Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems (1)

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Benefits and Drawbacks of Cloud ERP v/s
Traditional ERP Systems
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An Overview

• Introduction
• Types of ERPs available
• Reasons for implementing ERP
• Learn about Traditional ERP
• Benefits Drawbacks Of Traditional ERP
• Learn about Cloud ERP
• Benefits Drawbacks Of Cloud ERP Systems
• Which is better ?
• Battle card (Traditional ERP v/s Cloud ERP)
• Learn about BatchMaster ERP on Cloud

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1
Introduction

• Digital transformations are happening round the
  globe
• Anticipating changing customer demands
  strengthening your supply chain by taking the
  technical shift are the need of the hour
• The new keys to success are
• Anticipating the needs
• Acting on them faster
• How to do that ??
• With an Intelligent Next-Gen ERP system to
  empower your business
• The top three benefits gained from ERP are
  reduced process times, increased collaboration,
  and centralized enterprise-wide data. (TEC
  ERP Software Facts Stats 2018)

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2
Types of ERP available

• Want to implement an ERP software ?
• Look at the options available
• - Traditional ERPs are implemented within
  organization , provide mature system
  functionality , and abilities of greater
  customization integration.
• - Cloud computing are implemented on Vendors
  Server, accessed using secured login through
  internet and a Remote Desktop connection
  providing real-time data access.

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Reasons for implementing ERP
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Learn about Traditional ERP Systems

• A traditional ERP software, or on-premises ERP,
  has a database that resides on an onsite server
  and hardware.
• Covers Finances, supply chain, manufacturing,
  raw material procurement, marketing sales,
  planning etc.,
• Generally housed on a companys own servers and
  maintained by their IT staff, or an outside
  consultant.
• Requires regular software updates and huge
  hardware investments to run them.
• Traditional systems provide less cost savings,
  but also have few operational benefits, such as
• - Having the data and computing of applications
  on premises
• - Ability to monitor system performance or
  uptime with the same tools
• - Better customized applications in house with
  no functionality change
• - No blind trust on vendor for backup and
  recovery

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On-premise ERP Statistics

• The global ERP software market is expected to
  reap 47 billion in revenue from 2017 to 2022 at
  a CAGR of 7
• (ERP Software Market 2018 Global Trends)
• On-premise ERP to anticipate 57 grip on the
  industry by 2020. (Allied Market Research)
• Manufacturers look for
• Ease of use - 50
• Functionality - 46
• Total cost of ownership 43
• Lack of ERP software leads to - redundant data
  (35), unaligned business systems (33), and the
  inability to track business processes in
  real-time (28)
• (The Aberdeen Group)

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Benefits Drawbacks Of Traditional ERP System
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Cost One-time payment or a large investment
Security - Organization themselves takes the responsibility

• Riskier upfront costs
• Have to pay huge for hardwares and other IT costs

- Few organizations may not be able to follow the
stringent data security protocols
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Benefits Drawbacks Of Traditional ERP System
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Customization Offers greater ability to customize
Implementation - Organization gets more control over the complete process
- Delay in the implementation time and process -
Heavy software updates due to customizations

• Since it is hosted in the organization,
  organization have the full responsibility of its
  maintenance.

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Learn about Cloud ERP

• Cloud ERP is the one that is hosted on a cloud
  computing platform
• It is a type of software as a service (SaaS)
  Model
• Allows users to access software applications run
  on shared computing resources via Internet.
• Cloud ERP, lowers upfront cost on hardware and
  software
• Allows accessing data from anywhere
•  Allows connecting multiple databases into one
  infrastructure
• The computing resources are maintained in remote
  data centers dedicated to hosting various
  applications on multiple platforms.

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Cloud Options available

• Public Cloud
• Software-as-a-Service, or SaaS, it resides in a
  data center and typically utilizes a multi-tenant
  architecture
• This means, infrastructure and applications are
  being shared by multiple users
• No matter where you are, and no matter what
  device youre on, you can access your data and
  stay updated
• Private Cloud
• Could be created internally or externally
• Internal clouds are housed within the enterprise,
  generally behind the firewall
• External clouds involves contracting with an
  external data center to provide infrastructure
• Data is shared within organizations but managed
  in a physical environment thats is accessible
  only to your organization.
• 3. Hybrid Cloud
• - Utilizes a combination of private and public
  cloud

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Cloud ERP Statistics

• Cloud-based ERP market size will jump to 29
  billion in 2019, make an increase of 11
  billion from 2016s 18 billion. (Cloud
  ERP Market)
• Enterprises may invest on average 3.5M on cloud
  apps, platforms, and services this year.
• (2018 Cloud Computing Survey)
• 76 of businesses either plan on transferring or
  have already moved to the cloud.
• (The End of Technology Obsolescence, ERP
  Trends in 2018)
• 30 of IT budgets are allocated to cloud
  computing, with the majority being SaaS (48),
  IaaS (30) PaaS (21).
• (2018 Cloud Computing Survey)
• Cloud-hosted ERP is cheaper than on-premise
  solutions by 30. (The Case for Cloud-Based ERP)

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Benefits Drawbacks Of Cloud ERP
Cost Predictable cost over the time span Cheaper upfront investment No additional hardware investment Pay only for the services used
Security Vendor takes the responsibility Have confidence that data is being backed-up and there is disaster recovery plan Keeps fear of attacks on servers as it is in cloud
- They are not as mature or tested compared to
on-premise solutions
- Although they promise to set strict data
security standards, yet organizations may or may
not have total peace of mind with this.
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Benefits Drawbacks Of Cloud ERP
Customization Offers greater stability and regular updates from the vendor Can Collaborate with vendor to get the type of look and feel you want in your software
Implementation Typically, takes very less time Mostly up and running in few days

• Restrictions exist on the level of customizations
• in terms of functionality, they are somewhat
  weaker

• Short implementations are result of lesser
  customizations possible and fixed functionality
  available

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Intelligent ERP systems

• Use ML, cloud computing, advanced analytics tools
  built on a large curated data set to forecast,
  track, learn, route, analyze, predict, report,
  and manage business processes effectively.
• Systems that learn, improve, and predict using
  these tool enables businesses to outperform both
  their status quo and their competition.
• With Next-Gen Cloud ERP, Manufacturers enjoy
• Digital-age user experience
• AI-powered automation
• Next-generation business processes
• 247 data availability and security
• Provides new capabilities for everyone in the
  organization- top management, executive leaders,
  IT, finance, and other business lines
• Connects Man, Machine and Processes
• Provides better operational efficiency, greater
  responsiveness and superior quality

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Modern Cloud ERP

• Modern Cloud ERP The next-gen in Cloud
  Technology-
• Provides industry-specific ERP
• A beautiful user experience
• Adopts open architecture
• Employs various synchronisation capabilities
• Tighter security protocols
• Seamless integration tools 
• Offers AI, Mobility, Robotics, Block Chain, and
  more

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Hybrid ERP

•  Hybrid ERP combines the public Cloud and
  on-premise operating models.
• Provides on-premise functionality  agile
  cloud applications to address both unique
  existing business processes and rapidly-evolving,
  high-impact cloud technology 
• Organizations may operate their
  business-critical applications, such as
  Manufacturing, Finances, etc. under their own
  control and in their own data centers
• Is attractive as has costs that are intermediate
  between on-premises solutions and cloud-based
  solutions
• A company can adopt cloud applications while
  also retaining its on-site ERP resources. 
• Greater mobility, ease of installation
  outside support are some of the benefits that
  make businesses choose hybrid ERP
• Boast much lesser training costs

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Which is better ?

• On the Basis of Deployment
•  Cloud-based software is hosted on the vendors
  servers and accessed through a web browser
• On-premise software is installed locally, on a
  companys own computers and servers
• On the Basis of Pricing
• Cloud software is priced under a monthly /annual
  subscription, with additional recurring fees for
  support, training and updates
• On-premise software is generally priced a
  one-time perpetual license fee (based on
  organization size/users), there are recurring
  fees for support, training and updates
• III. On the Basis of Expenditure
• On premise systems are a capital
  expenditure (one large investment upfront)
•   Cloud-based systems, are an operating
  expenditure (an additional overhead cost the
  organization will continue to pay. The amount for
  companies with a large number of licenses may at
  times be more than the on-premise ERP.)
• III. On the Basis of Expenditure
• On-premise can be customized to your business
  flow, specific industry requirements and business
  needs
• - Cloud ERPs provide fixed functionalities
  with very less scope of customization

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Battle card
Parameter Cloud-based ERP Traditional based ERP
Hardware/software location Resides on vendors infrastructure Resides either on-premise or on venders servers
Mode of payment Follows pay-per-use model/ or the monthly subscription Its one-time payment fixed for a specific period of time to avail the facility
Cost Extremely pocket-friendly Depends on how many modules of application you use
Best suitable for Small and medium scale industries Large and medium enterprises (SMEs)
Customization Minor changes in basic design are possible Possible
Scalable Yes, as the business grows Depends on the development of the application
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Learn About BatchMaster ERP on Cloud

• A powerful, scalable and affordable software
  built for the formula recipe based
  manufacturers
•  Ready-to-use, affordable yet simple SAAS based
  model that lets you manage your business anywhere
  anytime
• Handles your entire value chain from RD,
  formulation, planning, procurement to inventory,
  production, sales, finances, quality and
  compliance efficiently
• Equipped with new features, functionality, and
  technologies, we help you evolve your business
  and take it to a greater height
• Explore the benefits of BatchMaster ERP on cloud,
  
•  - Smart and adaptable
• Get a tap on latest innovations at your
  fingertips with automatic updates
• Fast and affordable
• Get the easiest way to streamline your business
  process in pocket-friendly manner
• Secure and reliable
• From system security to staying compliant,
  security is on priority. Your data is hosted on
  world-class servers.

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How to reach us ?

• Want to stay ahead of the technology curve and
  improve time-to-market ?
• BatchMaster ERP on cloud A true process
  manufacturing software is the pathway
• Reach us on http//batchmaster.co.in and know
  our products capabilities
• Talk to us sales_at_batchmaster.com and well be
  there to solve all your queries
• We are social too. Follow us on Facebook, Twitter
  and LinkedIn.

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About BatchMaster

• 30 years of experience
• ERP solutions for small to mid-sized industries
• SAP B1 and Microsoft certified solution
• Over 40,000 users worldwide
• Headquartered in California, with footprints
  across the world
• A global presence with offices in 3 continents-
  North America, Australia, and Asia

• 7 offices round the globe
• Available in 3 languages- English, Chinese, and
  Spanish
• Original developer of formulation system in ERP
• Consistent record of never exceeding
  implementation time of 350 to 500 hours

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