Why do cloud ERP’s tend to continue to grow?

Often stigmatized for its lack of flexibility, its complex management and its significant infrastructure requirements, ERP nevertheless remains at the heart of business operations. But if ERP remains essential, needs have evolved. Management software packages must therefore reinvent themselves in order to better adapt to the challenges of tomorrow and make the company’s IT project a success. The cloud ERP solutions that are currently emerging are a response to new business needs and are expected to grow rapidly.

Strategy FINANCE

The Finance blog

The limitations of traditional ERP

ERP was originally designed to handle all the management tasks of a company, from inventory management and procurement to human resources. It is monolithic and requires a solid IT infrastructure and a variety of skills.

Over time, companies have become more and more specialized… and so have their ERP needs. These new needs have led to more and more customized developments to adapt the software package used. The complexity of the solutions implemented is constantly increasing, making it more and more difficult to update, change versions, correct and upgrade applications. This results in overall system instability and higher maintenance costs.

    The benefits of cloud ERP

    The ERP software monolithic systems that are difficult to adapt or evolve have had their day. From now on, the choice of enterprise resource planning software no longer depends solely on the DSI. The business experts are involved in the decision-making process and express their specific needs.

    It is no longer a question of finding an ERP that can do everything. Instead, the choice will be for a central software package capable of communicating and exploiting data from several dedicated satellite applications. ERPs specialize, focusing on an area in which they excel and use external bricks through connectors to perform less specialized tasks.

    An architecture with cloud hosting perfectly meets these new needs. Cloud solutions allow you to take advantage of a core business application and connect various “ancillary” tools, without having to worry about upgrading and managing the infrastructure.

    Maintenance is also simplified since the operations of upgrading, administration or evolution can be entrusted to the host. Cloud computing also makes it possible to easily absorb the necessary machine load in real time in the event of a peak in activity.

    The arrival of artificial intelligence

    Thanks to the cloud service, the volume of data that can be processed will increase further. The construction of indicators will become more and more complex and will provide reliable information.

    The use of artificial intelligence will make it easier to discern what is consistent and to highlight the most useful and important information. As the data changes rapidly, the system will also have to evolve. To remain effective, it will be able to use machine learning. Thus, artificial intelligence will become richer and richer as time goes by and will be able toanticipate the needs of the company to respond quickly.

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