So-called enterprise resource planning (ERP) is the key to integrating different business functions within an organization. Its use is common in companies of different sizes due to the benefits it brings. What about cloud ERP?
This is a type of business management software that can boost internal processes, you know? But, before adopting it, it is essential to know basic concepts about the technology.
How does cloud management software work? Is there a cloud ERP for small businesses? In this article we will explain everything you need to know about this topic.
What is a cloud ERP?
And ERP The cloud is an integrated system that works on the Internet and allows you to manage all the processes and information of a company. That is, it is not necessary to install the system on the company’s computers, since it is hosted on remote servers.
Like other types of ERP, it covers processes and tasks from finance to inventory, commercial, production, logistics, human resources and much more.
Its difference is that, since it is internet-based, it can be accessed from any place and device with a network connection. Thus, the data is stored in the cloud and updated in real time.
How does cloud management software work?
The cloud management software works through an online platform that offers different modules and functionalities to meet the needs of each company.
To better understand how this works, consider the following aspects:
- Internet Access: Users access the software through a standard web browser or specific applications.
- Collaboration and sharing: The system allows multiple people to access and collaborate on the same data and projects simultaneously.
- Cloud infrastructure: The provider maintains, scales and manages the necessary infrastructure (servers, data storage and networks) in its data centers.
- Updates and maintenance: These are the responsibility of software providers and are generally applied automatically, without the need for user intervention.
- Data storage: stored in the cloud, usually in databases. This data is properly organized and structured to enable efficient retrieval and analysis.
- Security: Providers implement various security measures to protect data, such as data encryption, user authentication, firewalls, regular backups, and protection against cyber attacks.
- Features and Customization: The cloud ERP system offers a variety of features to meet the specific needs of different companies. Some systems allow customization to meet the unique demands of each organization.
- Scalability: Cloud management systems are designed to be scalable, meaning they can adapt to the ever-changing needs of businesses. As the business grows or needs additional features, the software can easily be expanded to meet these demands.
Do you understand how cloud management software works? It is very different from local ERP.
What is the difference between cloud ERP and on-premises ERP?
The main characteristic of a local ERP is its physical installation on the company’s hardware and servers. It is managed by the company’s own IT team. Cloud ERP is completely online and provided via a subscription-based service.
As we will see later, the cloud system has many benefits. Not surprisingly, the cloud ERP market was valued at around $44 billion in 2020, but there are growth forecasts to reach $141 billion by 2028.
Let’s get to know the types of cloud ERP so that you better understand the possibilities for your business.
What are the types of cloud ERP?
Cloud-based tools have their own distinctive features. Therefore, before implementing this solution, it is essential to understand that not all cloud options are created equal.
Discover the different types of cloud ERP available below:
- Multi-tenant: The company uses a network architecture shared by multiple clients of the provider, which is responsible for updates, security and scalability. Each organization’s data remains isolated and inaccessible to others. It is a cheaper option, but offers fewer customization possibilities.
- Single tenant: The cloud ERP will be exclusive to your company, and your data will be stored on private servers. Despite this, all operations can be carried out remotely, in the cloud. The advantage of this model is having greater control over the environment, but the costs are higher.
- ERP on public or private cloud: The multi-tenant model is usually implemented in the public version. On the other hand, in the private model, users access the system through a remote application, using a Virtual Private Network (VPN).
- Hybrid Cloud ERP: A combination of private cloud, public cloud, and, if necessary, on-premises components. An ERP implemented in a hybrid model offers greater flexibility, allowing you to take advantage of the best of both environments.
The advantages of a cloud ERP system
An ERP in the cloud can bring many advantages to your company. See some of them below:
More security
One of the main benefits of a cloud ERP system is the security of your company’s data.
Because they are stored on remote servers and protected by advanced encryption and backup, you are not at risk of loss or cyberattacks.
Additionally, you can define access levels and permissions for each system user and have automatic information backups and data redundancy for quick recovery.
Flexibility and speed in installation.
Another advantage of an ERP in the cloud is the flexibility and speed in installing the system.
By not needing any specific hardware or software in the company, you can start using it in just a few minutes.
Simply hire the service, log in and that’s it. This is why cloud ERP for small businesses is so advantageous!
Do you want a real example? With the cloud solution, it takes, on average, three days to have all the necessary tools at your disposal. With your own server, it would take you at least two weeks or more to get everything up and running.
The contractor can also improve, change or cancel the service at any time, without bureaucracy or fines.
Cost reduction
A cloud ERP can also help reduce your company’s costs.
With this system, your company does not need its own server, and each machine will work independently. No investments in infrastructure, licenses or upgrades are required.
In this way, the risks of a problem preventing the operation of your business are minimal, which makes it possible to outsource IT services.
Another savings point is that the user only pays for what they use and can save on energy, physical space, maintenance and technical support.
This is because there is no internal data center that requires high-powered equipment connected 24 hours a day.
More mobility
A cloud business management system can be accessed from anywhere and on any internet-enabled device. That is, it is possible to manage your company remotely, without depending on computers or the company’s internal network.
You can also integrate the system with other mobile applications that facilitate communication and collaboration between teams.
Focus on core business
Another relevant benefit of using this type of ERP is the focus on the core activity of the business.
Users do not need to worry about technical or operational system issues as they are the responsibility of the service provider.
Therefore, they spend more time and resources planning and executing their business strategies.
Centralization of information
With an ERP system in the cloud, managers can centralize all their company’s information in one place.
You will be able to have a general and integrated vision of all the processes and sectors of the company, in addition to generating reports and performance indicators.
This makes it easier to access, organize and analyze data, as well as make decisions.
Scalability
A great advantage of this business management system is scalability. In other words, you can increase or decrease system resources depending on the demands of your business.
It is also possible to add or remove modules and functions from the system without affecting its operation or compromising its quality.
Productivity for teams
Team productivity is also improved through an integrated system that updates in real time.
The reason is simple: it avoids rework, errors and data inconsistencies, and speeds up the company’s internal and external processes.
If you need to optimize your time and available resources, choose the best cloud ERP for your business.
Improved decision making
Finally, this type of ERP can help improve decision making in your company.
Since you have access to reliable and up-to-date information, you can:
- identify opportunities, risks, strengths and weaknesses;
- perform more accurate and informed analyzes of your business;
- define the best actions to achieve your objectives and the company’s goals.
Business sectors that can benefit from an ERP in the cloud
An ERP in the cloud can be useful for all sectors of your company. See some examples of how you can help each of them:
- Logistics: contributes to the management of transportation, distribution, delivery, tracking and returns. If you have logistics operators, transport companies and GPS, you can integrate them with this system.
- Human Resources: The cloud system allows the manager to manage employee registration, payroll, benefits, vacations, electronic timekeeping, as well as the recruitment and selection process.
- Commercial: management of customer records, sales orders, commercial proposals, commissions, contracts and much more. It is possible to integrate it with e-commerce, CRM and digital marketing platforms.
- Financial: allows you to control cash flow, accounts payable and receivable, collections, taxes, financial reports and much more. You can integrate the system with banks, card operators and other financial services.
- Production: with an ERP in the cloud you can plan and control production, stock, quality, costs, deadlines and much more. In this case, integration with smart machines, equipment and sensors can improve your processes.
TOTVS ERP Cloud
If you are looking for a cloud ERP for your company, you need to know our cloud ERP. It is a product of the largest technology company in Brazil and leader in the management software market.
You can make your operation more efficient with our subscription model, ensuring quality and specialization with systems appropriate to your segment.
In addition, it is easy to pay by subscription, reducing the initial investment and eliminating the cost of acquiring use licenses.
Choose the solutions that your company needs and hire packages, according to your needs! You can also have remote access to the TOTVS system and cloud, TOTVS Cloud, in the same offer.
Get to know TOTVS ERP Cloud right now!
Conclusion
Cloud ERP is an online-based business management system. It works from an infrastructure guaranteed by the provider, who is also responsible for its security, updates and other aspects.
Due to its characteristics, it offers several advantages for companies, regardless of the type: flexibility and speed in implementation, scalability, cost reduction and much more.
To enjoy these benefits it is important to have the best ERP in the cloud, the TOTVS ERP Cloud, which offers the best cost-benefit on the market.
