Cloud-Based Enterprise Resource Planning (ERP) in Modern Business Operations


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The Fundamentals of Cloud-Based Enterprise Resource Planning (ERP)

Businesses can manage their operations more effectively with the help of cloud-based Enterprise Resource Planning (ERP) solutions.

Companies can use a wide range of various apps (such as SaaS, PaaS, and IaaS) to handle every facet of their organisation.

This may cover a wide range of topics, such as supply chain management, accounting, customer relationship management (CRM), and enterprise marketing (email, mobile, and social) (SCM).

The user interface of f cloud-based Enterprise Resource Planning (ERP) tools typically resembles a web-based dashboard that you could see at an online bank.

This interface allows you to view essential business data in real time from any device, including mobile ones.

There is no need to enter any data (such as product orders) into a centralised system because changes and edits may be made straight from the dashboard.

Enterprise Resource Planning (ERP) data is often encrypted and secured when stored in the cloud using the same methods used for online banking.

This keeps data private and hinders unauthorised access or modification. A dedicated technical support team that is available round-the-clock through email is typically included when you utilise a cloud-based Enterprise Resource Planning (ERP) solution. 

Why Use the Cloud?

Businesses have functioned offline for millennia. They would either keep their data on paper or on vintage magnetic tape—do you remember those?

Businesses were shifting away from on-premise solutions and toward remote systems even before the cloud was invented for the following reasons:

  • A rise in productivity
  • Eco-friendliness
  • Flexibility
  • lower price
  • more trustworthy
  • access to pertinent information

Businesses still require distant systems to function even with the cloud.

Yet, they can significantly lower their hardware requirements and the likelihood of downtime by utilising the cloud’s strong storage capabilities, high availability, and shared environments.

Because of this,  Enterprise Resource Planning (ERP)  and other corporate procedures are perfect for the cloud.

This article will explain about cloud-based Enterprise Resource Planning (ERP) and how you can benefit from it.

Why Choose a Cloud-Based Enterprise Resource Planning (ERP) System?


Because they want a safe, scalable solution that can be accessed at any time and from any location, many organisations decide to use the cloud for their Enterprise Resource Planning (ERP) system.

Technology advancements have made it possible for the cloud to offer these functions.

Because employees can access business data and applications from any device and location, a cloud-based Enterprise Resource Planning (ERP) system enables flexible working.

Businesses can quickly increase or decrease their resource usage as needed without worrying about hardware upgrades thanks to the system’s scalability.

This feature is especially advantageous for companies that are expanding quickly.

The simplicity of use is another key benefit.

Today’s browsers make it much easier to access data and applications on the web, and mobile apps are widely used.

Employees in a cloud environment can access and manipulate corporate data and carry out company duties from anywhere at any time, eliminating the need to rely on coworkers to access company resources.

This level of practicality enables more adaptable and mobile working hours in addition to making the cloud a popular option for organisations.

Several tasks are made simpler by an Enterprise Resource Planning (ERP) system that is cloud-based, including but not restricted to:

  • Acquisition \sInventory \sAccounts Payable \sAccounts Manufacturing General Ledger Receivable
  • Workflows for Project Management Reporting
  • Cellular Data Entry (MDEX)
  • Processing of Purchase Orders at Points of Sale (POS) (POP)
  • Card Payment Security (PCS)
  • Exporting and importing data
  • Important Accounts for Many Regions
  • Language Support in Several

A cloud-based Enterprise Resource Planning (ERP) solution is also preferred by many firms because they want a safe, effective platform that can be accessed at any time and from any location.

As a result, there is no need for costly on-premise gear or large IT groups. Instead, by using the cloud, businesses may attain a high level of scalability and efficiency.

SAP and other on-premise Enterprise Resource Planning (ERP) programs are still available. Because they require the local systems for their own internal operations, businesses retain them around.

Nevertheless, in the modern business environment, this kind of software is losing its usefulness. The future of company operations is cloud computing.

Enterprise Resource Planning (ERP) on the Cloud for Modern Business Operations

Companies of all sizes can now profit from cloud hosting through their applications rather than depending only on their own servers thanks to the expansion of the “Cloud” software platform.

Now that the public cloud market is growing, it’s time for Enterprise Resource Planning (ERP) systems to take advantage of this trend and suit the needs of contemporary enterprises.

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This has had a significant impact on how businesses work and the sorts of software they employ.

What Makes Cloud-Based Enterprise Resource Planning (ERPs)



A Cloud-based Enterprise Resource Planning (ERP) differs from a conventional on-premise solution in a number of distinctive ways.

  • Employees can work remotely using laptops, tablets, or smartphones (even if they are not connected to the corporate network) because the cloud enables access to your Enterprise Resource Planning (ERP) from any device with an internet connection.
  • Second, the cloud service provides all computing resources, including the server hardware, negating the need to acquire and manage your own hardware.
  • Third, you no longer need to buy desktop equipment like mice and keyboards to use your Enterprise Resource Planning (ERP) because it is hosted in the cloud. An online connection to a laptop or desktop computer can instead be used to provide these services.
  • Finally, working with many applications simultaneously is made possible by cloud-based Enterprise Resource Planning (ERPs), which is something that would be challenging with a conventional on-premise solution. With this capability, you may access all the programs and data you require from a single location, greatly simplifying the performance of business operations. Additionally, it guarantees that no matter where they are or what device they are using, your staff always have access to the most latest information.
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The Increasing Impact of Mobile


Cloud-based Enterprise Resource Planning (ERPs) offers solutions for mobile devices in addition to laptops and desktops, and this trend is likely to continue as the mobile Enterprise Resource Planning (ERP) industry grows.

Given how pervasive mobile devices have become in daily life, it is not surprising that organisations have taken notice and started implementing mobile solutions.

Mobile devices can be used to do business tasks like downloading purchase orders, choosing items from a catalog, and examining supplier information in addition to accessing Enterprise Resource Planning (ERP).

With the ubiquity of “bring your own device” regulations and remote working, organisations shouldn’t have any issue defending the need for mobile Enterprise Resource Planning (ERP) given the likelihood that this trend will continue.

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Cloud Computing’s Attractiveness

Cloud-based Enterprise Resource Planning Cloud Computing Attractiveness

It’s simple to see why cloud computing appeals to businesses. The cloud not only offers a high-performance, secure storage solution, but it also offers far greater freedom and mobility. These attributes are frequently listed as top draws by enterprises.

The high level of security that the cloud offers, for instance, is one of its most notable advantages. This is particularly helpful given the growing threat of cybercrime.

Businesses can relax knowing that their sensitive data is safe and secure thanks to the numerous security layers found in the cloud, including firewalls, IDS, IPS, and DLP.

Scalability is another crucial aspect of the cloud. The need for scalable cloud solutions is expanding just as quickly as the number of mobile devices and, consequently, the requirement for more data.

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The cloud’s affordability is one other significant feature that makes it appealing. The numerous tools and apps offered in the cloud can be advantageous to businesses of all sizes.

When opposed to having a sizable IT department, the cloud provides significantly cheaper expenses and higher efficiency thanks to the Internet, which connects millions of devices worldwide.

Advantages of Cloud-Based Enterprise Resource Planning (ERP


Cloud-based Enterprise Resource Planning (ERP) offers the following main advantages:

  • Reduced Total cost
  • Enhanced Productivity
  • Mobility and Adaptability
  • Increased Security
  • Improved Operations
  • Improved Client Collaboration and Communication

For small to medium-sized organisations, on-premise solutions are excellent. They can be more flexible in terms of management and quite cost-effective.

Cloud computing, however, is the best choice for companies that must store a lot of data or that must use cutting-edge technology.

Because businesses can swiftly embrace new technologies as soon as they are made accessible, it also makes it simpler to stay current with industry trends.

Cloud-Based Enterprise Resource Planning (ERPs) Are Becoming Popular


Since the early 2000s, traditional on-premise Enterprise Resource Planning (ERP) software solutions have lost market share to hosted and mobile versions that can be used from any location.

Vendors now find themselves in a bit of a catch-22 situation since businesses don’t want to transfer their data to a third party but also don’t want to be tied to a single application platform.

Yet, a wave of cloud-based Enterprise Resource Planning (ERPs) has risen in recent years, giving organisations the advantages of the cloud without any of the drawbacks.

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These programs give users the option to shift to different platforms if necessary while also delivering a safe and secure place to keep important company data.

Additionally, cloud-based Enterprise Resource Planning (ERPs) enable remote work, which is now a requirement for many companies and employees as a result of COVID-19 regulations that make it impossible for people to work outside of their homes.

The flexibility to use these applications with many platforms (such as iOS, Android, and web browsers) allows businesses to reach a wider audience, even when their employees are located elsewhere.

Building a Technology Ecosystem: What You Need to Know

Decrease Overhead

Face it, I say. It’s never a smart idea to keep a workspace full of pricey, proprietary devices.

You can cut costs and increase productivity by using tools like the cloud to handle even the most fundamental corporate tasks.

You may outsource the functionality to the cloud and concentrate solely on expanding your business rather than spending a lot of money on pricey laptops, tablets, and cell phones.

You’re constantly trying to find ways to save costs as a small business owner.

One method to accomplish this is to outsource business functions to the cloud.

Let’s compare SAP’s cloud-based ERP solution to a conventional on-premise one to demonstrate how much you can save by doing this.

For the purposes of this illustration, assume you have a Microsoft Office 365 subscription and regularly utilise the software.

Conventional – You must pay for software licenses, maintenance costs, and hardware. You have monthly expenses of at least $500.

Cloud-based – No additional equipment needs to be bought. Only your subscription fee needs to be paid. At least $400 is spent on overhead each month.

More Than Safe And Flexible, Cloud-Based Enterprise Resource Planning (ERP

Cloud-Based-Enterprise-Resource-Planning-Are-Becoming-Popular-More-Than-Safe-And -Flexible-Cloud-Based ERPs

The degree of security and safety that these apps offer is one of the primary factors separating a typical on-premise system from a Cloud-based Enterprise Resource Planning (ERP).

This kind of solution is a safer and more adaptable option to running an ERP on-premises because most organisations are still unclear about what to make of the “Cloud” and its many platforms.

This is one area where cloud-based Enterprise Resource Planning (ERPs) truly excel, giving businesses the level of security they want while also allowing them the freedom to switch to other platforms as needed.

The security of a server in a small office-sized data center is provided by a standard on-premise system.

Although this degree of protection is adequate for the majority of businesses, larger organisations may want to think about hiring a specialised security guard or watchdog service to make sure that their servers are constantly well-protected.

The “Cloud,” which is a completely different model for data security, is where Cloud-based Enterprise Resource Planning (ERPs), on the other hand, works.

Your company’s data is always safe and secure with this kind of solution because it offers remote protection through numerous servers spread across various places.

The fact that cloud computing is based on the internet further ensures that businesses will always have access to their data, no matter where they are in the world.

Cloud-based solutions are now without a doubt the best option for organisations wanting to stay away from the difficulty and expense of setting up and maintaining an on-premise Enterprise Resource Planning (ERP) system, thanks to the growth of the SaaS model and its widespread appeal.

You can also restrict a user’s access to specific files or folders with the correct tools.

To keep an eye on usage and tracking, you can establish policies and processes.

The majority of firms today run online. Everybody will have access to the same information if you keep all of your crucial company papers and data in the cloud.

This also prevents anyone from abusing this privilege and gaining illegal access to your files.

A Rise in Productivity

When selecting company software, productivity is usually a top priority. Does the software you use promote productivity and efficiency?

By enabling greater flexibility and more productive staff, cloud computing solutions have the potential to fundamentally alter the way businesses function.

This could entail getting rid of some of your in-house software and switching to a cloud-based program.

Not only will this lower your overall costs, but will also increase the flexibility and adaptability of your company, enabling you to better respond to shifting consumer wants and market trends.

Productivity is typically a top consideration when choosing business software.

Does the software you use encourage effectiveness and productivity?

Cloud computing technologies have the ability to profoundly alter the way firms run by offering more flexibility and more productive employees.

This might mean switching to a cloud-based program instead of some of your internal software.

This will not only reduce your overall costs but also make your business more flexible and adaptable, allowing you to respond to changing customer demands and market trends more effectively.

Enhanced Reliability

Increased reliability is one of the greatest benefits of cloud computing. This is due to the fact that companies may benefit from the cloud’s strong storage capacities, high availability, and shared environments.

Such redundancy is crucial if your company conducts remote (off-premise) operations. This makes sure that no matter what, you can always access your data and that your activities won’t fully stop.


About the Author

Tom Koh

Tom is the CEO and Principal Consultant of MediaOne, a leading digital marketing agency. He has consulted for MNCs like Canon, Maybank, Capitaland, SingTel, ST Engineering, WWF, Cambridge University, as well as Government organisations like Enterprise Singapore, Ministry of Law, National Galleries, NTUC, e2i, SingHealth. His articles are published and referenced in CNA, Straits Times, MoneyFM, Financial Times, Yahoo! Finance, Hubspot, Zendesk, CIO Advisor.


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