Blogs

If you decide to move your business to a new cloud ERP software or adopt this option for the first time, understanding precisely what it brings to the table is a crucial first step. Without knowing what benefits to expect, you may miss the opportunity to improve your business operations and gain a competitive advantage.

However, when you’re clear on what these solutions offer, you’ll be more empowered to choose your cloud ERP software carefully. This way, you know you’re starting off on the right foot and won’t need to make the switch again down the road. 

To help you make an informed decision, this article will cover everything you need to know about cloud ERP software and its advantages.

What is Cloud ERP Software?

Cloud ERP (Enterprise Resource Planning) software is a business management solution that helps companies integrate their core operations into one central system.

These operations include:

• Accounting
• Supply chain management
• Inventory management
• Human resources

This cloud-based software stores all data on a secure online server. Users can then access it from anywhere and at any time with an internet connection. 

The result? Cloud ERP solutions are redefining how businesses operate. 

Don’t miss this article next: 31 Questions You Should Ask Potential ERP Providers.

Why Cloud ERP Stands Out

Gone are the days of cumbersome, on-premise ERP systems, notoriously expensive but also challenging to maintain and upgrade. Enter cloud ERP—the modern, agile solution designed to meet the dynamic needs of businesses, from small enterprises to large corporations. 

But exactly how do these solutions differ from their traditional counterparts?

The main difference is in the delivery model. On-premise ERP systems are installed and managed on a company’s hardware and servers. Managing the system requires significant upfront costs, ongoing maintenance fees, and IT resources. 

On the other hand, cloud ERP solutions are hosted by a third-party provider and accessed through the Internet. Companies pay a subscription fee for the software; the provider handles maintenance and updates. This model provides businesses with more flexibility, scalability, and cost-effectiveness.

If you plan to implement a new cloud ERP solution, read this first: Three Criteria for a Successful Cloud Finance Implementation.

Key Benefits of Cloud ERP Solutions

So, we know that cloud ERP is a more agile and cost-effective option, but let’s dig even deeper into why your organization should make this switch.

Enhanced Flexibility

The ability to access your business data and manage operations from anywhere in the world transforms how businesses function, promoting remote work along with operational efficiency.

Cost Savings

By transferring the IT burden to the cloud, businesses significantly reduce hardware, maintenance, and personnel costs. In turn, state-of-the-art enterprise resource planning software is more accessible than ever.

Scalability

Cloud ERP systems adjust to your business’s growing or fluctuating demands. As such, you will have the right resources exactly when needed.

Improved Collaboration and Efficiency

Real-time data sharing and collaboration tools within cloud ERP solutions remove operational silos. This boosts productivity across all levels of the organization.

Enhanced Security

With robust security protocols in place, including regular updates and data encryption, cloud ERP providers ensure your sensitive business data stays secure against cyber threats.

Access to Advanced Features and Upgrades

Cloud-based ERP positions your business at the forefront of innovation, offering access to the latest features and technology without further investments in IT infrastructure.

Disaster Recovery and Business Continuity

Cloud ERP regularly backs up your business data so it can be quickly restored. This minimizes downtime and ensures business continuity under any circumstances.

Cloud ERP Benefits: A Case Study 

To better illustrate the real-world benefits of cloud ERP, let’s take a deep dive into a case study exploring the transformative journey of Swindon College, facilitated by Xledger’s cloud ERP solution.

Swindon College: A Transformative Digital Journey with Xledger

Founded in 1843, Swindon College has been a stalwart in providing higher and vocational education, catering to students’ evolving needs for nearly two centuries. However, as the educational landscape shifted toward digitalization, Swindon College faced significant hurdles with its outdated ERP system. This system incurred high costs and hindered its digital transformation efforts due to its lack of flexibility and efficiency.

The Challenges of On-Premise ERP System

Swindon College’s existing on-premise ERP system came with a number of challenges, many of which may be familiar to your business.

1. Archaic Elements: The on-premise solution harbored outdated components, failing to keep pace with modern technological advancements.
2. Excessively High Development Costs: The costs of maintaining and updating their current provider’s system were prohibitive, stretching the Swindon College’s budget thin.
3. Need for Web-Based Access: In an era where connectivity is paramount, Swindon College required a solution that could be accessed via web browsers, ensuring seamless accessibility from anywhere.
4. Reliability and Continuity: The absence of a reliable, always-on WIFI connection with backups threatened the continuity of service.
5. Complex Workflow Processes: The ERP system’s convoluted workflow processes necessitated constant intervention from IT specialists, impeding operational efficiency.
6. Manual Tasks: These tasks within the finance team consumed valuable time and resources, diverting focus from more strategic initiatives.
7. Inflexible System: The existing ERP system lacked flexibility—custom installations were cumbersome and time-consuming.
8. Outdated Interface: An antiquated interface added to the user experience woes, hindering productivity and user adoption.

Our Strategy

In 2015, Swindon College turned to Xledger to address these challenges. We gave them a cost-effective platform with no monthly tie-ins and quarterly vendor-side updates. We meticulously planned the onboarding process to facilitate a seamless transition. 

Our strategic approach included:

1. Dedicated Account Manager: Swindon College benefited from having a single point of contact for clear communication and personalized support throughout the implementation process.
2. Comprehensive Migration Plan: A robust migration plan was devised, meticulously outlining the steps needed to ensure a smooth transition to the new system.
3. Expert Consultation and Project Management: We assigned a consultant and project manager to oversee the implementation so the college’s unique requirements were met and expectations exceeded.

Our Solution

With Xledger’s cloud ERP solution, Swindon College experienced a decisive shift in its digital operations. 

Key features and benefits of the solution included:

1. Cloud Deployment: Xledger’s cloud-based system provided Swindon College with unparalleled flexibility and scalability for seamless access to vital data and resources from any location.
2. Agile Forecasting: The solution gives them an agile forecasting system with intuitive navigation, real-time reporting, and analytics.
3. Automated Banking and Accounting: Manual banking and accounting tasks were automated, reducing the burden on the finance team.
4. Enhanced Functionality: Xledger’s cloud ERP solution offers additional planning functionality, further enhancing Swindon College’s ability to forecast and strategize effectively.
5. Continuous Support and Development: Our team provided ongoing support and development to be sure the solution evolved in tandem with the college’s changing needs.
6. Project Accounting: Including project accounting functionality helped Swindon College manage and track project finances with precision and ease.
7. User-Friendly Interface: With an intuitive user interface, Xledger’s solution was embraced by staff across the college.

The partnership between Swindon College and Xledger exemplifies the transformative power of cloud ERP solutions in the education sector. But its power benefits virtually any industry or organization. 

Cloud ERP FAQs

Here are some of the most common questions about cloud ERP software.

What does ERP stand for?

ERP stands for Enterprise Resource Planning. It is a type of software that integrates core business processes (including finance, HR, and the management of inventory, supply chains, and customer relationships) into a single system.

What is cloud ERP?

Cloud ERP is a modern solution that allows businesses to manage their operations and access insights, all hosted on cloud infrastructure. Unlike traditional on-premises ERP systems, cloud ERP is accessible via the Internet.

Is cloud ERP better?

For most businesses, yes. Cloud ERP software offers numerous advantages over traditional on-premises ERP systems. 

For starters, its scalability allows businesses to easily adjust resources and features as needed. It’s cost-effective, often operating on a subscription-based model, eliminating the need for hefty upfront hardware and software investments. 

Cloud ERP’s flexibility lets employees access the system from anywhere with an Internet connection. This goes a long way in fostering remote work capabilities and improving collaboration.

Is cloud ERP secure?

If you opt for top providers prioritizing data security and compliance standards, yes. Reputable cloud ERP providers invest heavily in implementing robust security measures to protect sensitive business data. 

This includes: 

• Encryption
• Access controls
• Regular security audits
• Compliance with industry regulations

While no system is immune to security threats, cloud ERP providers work tirelessly to mitigate risks and ensure their customers’ data’s confidentiality, integrity, and availability.

Learn about Xledger security here.

The Future of Business Management Software: Cloud ERP

There has been a paradigm shift in how businesses manage their operations, and cloud ERP is at the forefront of this change. Its accessibility, flexibility, scalability, cost savings, and security make it a top choice for organizations that want to streamline processes and gain a competitive edge.

What was once a luxury reserved for large corporations is now readily available to companies of all sizes. With the continuous evolution and advancements in cloud technology, we anticipate cloud ERP will become even more powerful and widespread. 

Ready to discover what Xledger’s cloud ERP can do for your business? Experience first-hand how the world’s #1 cloud finance management software can transform your financial management and your business as a whole. Take the first step towards the future of business management today. 

Schedule your demo now and bid farewell to outdated and inefficient legacy systems, and hello to agility, innovation, and growth with cloud ERP.

Did you learn a lot about cloud ERP software and its benefits in this article?

Here are three more to read next: 

• Why It Matters: Scalability and Cloud ERP
• If This Happens, It’s Time To Change Your Online ERP System
• Hidden Costs in ERP Licensing Fees