11 Benefits of cloud-based ERP system


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Enterprise Resource Planning (ERP) systems are integrated software solutions designed to streamline and automate business processes across various departments within your organization. 

It typically encompasses modules for functions such as finance, human resources, supply chain management, manufacturing, and customer relationship management. By centralizing data and processes, ERP systems enable better decision-making, improved efficiency, and enhanced collaboration across the organization.


What’s a Cloud-Based ERP Solution?

Cloud-based ERP solutions are hosted and managed by third-party providers on remote servers. This setup eliminates the need for on-site maintenance and allows users to access the ERP system from any location with an internet connection. 


Dynamics 365 Business Central: A leading cloud ERP solution.

Dynamics 365 Business Central is a comprehensive cloud-based ERP solution developed by Microsoft. It is designed specifically for organizations looking to streamline their operations, improve productivity, and gain better insights into their business performance. 

Business Central offers a wide range of modules to manage various aspects of a business, including financial management, inventory management, sales, purchasing, project management, and more.


11 Benefits of Cloud-Based ERP System


Scalability in cloud-based ERP.

Scalability in the context of cloud ERP refers to the system’s ability to accommodate growth and changing business needs effectively. 

In a cloud-based ERP solution, scalability is crucial as it allows your business to expand its operations, add users, and increase resource usage without experiencing significant disruptions or performance issues. Scalability ensures that the ERP system can adapt to fluctuations in demand, both in terms of transaction volume and user concurrency, without compromising performance or reliability.

Dynamics 365 Business Central offers several features like pay-per-user pricing and integration to the Microsoft ecosystem that contribute to its scalability, allowing businesses to grow and adapt to changing requirements seamlessly. 


Flexibility in cloud-based ERP systems.

Flexibility is a critical aspect of ERP systems because it enables businesses to adapt to changing market conditions, customer demands, and internal processes efficiently. 

Every business has unique requirements and workflows. A flexible ERP system allows businesses to customize the system to suit their specific needs, without being locked into rigid processes or predefined workflows. This customization capability empowers businesses to tailor the ERP system to their industry, size, and operational preferences, enhancing user adoption and overall productivity.

Dynamics 365 Business Central is designed with flexibility in mind, offering a range of features and capabilities that empower businesses to adapt and thrive in today’s rapidly changing business landscape.



Cloud-based ERP is cost-effective.

Traditional ERP systems often require a significant upfront investment in hardware and implementation services. This can include purchasing servers, networking equipment, and database licenses, as well as hiring IT staff to manage and maintain the infrastructure.

In contrast, cloud ERP solutions have lower upfront costs and predictable expenses as you can do away with costs associated with hardware resources, maintenance, updates, and specialized IT staff.

Business Central includes automatic updates and maintenance as part of the subscription, ensuring that businesses always have access to the latest features, security patches, and performance enhancements without the need for manual intervention or additional costs.



Cloud-based ERP is easily accessible.

Cloud-based ERP systems give users access from anywhere on desktop or mobile devices as long as they have a secure internet connection.

On the other hand, traditional ERP systems are often deployed on-premise, which can present accessibility challenges for users who need to access the system remotely or from multiple locations. Users may need to rely on virtual private networks (VPNs) or remote desktop solutions to access the ERP system outside of the office, which can be cumbersome and may result in slower performance.


Security features of cloud ERP.

Dynamics 365 Business Central employs industry-standard encryption protocols to protect data both in transit and at rest. This ensures that sensitive business information is securely transmitted over the network and stored in encrypted format, reducing the risk of unauthorized access or data interception.

Business Central offers role-based security features that allow admins to control access to specific data and functions based on user roles and responsibilities. They can define granular permissions and access controls to ensure that users only have access to the information and functionality necessary to perform their job duties.

It also supports multi-factor authentication, which adds an extra layer of security beyond traditional password-based authentication, reducing the risk of unauthorized access due to compromised credentials.



Access to real-time insights.

Real-time data provides decision-makers with up-to-date information about the state of the business, enabling them to make informed decisions quickly.

This ensures that decision-makers have access to accurate and relevant information when they need it most. By accessing data in real time, decision-makers can avoid relying on outdated or incomplete information, reducing the risk of making decisions based on inaccurate or irrelevant data.

Dynamics 365 Business Central seamlessly integrates with Power BI, Microsoft’s leading business analytics tool. This integration enables you to create interactive dashboards, reports, and visualizations using real-time data from Business Central, allowing decision-makers to gain insights into key metrics and performance indicators at a glance.



Enables collaboration across departments.

D365 BC provides a unified platform for managing various business processes, including finance, sales, purchasing, inventory, and more. By consolidating data and processes into a single system, Business Central promotes collaboration by providing users with a shared understanding of the business and a common platform for working together.

Traditional ERP systems often store data in separate modules or databases, leading to siloed information and limited visibility across different departments. This siloed approach hinders collaboration, as users may struggle to access relevant information or share data effectively with colleagues in other parts of the organization.

They also rely on manual processes for collaboration, such as email communication, phone calls, or paper-based workflows. These manual processes are inefficient and error-prone, leading to delays, miscommunications, and data discrepancies that can impede collaboration and decision-making.



Enjoy the benefits of seamless integration with other tools.

Seamless integration allows for the smooth flow of data between different systems within your organization. This ensures that critical information is shared accurately and efficiently across departments, enabling better decision-making and improved operational efficiency.

It eliminates manual data entry and redundant processes, reducing errors and saving time. By automating data transfer and synchronization between systems, organizations can streamline workflows, accelerate processes, and free up resources for more value-added tasks.

Dynamics 365 Business Central integrates seamlessly with other Microsoft products and services, including Office 365, Power BI, Microsoft Teams, and Azure. This integration allows you to leverage familiar tools and workflows, enabling smoother collaboration, reporting, and data analysis across the organization. 



Enjoy automated updates & seamless maintenance with cloud-based ERP. 

In traditional ERP systems, updates and maintenance tasks often require manual intervention from IT staff or system administrators. This process can be time-consuming, expensive, and labor-intensive, requiring downtime and disrupting operations while updates are applied.

Dynamics 365 Business Central follows a continuous update model, where updates and new features are rolled out regularly by Microsoft. These updates are delivered seamlessly to customers without requiring manual intervention or downtime, ensuring that businesses always have access to the latest enhancements and improvements.



Customization options in cloud-based ERP system.

Every organization has unique processes, workflows, and requirements. Customization allows ERP systems to be tailored to meet the specific needs of individual organizations, ensuring that the system aligns closely with the organization’s goals, processes, and industry standards.

Dynamics 365 BC supports extensions, which are modular components that extend the functionality of the core system. Extensions can be developed hence allowing organizations to add new features, integrate with third-party solutions, or customize existing functionality without modifying the core system.


Disaster recovery capabilities in cloud-based ERP system.

Dynamics 365 Business Central leverages Microsoft Azure’s global infrastructure to provide geo-redundancy and high availability. Business Central data is replicated across multiple Azure data centers in different geographic regions, ensuring data durability and resilience against localized disasters or outages.

It includes built-in backup and recovery capabilities that automatically back up data and configuration settings at regular intervals. These backups are stored securely, providing your organization with a reliable and scalable backup solution without the need for additional infrastructure or management overhead.

In the event of a service interruption or outage, Business Central automatically fails over to a secondary data center to ensure continuous availability and uninterrupted access to data and applications. This failover protection minimizes downtime and ensures business continuity, even in the face of unexpected disruptions.


As businesses continue to embrace digital transformation and adopt cloud ERP systems like Dynamics 365 Business Central, they position themselves for success in the digital age, driving efficiency, agility, and competitiveness in their respective industries. 

With the right technology partner and a strategic approach to implementation and adoption, your business can unlock the full potential of cloud ERP systems and achieve its goals for growth and innovation in the years to come.

For 22 years, we have been implementing, customizing, and supporting Microsoft Dynamics projects across the industries. Are you looking for a reliable ERP solution for your business? Click here to request a callback and a free demo.  


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