Authored by Preethi Menon, VP & Head – Practices, Clover Infotech
When a Small and Medium Business (SMB) starts operating, it works on tools such as spreadsheets and collaborates over readily available free tools. While this is a prudent approach to save costs initially, it often impacts the growth prospects and progress of the business.
As sales and revenues begin to grow and receivables and payables correspondingly become difficult to manage, it is sensible to leverage ERP tools and solutions. As they grow, the finance department cannot operate as an independent or siloed function. It must collaborate, interact, and give guidance to other departments to ensure that the business stays in good health – always.
When SMBs experience such growth, it is wise to consider a Cloud ERP Solution. A cloud-based ERP solution can not only ensure that you pay as a service, but also makes sure that the ERP can be integrated with the other functions and that reporting and decision insights can be seamlessly delivered. It can enable the organization to get relief from the ad-hoc customizations, upgradations and migration that are required to keep the ERP consistently updated.
Let us look at the advantages of a Cloud based ERP for SMEs:
Will Cloud ERPs cost too much? Will it help SMBs to scale their business?
A cloud ERP cost can be figured out based on the existing ERP and its version and the modernization efforts required. Even if an SMB were to directly implement a new cloud ERP, the benefits that it will realize with respect to business and revenue is tremendous. A Cloud ERP not only enables the finance function but also empowers functions such as Sales and Marketing to derive rich data about their customers and end-users and accordingly optimize their engagement with the customers.
Cloud ERP can also seamlessly integrate with digital transformation technologies such as IoT and ensure that the ERP can keep pace with the corresponding digital transformation initiatives that the organization undertakes.
Hence, it is wise to consider moving to a Cloud ERP. While there could be the initial modernization effort and cost, or an investment to implement a Cloud native ERP, the benefits in the long run are significant and worth the investment.