Cloud ERP-as-a-service

Powering momentum through adaptable ERP transformation

Cloud ERP-as-a-service delivery models offer specific benefits for mid-market and private companies that need to respond quickly to rapid growth or changing market conditions, especially disruptions that can impede momentum if not handled properly. Learn how ERP-as-a-service can help you fast-track ERP transformation.


The role of cloud ERP transformation in Kinetic Enterprises™

Certain organizations thrive amid disruption, and they tend to share common traits. At the highest level, they understand the power of technology as a differentiator, and they harness the momentum that comes from change. We refer to these businesses as Kinetic Enterprises™. Kinetic Enterprises maintain market-paced momentum by shifting their mindset away from yesterday’s “built-to-last” perspective and toward today’s “built to evolve” imperative. In addition, Kinetic Enterprises demonstrate four key qualities:

ERP-as-a-service: Reducing complexity, powering momentum

The technology that these companies rely on is infinitely scalable and connected by a diverse ecosystem of applications, data types, and operational models. Kinetic Enterprises see effective enterprise resource planning (ERP) as an essential foundation for achieving the kinetic state.

For Kinetic Enterprises, ERP isn’t just another tool to be plugged into the corporate network or simple management software for routine business activities. Rather, it is the enabling digital foundation and core that, if leveraged correctly, enables companies to capture the benefits of momentum and change around other initiatives tied to AI, Industry 4.0, automation, and cyber. For companies that are still determining how to manage technology disruption, ERP that’s properly planned and cloud-enabled for flexibility can provide the power to reimagine themselves as Kinetic Enterprises.

Reimagining digital and cloud ERP investments

There may not be a more opportune time to embrace ERP’s possibilities. In a Deloitte global survey, 69% of private companies said digital transformation had accelerated significantly during the COVID-19 pandemic, and 43% said it will be part of their main growth strategy during the next 12 months. In our experience, private company leaders are increasingly seeking flexible platforms and financing models to keep pace with the complexities of technological change as they invest in connected platforms and cloud-based services.

Much of private companies’ tech spending in recent years has focused on embracing cloud, adopting cognitive technology, and managing the intersection between technology and talent. While that’s a good start, many private companies are still looking for solutions that can help them quickly respond to change, accelerate momentum, and improve the frequency of innovation. Leaders may know that ERP can be a growth driver, but they’re still figuring out how to fully harness the power of connected platforms.

How cloud ERP-as-a-service can cut through the noise

Effective ERP strategies don’t focus on technology alone, as technology itself won’t bring about the transformation many executives seek. There should be a focus on opportunities to improve end-to-end processes, data management, and other strategic areas of the business that can actually drive differentiation and value in the market. Companies can turn to cloud ERP-as-a-service as a way to more easily and quickly cut through non-value add processes tied to implementation, migration, operations, and infrastructure, while at the same time benefiting from a scalable and flexible platform.

ERP-as-a-service delivery models can bring predictability and consistency to an ERP transformation. With an ERP-as-a-service model, companies can consolidate the complexity of all the offerings and vendors in the ERP space into a single, predictable managed services contract with a single service provider. This kind of model allows leaders to focus on what matters most (their products, services, and innovation) rather than managing ever-changing technology. The flexibility of ERP-as-a-service makes it readily customizable to each company’s individual needs, while costing far less than building systems internally.

Seamless migration

A robust ERP-as-a-service model eases the burden on companies from the beginning of a transformation. Often, it starts with a company providing its data. Then the service provider works closely with leading cloud ERP software vendors and applies personalized data analytics, cloud architecture, and native development capabilities to develop solutions that are affordable and tailored to each business’s unique requirements.

With ERP-as-a-service, the migration of the company’s systems and data can then be accelerated, reducing overall implementation complexity.

Innovation on demand

ERP-as-a-service enables organizations to customize cloud infrastructure and managed services based on their specific needs. It can help them reduce risk yet retain the flexibility to adapt and scale the system up or down as market conditions or the business’s needs change.

ERP-as-a-service models also can help companies establish clean core data that connects with other workflows, such as finance, human resources, marketing, and engineering. This, in turn, enhances the value of other technologies, such as automation and artificial intelligence, that can be layered on top of the ERP.

Time to value

Traditional ERP investments can take years before a company realizes any return on its investment. But with ERP-as-a-service, organizations can recognize the value in a matter of months.

Rather than requiring the high up-front capital commitments of an in-house ERP investment, ERP-as-a-Service can be purchased on a subscription basis, spreading the cost over several years. As a result, the returns are greater and are recognized faster while still reaping the same benefits of a traditional ERP solution.



The path forward: Maintaining momentum and scalability

Many mid-market and private companies are in a prime position to benefit from a more seamless ERP migration journey, with faster time-to-value and lower upfront investment, combined with the opportunity for on-demand innovation to enable further value.

Cloud ERP-as-a-service can help companies maintain the market-paced momentum they need to thrive in this rapidly changing marketplace without losing their stability, enabling them to drive sustainable innovation and value.

Ready to take the next step on your cloud ERP journey? Get in touch.

Drew Scaggs
Principal, Enterprise Performance
Deloitte Consulting LLP

Matthew Schwenderman
Principal, Enterprise Performance
Deloitte Consulting LLP

Bob Rosone
Managing Director, Deloitte Private
Deloitte LLP

Chai Desai
Senior Manager, Enterprise Performance
Deloitte Consulting LLP

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