An enterprise resource planning (ERP) is management software, typically bundled together as an application package, that helps companies automate the collection, management, storage, and interpretation of data. An ERP uses information from a variety of sources, such as service provision, inventory, marketing, and accounting.
Since innovation is essential to growth in today’s business environment, the faster an organization can adapt and modernize, the better its chances of growing rapidly.
Traditional ERP software is usually too rigid to adapt to the pace demanded by this new dynamic. In contrast, cloud-based systems, such as Oracle NetSuite, streamline business processes in a number of ways, starting with the fact that their online applications do not require installation on servers or a long adaptation curve.
Thus, these solutions have become very popular among small and medium-sized companies, since, due to their scalability and flexibility, they can more easily adapt to any trend and measure of innovation that they implement.
Here are some of the benefits these companies can get from cloud-based solutions like Oracle NetSuite.
The initial cost of implementing traditional ERP technologies is usually much higher than that of a cloud-based one. While the latter generally operates on a subscription model, many CFOs prefer to minimize capital expenditures than to reduce operating costs.
And it is that in smaller organizations that work with tight budgets they often find that the long-term costs associated with ERP in the cloud are more affordable than those of a traditional one installed on site. The few advantages of the latter are far from justifying their high cost.
Thus, most small and medium-sized companies opt for cloud solutions with multi-user access, to reduce their long-term expenses and improve the return on investment.
A software like Oracle NetSuite is much more flexible than a traditional ERP. For example, thanks to its cloud-based technology, any authorized user can access company databases and add or edit fields on specific types of records from anywhere.
Additional NetSuite features also allow multiple applications to operate simultaneously across different business processes, rather than forcing them to be limited to just a few, avoiding unnecessary and costly system customizations.
Currently, many companies in the services sector require a high level of automation in the business processes and workflows of their operations. Standardizing and automating your processes means achieving consistency in the ways you manage and serve your customers.
In general, those that automate their workflows using cloud-based ERP tend to be more effective in their interactions with their customers, as they can anticipate inefficiencies and take corrective actions in time. This proactivity translates into high retention and satisfaction rates.
One of the biggest drawbacks of a traditional ERP is that it needs constant installations and maintenance to function well, which can cause externalities or losses due to misconfiguration or lack of support.
On the other hand, by installing cloud solutions it is easier for companies to delegate these systems functions to qualified vendors and thus eliminate uncertainty around the integrity of their information.
This team of experts can take care of all the software configuration and support, as well as consulting and initial training to extract its full potential according to the specific business of the company.
IMPROVED BUSINESS INTELLIGENCE
Over the years, the number of companies using BI (business intelligence) has exploded. A cloud BI application enables employees across an organization to access their data remotely and without the need for a robust IT team or complicated setup.
The adoption of solutions such as NetSuite Business Intelligence is particularly common among organizations that rely heavily on their sales and marketing departments to obtain real-time information, analyze customer behavior, and improve their conversion rates.
An ERP in the cloud with these types of applications is much more efficient to store large volumes of information and integrate data collected from other cutting-edge technologies such as IoT (Internet of things).
ERP solutions in the cloud are much more scalable, allowing companies to add new modules and users without resorting to complex installations.
This is a great advantage for rapidly growing companies, as they can scale their system capabilities as their business needs do the same.
For example, if a company using NetSuite wants to introduce an incentive system and manage the commissions of different sales teams, it only needs to buy the module and enter the corresponding installation codes: an extremely simple process and without the great intervention of IT personnel.
In addition, companies can control their access, adding or removing users to meet the demands that arise in its different stages. Such scalability is practically impossible with a traditional ERP, as companies are forced to purchase as many licenses as possible without much possibility to change on the fly.
MORE FOCUS ON CORE COMPETENCIES
Many small organizations do not have the sufficient staff or the financial capacity to meet their technology needs. While a company may have an IT department, this does not mean that it has the competence or time to meet the challenge.
An ERP in the cloud allows companies to delegate and outsource most of their IT functions in order to focus all their energies on their nuclear activities.
For example, a distribution company might invest in such a solution to focus on customer satisfaction and sales rather than maintenance of its information technology.
Cloud ERP solutions tend to use more modern and simple interfaces (UI) than those that require installation, which means a lower learning curve for employees, customers, and suppliers.
In most modern organizations, cloud ERP software creates less resistance to its use, although it is always good practice to communicate the benefits and facilities of new technology to everyone involved.
MINIMAL ENVIRONMENTAL IMPACT
Any company seeking success on a larger scale must consider its environmental footprint as a key factor in its growth strategy.
Adopting ERP software like Oracle NetSuite is a conscious decision for the environment. Since cloud application providers use a shared infrastructure to serve thousands of concurrent users, they save energy by optimizing their server capacity based on current demand.
Many companies that use an ERP in the cloud avoid vulnerabilities and data leaks, thanks to the high security standards of their providers.
Knowing that information is one of the most valuable assets of organizations, ERPs in the cloud such as Oracle NetSuite adapt and develop advanced mechanisms to always protect them against unauthorized access.
In these contexts, since access is controlled by specific and custom accounts, companies decide who can see their data by assigning privileges and limiting access through a central administration panel.
The implementation of NetSuite ERP solutions in the cloud is much easier and faster compared to traditional systems.
In 24 hours or less, companies can configure their ERP system, giving them the freedom to focus on harnessing its potential rather than its technical requirements.
In short, an ERP like Oracle NetSuite helps businesses to modernize and face their challenges from different angles. With range of scalable, adaptable and secure mobile apps of NetSuite, they optimize the operations of all kinds of businesses in different phases of growth.