In due course, more and more companies — both small and large — are moving many of their core business functions to cloud ERP for a simple reason: they see it as the best way of saving costs. While functions such as email, office productivity, CRM, project management and payroll are being moved to cloud by most of those companies, there is still a reluctance to move the manufacturing, distribution, and financial information to the cloud owing to the security reasons. But on the whole, the shift to cloud ERP is on the rise.
We’re all buzzing about Cloud ERP software—it’s the ultimate game-changing management solution for businesses! Focusing our lens on manufacturers, we can say that they need cloud ERP software to improve their operational efficiencies, make business decisions promptly, access data from any remote location, and stay connected with all the other departments.
This blog is essential for all manufacturers ready to upgrade their management from legacy solutions to Cloud ERP. It walks you through the crucial questions you need to ask a cloud ERP vendor to ensure you choose the perfect software for your needs. So, read on-
The shift from on-premise to cloud ERP is not an easy one. This transition demands strategic planning, careful precision, and sound analysis. It is thus, imperative for every business — that wishes to move to cloud ERP — to find answers to six questions regarding this big switch.
Question 1: How Secure is our Data and who all have the Authority to Use it?
With on-premise ERP, you control who has access to your server. However, in the case of cloud ERP software, you completely rely on the cloud provider’s security.
In such a scenario, there are a few valid questions that arise. Is your data safe? Who has access to your critical data, including trade secrets? Will the provider ever share your data with any third party? Before making the switch, you must test your provider on different data-security parameters and/or seek a report covering every aspect of data and its security, including faults, a disaster that might happen, and even its ownership.
You may ask the vendor if it will let you back up your data on your servers or not. If there are hidden charges involved in data transfer, it can affect your ROI later.
Question 2: Is it Truly a Web-based Solution?
Cloud-based systems are about convenience and accessibility. However, some cloud vendors need their users to install VPN software, which reduces the solution’s capability to get access from anywhere and from any device.
Ideally, being a fully web-based system, it should be accessible from anywhere and no additional software or hardware must be required.
It should have a login URL and be compatible with all internet-enabled devices, like laptops, mobiles, and palmtops. Before migrating, confirm with your vendor if it’s fully web-based or not.
Question 3: Does Switching to Cloud ERP Save Money in the Long Run?
Organizations generally see the move to Cloud ERP as a way to save money. But is it so? After switching to the cloud, you need to pay a monthly fee which is subject to change as per your usage. Any upgrades to it may burn a hole in your pocket.
Inquire about the software’s integration capabilities as well. Ask them whether it will integrate with third-party software or if it can be customized to meet the needs of the company as it stands now. Additionally, emphasize the importance of learning about the ERP’s resilience, scalability, and adaptability.
It is thus, wise to figure out beforehand whether moving to the cloud is cheaper than owning and supporting your servers or not. Instead of assuming, you may want to ask this question to the pertinent authorities.
Question 4: Is the ERP Vendor Reliable?
This is again an important question to raise. Like any other major business decision, you must execute an in-depth analysis before shortlisting a Cloud ERP vendor. Look out for a vendor with a strong track record of good service, including both technical and customer.
You must also check its background, how strong is the vendor financially, what happens if it gets acquired by a third company, etc. Do complete online research. Approach existing customers as their voice matters!
Question 5: Is the Solution Sarbanes-Oxley (SOX) Compliant?
SOX-compliant vendors are capable enough to prove how they protect, access, recover, and validate your stored data. They document everything to meet the guidelines of keeping your data safe against the risk of fraud, information breaches, and data errors.
They have proven uptime, personal support, and security records that meets the strict requirements of SOX. So, wouldn’t you feel more assured going with a cloud ERP vendor who is SOX compliant?
Question 6: What’s the ‘Plan B’?
This is perhaps the most important question of them all. This is one question you must ask yourselves: What if things go wrong? What’s the Plan B? You must know that if things go wrong and if you need to move your data back in-house or to another cloud hosting provider, how easy or difficult is it going to be? Will your vendor allow you to build your applications on architecture that lets you move and deploy them at your convenience?
Stop making choices out of fear, but don’t be afraid to ask the right questions to make an informed decision. Always ask questions, both within your team and to potential vendors. Instead, select a vendor that enhances your cash flow, offers mobile data access, ensures scalability, has no hidden costs, and, most importantly, boosts your profitability.
Ready to Switch to Cloud-based ERP?
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