Marcie Nguyen
Marcie is a skilled writer at Havi Technology focusing on creating content for marketing, eCommerce, point of sales, and ERP solutions. With over 8 years of experience in the retail, eCommerce and ERP technology sectors, Marcie is dedicated to providing insightful answers to business owners of all scales.
Managing company processes across multiple separate files can be tough and error-prone. To help you navigate this challenge, modern SaaS ERP systems offer a central place for syncing data, automating operations, and gaining insights in real time.
Let's talk about the advantages of using SaaS ERP systems and how to select and implement the best solution for your company.
The Burden of Legacy ERP Systems
An old or outdated ERP system was once a game-changer in the automation industry. However, these systems are no longer compatible with today's developing digital world. Unlike SaaS ERP, they slow down businesses because they can't meet the need for quick data access and simple employee collaboration. When you stay with legacy ERP systems, there comes the risk of falling behind other companies leveraging the latest technology.
1. Are you using an outdated ERP system?
Let’s discuss your difficulties while using the current technology stack. Old systems can have limitations in several ways:
2. The hidden costs of outdated ERP systems
Old systems suffer considerable inefficiencies, which can result in substantial financial losses for your company. Let's go further into the hidden costs that you may not be aware of:
Why Moving to a SaaS ERP is a Smart Move
1. Explaining SaaS ERP
SaaS ERP (Software-as-a-Service ERP) is a type of cloud ERP system that streamlines business management. While cloud-based ERP is any ERP system hosted and accessed on the internet, SaaS ERP focuses on a software licencing and delivery model. Accordingly, the system is centrally hosted and accessed on a subscription-based model.
In a nutshell, SaaS ERP enables you to quickly access business data and apps from anywhere online. This modern strategy gives companies greater flexibility, adaptability, and cost-effectiveness than traditional or on-premises software.
2. Why businesses are moving to SaaS ERP
To remain competitive in a fast-paced business landscape, your company must be agile and efficient. Businesses are making an important transition from outdated systems to modern SaaS ERP. Here are a few reasons why this is a reasonable decision:
Businesses that develop or confront fluctuations in demand can quickly adjust their subscription plans to satisfy evolving demands. Unlike old systems, which might need costly upgrades or customisation for expansion, SaaS ERP has the flexibility to scale resources up or down as required. This scalability allows businesses to adapt promptly to market dynamics and seize new possibilities without being limited by outdated technology.
Accessing key business data and apps on outdated systems frequently requires staying connected to a corporate network. However, with cloud access, you can use the SaaS ERP system at any time and from anywhere. This advantage allows your employees to work from anywhere with colleagues and make better decisions. 48% of respondents saw a significant increase in efficiency and 35% of them found a better employee experience with cloud systems (Statista).
For instance, a worldwide logistics business using a SaaS ERP such as SAP Business One allows its distributed workers to access shipment data, monitor inventory, and interact with customers. These tasks can be performed from any device with a web connection, eventually improving productivity and customer satisfaction.
Security problems are likely to happen if your business is using an outdated system. To avoid potential risks, SaaS ERP systems are built with robust security features such as encryption, multi-factor authentication, and frequent checkups. Moreover, their vendors strictly comply with legal requirements like GDPR and SOC 2 for data protection.
For instance, when a healthcare provider switches from a legacy to a SaaS ERP system, it can exploit built-in encryption, authentication, and frequent security checks. The system helps the business to avoid data breaches and maintain patient confidentiality and regulatory compliance.
Updating and maintaining outdated technologies can be pricey and unpredictable, causing ongoing costs for hardware, software licences, maintenance, and IT support. SaaS ERP, nevertheless, runs on a subscription basis with predefined monthly or annual pricing. This reduces upfront capital costs and gives you more cost consistency. IT cost saving, according to 40% of businesses, was one of the biggest areas that produced ROI for businesses (Ultra Consultants).
By way of example, a manufacturer migrating from an old ERP system to SaaS Odoo saves money on hardware purchase and maintenance. It also receives frequent software updates and technical assistance as part of the subscription.
SaaS ERP providers offer ongoing software updates and developments, in contrast to legacy ERP systems. Performance advancements, new functions, and security updates are some examples of these updates. They ensure that you will never lose access to the latest technologies. Using a SaaS ERP system, businesses may stay ahead of the curve and profit from technology like AI and machine learning.
Expert Notes Before Implementing a SaaS ERP
1. What to consider when choosing a SaaS ERP?
2. What are the basic stages throughout the entire implementation?
The following actions refer to a general overview of the key phases of your SaaS implementation:
3. How long does an implementation usually take?
There isn't an all-inclusive solution for this matter. The implementation duration can vary greatly based on different variables:
4. Who can help with your ERP implementation?
Here's a breakdown of the key players who can help ensure your ERP implementation takes off smoothly:
It’s Time to Embrace Change and Invest in Growth
Making the switch to a SaaS ERP system is an investment in your company's future growth. The solution forms the foundation and offers a single source of truth for efficient corporate management. By opting for a SaaS ERP, you are not simply deploying software. Instead, you are making a well-developed decision to strengthen your employees, advance procedures, and construct a resilient business.
Understand that an effective SaaS ERP implementation involves a team effort. You can tap into its disruptive ability by thoroughly assessing your needs, selecting the best approach with certified experts, and supporting open communication among members.
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