Cloud computing is increasingly becoming an enterprise mainstay. Over the years, businesses have effectively moved workloads such as Human Resources (HR), payroll, travel and expense management, as well as Customer Relationship Management (CRM), to the cloud. This transition has resulted in reduced costs, greater scalability, and the ability to deliver critical IT services with improved efficiency, reliability and flexibility. And now, companies want to replicate this success with respect to their core Enterprise Resource Planning (ERP) applications, such as Finance and Supply Chain Management.
Legacy, on-premise ERP systems support volume-driven business models, and traditional sales and product design strategies. However, innovative business models–reflecting the imperative to embrace digital disruption, and enhance customer and employee centricity–necessitate adoption of scalable, hybrid ERP systems, involving integration of legacy and cloud-based systems.
The case for migrating core ERP to the cloud
According to KPMG, 20% of organizations have already transitioned their ERP systems to the cloud, with the figure projected to rise significantly in the next five years. This accelerating momentum highlights the following key benefits you can accrue through cloud-based ERP rollouts:
Scalability: Ensure operational resilience by taking core enterprise applications off premise, and harness the cloud’s pay-as-you-go model to easily scale up or down, based on evolving business requirements.
Standardization and flexibility: Standardize business processes across the organization, without having to worry about customizing traditional on-premise applications. Also, enjoy the flexibility of using highly configurable codes, while leaving the underlying software untouched.
Innovation and Cost efficiency: Institutionalize ERP innovation faster, and reap higher return on investment (ROI), as cloud vendors roll out and manage regular software upgrades. Simultaneously, slash total cost of ownership (TCO) involving ERP deployments to the tune of as much as 30%. In fact, a PwC study estimates that hybrid ERP setups entail one sixth of the overheads associated with traditional on-premise systems.
Integration: Eliminate ad-hoc integration using Excel workflows, and deploy real-time integration processes through Application Programming Interfaces (APIs) using universal technology standards. Consequently, ensure effective linkages between your employees, suppliers, partners and customers, thereby driving greater enterprise-wide collaboration.
Mobility: Orchestrate on-demand, cross-device access to core ERP packages for your sales and customer service staff, thereby facilitating faster, informed decision making, and enhanced business agility. KPMG’s 2014 Cloud Survey Report: Elevating Business in the Cloud ranked enablement of workforce mobility as CIOS’ second highest priority with regard to cloud adoption.
Data: Leverage the Business Intelligence (BI) tools embedded within cloud-based ERP solutions to provide senior business users with an integrated view of accounting, sales and operational data. By harnessing ERP cloud’s powerful reporting and predictive analytics capabilities, you can track key business metrics in real time, and respond to dynamic trends proactively. In fact, the Salesforce IoT Cloud solution lets you analyze the massive volumes of data collected by sensor-enabled devices across the Internet of Things, and take preemptive measures to enhance customer service and engagement.
Above all, you can harness the cloud to free up your IT resources for more strategic projects, wherein they can deliver greater value in a cost-effective manner. For instance, a cloud ERP could allow finance teams to focus better on analytics, instead of worrying about transactions.
As the secular trend of physical-digital convergence keeps gaining traction, the cloud will help build a connected ecosystem of services and applications, driving enhanced product design and customer experience.
Tangible business value
Here are three examples of the demonstrable benefits companies can reap by moving their core ERP packages to the cloud:
- Integrate multiple ERP systems across different locations to streamline financial operations and consolidate balance sheet reconciliations.
- Adopt a cloud-based ERP solution, integrated with Salesforce, to standardize processes, increase operational efficiency, and create a single source of truth for order management, manufacturing, accounting, catalog management, and more.
- Reduce the risk of product theft by harnessing a cloud-based supply chain management system that helps accurately track shipments during any stage of transport.
LTI Enterprise on Cloud solutions
Based on the evolving enterprise cloud computing landscape, we have designed a comprehensive Enterprise on Cloud solution suite that enables the following:
- Simplify complex sales processes through integration across sales, CPQ and marketing
- Drive anytime, anywhere, any device customer acquisition and interaction
- Provide omni-channel support to customers
- Improve service profitability
Connected ERP systems
- Unlock value from your IT Investments
- Integrate with Social, Analytics and Mobile
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