Cloud ERP- Organizations are steadily moving business-critical data and workloads to cloud ERP systems, with the global cloud ERP market size expected to reach nearly $38 billion by 2024, according to MarketsandMarkets. While this shift promises cost efficiencies, it will not solve the inherent limitations of native ERP financial reporting, which is typically designed to support only basic reporting needs, rather than the specialized reporting requirements of finance departments.
Insightsoftware recently conducted a global survey examining perceptions about the impact and readiness to adopt cloud-based ERPs. “This survey exposes broad misconceptions that cloud ERPs will help to overcome the pain points associated with native ERP financial reporting, including the need to manually manipulate static data and depend on IT teams, all of which result in a time-intensive process that’s not conducive to the speed of business,” said Wes Gillette, vice president of product management at insightsoftware.
“Unfortunately, these same financial reporting roadblocks that exist with on-premise ERP systems remain unchanged in cloud ERPs. For finance teams, it’s just ‘the same problem, different server,’ and in fact, new issues with performance can arise in the cloud, making financial reporting even slower. Finance professionals that anticipate these challenges can help their organizations prevent reporting delays and ensure the transition to a cloud ERP is a smooth one.”
IndustryWeek recently discussed the results with Gillette.
IW: What do these numbers mean for manufacturers?
Gillette: As evidenced by the current global crisis, real-time financial reporting about supply, demand and operations is absolutely critical for manufacturers. While the benefits of moving to Cloud ERPs are clear for IT teams, the survey data shows that Cloud ERP systems do not significantly improve the level of financial reporting offered compared to their existing on-premise ERP. Given that ERP systems are the ‘heart and lungs’ of manufacturers based on the size and complexity of their global supply chains, manufacturing finance teams need to engage with IT on Cloud ERP migrations to ensure they have their specific financial reporting needs covered and to anticipate other challenges they may face to avoid reporting delays or disruptions to operations.