Everything You Need To Know About Cloud-Based ERP
As businesses incorporate their systems together and grow, having essential software integrated into the cloud is becoming more popular. That’s where cloud-based ERP shines and could be a valuable component to a company.
Cloud-based systems are composed of resources, services, and applications that could be accessed through the internet instead of local data servers. In case you didn’t know, ERP refers to Enterprise Resource Planning, a management system involving different services helping a company like marketing, data interpretation, accounting, supply chain, manufacturing, and so much more.
Moreover, hosting such systems in the cloud could enhance business functionality, reporting, and automatic analytics, and operational efficiency.
What are Cloud ERP Concepts and Current ERP Trends
It will help if you learn some basic concepts connected with cloud ERP.
- Subscription Licensing
The business pays a fixed subscription charge at certain time intervals (monthly or yearly) to use the software. That charge typically involves all software upgrades and maintenance and might be charged per organization or peruse.
- End-to-end security
An encrypted and secure connection between the cloud-based ERP vendor and the customers
- Hosted ERP
A hosting cloud provider or company handles the deployment of ERP software and connected infrastructure. However, take note that hosted deployment models are often used when companies plan to outsource their IT operations.
That type of setup offers some cloud perks, but it’s not a real “as a service” model.
- On-premises ERP
ERP software is installed locally, on the organization’s servers and computers, and managed by contracted or internal IT staff. Also, the software and the supporting infrastructure are handled, kept, and maintained in-house.
- Cloud-based ERP
ERP planning software, which is hosted offside, on the enterprise resource planning vendor’s services and offered as a service, accessed via a web browser.
- Deployment Strategy
Remember that ERP software could be deployed on private or on-premises hosted servers or bought in a service model. As a result, Cloud ERP functionality could be typically delivered faster, although businesses need to take the time for planning, customization, data migration, staff training, and configuration.
Here are some of the current trends which will matter the most within the ERP sector within the next few years:
- Digital transformation
- Amazon increases the need for innovative technologies
- Flexibility demanded by a lack of disruption cycle
- ERP vendors provide more bespoke cloud solutions
- Cloud ERP enables constant upgrades
- More ERP buyers will shift to the cloud
What are the different components of Cloud ERP software?
Keep in mind that every cloud-based ERP software offers core accounting management and financial management functionality. From there, the types of applications or modules a business prefers to execute will depend on its specific business and industry needs.
Accessible cloud ERP modules are as follows:
- Material requirements planning
- Project management
- Supply chain management
- Order management
- Inventory management
- Customer relationship management
- Human capital management
- Distribution management
- Accounting and financials
What are the advantages and disadvantages of a cloud-based ERP system?
You will find numerous advantages to a cloud-based ERP system, especially if it’s implemented properly. Here are some of them:
- Updates – Simplifying SaaS via a third-party vendor allows a company to avoid any updates to software or applications on their hand. That could help check one thing off in a lengthy list of tasks and concentrate on training for such new updates to stay updated with their service.
- Security – The major advantage of having such cloud systems accessible through the cloud is because they won’t be accessed on local data servers. Having the two could help keep specific info in various places, making various security sense in case of a potential cyberattack.
- 24/7 access – Having access to the application on the cloud will indicate it doesn’t need to be connected to local data servers. Hence, work could be performed 24/7.
- Lower IT support cost – A reduction of IT staff will help a huge amount of money. The service is handled through a third-party vendor, lowering the need for an IT team within that department.
Other benefits of having an ERP system include enhanced product quality, get one platform or accessibility, automated ERP analytics, and so much more.
On the other hand, here are some disadvantages of cloud-based ERP system:
- Employee agreeance
- Compliance problems
- Customization choices
- Training sessions
- Less control
- Continuous cost
How Cloud Computing is used in Cloud-based ERP system
Cloud computing is a chance to totally change how your business and its staff work. Saving the company from capital expenses that last longer on the balance sheet instead of the server room might be the most cited advantage.
With cloud computing, you can change applications and users up and down to meet the business’s varying demands. You could trial systems without huge capital investment and roll out new systems to groups. That will help lower risk and distribute training expenses.
What are different types of cloud ERP software?
You finally learned what ERP software means and its pros and cons. The next step is to learn the various ways cloud ERPs could be deployed and how they will impact your organization. You will find two core variations of cloud ERPs: on-premises and SaaS.
Private cloud models using traditional on-premises ERP infrastructure are a very typical option for enterprises. This type of ERPs is both secure and robust, with data stored on servers owned and managed by the organization.
The advantage of this type is you can host it on your own or use the infrastructure to host the whole ERP solution on a private cloud. Did you know that on-premises are the most personalized? It provides a different range of functionality, as it incorporates most enterprise tools and modules.
- Hosted or SaaS
Software as a Service (SaaS) is the most typical model for cloud ERP. Organizations have enough choices that span across different industry requirements, functionality, and budgets with industry-leading solutions.
You do not own the software in that deployment, but your data is stored in a public cloud where users share an instance of the available software, along with a small monthly charge for every user.
Microsoft Dynamics 365 Cloud ERP system features and benefits over the traditional ERP system
Microsoft Dynamics 365 is a modular, cloud-based ERP system that features advanced CRM capabilities like Enterprise asset management, Quality management, Document management, and billing management. The platform is composed of rebranded versions of Microsoft Dynamics CRM and Microsoft Dynamics AX. Check out every Microsoft ERP Products here.
You see, the platform helps organizations make smarter decisions according to data-driven recommendations and insights. Businesses can run more effectively by optimizing and automating manual activities with smart workflows. Also. Real-time visibility helps the organization make better decisions.
The platform’s CRM features offer clients the freedom to unify relationship data through LinkedIn Sales Navigator, customize customer experiences at scale, and coach sales employees with analytic dashboards and onboarding.
Compared to the traditional ERP system, Microsoft Dynamics 365 Cloud ERP system takes a modern ERP functionality approach with real-time data. It does that by integrating AI, mixed—reality, and machine learning tools for a midsize business.
The solution provides:
- Mixed-reality remote support
- Holographic guides
- Product visualizations
- Virtual sales agents
- Automated fraud protection
- Predictive guidance for sales
- Real-time information on resources
What are the benefits of using MS Dynamics 365 Cloud ERP in your business?
You will find a plethora of CRM products or software solutions available in the market today as customer and resource planning software. Hence, how do you determine if Dynamics 365 is the best software application over other Cloud-Based ERP products? What are the benefits it can offer to your business owners?
- Enhanced productivity
Your staff can easily access just about any type of data they need through Dynamics 365. Real-time ERP inventory management and updates allow them to work more effectively and cut downtime looking for data. Staff could make better, smarter decisions and will have the insights and tools they need.
Dynamics 365 could scale up and down immediately on your existing team size, workload, and budget. Similarly, like other Microsoft products, Dynamics 365 is based on a simple-to-adjust monthly subscription.
Dynamic 365 offers a set of built-in workflow management tools and modules you can utilize to automate the tasks across project service, field service, customer service, marketing, and sales management.
- Lowered sales cycle
Take note that Dynamics 365 offers your sales team access to a huge amount of insightful customer information? Your team can make quick responses and offer data without wasting too much time.
- Simple to use and deploy
Dynamics 365 deliver an intuitive user experience to its customers. You can utilize Microsoft Dynamics 365 in a hybrid cloud or a normal cloud setting. However, the good thing about it is that it’s easier to handle and deploy no matter what way you need based on your infrastructure and budget.
- Incorporates with other MS products
Dynamics 365 incorporates easily along with other MS products. That includes the Office 365 suite. Such integrations enable organizations to opt from Dynamics 365 to Outlook to communicate to SharePoint for documentation and Power BI for data analytics. You can also check out this post for the entire list of benefits that Microsoft Dynamics ERP brings.
Pricing Structure of MS Dynamics 365 Cloud ERP
The Microsoft Dynamics ERP pricing user per month is presented based on the licensing and pricing structure presented officially by the company. All the prices presented here are according to the current Dynamics 365 licensing guide.
Keep in mind that the prices highlighted in the chart are estimated as the monthly license cost for every user subscription for an attached user and the Full User License. It is important to keep cost transparency regarding upfront costs and additional cost for a Cloud-Based ERP system.
|Business Area||First Dynamic ERP App||Subsequent Qualifying Dynamics ERP App|
|Finance||$180 per user/month||$30 per user/month|
|Business Central Essential||$70 per user/month|
|Business Central Premium||$100 per user/month|
|Supply Chain Management||$180 per user/month||$30 per user/month|
|Project Service Automation||$120 per user/month||$30 per user/month|
|Business Central Essentials||$70 per user/month|
|Business Central Premium||$100 per user/month|
|Guides||$65 per user/month|
|Commerce||$180 per user/month||$30 per user/month|
|Fraud Protection||$1,000 per user/month|
|Custom Insights||From $1,500 per tenant/month||From $1,000 per tenant/month|
|Dynamics ERP—Human Resource|
|Human Resource||$120 per user/month||$30 per user/month|
|Guide||$65 per user/month|
|Forms Pro||$100 per user/month|
Here is the guide for complete details of Microsoft Dynamics ERP pricing details.
A comparison of other ERP solutions in the market with Dynamics 365 Cloud ERP
|NetSuite||SAP BusinessOne||Microsoft Dynamics 365|
|Business Type||Growing mid-sized businesses and big enterprises||Small and medium-sized companies||Business Central for small and mid-sized businesses Enterprise Edition for bigger companies|
|Integration||Can integrate with different third-party solutions||Can integrate with SAP-certified solutions||AppSource offers access to approved third-party and Microsoft solutions|
|Ease of Use||The dashboard enables users to pick and view vital data based on roles||Comprehensive capabilities may be smaller than smaller enterprises need||Utilizes built-in tools and incorporates with other Microsoft business applications|
|Analytics||Suite Analytics for real-time tracking, automatic calculations, and reports||SAP Analytics component for automatic calculations, tracking, and real-time reports; Excel tool for analysis; Advanced analytics need another license||Works along with MS Power BI and enables embedded dashboards for tracking and reporting|
|Personalization||Pick and add applicable fields in the database and customize forms, performance indicators, and records||Pick and add applicable fields within the database and change code||Customize fields, forms, views, and workflows; Synchronize and incorporate along with other MS business applications|
|System Updates||Phased releases automatically installed within the cloud||Planned and deployed by the business||Planned release waves installed within the cloud|
|Hosting||Cloud-based||On-premises and cloud-based||Cloud-based|
|Pricing||Subscription-based on $999 for a base license||User licenses module from $56 every month; Starter pack starts from $1,680||Per module from $50 to $1,500 every month|
|Functionality||Analytics, reporting, inventory management, and accounting across all enterprises of different sizes||Analytics, reporting, purchasing, warehouse management, inventory, and accounting||Human resource management, logistics, customer relationship management, financial planning, and reporting|
EPCGroup approach for implementing cloud ERP implementation
When we talk about efficient ERP implementation, you will find different things to consider like operating cost, maintenance costs, and cost of ownership. Fortunately, with some forethought and planning, any ERP implementation could be an effective one and focusing on cost savings while implementation. They are real catalysts for rapid growth potential.
Here is EPCGroup’s best way to ensure such projects are positioned for success from the beginning:
- Gather the best implementation team
- Assess the methodology of your implementation team
- Obtain buy-in from key stakeholders and executive management
- Bring it all together
EPCGroup has been delivering IT solutions to the industry for the past 24 years. We have more than 70+ in-house experts for ERP Consulting. We also hold Microsoft Gold partner Certification and have expertise for all the Microsoft services like Power BI, Microsoft Dynamics 365, Office 365, and Azure.
12 Best Cloud-Based ERP Solutions
Are you looking for the best cloud-based ERP solutions this year? Here is the list of software providers with key features:
- Microsoft Dynamics 365
Of course, this list is not complete without Dynamics 365. It adapts to industry specifications and adds genuine value to business environments by extending its use Availability of dashboards on mobile devices has helped Microsoft Dynamics rank best among other service providers.
- Munis ERP
This is created to encompass a broad spectrum of public sector needs. Secondly, it manages all your core functions that involve citizen services, human resources, financials, and revenues. It has some vital features that made it great.
- SAP S/4HANA Cloud
It is designed to drive immediate value across all lines of business processes. It offers you real-time insights and data through embedded reporting and analytics. SAP provides a bespoke user experience with SAP Fiori for any device.
- Oracle ERP Cloud
This is a modern cloud application solution for FP&A, procurement, compliance, governance, risk management, revenue recognition, tax reporting, and project planning. It offers the integration, security, analytics, and functionality tools you need to run the business.
- ECount ERP
This is a cloud-based ERP system that allows you to handle your sales, purchasing, and accounting from one platform. It’s a fully cloud-based system that is accessible for users anywhere they may be.
This is a collection of tools utilized to make inventory systems, SCADA, and point of sale applications. It provides features like server or client architecture, fast to install and use, web-deployed client applications, and so much more.
- Jeeves ERP
It is created in Sweden that incorporates different manufacturing styles to deal with planning, execution, decision-making, and measuring. It provides features like user-defined portals, integration with QlikView, search, form design, and tab views.
Few More ERP Systems
- Kinaxis RapidResponse
This is a supply chain management solution that helps big companies with planning and provides companies the supply chain analytics and planning capabilities they need to deal with various interconnected supply chain planning procedures.
- Orion ERP
It offers strong functionalities through smooth interaction between different modules. It also helps users drive growth and keep competitive gain in the face of worldwide competition at the same time.
- NetSuite ERP
This is engineered to scale with organizations as they grow and to simplify mission-critical processes. This system helps in advanced billing, supply chain management, and Financial Management, among others. It offers organizations the resources and tools they need to increase grown and drive advancement.
It’s a platform created to handle inventory, fulfillment, supplier management, customers, and accounting across the omnichannel business. This can be paired with real-time reports on customers, channels, profitability across products, cash flow, and inventory.
- SAP Business One
Lastly, this ERP makes it simpler and reasonable to deal with all your vital business requirements and processes. It’s powered by SAP HANA, helping you drive smart decision-making across the organization with reasonable analytics fueled by a marketing-leading platform.
In the end, it can be extremely overwhelming for an organization to pick the best Cloud-Based ERP with many cloud vendors in the market. There are many benefits of a cloud ERP system. However, there’s no one-size-fits-all partner, as organizations are complicated entities and have distinct people dynamics.
A business-driven approach, where an organization looks at creating its process and structural capabilities with an established change management program, is highly suggested. A good ERP partner with an established project setup and execution approach could help the company unlock the value from their ERP programs..