April 10, 2016

Integrated Cloud based ERP for SME'S

SME'S in the developing nations are the most aggressive adopters of ERP to their business process. The online server hosted off the site is best suited for such growing SME's because the payment needs to be made in accordance with their need and usage. Using a cloud-based ERP server reduces the capital expenditure by not investing money in the server infrastructure.

When the different functions of ERP such as CRM,HR etc. are hosted in different clouds, separate administration of different systems costs time and money. The use of the required function in an integrated cloud reduces the expense and increases the efficiency of the business process. The server and software package providers pitch their marketing skills to which SME's fall as a bait which ends up making the business go the downward spiral.

To be successful and to outgrow the competitors every business has to deliver the highest quality on time and quickly possible at the cheapest cost. Hence, every SME who is the planning stage on wheater to adopt an ERP package should think in detail of what the outcome and benefits would be in a long run

Arjun Sunil Kumar

- 3 comments by 1 or more people Not publicly viewable

  1. On the other hand, the implementation of cloud-based ERP may have some disadvantages. The first point to note is that, the limited customization, which will be standard. However, it might be useful for SMEs to be aligned to the best practice. the limitation on the product function such as HCM, which will be concentrated on the particular application. The integration with the current on premise application will cost more and add more difficulty for the process. Finally, cloud-based ERP considered to be cost effective. However, the cost might higher for long terms by seen it as the cost of ownership.

    Abdulaziz Altoajeri

    11 Apr 2016, 13:04

  2. Although, the cloud-based system is becoming more and more popular for small-midsize enterprises. Since the cloud-based system is located in vendor’s server, so many of ERP buyers were concerned to choose the cloud-based system. They may feel more confident to store their data on their own server. In this case, vendors have to become more proactive about addressing their worries.

    However, on-premise solutions seem more secure than cloud solutions, companies need to heavily invest their own security which it’s might getting harder than using the vendor’s security.

    Chompassorn Pholtanasak (1465063)

    15 Apr 2016, 12:58

  3. In my opinion, ERP infrastructure is a financial burden for most of MSEs. in addition, establishing a IT team for maintaining servers and quality of data is uneconomic for SMEs. it is better to reallocate those resources to focus on business strategy rather than maintaining system therefore Cloud ERP might be a better solution for SMEs.

    Bo-Hsiang Chang

    17 Apr 2016, 15:44

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