How does Cloud ERP help SMBs Receive Substantial ROI

According to an International Data Group study, 69% of businesses use some form of cloud technology. Cloud solutions are a key component of many business operations today. Cloud ERP is being adopted by more small businesses due to its speed of implementation, greater flexibility, and lower overall costs than traditional on-premise ERP. What ROI (return-on-investment) is cloud ERP delivering for these SMBs?

A report from a study shows that cloud technology has 4.01 times the ROI of on-premise. That's significant. We'll be discussing the benefits of cloud ERP for small and medium-sized businesses, as well as how they can help with ROI.

The key benefits that can help small and medium-sized businesses achieve a high ROI

The Report analyzed over 100 small- and medium-sized companies that had implemented cloud ERP solutions. The ROI was as high as 5899%. Perhaps even more remarkable was the fact that cloud ERP still had a 73% ROI. Over 50% of companies reported an increase in ROI by 150%.

Cloud ERP can bring immediate benefits to your company. In a study, the ROI of cloud ERP solutions was as quick as 2 months and the longest at 1.9 years. These are the main benefits.

Reduce IT costs

Cloud ERP reduces IT hardware and maintenance costs, as well as human resource costs. Cloud ERP replaces obsolete, incompatible systems that IT must maintain. This means that IT staff are less needed.

Multi-location companies use different hardware and software. This is expensive due to redundancy, integration, upkeep, and redundancy. Cloud ERP allows staff to access information anywhere via the internet. Cloud ERP does not require any hardware to be purchased. The vendor handles maintenance and upgrades. This is a less expensive option, but it provides all the functionality necessary for growth.

Better insights

Cloud ERP offers deep, integrated analytics that helps businesses predict trends and forecast changes. They can plan for growth and use the technology to forecast the future. Dashboards give you an intuitive and real-time view of the business' KPIs.

Cloud ERP gives you instant access to operational and financial data. Managers are able to make smarter and faster decisions when they have all the information they need. Stakeholders can easily create custom reports. It is easy to drill down to view specific information. Management can identify business opportunities and generate revenue by gaining deeper insight.

Productivity increases

Manual data entry is time-consuming and error-prone. Cloud ERP automates manual entry, so employees can focus on more important activities. Cloud ERP can be accessed by employees via their mobile devices and laptops. This increases efficiency and allows staff to work from anywhere.

Information is accessible and processed quicker. Customers' data can be accessed quickly to offer better service. Service and sales staff can help customers with questions and other transactions, such as expense reports and billing. Accounting can handle the month-end close faster and eliminate consolidating data into spreadsheets.

Better customer satisfaction

All information can be stored in one database so everyone can work with the same information. With easy access to customer data, sales and marketing can target customers more effectively. Sales can make informed decisions by looking at customer financial information, order history, and payment history.

According to the study, cloud ERP customer service staff spent less time dealing with customer inquiries. This resulted in a 30%-60% decrease in the time it took to resolve customer issues. Customers can view their history without needing to visit different departments of the company in order to see information about orders, sales, or shipments. Businesses can grow faster with lesser staff by using cloud ERP.

Accuracy improved

Cloud ERP eliminates the need for paper, spreadsheets, and other accounting software. It speeds up collections, reduces quote-to-cash times, and improves billing accuracy. Statements and financial closings are fast and free from errors. All banking processes can be tracked, and GAAP is used to ensure financials conform with standards. Cloud ERP automation eliminates manual errors across the company.

Conclusion

These benefits increase the ROI of cloud ERP in small and medium-sized businesses. These are only some of the many benefits cloud ERP offers small and medium businesses that can help them prosper and grow. SMBs can also reap the benefits of cloud ERP, which helps them be more competitive and profitable.