Technology patterns track much quicker today than previously. At the point when the phone first made an appearance, it took 75 years to get 50 million people to embrace it. It took 13 years for that same number of people to grasp TV. The Internet took just four years. The Angry Birds cell phone app? 35 days.
A month might be a stretch, yet onboarding new technologies is happening much more rapidly. 2016 will see the climb of the Cloud Generation. Big data and advanced analytics are picking up footing. 3-D printers are being utilized as a part of manufacturing and producing goods. Mobile technology is widespread. Also, organizations are getting substantially more confident in the Cloud. A current report by Verizon Enterprise Solutions demonstrates that cloud computing is at last breaking its way into the mainstream, with almost all companies utilizing it as part of their business. 33% of those reviewed said that a large portion of their workloads are in the cloud; Oracle is anticipating this will be 70% by 2025.
So what does that mean for organizations with ERP software? Does it require overhauling your current software, putting resources into costly upgrades or getting an altogether new framework? The short reply: no. Hybrid ERP systems (a blend of on-premises and cloud applications) are a good bridge, empowering organizations to keep the software they own and develop their frameworks with new Cloud capacities through their ERP partner or outside suppliers. Gartner predicts Hybrid ERPs will be the standard within about five years, yet numerous vendors are speeding up that timeline. Oracle has signed 1,350 new Cloud ERP contracts in under two years. Epicor added 39 modules to its cloud portfolio last year and saw a 71% year-over-year increase in cloud clients. Infor encountered a 60% drop in customizations for clients who moved their ERP to the Cloud.
What functions should be moved to the Cloud? That generally depends on your type of business, however a good guideline is to automate wherever you can to spare time, cash and resources. Experts for the most part agree that if you’re not automating at least some business procedures, you’re falling behind your competition. Gartner says that 75% of organizations utilize about four automation technologies on average. A lot of your ordinary workload can be automated. Inexpensive SaaS alternatives allow you to more effectively oversee HR and employee benefits management, finances and payroll, order fulfillment, stock management, demand requirements planning, and tax compliance.
Automating sales and tax is a gigantic time and cash saver for organizations. Forrester Research conducted an economic impact study on several ERP customers, and they found that these organizations had the equivalent of two accountants investing 70% of their time physically invoicing clients and determining sales taxes. After automating this in their ERP frameworks (EPICOR in this case), these same organizations saved the equivalent of 1.4 accountants’ time and cost every year (an average of about $385,000 over five years). TechValidate reviewed Avalara clients and found that these organizations could lessen the time spent on sales and tax management by at least half by using automation.
The objective here is smart planning. It’s critical to consider how your software serves you today, additionally how it can scale with company growth. Are there on-premises systems you can move to the Cloud to save on time and cash and insure your company’s future? SaaS software by and large offers the same (or better) functionality without requiring costly updates, numerous systems administration or devoted IT resources. Actually, Nucleus Research found that cloud applications deliver 1.7 times the ROI of on-premises applications, and Oracle gauges that the expense of ownership for on-premise solutions is 30%-50% more than Cloud.
The general purpose of an ERP solution is to offer your business some assistance with growth and management. Utilizing the Cloud lets you work faster and scale operations or change gears as needed. You need software that integrates effortlessly with your current systems to minimize any effect on your business. You need to choose a SaaS partner who has involvement with or is pre-certified to integrate with the business frameworks you’re currently using. Done right, adding Cloud capabilities to your current ERP framework ought to be a smooth procedure. And there’s no better feeling than starting a year with a fresh point of view.
Ready to have a conversation with your ERP vendor about Cloud? Arm yourself with our handy guide and checklist: Planning for growth: Could it be time for an ERP Upgrade?