization, costing, scalability, subscription plans, etc.
3. Data migration is the most important step, which requires proper planning. So, first determine how all the business data will be migrated. 
4. Sytem configuration is the most important for the permissions, rules, and approvals. 
5. To understand the new process, employee training is mandatory, which is a one-time task. 
6. Cloud ERP service providers verify all the information, data, and security permissions before launch. 
7. After deployment, cloud ERP service providers analyse the performance.

Applications of Cloud ERP

Cloud ERP applications are compatible with different industries such as retail, manufacturing, supply chain etc. Some of the most used cloud ERP examples are Microsoft Dynamics 365, SAP S/4HANA Cloud, Oracle NetSuite, and Acumatica. 

The Wrap Up

Cloud-based ERP keeps business processes centralized and accessible. Before selecting a cloud ERP platform, consult a professional cloud ERP service provider: SipSap. We offer entire business functions evaluations before recommending a cloud ERP solution. 

Contact us now and grow your business with the most suitable cloud ERP solution.