In today's modern and sophisticated organization, establishment of effective ERP is a nerve in ensuring organization sustainability in prevailing competitive business environment. Flow of essential business data on timeliness basis with minimum human intervention, would drive ERP towards attainment of organization goals in a more efficient manner.
Typical investment in ERP in an organization is implemented through investment in typical hardware / software supported by IT resources and the business owner. With an evolution of modern technology, a web-based platform serves as an option for an organization to explore and consider for alternative platform.
Before embarking into such investment as to which platform should be considered, an organization needs to explore various practical factors before arriving to a workable solution.
Accessing to data at any point of time to arrive to decision-making is crucial. The accessibility to such data cannot be restricted to any boundary obstacles. A web-based platform meets the above objectives considering that it requires a simple Internet connectivity and is accessible to anywhere by authorized persons. Modern technology in modem has created a pen-like modem which enables authorized persons to access to the website using a wireless connectivity. Furthermore, by using a web-based solution, all types of data (be it, statistics, pictures etc) are centralized and updated at one central point, which means that there is only one point of latest information. This helps to eliminate any duplicate data and every authorized person would access the same data.
Efficient resources management
Investment in hardware and software can be an exorbitant investment, notwithstanding the expertise of IT personnel required to oversee the running of the machine and programs. This investment needs to be considered from a perspective of Cost versus Benefits analysis in a long run before a decision is made.
Web-based platform provides organization, a relief in terms of hefty IT investment. An organization is only required to invest in a much smaller scaled investment cost mainly in the subscription cum accessibility fee. No investment in software and hardware is required.
Enhanced data security
Unauthorized accessibility to sensitive data is not an option to any organization. The data security management framework needs to be established extensively should an organization invest in a server-based solution, notwithstanding the high cost involved.
With web-based ERP, the security breach risk is transferred to the administrator of the web-based platform. Though it can be seen as a potential IT breach concern by a third party like the said administrator, to manage this risk, each subscriber is specified a folder whereby it is individually managed by means of enforcing password security for each client. Therefore, it is unlikely that the contents of client's including sensitive data could be accessed by the said administrator or even other clients. Furthermore, data is encrypted during data transmission either during set-up stage or updating stage, and confidentiality of clients' data is preserved from the eyes of service provider.
It is often a common issue in the case of compatibility between newly acquired software and the existing server in an IT department. As technology evolves, application software becomes more sophisticated and complex. The concern is the capability of the existing server to support the running of software in a long run. Potential IT operational setbacks may surface such as slow processing time, leading to un-productivity. Additional IT investment cost is inevitable since this may trigger an urgent need to invest in upgrading the existing server box which may include acquisition of a new server or increase its memory capacity.
The compatibility issue is addressed in the case of web-based solution. Organization will not have to worry about this headache. There is no issue of incompatibility as no investment in hardware and software is required respectively. The issue of data transfer incompatibility can be addressed by means of introducing an interface program. Nevertheless, this issue is rather remote considering that most format of database in the IT industry is accessible by any open system.
No worries about upgrading
A typical concern in any IT solution is the upgrading version. In a world of IT, upgrading a solution is inevitable to keep abreast of the client's requirements, changes in regulations as well as changes in business requirements.
Any upgrading requires a further investment and this can create a financial headache especially when times are bad.
On the contrary, this is not an issue in the case of web based solution. This "headache" is shouldered by the service provider as part of their service enhancement to their clients. To keep abreast with the technological advancement as well as meeting above clients' expectation level, upgrading of software is fundamental to the service provider.
Scheduled Data Back-up Management
By investing in a web-based solution, an organization should not worry about the potential loss of its valuable data. The task is carried out on a routine schedule by the web-based solution provider using separate data backup folder for each dedicated organization. Unlike server-based platform, no manpower resources from organization are required and thus, the risk of not backing-up data is mitigated.
Having adequate resources in an organization is a common scarcity agenda in any organization. Management needs to plan its resources efficiently. A web-based ERP solution is one of the opportunities to assist Management to manage its resources efficiently, enhance productivity and increase business performance which eventually, drives the Organization towards attainment of pre-set business objectives.