How Cloud ERP System Benefits Small and Medium Enterprises

There is a common misconception amongst people that small and medium businesses do not require IT solutions. After consulting with many SMEs, we realized small and medium businesses have the same problems that big corporates have.

Like conglomerates use SaaS-oriented solutions to automate their business operations, SMEs also need that. Even though SMEs have different IT requirements, that doesn’t mean they can pursue their business without embracing technology.

Therein the significance of cloud ERP systems comes into the picture. In this article, we’ll explain how the cloud-based SaaS ERP system benefits small and medium enterprises.

SaaS-oriented ERP systems allow us to stop focusing on the micromanagement of the business and focus on core business operations.

Contrary to popular belief that SaaS-based ERP solution increases IT expense, the business can earn a substantial return over their investment by embracing it properly.

SaaS-oriented ERP systems are simple to manage and deploy, so you don’t require dedicated IT training to use them.

Many IT Gurus claim that cloud-based ERP solutions address problems faced by small and medium-scale businesses. Leveraging the power of these ERP systems, SMEs can stay competitive in the world.

One study conducted by Panorama reveals a 37% increase in the adoption of cloud-based ERP solutions. What’s more appealing about this study is that all the participants of this study are from North America and the majority are owners of small and medium enterprises.

Let’s dig deeper into how a cloud ERP system benefits small and medium businesses.

1. Enhance Operational Efficiency

Since SaaS-based ERP systems are accessible from anywhere, integrating them into your business boosts efficiency and streamlines workflow. These EPR systems enable companies to maximize their productivity, reduce IT infrastructure costs, and avoid dealing with IT-related troubles.

With improved operational efficiency, the business can channel the same resources to achieve sustainable growth. Thus, the SaaS ERP system provides your better ROI.

2. Optimal Utilization of Scarce Resources

Harnessing the true potential of cloud-based ERP systems, businesses can better utilize their scarce resources. You don’t have to be an IT expert to install and configure SaaS software.

Eventually, you can save the time that you would otherwise spend on software maintenance and configuration. Moreover, you don’t have to hire too much IT staff for your business.

On the other hand, SaaS software significantly reduces a business IT expenditure. For instance, by integrating the SaaS-based ERP system, you don’t have to pay for the software license and upgrade.

Moreover, by selecting the pay-as-you-go model, you can avoid the license expense. That means you can consume software services like a utility.

With the advent of cloud-based SaaS ERP systems, SMEs can also reap the benefits of state of the art software like the large conglomerates. Therefore, they can unleash great cloud ERP system for invoicing, budgeting, bookkeeping, and inventory management by spending a small amount.

3. Enable Scalability, Accessibility, and Integration

The subscription-based model of the SaaS software provides tremendous flexibility to small and medium businesses. Since the SaaS-based ERP system is cloud-hosted, you don’t have to purchase a server that makes it easy to switch to another software.

SaaS ERP systems are solely cloud-based, scalable to the greatest extent, and integrated with other applications.

As a user of the SaaS-based ERP system, you do not have to spend money running gigantic servers, which Is mandatory while working with the on premise-hosted ERP system.

As a business owner, all you need to do is to use the software. All the complexities like installation, software maintenance, and integrations of third-party dependencies will be managed by your SaaS provider.

4. Compete with Big Players

SaaS-based ERP system enables SMEs to compete with the big players in the market without compromising their revenues. Since SaaS-oriented ERPs are cost-competitive, so they won’t eat a massive chunk of your revenue.

For this reason, a growing number of businesses are switching towards SaaS-based solutions to stay relevant in the market. It allows businesses to automate those processes that are vulnerable to human avoidance.

5. Better Customer Relationships

Before the advent of the SaaS-based ERP system, conglomerates have a competitive advantage to afford costly CRMs to expand their outreach. On the other hand, a small and medium-sized businesses cannot afford expensive CRMs, so they would not expand their customer base.

It could help SMEs to grow their customer base while achieving steady growth and customer loyalty. Apart from that, integrating third-party resources in CRMs help businesses to make most of their available resources.

From the customer expectation standpoint, both quality and efficiency are equally important. Customers now expect the brand to be aware of their desires. Delighted customers with outdated software is a mere nightmare. That is why SaaS-oriented CRMs has become crucial.

Furthermore, it could help businesses extrapolate meaningful insights of the data to understand what their targeted customers are expecting.

To facilitate your customers, you need advanced analytics tools that can decipher your customer-related data. Therefore, you can monitor customer interaction with your business and forecast their future buying decision.

6. Reduce Cost

According to a study conducted by Panorama, many businesses have managed to improve their core business operations by adopting cloud-based ERP systems. 49% of this study participants have improved all their business operations, whereas 46% have improved vital business operations.


Many corporate executives and business owners firmly believe that by adopting cloud-based SaaS ERP systems, they can leapfrog into the future of technology.

If SMEs harness the SaaS ERP system appropriately, they can save time and money, ensure customer engagement, and maximize productivity. Besides, a business can avoid problems that arise due to software maintenance.

Since you are outsourcing your IT infrastructure to the SaaS vendors, you no longer have to focus on micromanaging. Eventually, you can emphasize consolidating your bottom line.

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