Products and Platforms
TCS ERP on Cloud
TCS ERP on Cloud for SAP Landscape Migration and Modernization
HIGHLIGHTS
- It is overwhelming for organizations to decide whether to adopt a new Cloud ERP or stay with their current legacy on-prem versions.
- Each transformation is different and requires different planning. Industry, size, and geography are the main factors to consider when transforming.
- Cloud ERP provides a centralized system for data management, which helps organizations cope with new technologies. In fact, many leading cloud providers have their own AI agents, such as Co-pilot and Gemini.
Introduction
Organizations are evolving year on year. This decade is crucial for all large and medium enterprises. This rapid growth requires strong business operations to sustain new opportunities and challenges. Sustainable business operations need a smooth and steady IT landscape, resulting in modern technology investment. As a part of this initiative, leading ERP providers such as SAP and Oracle launched their Cloud ERP program, which bridges legacy and modern cloud technology.
It can be overwhelming for organizations to decide whether to adopt a new Cloud ERP or stay with their current legacy on-premise versions. Each transformation is different and requires distinct planning. Industry, size, and geography are the main factors to consider during transformation.
Cloud ERP in 2020s
Enterprise Resource Planning (ERP) is the backbone of all business operations, such as finance, procurement, production, and human resources. Alignment in all business processes is essential for improving business decisions. In the past, most organizations had limited presence, while today’s organizations have expanded their boundaries and operate across the globe. In recent years, technologies like AI and analytics have been evolving and have become essential for the survival of any organization. Insightful data, essential in business decisions, fuels these technologies.
Cloud ERP provides a centralized system for data management, which helps organizations cope with new technologies. In fact, many leading cloud providers have their own AI agents, such as Co-pilot and Gemini. It helps organizations adopt agile decision-making, ultimately resulting in enhanced legal compliance and revenue growth.
Benefits of Cloud ERP
- Scalability: Today’s world is very agile and unpredictable. Many organizations grew their business in just a few years and made it to the Unicorn list, especially after 2019. That is why IT scalability is important in such businesses. For them, Cloud ERP supports sudden expansion without any disruption and within time.
- Real-time data: To reiterate, informed and data-driven decisions are important for organizations to survive in today’s agile market, and for that, real-time data is essential for leaders. We can take an example of an FMCG company, which shows different buying patterns with different time frames. If the company identifies the demand graph, their procurement team can arrange raw materials within time, which ultimately helps them to enhance their efficient inventory management and productivity.
- Lower operating cost: Cloud ERP comes with the subscription model, while old legacy infrastructure needs capital expenditure. Also, cloud needs very negligible maintenance costs because there is no in-house data center required, which ultimately reduces CapEx and promotes OpEx
- Faster updates: The legacy on-premises system had to be upgraded every two to three years. Upgrading those systems was expensive, whereas the Cloud ERPs come with frequent updates, so companies can take advantage of recent technologies such as AI and analytics without any additional cost.
New innovations in cloud technology, such as AI Agents, real-time analytics, and automated workflow, help boost productivity, enhance overall decision-making, and support future expansions.
Cautions for Cloud ERP
As we have seen, Cloud ERP has enormous benefits, but certain cautions also need to be exercised.
Data security: We can classify data into two parts, one of which is confidential, such as personal information, financial data, and customer data, which need to be kept safe. Healthcare, banking, defense, and public sector organizations face these challenges. In that case, they must adopt a hybrid approach, combining private and public clouds.
Compliances: Every region and country have its regulations, such as GDPR laws in Europe and HIPAA regulations in the USA.
Ultimately, each transformation requires different planning, so it is important to analyze all the factors carefully before implementation. Cloud ERP provides scalability, OpEx-based spending, and improved analytics, which ultimately help to enhance productivity and cost savings. Risks like data security and compliance need to be taken care of during implementation. That is why system integrators play an important role in such transformation, providing PaaS and a single point of accountability.
