SMB, is it time for cloud ERP?By Patrick Saundry on
With the ubiquitous presence of cloud, we’re seeing a radical transformation of the global economy.
Cloud technology is facilitating new processes, business models and revenue sources in every industry. It’s also breaking down barriers in supply chains and creating accelerated interaction between businesses and customers. From what we’ve seen, CIOs looking to free up valuable IT resources are looking to the cloud as a reliable, scalable solution for their ERP needs.
According to PwC, hybrid ERP will be the norm by 2020 as more organisations combine on-premise with cloud offerings. For large enterprises, Gartner has predicted more than half of these organisations will have implemented a software-as-a-service strategy for running a portion of their ERP systems.
Cloud technology for SMB
Cloud technology is also proving attractive to SMBs, thanks to the cost advantages of its pay-as-you-consume financial model. While the cloud does provide cost and innovation advantages for many SMBs, getting to the cloud is not the end game and businesses need to be aware that cloud technology often needs to be integrated with other on premise systems and possibly other cloud solutions.
While many other processes have been moved to the cloud already, the reasons for moving ERP are much the same. It’s about scalability and elasticity for seizing new opportunities while also having access to reliable services and taking advantage of significant cost efficiencies.
On top of that, few organisations want to be specialising in hardware, software and infrastructure these days. If your IT isn’t your competitive advantage, you’re much better off focusing on the core competencies that make your business great.
Your IT teams are one of the key internal beneficiaries of cloud ERP, as you’re freeing them up to take on a more strategic role in the business. Without having to focus on “keeping the lights on”, they can have a seat at the table when discussions about innovation and competitive advantage are taking place. Wouldn’t you rather they were thinking about developing an improved customer experience, rather than being tied down with repetitive on-site infrastructure maintenance?
Depending on your cloud adoption maturity, it’s worth exploring which processes you can begin migrating to the cloud. Talk to your IT teams and business unit leaders about what they believe is achievable as there’s no point forcing adoption without their buy-in. Cost savings and scalability are great benefits but not if they come at the expense of your culture.
Time to invest
Investing in cloud based ERP systems such as SAP Business One is not a trivial undertaking. In the end, the decision to make transformational change will be signaled by a compelling need to solve a process problem and it will be an organisation’s business users driving the demand. When the time for change arrives, the cloud option provides organisations with a platform on which to build and integrate future processes to keep staff, clients and suppliers happy.
About the Author:
As the Head of SMB at Oxygen, I partner with you to determine your business objectives before designing the solution to deliver those outcomes and supporting you over the long term. As your business grows and changes, so do your requirements. We recognize that and plan for it – allowing ultimate business agility by leveraging world-class SAP software.
If you’d like a discussion about a rock-solid business process for growth, please contact me on email@example.com or 0403 058 058
Interested to learn more about how you can shift your business to the cloud? Contact us to learn how SAP Business One can help optimise your business whilst providing real-time visibility across all operations.