Companies frequently purchase ERP add-on solutions to strengthen processes where the inbuilt ERP functionality does not meet the business need. Popular add-on solutions include Requisition and Purchasing, AP Invoice Automation, Time Reporting, Travel and Expense, and HR applications.
Many of these add-on solutions are available only as cloud implementations. The benefits of cloud implementations are compelling: one subscription covers first-class data centers, software, support, security, and maintenance.
But there can be major drawbacks to solutions available only with a Software as a Service (SaaS) subscription. Popular Expense Management tools are deployed as multi-tenant solutions hosted in the provider’s data center. They usually exchange data between the Spend Management solution and the ERP via data import/export files. Data file exchange may be sufficient if all that is needed is a periodic update of General Ledger accounts and Accounts Payables records. But effective spend management control demands a tight integration for
- Visibility to budgets, actuals, accruals and pending commitments from requisitions, purchase orders, items received, and pending travel requests or expense reports
- Allocation of cost and expenses to jobs, projects, tasks and activities
- Access to ERPs extended account structures (analytical accounting or account dimensions)
- Updates to multiple company ERP databases
- Interfaces to vertical ISV solutions for healthcare materials management, job / project cost, facilities and asset management,
- Direct access to paperless document repositories.
ERP solutions available today utilize different software architectures and deployment methods.
|Multi-tenant SaaSNetSuite, Acumatica||On Premise or Private CloudDynamics and Sage ERPs|
|All clients run same code version||Yes||No|
|Adaptation to client needs||Through parameters only||Yes|
|Database design||Multiple tenants||Single client content|
|Releases / upgrades||Frequent||1-2 per year|
|Control over upgrades||Provider||Client|
|ERP Integration||Import/Export or Connector||Direct ERP database update or Connector|
Compared with a seamless integration, Data Import/Export solutions have significant drawbacks
- Extra manual and systems effort to customize, maintain, extract and import files
- Data is quickly outdated
- Extra effort may be required in the ERP to allocate transactions to jobs, projects, and add advance account dimensions for imported transactions
- Manual interfaces and data manipulation are error-prone.
Mid-market Microsoft Dynamics and Sage ERPs were not designed as multi-tenant SaaS solutions. To achieve the benefits of IT Outsourcing, they are best deployed as single-tenants in a private cloud. This creates a challenge with the integration of multi-tenant ISV solutions and the legacy ERP
- Timing of releases: Client has no control over software updates in multi-tenant SaaS solutions which may not be compatible with the client’s version of the ERP
- Multiple hosting environments, contracts, and administration
- Data synchronization between the ERP and multi-tenant ISV application.
Fortunately, disjointed Cloud solutions and ERPs are not the only option. Paramount’s WorkPlace Spend Management Solutions for
- Directly integrated with your local ERP
- Web and mobile access for anytime/anywhere transaction entry and approvals
- Lower TCO for software and support compared to subscriptions.
- WorkPlace deployed on Windows Azure with high security, redundancy and reliability
- SSAE 16 and ISO 27001 compliant
- WorkPlace implemented, monitored, maintained and supported by Paramount
- Real-time integration with your existing on premise Dynamics ERP.
Private cloud deployment for your ERP and Spend Management Solutions
- Hosted and supported by your trusted IT solution partner
- Integrated solution including ERP and WorkPlace from a single provider
- Industry-specific solutions such as healthcare, municipal government, or nonprofits
- Managed private cloud solutions offer maximum security, flexibility for adaptation to your needs, and fast performance.
You choose the deployment method that best fits your business needs without sacrificing the vitally important real-time integration with your ERP.
by Paramount Technologies