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The Significance of Cloud ERP for Small and Medium Businesses

Posted by Ben Redfield

May 19, 2012

It’s been widely reported that Enterprise Resource Planning (ERP) implementation failures are a major concern for any organization considering ERP but especially small and medium size organizations that lack the expertise or the bandwidth to implement internally without hiring outside consulting, or who have smaller budgets. Do the advantages of ERP outweigh the disadvantages and how does that affect small and medium businesses?

We believe the advantages of ERP for small or medium businesses vastly outweigh the disadvantages as a company (for the first time) may now have the ability to articulate business process and workflow; establish a plan for financial management and improved operational procedure; and map key differentiators to goals that will have the greatest impact on business efficiency.

Take it a step further by moving ERP to the cloud and what a difference it makes to the small and medium business owner who can benefit not only from ERP as a whole but now from the CLOUD model and what that means for them.

  • EASE OF USE and SYSTEM MANAGEMENT are two key factors when evaluating and implementing ERP. For the small and medium business, insufficient IT resources (or human capital) and budget for maintaining that infrastructure carry greater importance. These two factors alone make ERP cloud solutions more affordable and worth consideration
  • SCALABILITY is another aspect to consider when selecting the right ERP solution. If you are a small and midsize organization that needs to respond to changing market conditions, ERP cloud may be an ideal solution for you. For an organization witnessing seasonal growth spurts, having the ability to add users quickly for a short window of time and then scale back speaks directly to how ERP in the Cloud has significant advantage over on-premise ERP solutions – you pay for only what you use in the cloud.
  • In terms of SECURITY, it should be at the top of the list when evaluating ERP.  For small and medium businesses, having a sound security strategy is a necessity and it proves to enhance the best practices already being leveraged in your ERP solution. Move ERP to the cloud and you take a step ahead in further securing your data, 24/7, in a reliable and a controlled data center environment.  On-premise ERP solutions may not provide this extra added layer of security.
  • Managing CASH FLOW remains at the top of the benefits-list for many organizations interested in ERP. For the small and medium business, it may carry the most weight as owners realize the importance of better managing cash flow, forecasting for the short and long term, and having a clear picture of financials across multiple departments and how all of these factors directly influence prosperity and future growth. ERP cloud requires little to no capital outlay or upfront investment; and a major advantage over traditional on-premise ERP solutions.
If you’re a small and mid-size company looking for ERP, navigate clearly to find a solution that’s the right fit for your organization.  Consider the advantages of ERP cloud and how the technology will improve your infrastructure, refine business process strategy, build governance and help you invest in the right resources to GROW your business!  Visit www.smbsuite.com

SMB Suite provides affordable, safe, and convenient enterprise resource planning (ERP). It’s not surprising more and more small and midsized businesses are adopting subscription-based ERP cloud solutions offered by SMB Suite.