How Cloud ERP Enables Mid-Size Businesses to Foster Innovation?

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How Cloud ERP Enables Mid-Size Businesses to Foster Innovation?

Though you would not find the term “Business” synonymous with “Growth” and “Innovation” in any dictionary, this is a fact that all would agree to, in

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Though you would not find the term “Business” synonymous with “Growth” and “Innovation” in any dictionary, this is a fact that all would agree to, in practicality. No matter what kind or size of the business you are involved in, it can’t be called a business if it is not for profits. And, a profitable business is possible when it is innovative enough to yield growth.

“Adopting Cloud ERP technology will enable organizations to mitigate risks and capitalize on opportunities”Fingent, an enterprise software solution provider. If yours is a Mid-Size business, Cloud ERP is redefining the way business is operated.

So, does it mean being innovative is all that is necessary to make your business successful?

Well, it is both YES and NO.

Yes, because until and unless you have a product or service which is unique from your competitors, the chances of its success and beating the competition are generally slim.

No, because a business shouldn’t only be innovative in terms of its products or services but also in adapting the latest technologies.

As almost every type of business in today’s time somehow depends on software for managing its operations, it is important to acclimatize to new technologies – that too, timely. This becomes even more important for business taking a step forward from being a start-up and is eyeing on becoming a multifaceted organization, i.e. a mid-size business.

One of the software that plays a major role in supporting innovation for mid-size businesses is Cloud-based ERP (Enterprise Resource Planning). Not only does this software open doors for fostering innovation, but also it prepares a business for facing new competitive challenges.

Cloud ERP Propels Innovation for Mid-Size Businesses in Many Ways

To enable innovation and be adaptive to changing business models, mid-size businesses are switching from the legacy ERP systems to the Cloud-based ERPs. This move has proven to be a boon for them in a lot of ways.

1. Enabled Flexibility and Innovations

To create innovative products and services, a company always needs to look for new business models. The implementation of Cloud ERPs helped as a great tool in achieving that. With the software, manufacturing companies involved in selling their products to the end-user can provide subscription-based services as well. This wasn’t possible for them with legacy ERPs as they are infamous for their rigidity and inflexibility. The implementation of Cloud ERPs not only allowed the efficient management of customers, revenue and resources but also enabled businesses to be creative and innovative in finding new ways to expand.

2. Integration and Availability

For the companies having a custom ERP system, it is not possible to completely replace the current system with a cloud ERP right away. This is where the integration points and APIs (Application Programming Interfaces) of Cloud ERPs come in handy. These aspects of the online software allow the free flow of data between its platform and system of record (SOR) and also enables quick engagement of new staff when acquiring or partnering with a company.

In the case of on-premise ERP, installation of new hardware and software is required along with the training sessions. With cloud ERP, access to the data can be given to employees through their desktop or mobile browser with just a one-time signup process. In addition to making the data accessibility easier, the intuitive browser-based app minimizes the training to just understanding the business operations rather than memorizing the menu and toolsets.

3. Decreased Cost

The more efficient a company is, the more cost-saving it can expect. The cost is a vital instrument in deciding the allocation of budget for ERP.  Most of the SMEs already running with legacy ERPs usually spend up to 60–70 per cent of their IT budget on looking after the hardware, software and employees.

The cloud-based ERP here can help a company cut on hardware and software management significantly as everything is maintained and kept in check by the service provider. The company only needs to pay for the subscription and nothing else. While buying an ERP once may seem more feasible with limited operations, it focuses on growth and innovations, cloud-based ERP sounds a better option to consider its flexibility, scalability and affordability.

4. Synchronization Supports Innovation

A legacy ERP is commonly known to work in a rigid format such as managing transactions during the day and reporting them by night. This lack of synchronization between operations and reporting has been a big obstruction in gaining the customers’ loyalty. For acknowledging the request or feedback of a customer, there is a systematic procedure that can’t be modified in the legacy software.

With cloud ERP, a business can expect real-time synchronization between operations regardless of the locations as all the data gets updated in real-time on the cloud.

So, if a pricing decision is taken for a customer, it can be processed within a few minutes. This real-time synchronization allows an organization to easily innovate the ways of operations and stay at the top of the business.

Also Read – Helping Businesses Pick the Best ERP 

5. Mobility Brings Productivity

The availability of cloud ERP as a mobile application itself is a unique feature that enables a business to have more options of being innovative and productive compared to the legacy ERPs. As the majority of time mobile users spend on accessing applications, it is an excellent medium to connect with customers and make the most of the platform to create more innovative ways for business growth.

With a mobile solution for cloud-ERP, a company can expand not only its user-base but also ensure the synchronization of operations among employees of different departments, thus saving time and utilizing it to engage the workforce for inventive activities.

6. Efficient Management of Resources

A mid-size business not using a cloud-based ERP usually have to manage their business operations with manual checking and tallying of resources. Not only is the manual process time-taking, but it sometimes may result in miscalculations. And, where a company must spend time finding creative ways to grow business, it gets consumed in rectifying the errors.

This is where the role of cloud ERP is considered crucial. Not only does this online software automate resource management and makes it efficient, but also it helps in saving a huge amount of time.

The introduction of ERP software helps the business in managing their manufacturing, supply chain, reporting, operations, finances, inventory and other aspects, while the cloud-based ERPs have taken the potential of the software to the next level by providing opportunities not only to manage the various operations but also to help companies to look for innovative ways to grow their businesses.

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