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4 mistakes to avoid when choosing Cloud ERP Systems – Part 1: The selection process

Posted by Ho Nguyen

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Investing in any fully-integrated business system can be a challenge that is tougher than you can imagine. For its complexity, it requires more than a fleeting knowledge of the way your company operates. 

This challenge is especially true for enterprises with the intention of selecting Cloud ERP systems. Specifically, despite having a list of concerns, they are still choosing the wrong ERP solution due to a variety of reasons. Before you decide to invest in a Cloud ERP system, it is best to make sure you go over the potential issues before they become factors which cause your company's losses.

Read more: Why SMBs Find Cloud ERP Increasingly Attractive

4 mistakes to avoid when choosing Cloud ERP Systems

Paying no attention to the core factors

Reliability

Business systems are only useful when their level of trust is high. This is especially important for organisations using Cloud ERP because companies tend to rely on the amount of information provided by one or more Cloud ERP modules that have been deployed.

However, if the company suddenly finds that there is a lack of critical information in the event that the Cloud ERP is down, the whole chain of operations may be broken, leading to the loss of recurring revenue or worse.

Do a careful research to know how a Cloud ERP system works and whether it can deal with real life situation before spending budgets on it is a smart move here, for it can help prevents risks and loss.

Read more: How Can Cloud Computing Benefit Small and Medium-sized Enterprises?

Speed

For small businesses using only one or two Cloud ERP modules, issues related to data transferring speed are often not a challenge. However, as the company grows, the need for continuous improvement of the process chain, starting with the receipt of raw data, leads to the fact that the provision of useful information becomes much more essential.

Meanwhile, a Cloud ERP system may not be flexible enough to keep pace with the overall growth, as well as the overall data transfer speed from the cloud systems to the organisation and vice versa. Therefore, it is important to ask for information regarding the speed of Cloud ERP systems before deciding to invest.

Read more: 7 Common Uses of Cloud Computing

4 mistakes to avoid when choosing Cloud ERP Systems

Adjustability

The success of deploying ERP in the cloud depends a great deal on the organisation's need for data growth and the speed at which it is planning to increase based on its annual operating plan. This means that if your organisation buys a system that is not flexible enough to cope with the constant expansion of its business, at some point, it will enter a dead end in its growth.

It often happens at the most inappropriate time in the business cycle. If one of the benefits of Cloud ERP is its inherent adjustability, errors in this section will become deadly to the organisation.

Read more: How a Cloud ERP System Can Fuel Growth and Innovation

Complexity

All cloud-based ERP systems can be considered complex; but depending on how, where, and the information provided and managed by the enterprises.

If your business chooses a Cloud ERP that is 'easy to use' or too simple, it is likely that the system will not provide enough functionalities, such as seamless transition from small to medium businesses to large enterprises.

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Topics: Enterprise Resource Planning ERP

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