Enterprise Resource Planning – Why ERP should now come from the cloud kiến thức mới năm 2023

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Outdated ERP systems that do not yet support any cloud functionalities play a special role. Applications and services from the cloud offer a variety of well-known advantages: greater flexibility and scalability, better predictability of costs and lower capital expenditure, improved compliance and IT security and, last but not least, support for remote work. However, to date, many companies have failed to move their back-office applications, such as enterprise resource planning (ERP), to the cloud.
A cloud-based IT environment is a prerequisite for supporting work at distributed locations and from mobile devices. Only with a well thought-out cloud strategy can companies provide their employees with the tools and IT environment they need to work outside of the office. It should be noted that in most cases the aim is not to completely switch to home office, but rather hybrid work models that combine the workplace in the company with mobile or remote work.
New working models in the corona pandemic. A recent study by Unit4 in the summer of 2020 examined the effects of the Covid-19 pandemic on the use of cloud-based ERP systems. New working models are of particular importance here. In the survey, 75 percent of the decision-makers surveyed in European companies said that between 51 and 100 percent of their employees work remotely, i.e. in the home office. 84 percent confirmed that remote work in their company had increased significantly due to the pandemic. Additionally, 78 percent of the decision makers surveyed agreed that the shift to remote working would accelerate the shift to cloud applications. For a majority of 74 percent, cloud-based ERP is the prerequisite for efficient remote working.
Challenges in Adopting Cloud ERP.   There are numerous benefits associated with moving ERP applications to the cloud. This is also confirmed by the results of the Unit4 survey: 48 percent of decision-makers named easier remote working, 36 percent increased scalability and 35 percent increased productivity and lower operating costs as the most important advantages of a cloud-based ERP system. Improved employee and customer experiences, reduced trust in certain vendors, and data visibility and governance were also cited.

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Given these favorable starting conditions, the question naturally arises as to why many companies have not yet switched to cloud ERP? The decision-makers surveyed named the complex design of traditional systems and possible security gaps as the greatest obstacles to the implementation of cloud-based ERP systems. Despite this, 56 percent stated that the pandemic has made them more inclined to implement cloud-based applications. As the study also shows, the provision of ERP systems from the cloud depends largely on the respective application. For some applications such as HR, IT helpdesk, CRM or e-commerce, the on-premises share is only 30 to 39 percent, with the majority already using hosting services such as SaaS, private cloud or public cloud.
In the areas of accounting, finance, risk management, procurement or supply chain management, more than 50 percent of those surveyed still use on-premises systems. However, this also shows that companies prefer to rely on their own IT infrastructure for applications relevant to security or data protection.
Cloud ERP not only offers technological advantages.The results of the Unit4 study show that corporate management levels are increasingly unable to ignore the advantages of cloud-based ERP. Not least because cloud services are becoming more widespread and are slowly but surely becoming the norm. The technical requirements of mobile work and home office also act as a particle accelerator for the increasing spread of cloud applications and services. Because after the end of the corona pandemic, most expect that the new remote working models will be retained. For the successful implementation of the digital transformation, companies need greater productivity and scalability of their IT infrastructure. Because scaling ERP systems on-premises is usually labor-intensive and potentially risky.
But higher operating costs also have an impact on legacy-based ERP systems. After all, costs arise not only from software licenses, maintenance and support, the necessary IT infrastructure with servers, storage and backup, IT resources for operation and employee training, but also from downtime and disaster recovery as well as security and compliance risks. With the migration to a cloud-based ERP system, such as Unit4 ERPx with integrated ERP, HCM and FP&A, companies can not only reduce the costs for the IT systems, they also benefit from the automated operation of the ERP system including updates. At the same time, they can reduce their Capex expenses for IT, i.e. the expenses that can be written off, and shift them towards Opex expenses, which is particularly useful in years of strong growth.
The advantages of cloud ERP mentioned are also convincing more and more people in charge in the company. According to the Unit4 study, 84 percent of respondents want to increase the use of cloud services in general, with ERP applications being a big part of that. The pandemic has accelerated the long-established trend towards cloud use, which will prompt many companies to bring forward their cloud migration plans. By moving the ERP system to the cloud, they are able to meet the demands of remote work while improving their competitiveness.