In the mid 90’s, Cloud Computing and ERP created a big “BUZZ” in the IT Industry, through their efficient and innovative approach. Today, both the technologies have become an integral part of a long list of the enterprises, across the world. A smart implementation of Cloud Computing is sufficient for profitably enhancing the effectiveness of the business procedures, while minimizing the cost factor. Similarly, a successful integration of ERP in the system ensures an impeccable and uninterrupted flow of information, between different segments of an entire organization.
Acknowledging the significance, the business houses rapidly adopted both the technologies to smoothly accelerate, as well as escalate their business operations. The blend helped the enterprise to set-up the applications and work faster, with better manageability and low maintenance. Further, the blend helped them meet the ever-evolving operational demands, and business requirements.
Cloud Computing (CC) – A Green Alternative
The “Cloud” is a metaphor that signifies the “Internet”, and the addition of “Computing” makes the meaning quite intrigue. The technology is all about taking care of various applications, running on different local computers, from a distant location. Moreover, the strength of the CC mainly lies in its flexible and transparent nature.
Usually Cloud Computing is differentiated, according to the deployment model. There are four primary models, namely –
- Public – Readily available for Public utilization, at free-of-cost, or with pay-per-use method.
- Community – Sharing only among organizations, with common subjects.
- Private – Sharing only within the organization, and could be managed internally or externally.
- Hybrid – Blend of two clouds (Public, Private or Community)
Enterprise Resource Planning (ERP) system – “Crown Jewel” of an Enterprise
ERP involves integration and management of information across the various sections of an entire organization. An ideal enterprise resource planning model serves as the backbone of an enterprise, as it manages the information flow, and ensures seamless transaction and production. It helps in providing information for crucial decision-making, enhancing flexibility to adapt changes, and increase efficiency of the business.
Ways to Integrate a ERP system in an Enterprise –
- Direct Integration – This involves installation of ERP system on to the plant floor.
- Database Integration – Involves integration of ERP with the plant database for depositing information.
- Custom Integration solutions – Used mainly on workstations, and deliver customized solutions.
ERP along with Cloud Computing Create Wonders!
Just like Cloud Computing, the ERP system integrates different aspects and functional abilities of the organization into a single system, to fulfill all the business requirements. Therefore, a smart synchronization can help consummate bigger goals, and improve the efficiency of the organization. Furthermore, adding an ERP system in the Cloud can immediately make the system accessible to the entire organization, and thereby solves various problems. Especially for organizations with geographically distributed channels, the blend enables integration of data on to the single database.
Often termed “Cloud ERP,” the blend of both the technologies make the best use of available IT resources, and helps in balancing the expenditure, along with economic growth of the enterprise. For example, establishment of the entire IT infrastructure, channeling operations, and managing the resources require huge investments. Plus, maintenance of system need funds to ensure proper execution of business processes. Even so, an efficient amalgamation answers ideally to the above-mentioned issues.
As for now, there is a long list of companies, who have adopted Cloud ERP solutions, such as SAP, Oracle, Microsoft, Net-Suite and much more. However, experiments are still going on, to increase the effectiveness of ERP Cloud solutions and get the maximum profitable results.