No matter the industry, business owners need to know how much money they’re making on various aspects of their company. There are a few ways to achieve this. One of the most barebones ways of keeping tabs on return on investment is to run on-site ROI software. While this works for some organizations, many professionals find migrating to cloud ERP software to be a much more comprehensive strategy. Here’s how cloud ERP and on-site ROI software match up in a head-to-head comparison.
What Is On-Site ROI Software?
On-site ROI software is a type of program businesses can run to keep track of return on investment in various parts of the company. This is necessary for any organization that’s serious about providing value to shareholders. Companies need to spend money on data and analysis programs in order to identify potential areas of improvement. On-site ROI software fulfils the minimum requirement of this by offering customers insights into one kind of key metric.
What Is Cloud ERP?
, and how does it differ from on-site ROI software? There are several important differences between these systems. First, enterprise resource planning (ERP) is a much broader kind of platform than ROI software. ERP systems integrate all departments and offices of your business onto one user-friendly interface. Since this type of software operates through the cloud, it can be accessed from anywhere with an Internet connection. There are several ways these factors generally make cloud ERP software superior to other forms of workplace and data management.
Cloud ERP Offer Superior Data
ROI is one of the most important business metrics. In today’s world, however, companies need to keep track of. This is where cloud ERP dominates on-site ROI software. The nature of cloud ERP software allows it to collect an unprecedented amount of data. Every device that can connect to the Internet can be turned into a cloud ERP data collection machine. Insights gained from constant real-time data can pay off in huge ways for businesses.
For example, a manufacturer might be able to identify inefficiencies in warehouse processes through information collected and stored on cloud ERP. Fleet managers can sync vehicles with cloud ERP software to see how much fuel is being used by each driver, and give tailored advice in order to improve efficiency. Your ability to innovate novel solutions and applications with data is much higher with cloud ERP software than on-site ROI software.
Cloud ERP Delivers Better ROI
The point of on-site ROI software is to monitor returns from various parts of your business. This can be incrementally helpful in improving margins, but nowhere near as effective as cloud ERP software. Cloud ERP software is designed with the intent of saving companies money, while simultaneously simplifying operations. There are a few key ways cloud ERP solutions improve ROI in other areas.
- Cloud ERP lowers staffing requirement: Automation is one of the biggest money-savers for organizations today. Cloud ERP can automate certain jobs related to payroll and human resources—decreasing salary costs. Since you won’t need a full IT team with cloud ERP software, as most services offer 24/7 customer support, you can also save money in tech staffing.
- Cloud ERP can be scaled to fit your business: In the past, ERP programs were exclusively for large companies because they required a large amount of initial capital. Cloud ERP runs as a subscription, so the upfront cost is spread out, which lets smaller businesses utilize it. These systems are also highly flexible in terms of what you purchase. Instead of having to buy a whole bunch of features you don’t need or want, organizations can scale at their own pace. This is also extremely useful for seasonal businesses that only need the software’s extra features during certain times of year.
All companies can benefit from knowing ROI data. There is, however, a distinct advantage to using cloud ERP software for this as opposed to on-site ROI software.