In today’s rapidly-evolving business landscape, staying ahead of the curve is critical. As the Fourth Industrial Revolution takes hold, companies must stay up to date with innovative technology to keep pace with changing customer demands and market trends. One such tool, Enterprise Resource Planning (ERP), has risen to immense popularity within the technology industries.
ERP has become an essential resource for businesses of all sizes. They provide businesses with a comprehensive suite of applications to manage all their operations. With the rise of cloud-based technology, a new generation of ERP software has emerged. This is known as Software as a Service (Saas) ERP. In response to current digital trends within the industry, businesses are turning to SaaS as a tool to grow greater scalability and streamline their daily operations.
This unique approach to ERP provides businesses with the traditional benefits of ERP minus the high costs and maintenance requirements that are normally associated with such services. Thanks to the seamless integration of SaaS and ERP, implementing ERP has become easier and more cost-effective than ever before.
In this article, we explore the benefits of SaaS ERP tools and their role in the Fourth Industrial Revolution.
Streamlining Operations
As we move further into the 21st century, we are seeing an unprecedented wave of technological innovation. From artificial intelligence to blockchain, these technologies are changing the way we live and work. ERP has been around for decades but it has only recently become truly transformative. Thanks to the rise of cloud-based technology, ERP has evolved into something even more powerful: SaaS ERP.
One of the most significant advantages of SaaS ERP is the ability to streamline operations for businesses. They also provide a comprehensive overview of operations in real-time. This is done by integrating all your business processes from sales and marketing to supply chain management and finance into one comprehensive software management system. These features allow businesses to employ data-driven decision-making. For example, identifying any areas for improvement and optimizing their processes for greater efficiency.
Most SaaS ERP software can also provide all the necessary B2B solutions. According to a recent study by Allied Market Research, the global ERP software market is expected to reach a $117.09 billion value by 2030. This growth is being driven by the increasing adoption of cloud-based ERP solutions.
Achieving Scalability
Scalability is a key consideration for businesses in the Fourth Industrial Revolution. With the ability to quickly scale up and down as needed, businesses can remain agile and responsive to rapidly changing market conditions. SaaS ERP tools offer enhanced scaling and flexibility, which allows businesses to expand their operations or pivot to new markets with minimal disruption.
A study by Gardner found that businesses that implement cloud-based ERP solutions can achieve a 50% reduction in IT costs. This allows for greater investments in growth initiatives.
Cost-Effective Solutions
Implementing an ERP system with SaaS tools will be much more cost-effective than using just a traditional ERP system alone. Traditional ERP systems can be incredibly expensive, with high upfront costs and ongoing maintenance fees. SaaS providers step in to offer flexible pricing models that allow enterprises to pay only for the features and services they need.
SaaS ERP also provides companies with other cost-effective solutions which eliminate the need for large upfront investments in software and hardware. Instead, businesses pay a monthly subscription fee for access to the software. This means they can allocate the resources with greater accuracy at all times. As the software is hosted in the cloud, businesses can avoid the need for costly on-premises hardware and software solutions.
Market research conducted by Statista indicated that the most popular ERP systems for small and medium-sized businesses in 2020 were the following:
SAP Business One 19% Market share
Oracle NetSuite 16% Market share
Microsoft Dynamics GP 12% Market share
In addition to the flexibility and cost-effectiveness, SaaS ERP offers several other benefits that can assist companies to achieve their business goals. Some of these benefits are:
Improve efficiency by automating routine tasks and workflows
Reducing the risk of errors
Freeing employees to focus on more important and strategic tasks
Provide real-time visibility into business operations via analytics
Ensures data-driven decisions and identifies areas for improvement.
A report by Nucleus Research found that businesses that use SAS tools for ERP experience a 50% lower total cost of ownership compared to those that use traditional ERP systems.
Improved Data Security
One of the most important benefits of SaaS ERP is improved data security. In today’s digital age data breaches and cyber attacks are becoming increasingly common. Businesses must take steps to protect their sensitive information from such threats.
SaaS tools can provide enhanced security measures that traditional ERP systems cannot. This is why they work in such beautiful harmony. SaaS providers typically have highly secure data centers with advanced encryption and backup systems. All of these factors can significantly reduce the risk of data breaches and cyber-attacks. It is also worth noting that SaaS providers typically have more robust security measures in place than the average individual business.
This includes:
- firewalls
- encryptions
- multi-factor authentication
Furthermore, SaaS ERP providers are responsible for maintaining and updating the software. This ensures that it remains secure and compliant with industry standards. It eliminates the need for businesses to invest in expensive IT infrastructure or to hire a dedicated staff that will have to manage the ERP software.
A survey by Computer Economics found that 79% of businesses using SaaS tools for ERP reported improved security compared to all of their previous systems. This means that enterprises can have greater peace of mind knowing that their data is secure and protected as they conduct their business.
ERP for eCommerce
In the world of e-commerce, customer satisfaction is key. Consumers have become increasingly savvy, demanding the very best service, prices, and experiences. To meet these demands e-commerce companies must have their supply chain at peak optimization and their operations running like clockwork.
When it comes to running an e-commerce business, having streamlined and efficient operation is crucial for success, much like other businesses. This is where Enterprise Resourcing Planning for ecommerce comes into play. An ERP system can help businesses manage and automate many of their day-to-day operations. This includes inventory management and financial reporting.
One of the significant benefits of using an ERP system for e-commerce is the ability to integrate with various e-commerce platforms. By integrating with platforms such as Shopify Magneto or WooCommerce, businesses can streamline their operations and automate as many processes as possible. This will lead to time-saving and a reduction in human-related errors.
ERP systems can specifically help businesses manage their inventory with extreme efficiency. With real-time inventory tracking and management features, businesses can avoid overselling or underselling their products. This ensures they can avoid lost sales or expensive inventory holding costs. The ability to manage and monitor the entire supply team in real time helps businesses to be more responsive to the customer’s needs. ERP software can also assist businesses to forecast demand, optimizing pricing, and improving shipping management.
Another advantage as discussed above is the ability to provide detailed data and analytics. This can show you how many products you have in stock, which products are in stock with suppliers you’re working with, and which marketing strategies or campaigns you should run in order to create the most success. A study by IDC showed that 42% of manufacturers cited improved supply chain visibility when using ERP software.
Industry Statistics
Numerous studies have shown the benefits of SaaS ERP. According to a report by Allied market research, the global SaaS market is growing at a Compound Annual Growth Rate (CAGR) of 10% from 2021 to 2030. ERP is one of the key drivers of this growth. The report also notes that the SaaS ERP can help businesses reduce costs by up to 90% whilst also improving productivity and operational efficiency.
Another study revealed businesses that implement ERP software can improve their order-to-shipping cycles by up to 50%. This can lead to faster revenue growth and an improved customer experience. A further study also noted that SaaS ERP can help businesses reduce implementation time by up to 50%, which will allow them to see a faster return on investment in that regard.
Conclusion
SaaS ERP tools are a game-changer for businesses in the Fourth Industrial Revolution. They offer greater scalability, agility, and efficiency enabling businesses to stay ahead of market trends. These tools also enable organizations to harness the power of advanced technologies such as artificial intelligence, machine learning, and predictive analytics.
ERP has become a critical component of modern businesses in the Fourth Industrial Revolution. SaaS ERP integrations are a powerful innovation for businesses looking to stay ahead in this digital Industrial Revolution. Thanks to the flexibility and cost-effectiveness of these unique solutions SaaS ERP has become highly beneficial when assisting your company’s growth.
The growing popularity of SaaS and ERP systems has allowed businesses of all sizes can benefit from the powers of these tools. With these useful integrations, your company can achieve its goals and stay ahead of the competition.