Top 3 Challenges in Adopting Cloud ERP Solutions

PwC predicts that by 2016, investment in Cloud ERP solutions will more than double to $75 billion.

It comes as no surprise considering that SaaS ERP solutions offer plenty of advantages that allow companies to better serve the needs of their customers. Yet adopting the Cloud ERP comes with its challenges. The following outlines the major issues faced by companies when adopting Cloud ERP solutions.

 

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1. Choosing the Right Solution

When adopting a Cloud ERP, companies need to consider which system will fit their company the best. Carry out a feasibility study, and list a range of available options. Choose the most cost-effective and appropriate solution for your business from within that list. The following questions will help in choosing the right solution for your organization:

– Does the current office system offer a Cloud version? Migrating to a system which employees already know will ease the transition and potentially save money.

– Should our company invest in a Hybrid ERP? Hybrid ERP systems integrate cloud-based and legacy ERP applications. While ongoing costs for Hybrid ERP systems are often higher than traditional ERP systems, Hybrid ERPs save up to six times the amount of capital invested cumulatively over traditional ERP systems.

– Which architecture and licensing model would suit the company best? Each Cloud ERP offers a range of solutions available. Explore which package will make the most sense for your company.

– Will the solution fit the size of your company? Choose a package which fits the size of your business. There are many well-established ERP solutions with good industry functionality tailored for small, midsize, and large organizations.

2. User Onboarding and Training

Once you have chosen the most suitable Cloud ERP solution, employees must learn how to use it. Don’t forget to include this crucial step in the initial budget. Make sure to invest enough time and resources into user onboarding and training. This will lead to more confident and experienced employees, reduce frustration, and avoid crucial mistakes. Integrating the WalkMe online guidance platform accelerates the training process by providing contextual instructions as employees begin using the Cloud ERP.

 

3. Security

Migrating to a Cloud ERP can put a company’s information at risk. Protecting that information represents a crucial priority. Fortunately, Cloud ERP solutions offer a number of highly secure options. After all, government agencies also use Cloud ERP systems. Make sure that the Cloud ERP you choose meets industry security standards (including ISO27k) of the Cloud Services provision. Cloud platforms such as Amazon Web Services offer a higher degree of data security than you could enable in-house.

Preparing in advance for challenges in adopting a Cloud ERP solution will ensure a smooth and easy transition. Consider the common issues and how your company will meet those challenges before making a purchase. This will save time and resources while also allowing your company to tap into the advantages of the new Cloud ERP system as quickly as possible.

 

 

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Marissa Hart is the Lead Author & Editor of ERPeople. ERPeople is a blog focused on all Enterprise Resource Planning business management platforms. ERP can be used by a company to collect, store, manage, and interpret data from many business activities, including: Product planning, cost, manufacturing or service delivery, marketing, and sales.