Ever since the Industrial Revolution began, there is no turning back for the enterprises who have scaled themselves into bigger and more complex organizations with the time. As the enterprises grew, managing them was a challenge, as the resources were multiplying and the complex structure became further entangled. The need of the hour was to streamline these rather complex operations that were spread apart in various modules, which were interdependent.
To manage these complexities, Enterprise Resource Planning Software came into existence as the technology developed in the late 1980s. It was a revolution that helped the companies manage their tasks online using computers and keep proper records of every activity that took place. What made it even more successful was the acceptance that the computers and internet gained in the market. ERP became omnipresent in the industrial landscape during those times.
Being a success earlier, gradually the localized ERP software fell short in managing the enterprises which were no more localized. The desktop-based ERP software, which is still in use at many places is unable to deliver optimally as expected. Since other technologies grew, desktop-based ERP systems were left behind in the race to outperform.
Let us highlight some of the key disadvantages that have made the traditional desktop-based ERP software fall short and replaced them advanced cloud-based ERP software.
- Location constraints
Businesses are expanding, they are no longer limited to a single location. With the internet as the enterprises have got the opportunity to go global, they have emerged out of the existing location barriers that confined them to specific locations.
Amidst this, localized ERP software has turned out to be a major shortcoming, as they cannot be used over the different locations of the same enterprise. Every time when someone has to go through the records, they need to be sent over email, making it a tedious job to handle the resource management centrally.
This has created a gap among the branches of the same organization that are located at different locations, posing a problem to manage them as a whole on a central organizational level.
With a cloud-based ERP, one can easily manage the resources through a central cloud-based system that can be accessed across the globe.
Desktop-based ERP software is difficult to scale because every time they are to be scaled, they require reconfiguration. This is time-consuming and makes it difficult for the growing enterprises to keep up their operations seamless in the fast-paced economy.
The enterprises give a lot of traction to the growth and one can witness a lot of enterprises scaling their operations. This clearly depicts that the need for scalability is crucial and has to be fulfilled with immediate effect. It would help the company to hold on a strong position in the dynamic industry, which is rapidly evolving.
The software must be easy to scale that can seamlessly comply with the business needs of growth without any hiccups.
Cloud-based ERP software, on the other hand, makes scaling a cakewalk, where you can easily scale your operations as and when you require it without disturbing the current ongoing operations.
- Cost Efficiency
Desktop-based ERP software incurs more cost to the company as they need to be installed at every location where the company operates. Their lesser flexibility also adds to the cost, as they need to be reconfigured every time there is a requirement of modification. In addition to this, they occupy a lot of resources, which is cost a lot to the company.
Cloud-based ERP systems, on the contrary, are much more cost-efficient, as their resource requirements are low and offer great flexibility.
- Resource Utilization
Desktop-based ERP software has more resource requirements as they need physical desktops to manage the system, which increases every time, you would plan to scale.
Cloud-based ERP systems utilize cloud resources which optimally utilize resources without burdening the company with their resource requirements.
The way forward
With the major disadvantages that come along the old-age traditional desktop-based ERP software; it is important that the enterprises should see-through for better possibilities of a way forward, that can help them come out with solutions.
One such way is the use of Cloud-based ERP solutions that enables the enterprise to come forward and overcome these shortcomings.
If you are suffering due to the disadvantages of desktop-based ERP software, then it is the right time to look ahead for a cloud-based ERP solution that could help you perform better.