Have you heard of cloud computing? And have you heard of ERP?
My guess is that, many of you would have heard of both of them individually. However, if you’re reading this now, you’ve probably not heard about Cloud ERP as a single component.
Before I dive deeper into this, let’s start with some simple background information.
What is ERP?
ERP stands for Enterprise Resource Planning. This is a system by which a company manages and integrates the important parts of its business.
In other words, an ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance and human resources (and much more with cloud).
Originally designed and used by manufacturers, ERP was only known by people in that industry. However, with the advancement of technology (especially with cloud), now SMEs can also benefit from it thanks to the much lower cost.
The strength of an ERP software is to integrate functions from different parts of the business into a single complete system. Just to be clear, that means you don’t have to have a software for accounting, a software for inventory and etc.
Because they are fully integrated, this process information and processes all across your full organization. And the main feature of every ERP system is a shared database supporting multiple functions that are utilized by different units within your business.
Also, in practice, it means that workers from different divisions, like sales and accounting, for instance, can rely on the same company information for their departmental needs.
In addition, the software used in the ERP process offers a degree of automation and synchronized reporting. Rather than having your employees maintain separate departmental spreadsheets and databases that must be manually merged for the purpose of reports, some ERP based solutions will allow your employees to pull the reports they need from a single system.
Note: In case you haven’t done so, take a look at this article on the benefits of ERP.
So, What is Cloud ERP?
Now that you’re aware of what an ERP system is, then imagine having every part of processes integrated, in real time, through the internet on a system that is stored in the cloud server.
Cloud ERP, as its name would suggest, has its base in the cloud – read more here. Unlike conventional ERP software, a Cloud ERP utilizes the cloud, instead of server infrastructure, and usually includes automatic updates. Cloud ERP software will integrate your company’s essential functions into a single, complete system.
Cloud-based ERP solutions are more mobile and easier to access than conventional ERP solutions. Employees in your company can upload and then access company data in real-time, from the cloud, using any device that has an Internet connection. This will allow for even greater collaboration within your various departments.
It also allows you to easily implement and manage the systems, and make the ERP software less expensive. One of the most important facets of cloud-based ERP solutions allow for real-time reporting, which makes them most valuable to staff and executives who seek visibility into the company.