Remember what it was like before Enterprise Resource Planning systems existed? If you’re over 45, you probably do.
It wasn’t until 1990 that the acronym “ERP” was first coined by the Gartner Group (now known simply as “Gartner”) to refer to the amalgamation of various applications that were being increasingly used by businesses to improve their performance.
By the mid 1990s, independent applications in manufacturing, accounting, human resources, and maintenance were being combined into total ERP systems that addressed all core back-office functions.
As the internet gained in prominence and simplified the ability to communicate with external parties, ERP systems began incorporating front office functions, like Customer Relationship Management (CRM) and Supplier Relationship Management (SRM).
Each stage of ERP’s evolution has brought improved integration throughout the entire organization and a continuous improvement on ROI. Yet, even when it seems it can’t get any better, prominent thinkers at the forefront of ERP are calling this day and age the “New Era in ERP”.
Why? Cloud and mobile based ERP.
Throughout all stages of ERP’s evolution – until now – functionality has incorporated a user model that is literally physically tied to the back office. While this worked amazingly well for a long time, it has become increasingly dated in today’s age of mobile cloud-based computing and shrinking IT budgets. To see why, let’s take a look at a couple of examples of how mobile and Cloud based ERP is ushering in this new era.
In the old administrative model, the necessary use of terminal workstations forced businesses to pay employees to sit in office buildings all day long, punching in transactions. Now, market volatility has driven the need for businesses to deliver functionality at the point of process, while cutting unnecessary costs, like having a small army of data entry employees.
Thanks to the advent of mobile and cloud computing, rather than having people sit around punching in data that will eventually be used by the people performing the process, organizations can now have the people actually performing the process capture and use the data right away. The results? Better decisions in less time and improved ROI.
The client/server architecture of legacy ERP systems entails huge hardware and personnel costs for both implementation and maintenance throughout the life of the system. The resulting costs are often so prohibitive that companies have traditionally been forced to turn their backs on the system for a decade or more to insure an adequate return on their investment.
The rise of cloud-based, Software as a Service (SaaS) ERP solutions has effectively rendered the traditional client/server architecture a thing of the past. By housing their ERP in their provider’s cloud, organizations have effectively eliminated the need for costly hardware and software acquisitions, while minimizing the need for on-site expertise.
Of course, the only way to take full advantage of the cloud and fully join the new era of ERP is by finding a competent SaaS provider, as not all providers are created equal. The right provider must be willing and able to develop a custom-tailored cloud computing solution that meets your organization’s specific needs, and have the infrastructure, expertise, and experience necessary to see it through.
Syntax offers a fully hosted solution in the cloud with everything your organization could possibly need to join the new era of ERPIncluding: a full suite of implementation services (consulting, development, project management) to get you up and running in the cloud, both infrastructure and CNC managed services to keep you humming along without a hitch, and all the required software licenses and technical support. All of this starting at a low monthly fee per user: IT budgeting heaven.