Innovation, automation, and intelligence have become the crux of growth and profitability for organizations, whether enterprise-level or small to medium-scale. To manage different operations, a consolidated system was required, which can help overcome data silos, lack of collaboration, and security risks for businesses. Enterprise Resource Management (ERP) systems emerged as a survival strategy in the age of digital transformation. Then, gradually shifting from traditional to cloud-based ERP was a major development that revolutionized the parameters for operations, scalability, and success.
This blog delves into unfolding the difference between traditional and cloud-based ERP and further explains how Dynamics 365 ERP is an optimal cloud-based system for your business. Let us explore together.
How Cloud-Based ERP is Different from Traditional ERP Approach
ERP systems are pivotal to running organizational operations. A traditional or an on-premises ERP system comes with limitations as it requires a lot of infrastructure which comes up with deployment, implementation, services, and upgradation costs because you must deal with investment in hardware, software licenses, infrastructures, and a lot more. The reason the companies wanted an upgrade or a shift from this traditional system was the requirement for regular upgrades, ongoing maintenance, and a fully dedicated employee workforce who has to deal with and manage that system and infrastructure.
This paved the way for cloud based ERP solution, which are unique in a way that they have more agility to help you manage your budget as well as your enterprise, and they come with a future-ready approach that helps your organization achieve its goals and, in the long run, to sustain in a highly competitive market. Microsoft Dynamics 365 offers you a perfect cloud ERP system, which is a suite of business applications that helps you eliminate all the extra expenses you have been working on in your traditional ERP. It also lowers the workload and burden on IT staff. As a whole, the technology deployment that is being offered in cloud-based presents a better approach for managing your operations and resources.
The Competitive-Edge of Choosing Dynamics 365 as Cloud ERP
The technological upfront of your organization is pivotal in deciding the direction of progress of your business. So, when investing your capital in a new system you must know what the competitive-edge are is and the high-impact capabilities of that technology that will help your business flourish. This section highlights the advantages of choosing Dynamics 365 ERP over other cloud-based technologies.
Scalable Architecture
The choice of ERP is a long-term investment that a company makes for its resources and operational management. Dynamic 365 offers you scalability and flexibility in the architecture that goes along with the needs of your organization. Now this benefits you if your system or your business has fluctuation or rapid expansion in terms of operation or terms of size. You don’t need to worry or need to invest in another ERP system or make a complete shift if your organizational size is increasing as Microsoft maintains data integrity and consistency in your processes as you grow, as your employee number increases, and as you expand over the regions and geographical jurisdictions.
Cost-Effective Model
The biggest upper hand a cloud-based ERP offers is saving the cost of the infrastructure, maintenance, and updates required in a traditional ERP system. It allows you to transform all the expenses that you had to make on upgrades and infrastructure into operational expenditures, which will help your business manage your cash flow effectively and provide a predictable cost and budgeting, helping you get an overview and an insight into profit and monthly cost, helping you achieve faster ROI. So, as a business, if you are looking to grow your revenue this is your sign to reduce infrastructure costs and lower maintenance expenses by eliminating related investment and optimizing your resource allocation for improved operational efficiency.
Security and Compliance
The major risk any company faces is related to the security and safety of their data, employee-related information, and all their business information. Every year, companies invest a large part of their capital in order to keep that data secure. So, Dynamic 365 offers data security and compliance with advanced data encryption, multi-factor authentication, and regular security updates while adhering to compliance with global standards and automating your backup and disaster recovery to eliminate the risk of data loss.
The High-Impact Capabilities of Dynamics 365 Cloud ERP
The unique and outperforming features of Dynamics 365 make it outstanding in the market. Let us find out what these features are.
Fiscal Management
How well you manage your services and finances determines how well your business will perform. Dynamic 365 offers you unprecedented visibility and control over your financial operations by giving you real-time financial reporting. With an intuitive interface, you can perform operations like generating financial statements and tracking all the key performance indicators of the fiscal year. It also manages your cash flow in real-time and analyzes financial trends and patterns to predict how you would be performing, what the requirements are, and what capital is required to keep your business on the go, enabling you to make data-driven decisions. Moreover, it automates your accounts payable and receivables. With high performance and a sophisticated set of tools, you can create your own budget and forecast your cash flow by projecting yearly revenue and analyzing how you can manage your expenses for a fiscal period.
Inventory and Supply Chain Management
Every little detail in your business counts, from procurement to the final delivery of the order, from sourcing raw material to the manufacturing of goods, and from handling customer information to your business information, everything matters. This is where supply chain management in Dynamic 365 helps you optimize your inventory with real-time tracking and automating the ordering-reordering scenario. It also helps you manage your stock with intelligent forecasting and reporting. Through insight into past data, you can analyze the trends and project orders for a certain quarter of the year, what the market conditions are, and how you must plan your inventory to keep your goods on the go.
Business Intelligence and Predictive Analytics
Transform your business now with actionable insights and the interactive dashboard of Power BI. You can transform your reports into visuals and get cross-functional analysis to predict and analyze the trends to get insight into customer behavior while analyzing the risk and forecasting the performance of your business. Moreover, a key feature in Power BI is mobile accessibility, which means that you can access, visualize, and make predictions and analyses remotely anywhere, anytime, helping you to maintain the same interactive capabilities as you do in the office on your desktop. You can now evaluate the performance matrix and monitor the changing business dynamics and conditions over time, even when you are not on site.
Achieve Breakthrough Growth with Dynamics Solution and Technology
From commitment to support and planning to implementation, Microsoft Dynamics 365 cloud-based ERP is well suited to bring unprecedented growth, operational efficiencies, and desired outcomes for your business, making it a worthwhile investment.
But just a system is not enough if you don’t choose a credible and efficient implementation partner. Dynamics Solution and Technology, as a Gold and Solution Partner of Microsoft, offers you implementation and support plans that suit your business. Moreover, it offers you customizations that suit your business needs and requirements.
Take it as your sign to step up and contact us to explore the wonders of cloud ERP for your business.
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