Cloud ERP will lead to profits, but success takes time

More companies are switching over to the cloud for improved enterprise resource planning (ERP) efficiency is undoubtedly beneficial in the long run. Cloud-based ERP, such as NetSuite, leads to more organized resources, more productive employees and ultimately more profits. But the money doesn’t necessarily start flowing right away – there are a number of costs that go along with making that transition, and it would behoove organizations to be aware of those costs from the start.

While the cloud will eventually pay off, the transition isn’t always easy. Learning the ropes of new cloud ERP software can be an arduous process, according to Smart Data Collective, and even dedicated IT professionals need to set aside time and resources for training. Detailed documentation needs to be written, and it’s sometimes even wise to bring in an outside instructor to help with orientation. While the software vendors don’t like to admit it, cloud software is sometimes more difficult to implement than on-premise software.

What’s a company to do?

Douglas Johnson, vice president of marketing and business development for Acumatica, has a number of ideas on how companies can best prepare themselves to reap the profits from the cloud. First and foremost, he says, is knowing one’s corporate requirements beforehand. IT officials should take the time to study different ERP vendors and understand their products, finding the right vendor to fit a company’s software needs.

Another big decision is the choice between public and private cloud software. Both have their pros and cons – the public cloud tends to be cheaper and easier to use, while private cloud apps offer greater customization potential and often better security. Both have their place in the corporate world.

Planning is key for successful cloud ERP adoption

Once an organization has decided on a cloud software option, there are more decisions to be made. Devising a budget is key – there are a lot of unforeseen costs that come along with cloud adoption, everything from training to maintenance to security. Smart, well-prepared companies will have a dollar amount set aside for any situation.

The right personnel is essential as well. Some firms go with in-house IT staff as a matter of convenience – others opt for outsourcing that for cost-related reasons. Either way, making sure your IT workers are up to speed with cloud technology is vital, and it’s important to verify that your staff is a good match for your software choices.

Rest assured, cloud ERP will lead to profits in the long run – it’s only a matter of time.