1 Introduction
Searching the web for "ERP" or " Enterprise Resource Planning " is flooded with information -- not to mention how confusing it is. Every website seems to have its own definition of ERP, and every ERP implementation is different. Although there are many definitions, they basically emphasize the flexibility of the ERP system , which makes it a powerful enterprise management tool.
To understand how an ERP solution can transform a company, you need to step back and think about the key processes of running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and more. In essence, an ERP solution integrates various functions to form a complete system that simplifies the processes and information of the entire enterprise.
The purpose of this article is to explore the value that ERP brings to a business, understand how a cloud ERP solution can open the door to business profitability, and point out what needs to be considered before a business can successfully implement an ERP system.
Step back and think about the key processes of running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM), and more.
2. The value that ERP brings to the enterprise
The core of ERP solutions is to integrate disparate systems, get rid of isolated spreadsheets, break down barriers between different departments or work units, and help employees complete their work more efficiently.
More specifically, ERP solutions can:
● Provide a holistic, real-time view of data that helps companies use that data to make proactive decisions to capitalize on opportunities for business improvement and utilization;
● Automate core business operations such as sales management (lead to payment), order management (order-to-order completion) and procurement management (procure-to-pay) processes;
● Improve financial compliance and reduce risks through control standards;
● Improve customer service by providing a single source of payment and relationship tracking.
With an ERP solution, employees can access core, precise information without leaving their homes, enabling faster, better decision-making. Not only that, ERP software can also save cumbersome procedures and systems, greatly reducing the overall cost of running a business.
3. Cloud ERP vs Local ERP
When purchasing an ERP system, the first question to face is whether to choose an ERP solution based on cloud computing or an ERP installed on a local management server , that is, a local solution.
On-premise ERP solutions - installed on the company's computer hardware and servers and can be managed by IT staff.
Cloud ERP solutions - also known as SaaS or Software as a Service - are provided by multi-tenant platforms (details below). With this type of solution, a company's ERP software and related data can be managed centrally (in the "cloud") by the software provider and accessed by employees via a web browser on a laptop, desktop or mobile device.
Multi-tenant SaaS vs. single-tenant hosted application
In cloud computing, multi-tenancy refers to a SaaS (software-as-a-service) provider providing all customers with the same version of software. Unlike single-tenant hosting solutions, where applications are built on the vendor's servers, each customer's codebase is unique.
While all users in a multi-tenant solution access the same basic components, each customer gets different data and configurations, all stored in separate secure containers. Users can access all functions of the software, but their data cannot be shared.
Compared with third-party hosted and single-tenant applications, multi-tenant SaaS has the following advantages:
● lower cost
With a single-tenant hosting solution, the provider must build out the hosting environment to accommodate new customers. In contrast, in a multi-tenant SaaS solution, new users can use the same underlying software as all other customers, so the impact of user size on the infrastructure is much smaller.
● Continuous maintenance and updates
End users do not have to pay high fees to update the software. SaaS subscriptions are automatically updated with new features, which are managed and deployed by the vendor.
● System upgrade will not affect existing customization and integration of third-party application software.
While on-premises applications and single-tenant hosting solutions are often custom builds, they often require significant time, money, and changes to core application code. This can lead to time-consuming and expensive upgrades due to mismatches with custom code. Most multi-tenant SaaS solutions are highly configurable, allowing businesses to run applications as they like without changing the underlying code or data structures. Since no code changes are required, upgrading is very simple.
● Manage uptime, continuity, and system performance by the vendor, not the customer.
Multi-tenant SaaS providers are responsible for putting a lot of money and effort into ensuring the uptime, continuity, and performance of the system, and if anything goes wrong with the system, all customers will be affected. While it sounds dangerous, it's good for the end user. In a single-tenant environment, if there is a service interruption, it may only affect one customer, which means that the supplier will be relatively slow to respond and cannot take the necessary measures in time to prevent the problem from recurring.
4. Why are enterprises starting to adopt cloud ERP systems?
A cloud ERP system can improve the competitive advantage of a variety of enterprises that intend to expand their business and reduce the cost of local traditional hardware and software management. After using a cloud computing ERP system, you can usually enjoy the following advantages:
Flexibility/Agility
In fact, the traditional local ERP system will limit the growth and development of enterprises due to insufficient flexibility and agility. Cloud ERP systems are designed to provide a truly integrated solution that provides the right information for different roles at the right time, allowing them to be better informed, make informed decisions and adapt to changing market conditions.
Questions to think about; are the real-time KPIs provided by role-based job dashboards useful to managers across the company?
Scale as your business grows
Cloud ERP solutions can support businesses of all sizes, from less than 10 people to more than 10,000 people. Cloud ERP can help you focus on developing your enterprise, whether it is going international, preparing to go public, seeking strategic procurement, or seeking joint ventures, it gets rid of the limitations of traditional EPR solutions.
Question to think about; how long does it take to deploy a current ERP solution in a newly acquired company? It will take about a few weeks.
fluidity
Today, business people need access to real-time information anytime, anywhere. The latest version of Cloud ERP can be accessed through a web browser and, after optimization, can also be accessed through tablets and mobile phones.
问题思考;通过全天候实时访问角色相关信息，公司工作人员的生产效率能够提高多少？
节约成本
成本是企业采用云计算ERP系统的另一个原因。运行、维持和更新本地ERP需要大量资源。采用云ERP解决方案后，企业可以将这些成本和责任转移到供应商身上，从而节省了大量资源。
问题思考;关于未来12个月的IT支出，预测精度如何？预测结果是什么？
安全性
云计算应用程序偶尔存在数据安全风险，但在今天，领先的ERP解决方案全部采用银行账户安全级别。ISO27001标准是需要检查的重要标准，涵盖了对公司敏感信息的管理。一些ERP供应商还会提供不同层次的访问管理，128位加密和强密码策略让用户更加安心。
问题思考;企业维护敏感信息安全的积极性如何？
自动更新
云计算应用程序的优势之一是，软件升级由服务提供商而非用户控制。很多IT部门因为害怕打乱定制功能，不敢更新新版本，所以只能使用过期软件。
问题思考;不更新软件让用户失去了哪些最佳实用功能？
获取“真实的单一版本”
商业智能（BI）是集成的云ERP解决方案能够提供整体分析的最重要的管理工具之一。关键在于在正确的地点、正确的时间获取正确的信息，从而及时作出决定。从包含所有相关数据的单一数据库中调取数据，创建业务管理的真实单一版本，能够让管理者们从多个角度检查自己不懂的业务问题。
问题思考;能不能轻松回答“错在哪儿？”和“为什么会出现这种情况？”以及“怎么做才能解决？”之类的问题？’
合规性和管理——几乎是附带产品
现在，要想经营业务，企业就要遵守各个国家、各个部门制定的一系列法律法规，满足各种实践要求。无论企业规模如何，均需确保守法纳税。如果增值税率改变，或出台新规定，企业必须予以遵守。使用单一系统记录之后，企业可以一键管理有关合规性和管理的各方各面。ERP软件供应商可以将其直接建立在核心业务系统中。例如，所有电商交易必须遵守支付卡产业之资料安全标准（PCI-DSS），服务提供商应遵守ISO27001。
问题思考;下次，如果出台新法或制定新的最佳实践要求，你会怎么做？
5.认清企业内部各部门对云ERP系统的需要
企业的发展和成长涉及很多因素，商业管理的关键是采用云计算系统。
回答以下问题，快速了解现有的本地ERP是否能够支持企业未来的战略。
● 贵司是否在处于快速增长阶段？
● 贵司是否正在打入新市场？
● 贵司是否在不同的地区进行经营？
● 是否靠电子表格整合不同部门和不同地区报告的信息？
● 如果可以全天候实时访问企业应用系统，员工是否能从中获益？
● 贵司计划是否包括合并、收购或上市？
● 贵司当前的企业管理系统是否能够支持未来企业发展的要求？
6.结论
ERP在不同的人眼里有不同的定义，但使用ERP系统的企业一致认为ERP系统是一个整合的系统，可以提高信息的可见性，让用户掌握更多信息，快速做出更明智的决策，实现流程自动化，获取单一版本的真实数据。
如今，企业面临的挑战是权衡进一步提高效率和灵活性的价值与通过云ERP解决方案带来的成本效率，究竟孰轻孰重。云ERP解决方案能够为每个企业提供重要的建议和机会，无论企业规模或所处行业如何。