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5 Business Benefits Of Implementing A Cloud Based ERP System

5 Business Benefits Of Implementing A Cloud Based ERP System

For many years, businesses worldwide have made use of cloud technology to carry out various business practices and in particular those with a Customer Relationship Management system (CRM) or a Human Capital Management system have benefited from it the most. Many shy away when it comes to a cloud based ERP system due to security fears but this is no longer as big of a problem as it is used to be thanks to the vast developments made in the field of Software as a Service (SaaS). As a result of this, the wheels of a cloud based ERP system have started turning and it is expected that by the year 2015 global expenditure on cloud based ERP systems will have increased by 21% according to research carried out by Forrester!

So with cloud based systems taking off as they are, what are the benefits of implanting it? Well, here are 5 benefits to get you started:

1.Subscribtion benefits

First and foremost, since all SaaS services are offered on a subscription basis, there are no unexpected costs. Customers know exactly how much the system will cost them this month, next month and every other month which is a very appealing prospect especially for smaller businesses whose funds tend to be considerably smaller. Even if the prices for the SaaS system do increase, they don’t tend to increase by a great deal.

2.Faster implementation

Management and setup of an SaaS system are all the responsibility of the vendor so there no real setup or installation process . Most parts of the system will come preconfigured and ready to be setup integrate into your business. This results in a much faster and simpler setup process which ultimately lead to a faster ROI since initial costs are lower.

3.Lower initial costs

Since an SaaS system requires very little in the way peripherals and such technology normally found in the average non cloud based ERP solution, the costs of running an SaaS system are much lower as well. The only maintenance cost to the customer would be the wage packet given to the employees using the software. What’s more, most ERP vendors allow for additional users to easily be added into the SaaS system without the need for any additional technology to be implemented so the system can expand easily if you ever need it to.

4.Fewer Responsibilities

Running an in house system means brings with it the added responsibility of dealing with any problems that may occur such as on-site hardware implications, software problems and network issues which makes troubleshooting an error somewhat difficult. However, with an SaaS system all of this is the vendor’s responsibility so the customer does not need to worry about any problems that may occur.

5.Focus on What You are Best at

Possibly the major benefit of implementing any SaaS system is the freedom that the customer benefits from since many of the responsibilities of running and maintaining the system are given to the vendor so the customer can focus on doing what they do best – selling the products and services they offer.

Take a look at the clip below to find out more about what a cloud based ERP system can do for small businesses.

http://www.youtube.com/watch?v=VQ8D1GdJn4o

By Rashed Khan

Rashed has an MSc in Software Engineering and is a regular guest poster on business/technology related tolpics. Rashed is currently guest posting on behalf of ERP, manufacturing and distribution software experts Epicor who offer an SaaS based ERP solution.

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