Under the influence of technological change and our fast-moving society, companies and their processes are also facing the major challenge of adapting quickly and reacting flexibly. Companies need to adapt their products more quickly, understand their customers better and revise or redesign their business models. A company's ERP system (Enterprise Resource Planning System) plays a central role in this. This is because it acts as the "control center" of the company by mapping the business logic as well as the central processes and data. From purchasing and logistics to human resources and sales through to production planning and financial accounting, the ERP system is of great importance for all areas of the company. It can therefore also act as a driver of digital transformation throughout the company.
The limits of conventional ERP systems
Many companies today still use ERP systems with different or outdated versions as well as numerous in-house developments, which leads to complex processes and data silos. This increases maintenance costs, prevents quick adjustments to market changes and makes flexible changes or extensions to business models more difficult.
Traditional, locally installed ERP systems are often no longer up to the increased demands of digital transformation and the modern world and are reaching their limits:
Insufficient scalability: Conventional ERP systems lack scalability, as on-premises solutions are often difficult or slow to adapt to new requirements or growing business areas. The system can therefore only be extended and expanded at great expense
Updating software versions: Performing complex updates and upgrades is time-consuming, costly and resource-intensive, so systems often remain on old versions for far too long, missing out on modern developments and benefits.
Fragmentation of data: Data is often fragmented in conventional systems. It is therefore difficult to integrate data from different departments, which limits efficiency and transparency.
Reduced productivity and flexibility: Another factor that reduces the company's efficiency is the difficulty of adapting to the demands of mobile working. Employees who have problems logging in while on the move or from another workstation lose valuable time and flexibility.
Strain on resources: As local servers and the software installed on them have to be maintained and serviced by the company itself, this results in additional expensive IT personnel costs and costs for hardware upgrades.
The reasons for an ERP system in the cloud
In contrast to the difficulties mentioned above with traditional ERP systems, modern ERP systems in the cloud offer a number of advantages and enable agile and effective working. They are scalable and can therefore be flexibly adapted to changing needs and growing business requirements. Both users and modules can usually be added or removed flexibly.
Errors can also be rectified more quickly at code level during the further development of the software and new functions can be made available to users earlier. In addition, cloud ERP systems support dynamic business processes and seamless integrations with other systems, ensuring greater flexibility and smooth data connections. The resulting 360-degree view of processes ensures optimized collaboration. In addition, cloud technology enables easy access to data from any location so that informed decisions can be made in real time.
As the cloud provider takes care of updates and maintenance, the effort and personnel costs for in-house IT resources are reduced. Investments in expensive hardware as well as energy and maintenance costs for local servers and IT staff can also be reduced. Last but not least, companies can also benefit from cloud software in terms of security and compliance, as providers use the latest security technologies and can offer a higher level of security and compliance with their specialized resources.
Fit for the future with ERP in the cloud
As explained, a cloud ERP system helps companies adapt to digital transformation and plan for a successful future. To realize the full potential of your business, now is the time to switch to a cloud ERP system and overcome the limitations of traditional systems. Instead, improve your business processes and competitiveness.
Our consultants will help you find the best cloud ERP solution, adapt it to your company's needs and implement it successfully.
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