Cloud-based enterprise resource planning (ERP) deployments are accepted across several industries. Customer relationship management (CRM), human capital management (HCM) software and travel and expenses (T&E) are predominantly using Cloud ERP in their daily functions. Now, it is gaining traction in the manufacturing, product design, and accounting even though data security and intellectual property ownership issues are pervasive. However, cloud software solution providers are making progress in terms of security. Internal sources are the most significant reason behind data breaches instead of external threats. Therefore, security risks are not the hurdle in adopting cloud that it once was.
ERP has benefits such as faster time to value, lower initial costs, and predictable expenses. It relieves the IT staff of the company from worrying about managing the physical hardware and local area networks and performing mundane IT maintenance tasks. Cloud ERP deployments provide agility when it comes to launching a software solution to its remote subsidiaries. They are also useful when a pilot project is needed for a specific department. Additionally, cloud ERP is compatible with the Internet of things (IoT), artificial intelligence (AI) powered chatbots and more.
Despite all the benefits, cloud ERP is not the solution to all problems. Implementing ERP software on cloud or on-premises can cause unplanned customizations, increase unbudgeted costs, and additional time and effort which causes customer disappointment. Worst case scenario, the customer drops the plan of implementing the solution because the vendor oversold the product or the company didn’t understand the requirement of the company. The vendor must perform a thorough software evaluation that determines a company’s needs to help set realistic expectations for successful software implementation.
The cloud ERP software solutions can better understand customers’ requirements and reduce the need for system customization if it is more vertically oriented. Cloud ERP software providers and their partners should provide industry best practices. Their implementation methodology should focus on minimizing system customizations and shorten implementation time by delivering many industry and role relevant processes and dashboards. An industry-oriented model enables cloud ERP software vendors to deliver and sell as promised.