Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems - PowerPoint PPT Presentation

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Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems


Businesses are changing the way they used to work. They are adapting Enterprise Resource Planning (ERP) systems to make their business processes integrated and streamlined. To begin with, on-premise ERP and cloud ERP are the two options available for them. Both have their own pros & cons. However, the discussion of the best suited one comes down to what your business requirements are. Go through the presentation below and know about them in detail: – PowerPoint PPT presentation

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Title: Benefits and Drawbacks of Cloud ERP vs Traditional ERP Systems

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

  • Digital transformations are happening round the
  • 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)

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.

Reasons for implementing ERP
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
  • 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

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)

Benefits Drawbacks Of Traditional ERP System
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
Benefits Drawbacks Of Traditional ERP System
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

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)
  • Allows users to access software applications run
    on shared computing resources via Internet.
  • Cloud ERP, lowers upfront cost on hardware and
  • Allows accessing data from anywhere
  •  Allows connecting multiple databases into one
  • The computing resources are maintained in remote
    data centers dedicated to hosting various
    applications on multiple platforms.

Cloud Options available
  • Public Cloud
  • Software-as-a-Service, or SaaS, it resides in a
    data center and typically utilizes a multi-tenant
  • 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 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)

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

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

Modern Cloud ERP
  • Modern Cloud ERP The next-gen in Cloud
  • 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

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
  • 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

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
  • - Cloud ERPs provide fixed functionalities
    with very less scope of customization

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
Learn About BatchMaster ERP on Cloud
  • A powerful, scalable and affordable software
    built for the formula recipe based
  •  Ready-to-use, affordable yet simple SAAS based
    model that lets you manage your business anywhere
  • 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.

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// and know
    our products capabilities
  • Talk to us and well be
    there to solve all your queries
  • We are social too. Follow us on Facebook, Twitter
    and LinkedIn.

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
  • Original developer of formulation system in ERP
  • Consistent record of never exceeding
    implementation time of 350 to 500 hours

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