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Why are businesses focusing on Cloud ERP?

Driving factors of the ERP Market

The technology industry is growing rapidly and is expected to reach $5 trillion by the end of 2021. The industry’s growth in the enterprise market is driven by factors such as refresh cycles, additional installations, end-user needs, project needs, among others. To expand globally, businesses need advanced, fully virtual, and intelligent software and systems that support and manage day-to-day operations and processes. Some of the driving factors in the ERP market include:
  • Improvement in inventory management due to the use of serial numbers, RFIDs, and barcodes
  • Operational efficiency across industries
  • Demand for access to ERP functionality outside core accounting and other teams
  • Growing acceptance towards mobile and cloud-based applications

As technology continues to progress, businesses, irrespective of the size, are adopting cloud ERP thanks to its reliability, cost, access, and speed. Simply put, cloud ERP offers all the functionality businesses need without the infrastructure requirements of an on-premise system. A ComputerWeekly survey showed that 53% of IT decision-makers considered cloud-ERP a priority in addition to CRM. With benefits such as reduced process time, centralized data storage, and increased collaboration, businesses allot up to 30% of their IT budget towards various cloud solutions. Some of the key players in the cloud segment include NetSuite, Microsoft, SAP, and Amazon.

NetSuite ERP Accounting Software

Types of cloud ERP deployments

Broadly, there are three different cloud ERP offerings – public or cloud, private or on-premise, and hybrid. At the same time, each model has its own merits and features. Reportedly nearly 90% of companies selected a SaaS cloud-based ERP software model.
  • Cloud ERP or public cloud hosts data in a remote third-party system. Some prominent players offering cloud ERP solutions include Oracle, SAP, NetSuite, Amazon, Microsoft. These companies provide multi-tenant facilities while being responsible for maintenance, backup, and data security.
  • On-premise or private cloud is installed on the company's premise with customized hardware and server with a one-time license fee. Acting as a single-tenant cloud ERP, the company will have dedicated access to data and software while having the freedom to integrate with other services or applications offered by the cloud provider.
  • Hybrid ERP combines the features and advantages of on-premise software with public or private cloud. This model recently gained momentum as companies prefer to integrate new cloud ERP into their existing legacy systems.
NetSuite ERP Software
It is important to note that more than 70% of global companies rely on cloud-based platforms as they offer faster disaster recovery and maintenance. While 55% of ERP users rely on the multi-cloud system for its operational efficiency, some of the other prominent benefits of cloud ERP have nudged the technology towards global adoption.
  • Improved product quality as quality and compliance are no longer siloed.
  • Better lead time to meet and sustain the customers' supply changes.
  • Real-time production monitoring leads to better manufacturing efficiency.
  • 30% reduced overall infrastructure and operating cost.
  • Quick and faster scalability globally without additional infrastructure support.
  • Off-hours updates minimize downtime and allow systems to stay current.

Why NetSuite ERP

NetSuite, offered by Oracle, focuses on streamlining mission-critical processes. Built for small and midsized businesses, NetSuite ERP supports growth with built-in business intelligence that provides real-time insights to improve customer service, reduce supply chain cost, and automate financial functions. Offered as a SaaS model, NetSuite is predominantly used to manage inventory, maintain CRM systems, host e-commerce stores, track financials, and other critical business processes.

NetSuite offers a range of solutions as part of its offering. They include:

  • Financial management with built-in business intelligence for smarter and faster decision-making.
  • Supply chain management that defines executes and supports supply chain and distribution management plans.
  • Order management that helps accelerate the order-to-cash process.
  • Financial planning to shorten cycle time, improve the planning process, and engage business users.
  • Production management that improves time-to-market with real-time production management visibility.
  • Warehouse and fulfillment that allows users to manage end-to-end inventory and logistics, real-time.
  • Procurement that improves procure-to-pay accuracy process and cost-certainty.

To learn more about the advantages of NetSuite’s Cloud ERP software for your business, contact Kompete.

Kompete Business Solutions, headquartered in New Jersey, has over 12 years of experience enabling intelligent solutions for Small and Midsize Businesses. We specialize in addressing transformational needs with proven experience in manufacturing, retail, and fashion, non-profit, e-commerce, and other professional services, and we are very excited about Oracle NetSuite, the full-featured, cost-effective ERP that helps businesses run smarter and faster.

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