What You Need to Know About Implementing a Successful Hybrid ERP System
Companies are now implementing hybrid ERP systems to replace on-premise or cloud-based systems. Many business owners are done updating IT infrastructure to run on-premise software and spend time and money on procuring, installing, and bringing online the necessary servers and networks. Similarly, many companies do not want to solely rely on cloud-based systems that are less developed and may not support some business processes. Because companies are turning to hybrid ERP systems, there are things you need to know about successfully installing them before it comes time to do so. Here are some tips to help you.
Benefits of a Hybrid ERP System
A hybrid ERP system provides the best of both an on-premise and cloud-based system. For instance, implementation costs for a hybrid ERP system are substantially lower than an on-premise system. Companies also can take advantage of current cloud-based software to augment their on-premise ERP system. Plus, through on-premise functionality and agile cloud application, they can address unique existing business processes and often-changing, high-impact areas of the company. This strategy offers the least amount of risk because the on-premise ERP system will reliably work while the cloud can add specific, limited functionality for each project to avoid significant problems, delays, and additional costs.
Hybrid ERP System Factors to Evaluate
To determine which hybrid ERP system the business needs, begin by evaluating factors that may affect implementation. For instance, is the hardware that the core ERP runs on still fully supported and addressing current requirements? Is the underlying software still fully supported and addressing current requirements? Are there resources available to fully support the core ERP? Where does the existing ERP system succeed and fail in supporting the existing processes? Which existing ERP functions are systems of record (core ERP) and which are systems of engagement (potential cloud application)? Which parts of the company have custom requirements that are too difficult or too expensive for the core ERP system and might be better served in the cloud?
Technical Considerations to Take into Account
When adopting a hybrid ERP system, you need to think about which technical considerations will be affected when integrating some business processes on premise and some in the cloud. You then need to think about which tools and approaches are available to successfully implement a hybrid system. For instance, in order to increase agility and operational flexibility, think about connecting on-premise systems to the cloud. Also, although your ERP may have tools in place to connect on-premise processes with each other, the extra security and connectivity challenges in connecting to cloud endpoints may mean that those tools will not work to connect on-premise processes to cloud-based processes. Plus, because the data resides in two different data centers with a hybrid, your integrations strategy needs to include handling security and consider analytics.
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