Traditional vs. Modern ERP Systems

How are modern ERP systems different from traditional ERP systems? It’s a great question that we hear often. You may find yourself feeling overwhelmed by all the options that are available to you. But that’s okay, I’m going to do my best to clear up any confusion you might have about what makes a modern cloud ERP different from a traditional one.

Enterprise resource planning (ERP) solutions have always offered powerful capabilities for managing operational data and improving business efficiency. Today’s organisation’s realise that ERP solutions are critical to helping them serve customers throughout their lifecycle and providing the accurate, up-to-date information they need to make better decisions more quickly.

Traditional ERPs are generally housed on a company’s own servers and maintained by your IT staff, or an outside consultant. They require regular updates and investments in the hardware needed to run them. Traditional ERP solutions come in two forms: on-premises and hosted. In the case of the former, a business purchases a software license for its selected system and deploys the product to its data center. As such, the organisation absorbs the cost of servicing and maintaining the internal infrastructure and acquiring any additional equipment.

Cloud ERP on the other hand, are housed, surprise, surprise, in the cloud (inside a data center, on a server owned by someone else, usually the ERP vendor) and accessed by you (the user) via an Internet connection. With modern ERP there is no hardware to buy and updates are generally done automatically for you by the ERP vendor. Modern ERP uses the Software as a Service (SaaS) model, in which the provider delivers the application to customers via the Web. It also provides solutions which are delivering capabilities with greater ease of use that further improves company benefits and ROI.

Benefits of a Cloud ERP system

Cloud ERP systems can free you from all the struggles you see below. They offer a few things traditional ERP’s cannot:
1.      Instant updates across all systems.
2.      A single version of the truth.
3.      Improved productivity.
4.      Fewer maintenance headaches.
5.      Anytime, anywhere access

Businesses selecting ERP business software often focus on the cost and functionality of the software they are evaluating. And while the functional fit of software to current business processes is important, the ability of the software to adapt to future business growth can be just as vital considering the cost of upgrading or replacing your ERP after only two or three years. Much of that future adaptability depends on the underlying platform on which the business management software is built.

Every business is unique, so taking the time to consider how different ERP deployment options will affect your company is critical. To learn more about planning for and deploying a Microsoft ERP solution, contact us.

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