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Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems

Businesses are changing the way they used to work. They are adapting Enterprise Resource Planning (ERP) systems to make their business processes integrated and streamlined. To begin with, on-premise ERP and cloud ERP are the two options available for them. Both have their own pros & cons. However, the discussion of the best suited one comes down to what your business requirements are. Go through the presentation below and know about them in detail:

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Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems

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  1. Benefits and Drawbacks of Cloud ERP v/s Traditional ERP Systems

  2. An Overview • Introduction • Types of ERPs available • Reasons for implementing ERP • Learn about Traditional ERP • Benefits & Drawbacks Of Traditional ERP • Learn about Cloud ERP • Benefits & Drawbacks Of Cloud ERP Systems • Which is better ? • Battle card (Traditional ERP v/s Cloud ERP) • Learn about BatchMaster ERP on Cloud

  3. 1 Introduction • Digital transformations are happening round the globe • Anticipating changing customer demands & strengthening your supply chain by taking the technical shift are the need of the hour • The new keys to success are – • Anticipating the needs • Acting on them faster • How to do that ?? • With an Intelligent Next-Gen ERP system to empower your business • The top three benefits gained from ERP are reduced process times, increased collaboration, and centralized enterprise-wide data. (TEC ERP Software Facts & Stats 2018)

  4. 2 Types of ERP available • Want to implement an ERP software ? • Look at the options available • - Traditional ERPs are implemented within organization , provide mature system functionality , and abilities of greater customization & integration. • - Cloud computing are implemented on Vendor’s Server, accessed using secured login through internet and a Remote Desktop connection providing real-time data access.

  5. 3 Reasons for implementing ERP

  6. 4 Learn about Traditional ERP Systems • A traditional ERP software, or on-premises ERP, has a database that resides on an onsite server and hardware. • Covers – Finances, supply chain, manufacturing, raw material procurement, marketing & sales, planning etc., • Generally housed on a company’s own servers and maintained by their IT staff, or an outside consultant. • Requires regular software updates and huge hardware investments to run them. • Traditional systems provide less cost savings, but also have few operational benefits, such as • - Having the data and computing of applications on premises • - Ability to monitor system performance or uptime with the same tools • - Better customized applications in house with no functionality change • - No blind trust on vendor for backup and recovery

  7. 5 On-premiseERP Statistics: • The global ERP software market is expected to reap $47 billion in revenue from 2017 to 2022 at a CAGR of 7% • (ERP Software Market 2018 Global Trends) • On-premise ERP to anticipate 57% grip on the industry by 2020. (Allied Market Research) • Manufacturers look for – • Ease of use - 50% • Functionality - 46% • Total cost of ownership – 43% • Lack of ERP software leads to - redundant data (35%), unaligned business systems (33%), and the inability to track business processes in real-time (28%) • (The Aberdeen Group)

  8. Benefits & Drawbacks Of Traditional ERP System 6 • Riskier upfront costs • Have to pay huge for hardwares and other IT costs - Few organizations may not be able to follow the stringent data security protocols

  9. Benefits & Drawbacks Of Traditional ERP System 7 - Delay in the implementation time and process - Heavy software updates due to customizations • Since it is hosted in the organization, organization have the full responsibility of its maintenance.

  10. 8 Learn about Cloud ERP • Cloud ERP is the one that is hosted on a cloud computing platform • It is a type of software as a service (SaaS) Model • Allows users to access software applications run on shared computing resources via Internet. • Cloud ERP, lowers upfront cost on hardware and software • Allows accessing data from anywhere •  Allows connecting multiple databases into one infrastructure • The computing resources are maintained in remote data centers dedicated to hosting various applications on multiple platforms.

  11. 9 Cloud Options available • Public Cloud • Software-as-a-Service, or SaaS, it resides in a data center and typically utilizes a multi-tenant architecture • This means, infrastructure and applications are being shared by multiple users • No matter where you are, and no matter what device you’re on, you can access your data and stay updated • Private Cloud • Could be created internally or externally • Internal clouds are housed within the enterprise, generally behind the firewall • External clouds involves contracting with an external data center to provide infrastructure • Data is shared within organizations but managed in a physical environment that’s is accessible only to your organization. • 3. Hybrid Cloud • - Utilizes a combination of private and public cloud

  12. 10 Cloud ERP Statistics • Cloud-based ERP market size will jump to $29 billion in 2019, & make an increase of $11 billion from 2016’s $18 billion. (Cloud ERP Market) • Enterprises may invest on average $3.5M on cloud apps, platforms, and services this year. • (2018 Cloud Computing Survey) • 76% of businesses either plan on transferring or have already moved to the cloud. • (The End of Technology Obsolescence, ERP Trends in 2018) • 30% of IT budgets are allocated to cloud computing, with the majority being SaaS (48%), IaaS (30%) & PaaS (21%). • (2018 Cloud Computing Survey) • Cloud-hosted ERP is cheaper than on-premise solutions by 30%. (The Case for Cloud-Based ERP)

  13. 11 Benefits & Drawbacks Of Cloud ERP - They are not as mature or tested compared to on-premise solutions - Although they promise to set strict data security standards, yet organizations may or may not have total peace of mind with this.

  14. 12 Benefits & Drawbacks Of Cloud ERP • Restrictions exist on the level of customizations • in terms of functionality, they are somewhat weaker • Short implementations are result of lesser customizations possible and fixed functionality available

  15. 13 Intelligent ERP systems • Use ML, cloud computing, advanced analytics tools built on a large curated data set to forecast, track, learn, route, analyze, predict, report, and manage business processes effectively. • Systems that learn, improve, and predict using these tool enables businesses to outperform both their status quo and their competition. • With Next-Gen Cloud ERP, Manufacturers enjoy: • Digital-age user experience • AI-powered automation • Next-generation business processes • 24*7 data availability and security • Provides new capabilities for everyone in the organization- top management, executive leaders, IT, finance, and other business lines • Connects Man, Machine and Processes • Provides better operational efficiency, greater responsiveness and superior quality

  16. 14 Modern Cloud ERP • Modern Cloud ERP : The next-gen in Cloud Technology- • Provides industry-specific ERP • A beautiful user experience • Adopts open architecture • Employs various synchronisationcapabilities • Tighter security protocols • Seamless integration tools  • Offers AI, Mobility, Robotics, Block Chain, and more

  17. 15 Hybrid ERP: • Hybrid ERP combines the public Cloud and on-premise operating models. • Provides on-premise functionality & agile cloud applications to address both unique existing business processes and rapidly-evolving, high-impact cloud technology • Organizations may operate their business-critical applications, such as Manufacturing, Finances, etc. under their own control and in their own data centers • Is attractive as has costs that are intermediate between on-premises solutions and cloud-based solutions • A company can adopt cloud applications while also retaining its on-site ERP resources.  • Greater mobility, ease of installation & outside support are some of the benefits that make businesses choose hybrid ERP • Boast much lesser training costs

  18. 17 Which is better ? • On the Basis of Deployment : •  Cloud-based software is hosted on the vendor’s servers and accessed through a web browser • On-premise software is installed locally, on a company’s own computers and servers • On the Basis of Pricing : • Cloud software is priced under a monthly /annual subscription, with additional recurring fees for support, training and updates • On-premise software is generally priced a one-time perpetual license fee (based on organization size/users), there are recurring fees for support, training and updates • III. On the Basis of Expenditure : • On premise systems are a capital expenditure (one large investment upfront) • Cloud-based systems, are an operating expenditure(an additional overhead cost the organization will continue to pay. The amount for companies with a large number of licenses may at times be more than the on-premise ERP.) • III. On the Basis of Expenditure : • On-premise can be customized to your business flow, specific industry requirements and business needs • - Cloud ERPs provide fixed functionalities with very less scope of customization

  19. 18 Battle card

  20. 19 Learn About BatchMaster ERP on Cloud • A powerful, scalable and affordable software built for the formula & recipe based manufacturers •  Ready-to-use, affordable yet simple SAAS based model that lets you manage your business anywhere anytime • Handles your entire value chain from R&D, formulation, planning, procurement to inventory, production, sales, finances, quality and compliance efficiently • Equipped with new features, functionality, and technologies, we help you evolve your business and take it to a greater height • Explore the benefits of BatchMaster ERP on cloud, •  - Smart and adaptable; • Get a tap on latest innovations at your fingertips with automatic updates • Fast and affordable: • Get the easiest way to streamline your business process in pocket-friendly manner • Secure and reliable: • From system security to staying compliant, security is on priority. Your data is hosted on world-class servers.

  21. How to reach us ? • Want to stay ahead of the technology curve and improve time-to-market ? • BatchMasterERP on cloud: A true process manufacturing software is the pathway • Reach us on – http://batchmaster.co.in and know our product’s capabilities • Talk to us : sales@batchmaster.com and we’ll be there to solve all your queries • We are social too. Follow us on Facebook, Twitter and LinkedIn.

  22. About BatchMaster • 30+ years of experience • ERP solutions for small to mid-sized industries • SAP B1 and Microsoft certified solution • Over 40,000 users worldwide • Headquartered in California, with footprints across the world • A global presence with offices in 3 continents- North America, Australia, and Asia • 7 offices round the globe • Available in 3 languages- English, Chinese, and Spanish • Original developer of formulation system in ERP • Consistent record of never exceeding implementation time of 350 to 500 hours

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