Many Enterprise Resource Planning (ERP) vendors who claim to have cloud platforms don’t actually use true cloud solutions. Instead, they’ve migrated their legacy software to a server and provide access to it over the internet via adapter software. This is fake cloud software, but can improve productivity in the following ways:
- Incorporation of IoT
- Improved security
- Streamlined integration
- Broad functionality
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Incorporation of IoT
Cloud ERP platforms can adopt new technologies more easily than legacy systems. For example, the Internet of Things (IoT) is becoming increasingly important to businesses in all sectors, both for its ability to gather data and reduce downtime with predictive maintenance. The right cloud ERP system can serve as a hub for these activities, allowing users to track automated devices and report on their status. It can also help monitor the movement of supplies, strengthening the connection between the performance of a business’s supply chain and its bottom line.
Improved Security
Mobile devices generally represent a security vulnerability, since they don't require physical access to an organization's facilities. However, simply prohibiting their use would reduce an organization's competitiveness. Furthermore, most organizations don't maintain the large IT staff needed to protect their own systems from the latest exploits. Cloud ERP vendors have a strong incentive to make security a priority, since a single serious breach could put them out of business.
Streamlined Integration
It's technically possible for an organization to individually integrate each of its applications into its own system, but it's much easier to do so with the right cloud ERP system. Such a platform can serve as a hub for all business applications, allowing the vendor's existing integrations to connect data services, equipment and software. Customers then only need to spend their IT budget on building the custom integrations they still need.
Broad Functionality
Many cloud platforms can perform functions that all businesses need such as accounting, delivery cost estimation and workforce management. However, businesses with distribution operations need much broader functionality. ERP vendors typically offer versions of their solutions specifically designed to perform distribution functions.
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