Enterprise resource planning (ERP) software was used to bring together the disparate functions that make up an enterprise. When cloud technology began taking over the tech landscape, it was only a matter of time before it disrupted the ERP arena. While many firms recognized the inevitable shift to the cloud, relatively few were initially able to take action and optimize their corporate processes to take full advantage of cloud computing.
Initially, there was very little information available that could guide corporate decision makers through the maze of emerging technologies and, even more importantly, help firms distance themselves from the competition and monetize the benefits of these technologies.
Traditionally, leveraging emerging technology has been the exclusive domain of businesses that are seen as pioneers and early adopters. Mainstream businesses have historically cautiously waited and observed the results of others before taking the plunge. In today’s competitive economic climate, and in light of predictions warning against increasingly complex cyberattacks, the focus on resiliency and security is higher than ever. Thus, it has become mandatory for mainstream businesses to rethink their strategy around the exploitation of cloud computing.
The strategic use of cloud technology within the enterprise is no longer just an issue for the chief
information officer (CIO) or chief technology officer (CTO). Business spending on cloud computing has been a significant part of company budgets for several years now, so much so that all business executives, including the CEO and board members, have a clear understanding of how cloud technology can be most effectively leveraged and exploited within their organization.
This is an increasingly difficult task due to the vacuum that has been created in the technology roadmap after the internet boom-and-bust cycle the last several years. What seemed a clear path just a few years or even a few months ago is now a minefield of potential distractions; technologies are looking for business problems to solve like a hammer looking for a nail. Cloud computing can have a real impact but it requires a proactive approach on the part of the business in order to identify and implement it. The noise and risk level are now simply too high to take a passive approach or to implement everything that comes into view for fear of being beaten by the competition.
Cloud ERP solutions have created tremendous opportunity for businesses to rethink their business processes. The potential impact of cloud ERP over the next several years will range from simply reshaping business processes to reshaping how entire industries operate.
And as touched on above, security has also been a major challenge for cloud users. Cloud vendors have been ramping up their security offerings and cloud ERP risk has been greatly reduced over the past few years, but there’s a long way to go to change the overall perception.
As of now the major reasons for adoption seem to relate to the flexibility in pricing and the easier implementation cycles. Overall cloud ERP systems have been disproving a lot of the misconceptions that had initially hampered their adoption in the industry, but they still have a long way to go.
It is important for enterprises to leverage the best technology available to them and address any underlying concerns that come with it. The confluence of all these technologies is pointing towards increased efficiency and productivity for both businesses and users, however a leap of faith will need to be taken first.
