Should manufacturing adopt cloud-based ERP?

Manufacturers are under immense pressure to increase process speed, improve accuracy and leverage internal business intelligence to make every company interaction count. Like on-premise enterprise resource planning systems, cloud-based manufacturing software can help companies bring innate knowledge into every sales situation, but has the added benefit of being easier to deploy and implement. 

It seems like a no-brainer: Why shouldn't manufacturing companies adopt cloud-based ERP? Current manufacturing managers and experts believe there are a number of reasons.

Undoubtedly there are a few typical cloud-related issues such as security, but in general manufacturing business are extremely complex, with tailored workflows, business rules and data structures. There are concerns that multi-tenant applications do not currently offer the level of customization manufacturers would require. Many enterprises have been in the industry for decades, and have invested in complex ERP systems that have been upgraded over the years to create a software that fully supports all their process. Walking away from the kind of work that was put into most legacy systems is difficult for companies.

Robert Kugel, senior vice president and research director at Ventana Research told TechTarget, "There isn't a company on the face of the earth that would decide to replace their ERP system just to be able to move to the cloud. A tipping point will only come when there's some breakthrough in ERP system design that enables a large number of manufacturing companies to configure and script in a multi-tenant environment without having to make too many concessions."

Cloud computing can, however, revolutionize manufacturing, and while many older companies may choose to stick with what they know,  younger generations of manufacturers who do not have legacy systems appear predisposed to adopt cloud-based strategies. For these companies, software like Microsoft Dynamics NAV, which offers cloud-based SaaS hosting, may be an excellent solution.

If you are intersected in learning more about Microsoft Dynamics NAV and its various deployment options contact Accent Software today.