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4 Ways Cloud ERP Can Boost Your Bottom Line


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As more and more organizations learn to trust the Cloud with their business-critical data, they are seeing more potential in deploying a Cloud ERP solution.  There are a number of factors encouraging businesses to choose a SaaS ERP or Cloud system, and that choice is being supported by the benefits that organizations who make the choice to go with a Cloud solution receive.

According to research done by the Aberdeen Group, in the time period of two years, midmarket businesses using Cloud ERP saw a 21% increase in profit margins, whereas companies with on-premise ERP saw only a 7% increase in profit.  There are four key ways that Cloud ERP solutions are supporting the profitability of these organizations:

Enabling Collaboration and Visibility

More and more organizations are trying to do business across an increasing number of locations and work across multiple time zones, making collaboration across these entities and visibility into the data at each location critical to the success of the business.  Aberdeen found organizations with Cloud ERP solutions were ahead of those with on-premises solutions in the following areas:

  • Real-time collaboration across departments and divisions
  • Integrated manufacturing operations and coordination with product design
  • Real-time visibility into all processes from quote to cash
  • Ability to notify decision makers when certain conditions occur or scheduled events fail to occur

Clearly, businesses utilizing cloud software have managed to increase visibility for themselves, and improve communication between employees, thereby strengthening their bottom line.

Faster Decision Making

Using cloud ERP can lead to faster and more efficiently made decisions. Overall, businesses using SaaS ERP saw twice the decrease in decision-making time compared to those without it over a period of two years. Because SaaS ERP allowed employees to better collaborate on projects, they had quicker access to real-time data. This technology also allowed them to contact each other in the event that an activity fell through almost automatically. Should problems arise, employees can take the necessary actions to improve the situation almost immediately.

Decreasing Cycle Time

24% of mid-market businesses with cloud ERP were able to decrease the cycle time of key business processes in two years, compared to the 16% of companies with on-premise ERP. Faster business processes means your revenue is coming in faster and you are building your profitability more rapidly.

Improved Shipments

Organizations leveraging cloud systems also saw improvements in the number of complete and on-time orders they were able to deliver, as a direct result of better business data management in their ERP solutions.  Better shipments and delivery not only help your immediate profitability, but also improve customer satisfaction and the likelihood of retaining repeat customers, which is a huge factor in supporting organizational profitability.

Find out what a Cloud ERP solution would cost your business today by requesting a quote.

By Socius, a Cloud ERP partner in Ohio (www.socius1.com)

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