Why Manufacturing Leaders are Modernizing their ERP

Before diving into a discussion of the advantages the cloud presents to CFOs, let’s start with being clear about the basic differences between an application deployed in the cloud versus an on-premises deployment:

The argument for the cloud to help your business transition to modern finance is a convincing one when you look at the benefits:

Modernized reporting, predictive intelligence, and insights

Today, the importance of using data to make critical decisions is paramount—a competitive differentiator. And as discussed earlier, surfacing intelligence and insights and reporting on that information has become much more sophisticated and predictive with developments like AI and machine learning. The cloud modernizes these processes so you can make informed decisions in real time because you have easy access to timely, accurate, reliable, and verifiable financial data. By giving you the ability to tightly integrate all your operational systems, you get a single source of truth that you can use to build actionable intelligence and deliver more value to the business—which is either very challenging or impossible to do with on-premises technology.

Automated, streamlined financial processes

With the cloud, you have the tools you need to automate and streamline workflows and processes, optimizing the productivity of your workforce and allowing them to focus their efforts on areas that add more value—or do more with less if conditions require, eliminating the need to make staff reductions or hire new staff. You also get the benefit of a dramatically shorter learning curve.

Improved collaboration

The productivity of your team depends partly on their ability to collaborate effectively. Cloud ERP solutions like Microsoft Dynamics 365 integrate seamlessly with Outlook, Teams, and more, making ERP data, reports, and workflow approvals immediately available—again, without compromising on security and without having to change the productivity tools you have invested in and your people are comfortable using.

Compliance and reduction of risk

Security and compliance are always top of mind for a CFO— especially when it comes to your technology. Reputable cloud software is continuously updated with regulatory certifications, reducing your exposure and protecting your reputation. The cloud ensures other areas like secure connectivity with vendors and partners, enabling you to put controls in place to protect your organization against fraud and cyberattacks.

Mobility

With the pandemic came the immediate requirement to be able to work from anywhere. Businesses realized that there are many benefits to providing mobility in addition to enabling remote work. Cloud systems are inherently “work anywhere ready,” accommodating work from the office, home, or a combination. Cloud solutions are even accessible through mobile devices, with workflows for many processes, like submitting and approving expense reports, purchase requisitions, or vendor invoices. And because these solutions are in the cloud and being accessed through a browser, employees can be productive without compromising on security.

Attracting and retaining talent

Across the nation, businesses of all types have been struggling with “the great resignation.” Business leaders and CFOs need to make their organizations attractive to talent that is in demand. It is imperative to offer positions that are supported by modern enterprise systems with capabilities that not only reduce frustration but also keep their skills and talents up to date.

Regardless of which financial management or ERP solution you choose, the decision to go to the cloud hinges on your business requirements, challenges, and goals. No single thing should make or break the decision, and you should not assume that you have to compromise on what you need. Start by getting detailed answers to the following questions:

1. How quickly do you need to go live?

The cloud typically requires the same implementation time; however, as with any implementation, that varies based on the complexity of your solution, and provisioning is definitely faster.

2. What are your security policies or regulatory requirements?

A hosting provider must be able to offer the level of security you require and be able to satisfy any security regulations to which your organization must comply. Some think the cloud is not as secure as on premises, but that is not true. Microsoft, for example, holds more national, international, and industry specific certifications, credentials, and compliance approvals than nearly any single company could obtain on its own.

3. How are end users accessing the system?

Are your employees remote, on your company network, or a combination? Remote employees are more common than ever before. Cloud ERP can be implemented as an extension of your own network, with all the security controls you use today—or it can be designed with full-fledged public access—or anywhere in between. You decide based on your processes and policies.

4. Do you have system integrations?

Integrating with other systems can be simple or more involved and time-consuming, depending on the number and type and whether the system is also in the cloud or is on-premises.

5. What are your reporting requirements?

We have gone past mere reporting. Today, the cloud means machine learning and proactive analytics, which the cloud is more capable of providing than an on-premises solution.

6. What are your backup requirements?

With either option, you need to have a solid backup plan. Today’s cloud can provide you with as much control and flexibility as you require.