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Avoidable Mistakes When Choosing Cloud ERP Systems – Part 2

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. Even in the very first stage - the selection process, there are four core factors can be easily ignored: Reliability, Speed, Adjustability and Complexity.

Next, in the implement process, one thing is often overlooked, it is the connectivity of the Cloud ERP Systems.

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4 mistakes to avoid when choosing Cloud ERP Systems

Ignoring Cloud ERP connectivity

Connectivity and bandwidth issues are especially important to Cloud ERP systems, unlike the on-premise version which only requires a moderate level of attention. The reason is because the Cloud ERP system completely depends on the external processing to complete the work.

Each stage of the system development requires better Cloud ERP connection, and this generally means more budgets as your business goes up the ladder of growth. If your organisation does not pay attention to the ERP connectivity, the risks of wasting money and human resources are more likely to happen.

Pre-launch and running processes

Before launching the Cloud ERP system, bandwidth requirements can be minimised and just periodically checked. In this stage, it is important to carefully measure the target by dividing the overall capacity for the level of reliability, rather than focusing on maximising the processing power.

However, once the pre-launch period is complete and the business is ready to grow, enhancing bandwidth becomes a necessity. Unfortunately, many ERP project managers tend to forget about this limitation, therefore, ignoring it.

Consequently, the Cloud ERP performance will be affected by the same level of managers’ distraction. This failure can lead to over-budgeting, as well as breaking down any supporting and training incentives from the business, thus creating additional difficulties at later stages.

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4 mistakes to avoid when choosing Cloud ERP Systems

Predicting bandwidth requirements

When businesses have done all they can to solve the problems and it’s still not working, perhaps upgrading the operating bandwidth becomes essential. Most Cloud ERP suppliers provide reasonable expansion charges, as long as quotas are not out of the contract’s limits. However, if the enterprise does not accurately predict the bandwidth requirements of the Cloud ERP system, the cost incurred is often very high and can cause the organisation to spend more than expected.

This leads to the fact that businesses start to measure multi-year bandwidth. Currently, many Cloud ERP providers offer reasonable prices for bandwidth expansion. That is why the managers need to pay attention to this potential aspect by studying both the basic and upgraded types of bandwidth based on the long-term needs.

Of course, all of these require the organisations to make careful and prudent plans, which is supported by the risk management department to ensure that the Cloud ERP system continues to operate and demonstrate efficiency. Specifically, regular measurement and operational testing are essential in any management method being applied; if not, the connectivity of the Cloud ERP will cause abrupt constraints, causing damage to the business performance.

Read more: ERP for Building Materials Manufacturers: Russell Roof Tiles Going Cloud

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Topics: Enterprise Resource Planning ERP

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 Rick Yvanovich
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