How to leverage Enterprise Resource Planning (ERP) data so you can analyze and improve customer churn for your business....
4 Answers to your Questions about Cloud ERP / NetSuite
Why cloud solutions, How much is an ERP, Which one is for me? This blog will shed some light on these questions, and more.
In our last blog, we looked at some of the basics of how cloud ERP works and how you can apply it to your company’s financial strategies. The feedback was great, and we took down some of the new inquiries we got. This time around, we’re going to answer your questions in regards to cost, the benefits of the cloud, why you keep hearing about Oracle + NetSuite when “Enterprise Resource Planning” is mentioned, and why to choose one back-office solution over another. Let’s start off with the basics:
1. What does a cloud ERP really cost?
Gartner research defines total cost of ownership (TCO) as: “a comprehensive assessment of information technology (IT) or other costs across enterprise boundaries over time. For IT, TCO includes hardware and software acquisition, management and support, communications, end-user expenses and the opportunity cost of downtime, training and other productivity losses.”
When considering a cloud ERP system, you should consider more than the original cost. Focus on the overall lifecycle cost of ownership, which will include things like: Up-front cost, software licensing, implementation, integration with other systems, specialized customization for specific needs – then, keep in mind that you need to consider support and maintenance costs well. ERP vendors also charge an annual maintenance fee, which can rise up to about 20% of the purchase price. This is a positive, as the reason for that fee is continuous support from your vendor, bug fixes, additional services, and vital system updates so that your ERP is always, always up to date!
The upgrade to a cloud ERP system is a tremendous project, and doesn’t come cheap. That’s why it’s important to have a consultation with a prospective partner and discuss what costs will be unique to your company’s implementation, and the upkeep thereafter. But no one ever said success was cheap, and that’s why today’s leading industries are using ERP. When you consider the long-term benefits, like reduced workloads for your finance team, improved data management processes, and easy accessibility of overviews for all your company operations – it’s a sound investment. So, when you take the fees into consideration, also keep in mind that you’re working to guarantee a sustainable growth for the future of your business.
2. Why use cloud based solutions?
If you look at some of the leading enterprises in today’s world (Google, Amazon, Apple, etc.), you’ll notice they’re all up in the cloud. According to a recent article by Forbes, out of “1,800 people evenly split between IT, Line-of-Business and DevOps from enterprises worldwide”, 52% of them had already upgraded to the cloud within their company with an estimate of another 25% joining their ranks in the next two years!
Reference Link: https://www.forbes.com/sites/forbestechcouncil
So it’s no surprise that cloud ERP is rising in popularity and demand, after all, let’s look at some of the benefits it has for today’s modern business landscape:
- Wherein on-site ERP technology can do the basic functions you need, it is rapidly becoming antiquated and needlessly inefficient in terms of scalability over time. With an on-site system, you need a rotating team of highly trained IT staff for maintenance and updates. Whereas with the cloud, it’s all done remotely and regularly.
- With a cloud-based solution, you also get the benefit of having all of your company data available to you from anywhere in the world – with real-time updates. Information that you need right now, at the tip of your fingertips no matter where you are.
- Cutting-edge cloud technology also gives you the leading edge over some of your competitors, as many of your daily processes are automated to flow easily from department to department. Less paperwork, less miscommunication between teams, and less mistakes. You want to streamline your business workflow, and that’s exactly what a cloud solution is designed for.
- You can be confident that all of your data is backed up with high-security measures and a disaster recovery plan.
- Forget about attacks on your digital server – because your processes are all stored in the cloud and protected.
3. What is the best cloud ERP for my company?
Picking the right system can be a tricky process if you don’t take the necessary steps beforehand. Companies making the upgrade to cloud ERP need to consider their growth objectives as a starting point.
Before you look at different ERP providers, you should be asking yourself (and your team) these 3 vital questions:
- Where do I want to be in three, or even five years from now?
- Will the cloud solutions I choose today develop the capabilities and feature sets I need?
- Will the tools and systems grow with me, and when I need them to?
If you plan on big growth in the near or distant future, your ERP strategy should be oriented towards that. Some ERP solutions are stiff, meant for the now. The right ERP for a company that plans on expanding, or that anticipates a growing staff with increasing customer relationships, should opt for a scalable system. When you have a scalable ERP, you will be able to add new customizations and integrations as your company undergoes numerous changes over the span of years, so that your system is always best adapted towards your current and shifting business needs.
4. Why choose Oracle + NetSuite?
- Facilitated processes for rapid timelines;
- User-friendly software;
- Total integration with your current operations.
By choosing NetSuite’s powerful cloud ERP, you get one of the best back-office backbones in the market, an out-of-the-box CRM, and a fully customizable infrastructure that can suit the way you do business. Even more, if you’re eligible for their SuiteSuccess rapid implementation design, you can get it all in 100 days.
Find Out if NetSuite is the Right ERP