According to a recent research report, small and medium sized companies will drive growth in the cloud enterprise resource planning (ERP) market over the next five years, focused around the banking, insurance and financial services sectors. Manufacturing will continue to hold a large portion of the cloud ERP market because of the process-driven nature of that industry.
Cloud-based ERP solutions offer small and medium sized businesses the same tools used by larger enterprises to monitor production, order processing and inventory management. It also allows for tracking resources like cash, raw materials, orders, and production capacity both within and outside a company’s walls.
So often, businesses who grow rapidly end up with a hodgepodge of systems to handle their finances, inventory, online ordering and more internal functions like customer databases. A cloud based ERP makes it easier to scale systems to grow with the company to have the features and functions you need when you need them rather than paying for more than you need and not utilize it.
A cloud-based solution allows business owners to:
- Reduce manual and spreadsheet-based processes by up to 70%
- See real-time revenues, expenditures, and cash balances
- Manage operations via dashboards and scorecards
- Save a substantial amount, in some cases 45% or more, in IT costs associated with maintaining, integrating and updating separate software applications
- Have 24/7, real-time access to data across the organization to guide business decisions
- Reduce financial close periods by 40% or more
- Increase speed of invoicing and reduce outstanding receivables
- Maintain 360 degree visibility around customers and operations
For small and medium sized business owners, this gain in efficiency can be a game changer. These owners are often covering multiple roles in the organization, making it easy to feel overwhelmed. This can stress the organization to a breaking point. Working with an ERP consultant, owners can define key performance indicators (KPIs) for their business and build a tailor-made solution to fit their needs.
For example, a common KPI category centers on financial management. Things that can be monitored include order process efficiency and costs, billing efficiency, and collection time for accounts receivable—all important items for a company’s success. By utilizing a cloud based ERP, the owner can have a handle on not only managing the business but also reporting out to investors and stakeholders of the company.
For more information on implementing a cloud based ERP solution in your business, contact us