Adapting to the Hybrid-Cloud

 

For many firms Enterprise Resource Planning Systems mean the following:

old software, a lack of integration with newer technologies, and issues around flexibility, access and usage.

 

Correctly, many firms are making a move to the Cloud.

 

The question is: how can companies ensure an ERP-Cloud will give them the benefits they need, and how can they make the transition successful?

 

ERP to the Cloud – some approaches in the real world

 

  1. Tired of ERP maintenance:

Many companies have had enough of maintenance and upgrading complex ERP software and the underlying hardware and have decided that their teams can add more value elsewhere. Meanwhile, the company acquired modern tools and devices to support better and improved processes.

 

  1. Consolidation of data systems:

Many companies are also considering a hybrid-Cloud platform as they seek to consolidate multiple legacy ERP platforms.

 

  1. What to Cloud enable:

Most firms initially only Cloud enable a single process of ERP, such as planning or a Client-Dashboard view. Some firms are more ambitious and will put an entire end to end process in the Cloud such as Ordering and fulfilment or Human Resource Management.

 

Guidance for companies considering moving all or part of its functions to the cloud ERP:

  1. Implement ERP cloud in a subsidiary, using it as a poster child for the rest of the organization. Doing so allows companies to take on new business processes areas such as the global chart of accounts, as well as cleaning and standardize data. Then they can roll ERP service across the enterprise, once successful in the subsidiary.
  2. Understand that most companies are going to live in a hybrid / cloud system. Planning should be directed to this end.
  3. An ERP cloud does not exist in a vacuum; you have to work with other systems. It is important to standardize master data and establish a governance policy for data across systems.
  4. Make sure you are bringing a complete set of information, consolidated in a way that aligns with the ERP service in the cloud, so that financial and management reports are accurate and you have the advantage of better analysis.
  5. Your business processes must be aligned with the capabilities of the Cloud software.  Testing and bringing in end-users to help design and debug is essential.