We have discussed the differences between on-premise software versus software that lies in the cloud on our blog before. There are pros and cons to using both. It truthfully all boils down to personal preference and which style works best for your company culture. We don’t want to push or pull you in any specific direction when it comes to the type of ERP software you are looking for, but when using software you want to get the most bang for your buck, so we want to give you as much advice as possible.
What are some of the things that a company needs most from its employees? Productivity is probably very high on that list. Goals and deadlines have to be met on a daily basis from those in high executive positions to those just beginning their professional careers. Reaching those goals ultimately helps with overall company revenue, which is also important to a company. Everyone acts as a small part to create its whole. Enterprise resource planning software helps to accomplish those goals too. But just how? Continue reading to learn.
What is ERP?
For those who may not be familiar with ERP software, let us give a quick overview.
Enterprise resource planning, is a software used by companies to best manage daily business activities such as accounting, project management and manufacturing. ERP ties together business processes and enables the flow of data between them. The software eliminates the duplication of data, providing a single source of truth.
Quick overview of on-premise vs in the cloud
On-premise ERP: This version of the software is installed locally, on a company’s server. The software runs from your company hardware and is managed internally, typically through the IT department. There is an implementation period, which comes with additional costs and training sessions depending on the vendor that your business decides to work with. On-premise software doesn’t allow you the ability to access it when you are away from the office, so no Wi-Fi access and web browsers apply here.
Cloud ERP: With cloud ERP software, there is no need for IT infrastructure to be installed at your business. Instead of in house installation, businesses can deploy and implement the cloud solution, which avoids typical implementation. The software is hosted on the vendor’s servers, which is as safe and secure as on-premise and typically tends to be cheaper because the implementation process doesn’t take place. Aside from where the software is hosted, the biggest difference is that cloud ERP software can be accessed through a web browser. All you need is Wi-Fi.
Increasing Employee Productivity Through the Cloud
Productivity can be increased through cloud services for multiple reasons. With an easier implementation process, there is less downtime waiting for the system to be up and running. Employees are able to begin learning the system faster. This can also be beneficial if your business has multiple offices and a larger number of employees. With cloud services having the ability to be used anywhere, so long as you have internet access, also increases the possibility for more productivity. That highlights the downside of using on-premise versus the cloud is that once you leave the office for the day, there is no chance of you being able to get back into your enterprise resource planning software until the next work day, since the software is all in house.
The small advantage that cloud ERP has can benefit both a company and its employees. How? Companies are able to meet their goals because employees have convenient and unlimited access to the enterprise software.
Can ERP Help a Company Earn More?
In terms of boosting a company’s profit, there may be a chance in seeing a positive change thanks to the cloud. Aside from the flexibility that cloud ERP allows employees, they have access to all of the information it contains, including customer and lead contacts right at their browser. They are able to conduct business outside of the office, creating the potential to close more deals and collaborate with others, which can ultimately help increase company revenue.
The type of enterprise resource planning software is truly based on your personal preference and what works best with your company. There are pros and cons to having either on-premise or cloud services. However, there may be fiscal and productivity benefits in having your software operate from the cloud.