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Which is more efficient, cloud or conventional ERP?
Lukman •
17-07-2023 •
1398 Viewer
•
SAP Business One
Nowadays, many companies use software to improve the efficiency of their business processes. One of the most well-known is Enterprise Resource Planning (ERP). ERP is a software that helps in managing various aspects of a business, including sales, production, finance, human resources, and so on. There are various types of ERP software, including Cloud ERP and Conventional ERP. One of them is a conventional on-premise ERP system that has been widely used by various industries. Recently, cloud-based ERP systems are also gaining popularity.
Conventional ERP
Conventional ERP allows for multiple customizations, whereas cloud-based ERP provides only limited customization. Conventional ERP implementation involves a lot of investment in terms of hardware, software, as well as IT resources such as system administrators, network engineers, data input operators, and database administrators, among others.
In addition, regular maintenance and upgrade costs are also required. On the other hand, cloud-based ERP requires simpler implementation through client software that can be accessed through an internet browser with minimal system requirements.
ERP Cloud
Cloud-based ERP is a favorable option when companies have budget constraints to invest in the initial implementation. One of the necessary investments in the case of cloud-based ERP is a workstation for data input and a secure internet connection with high speed.
The local workstation will connect to the web-based server via internet connection to access the data that has been processed by the server and send data to be processed and stored by the server. Any software or hardware development is done on the server side without affecting the end user or client.
The software offered by Sistem Anugrah Prima also offers the most complete and integrated cloud-based ERP solution to improve the efficiency and productivity of various business operations, such as managing HR, accounting, taxation, benefits, communications, and customer relations.
Advantages of Cloud ERP
Reduce Dependency
There are many advantages in using cloud-based ERP software that can be obtained by companies. The first advantage is reducing dependence on IT staff. As is well known, many companies are still implementing conventional systems.
With this system, companies need to carry out software maintenance and updates regularly. No wonder the company has to spend significant costs to meet the needs of IT staff.
However, by using cloud-based ERP software, companies do not need to worry because they rely on cloud infrastructure and do not depend on IT staff on the same scale. Even if it is needed, the number of staff required becomes less so that the company can reduce costs incurred.
Lower Cost
Another advantage of using ERP software is the more affordable cost. Cloud-based ERP software is more economical than conventional software. You don't need to spend money on buying and operating server hardware.
Conventional ERP software requires additional costs for maintenance, troubleshooting, and complementary software. In addition, you also have to pay for updates and customizations. In contrast, cloud-based ERP systems are managed by the service provider, so you don't have to take care of those maintenance aspects.
In terms of manpower, software updates on conventional ERP systems take quite a long time, as they need to be adapted to the latest ERP system and pre-existing systems. However, in a cloud-based system, updates are easier to do because they are done regularly by the service provider.
More Flexible
Another advantage of using cloud-based ERP software is greater flexibility. You can monitor various business branches spread across different regions anytime and anywhere. In fact, you can access them through mobile devices or computers connected to the internet.
All parties can connect, even if they are in different locations. You can communicate and make business decisions without having to physically meet. In addition, you can easily create various reports that are centralized and more efficient.
Customized Business Needs
Another advantage of using cloud-based ERP software is its ability to be customized to your business needs. Cloud-based ERP can be adapted according to the needs and scale of your company.
For example, as your company grows, you will need an ERP that can keep up with that growth. The advantage is that cloud-based ERP can be customized according to the needs and scale of your company.
