Prepare Your Business for Market Disruption With Cloud ERP
Cloud enterprise resource planning (ERP) has become one of the fastest-growing software markets, with the global cloud ERP market projected to be worth US $28.8 billion by 2022, according to a report from Statista. Unsurprisingly, the rate of cloud ERP adoption is also on the rise, reaching 21 percent in 2018 — up from 6 percent in 2017 — according to a report from Panorama Consulting Solutions.
There are a few reasons for this exponential growth. Cloud ERP is easier to maintain and less expensive in the long term than on-premises ERP systems, and even some SaaS ERP systems. Cloud ERP also makes data accessible via any device connected to the internet, adding a level of convenience to cloud vs. on-prem ERP. Most importantly, cloud ERP enables businesses to make better use of their data and to work smarter.
“Our world is shifting from a process-driven world to a data-driven world,” says Chris Alagna, senior vice president of Hitachi Solutions America’s Business Solution Group. “Cloud tools and technology better enable businesses to take control of their data, which is why moving to the cloud is so essential.”
For a deeper understanding of why so many businesses have embraced the cloud, let’s look at some of the benefits of cloud ERP.
1: Face Disruption Head-On
Mid-market organizations are feeling the heat from behemoths like Amazon as well as small startups, and this near-constant market disruption can make it difficult to maintain a competitive edge. Cloud ERP is faster and easier to deploy than on-premises ERP systems, which makes businesses more agile, more flexible, and better equipped to react to marketplace disruption. Cloud ERP’s adaptability also makes it suitable for businesses of all sizes.
“The cloud is essential to buffering the disruption occurring in just about every industry sector right now,” says Alagna. “Businesses need to be agile in order to handle challenges to traditional incumbents. … If you’re going to fight off a newer company that’s disrupting your market, you need to be able to change and adapt quickly. The cloud enables you to do that.”
2: Everything in One Place
One of the biggest benefits of cloud ERP is that it offers superior platform integration, which enables organizations to derive more business value out of other cloud technologies. With on-premises systems, organizations must buy and use different products separately, which contributes to a highly siloed architecture.
Cloud technology — including customer relationship management and business analytics — is typically sold as a package, which allows for better system integration and more advanced analytics and reporting. This gives businesses a better handle on their data because all of the tools used to look at and analyze data are stored in one place — the cloud.
3: Focus on the Front End
Cloud ERP allows for consistent innovation in the form of automated software updates from the platform provider. Not only does this save business leaders the time and effort of implementing updates — it also ensures that they’re always using the latest and greatest technology, and that their software evolves along with their organization.
Another one of the benefits of cloud ERP is that cloud ERP platforms are consolidated, meaning the software provider is responsible for managing security, storage, data centers, and so on, so organizations can dedicate their energy and attention to core business competencies.
4: Make the Most of Your Money
Although cloud ERP typically comes at a higher upfront cost than on-prem systems, it presents a distinct long-term cost advantage. On-prem ERP systems have physical databases that require staff to manage. When businesses make the transition to the cloud, everything is managed for them by their platform provider, eliminating IT labor costs. Depending on how many IT administrators an organization needs to manage their databases, this could result in a net savings of hundreds of thousands of dollars.
5: Ready for the Next Generation
Cloud ERP is ideal for change management because the next generation of the workforce — millennials — is accustomed to using apps and mobile devices.
“From a change management perspective, it’s about giving your workforce the tools they demand,” says Alagna. “It’s about appealing to a millennial culture by providing the tools and capabilities they’re used to using.”
Compared to cloud ERP, on-prem ERP systems lack app capability. In order to attract the talent that they need to continue to thrive and evolve in the digital age, businesses need to adopt systems and solutions that are intuitive for younger talent to use, including cloud ERP software.
Discover the Power of the Microsoft Cloud With Hitachi Solutions
An ERP system is one of the most crucial tools a business can use to maintain a competitive edge. Cloud ERP marks an exciting shift in how organizations use ERP to improve business processes, moving to more forward-thinking systems that adapt to business needs rather than the other way around.
Hitachi Solutions has partnered with Microsoft to deliver a powerful cloud ERP system built for, and on, Azure. Hitachi Solutions’ Cloud ERP is designed to help businesses reduce IT costs, enhance security, improve performance, and grow at their own pace through the use of advanced analytics and innovative technology.
To learn more about cloud ERP or Hitachi Solutions’ work with Microsoft, reach out today to start a conversation.