The debate between embracing newer cloud based ERP technologies or sticking with legacy systems is a big question that brings up a lot of talk in the Enterprise Resource Planning (ERP) community. As businesses try to navigate this fast-paced digital era, where data is key to informed decisions and scalability is paramount for survival and success, businesses need to at least explore, let alone take advantage of, some of the benefits of a modern, cutting-edge system. So, let’s discuss what the latest cloud based ERP technology can bring to your boardroom table.
Cost Efficiency and Overall Reduced Cost of Ownership
It might seem counterintuitive, but businesses gain significant cost savings after purchasing and implementing a new ERP system. There are two main reasons for this:
- Reduced Infrastructure Costs: Cloud based ERPs eliminate the need for on-premise servers and hardware, reducing the upfront capital costs and ongoing expenses associated with maintaining the physical infrastructure. Additionally, office real estate is reduced because you don’t need physical space to house the clunky IT equipment. By 2025, 32.6 million Americans will work remotely, so adopting cloud based ERP systems becomes not just a technological choice but aligned with the future of work.
- Reduced Maintenance Burden: Often, manufacturers will forego manual updates to on-premise ERP systems due to competing priorities, lack of time or resources, disruption to the business, or high cost. The habit of delaying important security updates increases the risk of timely support or ERP compatibility with supported versions of Microsoft server and workstation operating systems. At worst, your business becomes vulnerable to cyberattacks. With the average cost of a single breach in 2022 being $4.35 million, you can see how rolling out regular updates can save you a substantial amount of money.
It might be obvious, but updates are pushed virtually with cloud based ERP systems making the process much easier and quicker compared to the traditional method of on-premise software. Cloud ERP solutions updates are pushed out remotely by the provider so that manufacturers have access to the latest features, security patches, and improvements without the need for manual updates.
Implementation Speed
Cloud ERP providers offer pre-configured editions that are ready to use out of the box. These configurations are based on industry best practices and can be easily personalized to meet the specific needs of a business. Cloud based ERP implementation partners (like us) have the expertise and experience (almost 40 years to be exact) that can expedite the deployment process and guide the business through best practices and potential challenges.
Two-thirds of manufacturers and distributors say their implementations were successful or very successful. However, a lengthy and delayed ERP implementation potentially disrupts operations, impacts employee morale, and increases project risk, all of which lead to a loss of productivity (AKA money). Having No physical hardware and reduced IT involvement eliminates delays and potential bottlenecks in the implementation process. These factors decrease the risk of a drawn-out implementation allowing manufacturers to minimize the disruption and start realizing the benefits of the new system more quickly (AKA faster ROI).
Accessibility and Collaboration
Cloud ERP enables anytime, anywhere access to critical business data that drives faster, more informed decision-making. This is especially beneficial for manufacturers with multiple locations or employees who need to access information remotely or on the go quickly. Silos and gatekeepers of information between departments are eliminated, delivering a single version of the truth that fosters better communication and coordination between different business areas and teams within the organization.
The benefits of having 24/7 access to reliable business data go beyond the obvious more informed decisions. You’ll also gain more engaged and motivated employees, increased efficiency at every level, and, of course, happy customers. Think of your cloud ERP as your business wingman – it keeps you agile, competitive, and customer-centric.
Competitive Advantage
Cloud based ERP solutions can easily scale with the growing needs of metal-forming manufacturers. Whether a company expands its operations or introduces new product lines, the cloud infrastructure can accommodate increased data and user loads. Coupled with real-time data and analytics, it allows manufacturers to make informed and timely decisions. This is crucial for optimizing production processes, managing inventory effectively, and responding to market changes.
This composite result sets the foundation for the ERP to be a force for competitive advantage and not just a repository for business transactions. Cloud ERPs deliver faster innovation that allows manufacturers to leverage the latest technologies, such as IoT (Internet of Things), artificial intelligence, and machine learning, and offer an easier entry point for proven technologies like data collection, all of which provide a competitive edge in terms of innovation and efficiency.
Deciding to implement new workplace technology is a big decision and one that requires a lot of planning and thought. If you’re working in a legacy system, it’s important to carefully assess the specific needs of your business while also laying out the long-term benefits of the new technology. So, let’s talk! We work with multiple systems, have decades of experience in your industry, and enjoy helping companies navigate the complexities of transitioning away from the old and onto the new – so you can start reaping the benefits of innovative ERP technology.