The Role of ERP in Digital Transformation

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An effective Digital Transformation aims to have a consolidated view of operations, processes, data, and people across an entire organization.  It enables businesses to make sound decisions and optimize resources at every stage in the value stream.  To achieve a successful Digital Transformation, enterprises need to adopt a Cloud based ERP system as the first step to attain a wide-scope transformation that creates a competitive advantage and value. According to an IT survey, 53 % of IT decision-makers said Cloud ERP is a worthwhile investment for organizations, and 70% of enterprises are in the process of migrating ERP applications to the Cloud.  This article looks at the role of ERP in Digital Transformation and why enterprises should move to a Cloud platform. Read on to learn more.

What Is Digital Transformation?

Digital Transformation is adopting digital capabilities to processes, assets, and resources to improve efficiency, uncover new monetization opportunities, and manage risk.  Digital Transformation is evolving how enterprises innovate, interact, and gain valuable insights. Transformative Cloud-Based technologies drive innovations by enabling enterprises to embrace and sustain state-of-the-art technologies.

ERP and Cloud

Modern Cloud-Based ERP systems integrate enterprise applications to offer advanced collaboration tools, analytics, and functionality.  Not too long ago, enterprises were still investing in on-premises ERP deployment plans that require expensive and extensive hardware and a competent IT workforce to maintain and implement the systems. Enterprises are now adopting Cloud-Based technology at a rapid pace, eliminating the need for expensive server farms and a full IT staff to support that infrastructure.  An ERP software solution running on a Cloud platform enhances enterprise productivity and frees up time to focus on core functions while lowering investment and IT costs. With Cloud technology, enterprises can attain better decision-making capacity, accelerate growth, and enhance collaboration and employee efficiency. The Cloud offers enterprises the needed speed and scale for growth.

The Role of ERP in Digital Transformation

A Cloud-Based ERP solution is at the heart of a Digital Transformation, and every step of the Digital Transformation process is supported through ERP.  Enterprise resource planning (ERP) software deployed in the Cloud allows enterprises to have a unified view of business operations and supports remote workers more easily. It enables the remote access of resources while saving time and effort by consolidating applications and data.  Cloud-Based ERP systems make it easier to integrate with modern technologies like Machine Learning, AI, and Big Data to scrutinize enterprise operations and address any loopholes promptly. Without an effective Cloud platform, these modern technologies will not work effectively to deliver and meet the set expectations.

Here are 4 reasons why successful companies are moving towards a Digital Transformation, starting with a Cloud-Based ERP system.

1.    Low Infrastructure Cost

A Cloud-Based ERP deployment is typically a subscription-based SaaS service, however many vendors are offering a wide array of other options, while still deploying in the Cloud.  The SaaS framework allows enterprises to sign up for a monthly or annual subscription. Unlike an on-premises deployment, enterprises don’t need to invest in IT hardware and workforce. A Cloud-Based ERP deployment enables enterprises to implement with less investment all while saving on human resources. Though a lot of vendors have introduced flexible pricing in the last several years, ERP packages continue to be a large investment. The high costs alone could make it seem improbable that the program will wind up saving your company money, but when you get past the sticker shock, it is easy to see how a Cloud-Based ERP solution can return an attractive ROI.

To start with, a Cloud-Based ERP solution aligns quite a lot of the programs which may presently be fragmented in your group. From production and distribution to financials, your staff can have the flexibility to access applications and data from a centralized system.  By consolidating applications and data you help your employees use their time more effectively.  With a Cloud-Based ERP solution, users do not need to in look in multiple areas for data across multiple programs.

2.    Technology Integration

Cloud-Based ERP systems offer a high level of maturity by allowing the integration of modern technologies such as IoT, AI, Machine Learning, and automation tools to meet unique business needs.  The rise of public Cloud computing has enabled enterprises to use a wide assortment of highly scalable resources and services on demand rather than constructing and maintaining them in-house.

In some organizations, the arrival of these diverse resources and services has created IT silos as administrators struggle to manage and maintain each different Cloud resource or data set. Without Cloud integration, IT administrators need to perform each integration task separately and manually, a process that is time-consuming and increases the opportunity for error.  It is possible for an organization to build a custom Cloud integration platform, though this option can be complex and costly. Instead, many organizations choose a third-party integration tool set, or deploy an integration platform as a service (iPaaS).

3.    Data Accuracy

One primary function of ERP is to organize information (data) in a way that each department can access that information to make educated management decisions.  In a digital environment this means that all systems can communicate quickly and effectively, so businesses and customers get the most out of the digital network. Companies need accurate information and for manufacturers and distributors inaccurate data could mean making costly mistakes in business decisions. Data accuracy is no longer “just” a component of data quality, it is quite literally the most important characteristic that makes data usable and purposeful, and a Cloud-Based ERP solution ensures accurate data is being shared across the organization.  Data duplicity or redundancy can heavily impact the enterprise’s bottom line and productivity, but a Cloud-Based ERP system enables enterprises to maintain good data hygiene.

4.    Mobil Capability

Part of a Digital Transformation will provide businesses with mobile capability to access applications anytime, from anywhere at any time with native mobile apps for iOS and Android.  Mobil capability will give users the ability to engage using a web browser on any device for applications like CRM, sales orders, timecards, and much more.  Staying connected in real time and having access to the latest information is an important step towards a Digital Transformation.   Also, the mobile component will allow the user to leverage unique capabilities, such as camera or fingerprint readers.  In addition, a fully functional mobile application will minimize data entry and enable automated synchronization. 

5.    Ease of Collaboration

Collaboration can be a challenge for any company, but when a business deploys a Cloud-Based ERP system, it can enhance collaboration.  A Digital Transformation will incorporate a modern integration strategy to seamlessly connect and communicate with the other systems your company relies on and enable collaboration across teams.  As stated earlier, accurate data is an essential component of an ERP system, and the ability to share that data across different departments is essential.  Furthermore, a centralized database, shared via a Cloud-Based application minimizes errors since all staff members have access to the company-wide information or “one version of the truth”. 


Do you want to adopt Cloud ERP and transform your business operations? Do you want to partner with a reputable service provider to optimize your operations and grow your business? Request a free demo or schedule a call. We have comprehensive solutions to streamline your enterprise and generate more revenue.  Contact or connect with us on Facebook, YouTube, Twitter, or LinkedIn. Our agile team is on standby.

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