One question that many small businesses face is whether to adopt a hosted ERP solution or a cloud ERP solution. The two choices are quite similar, so it’s easy to get confused. This article will describe the advantages and disadvantages of each.
Hosted ERP requires you to purchase the software from either the publisher or Value Added Reseller and have it installed at a data center. That company then hosts the solution and performs important tasks like upgrades, maintenance and support.
Once a company has purchased an ERP solution, the next step is to implement the actual system. This can be a somewhat daunting prospect, because there’s so many different things to do and a multitude of problems that can occur.
You should always write up a detailed schedule that describes the many things that need to be done in order for the ERP implementation to take place. This will help keep your project from going over budget and give a much better picture for how long it’s going to take – a step that seems like it should just take a few days may actually require far longer to set up.
This past July, the United States National Institute of Standards and Technology (NIST) released a publication defining cloud computing and relating it to enterprise resource planning (ERP). The NIST’s publication is intended as a “roadmap” to describe essential characteristics and service and deployment models.
According to the NIST, “cloud computing” enables “on-demand” network access that is both universally accessible and convenient within a company. This shared group of computing tools is configurable and easy to manage.
Small businesses that adopt an ERP solution often fail to take into account a variety of hidden costs related to the system. This can send the project over budget and sometimes even derail the whole implementation.
Many small businesses underestimate how much the training for the ERP solution is going to cost. This is mostly because the employees need to learn a full set of processes instead of how to use a different interface. Some individuals will quickly grasp the concepts, while others may take a long time before they can operate the ERP solution without difficulty.
Cloud computing is becoming the standard delivery mode for most enterprise software applications. While security is a consideration for any application, it is particularly important for accounting software. The major areas to consider when evaluating cloud computing accounting applications are:
• Identity management
• Application security
• Data security
• Privacy protection
Cloud based accounting and bookkeeping software is being touted as the next advance in business, allowing remote operations and logins and following a model similar to that of other cloud based or hosted business services. But is it safe for your business to store sensitive financial information and client details online and access them from remote locations?
Like just about every other business solution available today, whether computerized maintenance management or video and teleconferencing solutions, cloud based accounting and bookkeeping services offer significant advantages to companies. Making it possible to centralize records and still allow for remote operation and use of your accounting program, this service model presents a few obvious benefits.
A: Thank you very much for your question! Selecting the perfect time to implement an Enterprise Resource Planning (ERP) software solution into your business operations can be somewhat elusive and difficult. If your company isn’t yet ready for an ERP solution, then implementing one too soon can actually create more work and confusion than streamlined efficiency. However, if you wait too long to integrate a needed ERP system, you can easily slip in efficiency and begin to miss out on growth opportunities.