Top 3 Challenges in Adopting Cloud ERP Solutions

Top 3 Challenges in Adopting Cloud ERP Solutions

The Enterprise Resource Planning system and its similar IT packages have been utilized by various types of businesses – in all sizes and types – for a number of years now. Even small to medium businesses (SMBs) have integrated this system at least once. But even if it has become a widespread system and the norm for most companies as of date, implementing it, especially for the first time, can pose new challenges for the business that is considering its potential.

Here are three challenges that businesses must be aware of that they got the most of their investment in ERP system:

  1. Identifying and Choosing the Optimum System

Before a Cloud ERP system is chosen, the company must first determine what type suits them best. For this, a company must evaluate several factors through a feasibility study and deliberate what sort of solution would bring them the best results and is the most cost-effective option. This can be tedious especially when it is done for the first time for a company, and must be done accurately so as not to commit the mistake of using the type of ERP solution that is not optimal for the company.

According to the white paper entitled “The Essential Guide to Assuring Cloud ERP Adoption”, these questions must be asked to determine whether you need an ERP system:

  • Is our current on-premise system available in a Cloud version?
  • If yes, is the functionality of the Cloud version equivalent (at least)?
  • What variant of Cloud ERP architecture and licensing model would suit us best?
  • Is this a good opportunity to re-visit our main business processes (this could be mandatory with some Cloud ERP systems)?
  • Is a hybrid ERP the best solution for us right now?

In addition to this, these questions will help in choosing the right solution or system:

  • Does the current office system offer a Cloud version?
  • Should our company invest in a Hybrid ERP?
  • Which architecture and licensing model would suit the company best?
  • Will the solution fit the size of your company?

 

  1. Data Quality and Technical Issues

Implementing Cloud ERP solutions can be heavy on the company, particularly with the technical and data quality aspects. Servers and workstations have to be revised to accommodate the new system, plus new and more modern units need to be purchased in order to make the system work. Meanwhile, data that are dated or have been used and stored for years can appear approximate or incorrect in the ERP.

To counteract this, it’s always worthy to note that the above identification of the appropriate system will help determine the type of technology that is needed by the company for the ERP solution. This significantly narrows down the choices and helps start a plan of action in terms of revising and re-accommodating everything.

As for data quality, it’s important to be careful with old information and to always make “pilot” tests of the new system outputs using legacy data before converting or transferring all of your data over the new system.

 

  1. Security

Adopting a Cloud ERP can put the information your company holds and has at risk, which puts protecting it at a crucial priority. Losing these data or having it unintentionally leaked can be potentially damaging for your company and clients or connections, which is the last thing you would want to happen. This would spell various liabilities such as lawsuits and costly damage control. Cloud ERP solutions, however, also offer a number of highly-secure options since it is also involved with government agencies’ data. Choose the Cloud ERP that meets with industry security standards or more.

 

Preparing in advance in facing these challenges ensures that the business has a smooth and worry-free transition to their chosen system. By anticipating these challenges, you and your business will be more informed and will be more than ready in case you hit a bump in the road, and will also allow you to save time, effort and money while simultaneously taking advantage of the benefits that Cloud ERP solutions bring you.


About the Author: 

Rick Siddiqi is a 20 year business and technology veteran, and currently a Guest Blogger for NexxyTech. He is Managing Principal of CloudSuite Pro that specialize in business management software.  Connect with him on LinkedIn.

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