ERP Integration with SaaS — A Deal Full of Rewards and Opportunities
With the changing needs of the IT industry, the organizations are shifting their focus area from Enterprise Resource Planning (ERP) to Software as a Service (SaaS). The latest shift in the paradigm wherein the organizations are relying more on the cloud computing for all sort of works regarding database management, storage, and access has been giving a flake of popularity rise to the piping-hot topic of integrating ERP with SaaS.
As popular as the concept of ERP Integration with SaaS is growing, the organizational reluctance towards the concept and the potential organization growth benefits have been in a tug of war. Being heavy and hard to contemplate, the concept of merging two bests of the IT industry has been a hot topic of discussion ever since. With this piece of writing, we would highlight how ERP’s Integration with SaaS is more of unlocking a door full of opportunities and rewards for the organization.
What is ERP and why is it needed?
Enterprise Resource Planning can be defined as a management process that integrates various other processes required for a smooth business functioning such as inventory and order management, accounting, human resources, customer relationship management (CRM) helping the organization to conduct its operations more smoothly. A shared database that serves home to multiple functions used by different branches of an organization can be defined as the central feature of the ERP. Synchronizing reporting and automation process by allowing to pull off mandatory information from a centralized database is another important function outplayed by the ERP integration. However, ERP has its limitations in terms of requiring various other processes for its successful integration.
SaaS (Software as a Service), on the other hand, is defined as a purpose wherein a third-party application acts as a host to application and website’s database. SaaS is one of the three primary components of cloud computing.
Why Choose ERP Integration with SaaS?
Integrating ERP with SaaS is anticipated to become a major collaboration between two of the major drivers of the IT industry. This collaboration shall eliminate the loopholes encountered in the execution of ERP and shall deliver high profits to organizations. The primary benefits of ERP integration with SaaS can be defined as
1. Expenses become Predictable
SaaS is known to be cost-efficient and pocket-friendly. With third-party platforms offering database hosting services on a per user per month basis, tracking down the costs endured for data hosting can be easily calculated. These efficient predictions help in managing company expenses in a better manner and endure higher profits.
2. Better and Faster Approach towards Marketplace
Being available on a ready-to-use basis by the third-party platforms, SaaS does not require any special hardware or software installments. Integrating SaaS with ERP with help the organization adequately target their audience and reach the concerned marketplace in a faster and better manner, positively driving the organizational profitability.
3. Business Agility
Integrating SaaS with the ERP system of the organization, scaling up or down the user count or utilization in terms of data storage, purely based on user-demand becomes a feasible option for the organizations. Also, this permission extent by integrating SaaS with ERP helps in cost-cutting by eliminating the need for big, expensive, and difficult to maintain IT infrastructures. Also, it reduces the risk of enduring losses when it comes to the growth of the organizational staff.
4. Focus Shifts to Core Competencies
Other than offering profitable benefits to the organizations, the SaaS and ERP integration helps in driving and understanding the core competencies of the business. Since outsourcing has been a big need of the hour when it came to employee management. Now, the limited resources, better market targeting, and easily manageable data are the driving factors when it comes to getting business administration software. The companies are now preferring to opt for SaaS integrated ERP model rather than a simple one to avoid the additional cost and hassle of managing other ERP models required for the functioning of one ERP.
5. Enhanced Customer Service and Experience
Introducing SaaS with ERP in an organization directly affects the organization’s relationship with its customer. With SaaS integrated ERP at hand, the complaint, the feedback, or even the simplest management process for customer data, becomes completely automated and faster. Eliminating various steps from the loop of contacting the concerned authorities of an organization by allowing the customers to establish direct contact ropes in customer trust and builds brand loyalty.
6. Reduced Costs, Risks with High Scalability
Coming in with lower costs, lower risks, higher manageable rates, etc. the SaaS integrated ERP model is highly scalable. This process serves the most primary needs of an organization i.e. low costs and high business volumes. Resolving both at a time makes this technology highly acceptable amidst the business brands.
Conclusion
Despite facing a high rate of reluctance in the market due to its heavy and tedious nature, the SaaS and ERP integration brings in a major boost for the organizations. Thus, it can be mentioned that in the coming times, paring the current challenges, SaaS and ERP integration shall be a hot topic of discussion.
