ENTERPRISE RESOURCE PLANNING - WHY ERP SHOULD NOW COME FROM THE CLOUD

In the Covid-19 pandemic with lockdowns being imposed again và again, working from trang chủ has become routine for many employees. Companies are therefore required to meet the special requirements of remote workplaces, because the existing IT systems are often not (yet) designed for this.

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Outdated ERP systems that bởi not yet tư vấn any cloud functionalities play a special role. Applications & services from the cloud offer a variety of well-known advantages: greater flexibility and scalability, better predictability of costs & lower capital expenditure, improved compliance & IT security and, last but not least, support for remote work. However, khổng lồ date, many companies have failed lớn move their back-office applications, such as enterprise resource planning (ERP), lớn the cloud.
A cloud-based IT environment is a prerequisite for supporting work at distributed locations & from điện thoại devices. Only with a well thought-out cloud strategy can companies provide their employees with the tools and IT environment they need khổng lồ work outside of the office. It should be noted that in most cases the aim is not to lớn completely switch to home office, but rather hybrid work models that combine the workplace in the company with mobile or remote work.
New working models in the corona pandemic. A recent study by Unit4 in the summer of 2020 examined the effects of the Covid-19 pandemic on the use of cloud-based ERP systems. New working models are of particular importance here. In the survey, 75 percent of the decision-makers surveyed in European companies said that between 51 và 100 percent of their employees work remotely, i.e. In the home office. 84 percent confirmed that remote work in their company had increased significantly due to the pandemic. Additionally, 78 percent of the decision makers surveyed agreed that the shift to lớn remote working would accelerate the shift to lớn cloud applications. For a majority of 74 percent, cloud-based ERP is the prerequisite for efficient remote working.
Challenges in Adopting Cloud ERP.   There are numerous benefits associated with moving ERP applications to lớn the cloud. This is also confirmed by the results of the Unit4 survey: 48 percent of decision-makers named easier remote working, 36 percent increased scalability and 35 percent increased productivity và lower operating costs as the most important advantages of a cloud-based ERP system. Improved employee & customer experiences, reduced trust in certain vendors, & data visibility and governance were also cited.

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Given these favorable starting conditions, the question naturally arises as to why many companies have not yet switched to lớn cloud ERP? The decision-makers surveyed named the complex thiết kế of traditional systems and possible security gaps as the greatest obstacles lớn the implementation of cloud-based ERP systems. Despite this, 56 percent stated that the pandemic has made them more inclined to implement cloud-based applications. As the study also shows, the provision of ERP systems from the cloud depends largely on the respective application. For some applications such as HR, IT helpdesk, CRM or e-commerce, the on-premises giới thiệu is only 30 khổng lồ 39 percent, with the majority already using hosting services such as SaaS, private cloud or public cloud.
In the areas of accounting, finance, risk management, procurement or supply chain management, more than 50 percent of those surveyed still use on-premises systems. However, this also shows that companies prefer to rely on their own IT infrastructure for applications relevant lớn security or data protection.
Cloud ERP not only offers technological advantages.The results of the Unit4 study show that corporate management levels are increasingly unable to lớn ignore the advantages of cloud-based ERP. Not least because cloud services are becoming more widespread & are slowly but surely becoming the norm. The technical requirements of thiết bị di động work and trang chủ office also act as a particle accelerator for the increasing spread of cloud applications và services. Because after the over of the corona pandemic, most expect that the new remote working models will be retained. For the successful implementation of the digital transformation, companies need greater productivity & scalability of their IT infrastructure. Because scaling ERP systems on-premises is usually labor-intensive và potentially risky.
But higher operating costs also have an impact on legacy-based ERP systems. After all, costs arise not only from software licenses, maintenance và support, the necessary IT infrastructure with servers, storage and backup, IT resources for operation và employee training, but also from downtime & disaster recovery as well as security and compliance risks. With the migration to a cloud-based ERP system, such as Unit4 ERPx with integrated ERP, hcm and FP&A, companies can not only reduce the costs for the IT systems, they also benefit from the automated operation of the ERP system including updates. At the same time, they can reduce their Capex expenses for IT, i.e. The expenses that can be written off, and shift them towards Opex expenses, which is particularly useful in years of strong growth.
The advantages of cloud ERP mentioned are also convincing more and more people in charge in the company. According khổng lồ the Unit4 study, 84 percent of respondents want khổng lồ increase the use of cloud services in general, with ERP applications being a big part of that. The pandemic has accelerated the long-established trend towards cloud use, which will prompt many companies khổng lồ bring forward their cloud migration plans. By moving the ERP system to lớn the cloud, they are able to meet the demands of remote work while improving their competitiveness.