In July of this year, a large ERP provider proclaimed that “ERP is dead” when announcing their upcoming online bookkeeping product. However, ERP is far from dead—in fact, it’s evolving and thriving!
Since the 1990s, when the term “Enterprise Resource Planning” (ERP) was introduced, solutions have reinvented themselves several times—and we are in the midst of another reinvention.
If you think ERP is just bookkeeping or accounting, you’re missing the point. ERP is the planning and control system that spans all vital business functions. Modern ERP systems let you visualize what’s happening and improve decision-making across people, materials, finished goods, machinery, supplier shipments, and customer orders.
The heart of ERP is beating strong for these six reasons:
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Cloud
Legacy ERP systems that require fat clients and multiple servers are becoming obsolete due to high hardware and IT staffing costs and inability to adapt. Modern ERP uses the cloud, eliminating the need for on-premises infrastructure and staff.
Aberdeen Group’s 2014 benchmark found that best-in-class mid-market organizations are over twice as likely to have implemented cloud ERP. Cloud ERP can be hosted on your chosen platform or delivered as Software-as-a-Service (SaaS), making true cloud SaaS ERP the preferred choice.
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Device Flexibility
True cloud SaaS ERP runs anywhere, anytime, on any device with a browser—no special installations required. Modern systems use responsive design, so users enjoy the same experience on desktop, tablet, or phone.
In contrast, legacy ERP requires on-site maintenance, lengthy training, and offers limited flexibility. SaaS ERP can be deployed to a new user in minutes, anywhere in the world.
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Security
With legacy ERP, you’re responsible for securing and backing up your own servers—data can be vulnerable if a hacker knows its location. Cloud ERP stores your information behind sophisticated, enterprise-grade security, making it nearly impossible to steal.
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Customization
Legacy ERP is rigid and requires programmer intervention for even basic changes. SaaS ERP, however, is highly flexible and tailorable—business users can modify workflows, screens, and processes without coding.
Whether you’re a distributor managing orders and inventory or a manufacturer tracking products end to end, SaaS ERP adapts with your business as it evolves.
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Integration
Legacy systems often demand extensive programming to integrate with other applications, and each upgrade can break connections. SaaS ERP uses web services for simple, fast integration and lets you control when to apply updates.
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Licensing Flexibility
Most ERP software charges per user, driving costs higher as you grow. Acumatica’s cloud ERP charges based on resources—compute power, storage, and functionality—so you pay for what you use, not the number of users.
Conclusion
The “ERP is dead” narrative resurfaces every few years—but it’s the old, rigid systems that are dying, not ERP itself. True cloud SaaS ERP is very much alive and evolving.
By Ray Rebello, Director of Product Marketing at Acumatica.
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