Industries are much slower to adopt new technologies than companies in other industries. This is a fact. But in recent years, many industry managers have considered the idea of ​​using cloud-based ERPs instead of traditional systems. This is because they are realizing that most companies are choosing to migrate their software to the cloud, and benefiting greatly from this decision.

And although most industries do not consider migrating to the cloud viable for their current business, they are already considering carrying out this endeavor in the future. This is what the report “ Cloud ERP Buyer's Guide for Manufacturing ” shows, published by the consultancy TEC (Technology Evaluation Centers). Next, we'll show why industries' resistance to moving to the cloud is waning. Check out:

Why are industries moving more slowly to the cloud?

One of the reasons industries are slowly migrating to cloud computing has to do with the complexity of manufacturing steps. Each industrial unit of the company adopts, most of the time, its own production and logistics processes. And for managers, cloud ERP software would unify the processes of all units and not adequately accommodate the differences between them.

But this is not true, as cloud ERP can harmonize and unify the manufacturing processes of each industrial unit. Another reason many industries are avoiding cloud ERP is that they have invested heavily in their own IT infrastructure in recent years. And the purchased hardware and software cannot be discarded before generating the expected ROI (Return on Investment).

Is the degree of resistance decreasing?

In December 2015, Technology Evaluation Centers surveyed 308 managers and decision makers from companies across industries. One of the questions asked to respondents was: “has your organization already considered (or is considering) the adoption of a cloud-based ERP?”. Of the total participants, 52% said “yes”. Already 28.6% and 19.4% said “no” and “were not sure”, respectively.

Based on multiple conversations with software vendors, TEC also found that 10-20% of industries currently operating are deploying cloud ERPs, or are already considering deployment in the near future. These data show that many companies are still resisting migrating to the cloud. However, the degree of resistance today is much less than that of years ago.

That's because the market in general is maturing, and the worries and numerous myths surrounding the cloud are fading away. Furthermore, most industries have already 'jumped' to the cloud in one way or another, as they are using email tools and other applications that run in the cloud. This greater familiarity with the cloud is making managers less concerned and more likely to adopt it.

How does cloud ERP benefit industries?

It is clear that industries will not replace their on-premises system with a cloud-based ERP simply because most organizations are doing so. As we said at the beginning of this post, they are slower to adopt new technologies, and they don't accept changes as easily. But in the coming years, the benefits generated by the cloud will change this mindset. Some of them are:

  • The elimination of costs generated by the traditional IT infrastructure;
  • Reducing the complexity of the IT department;
  • The greatest protection of data and applications;
  • Access to the system via mobile devices;
  • The flexibility and scalability of ERP software;
  • The facility to comply with the regulations of each region;
  • Fast data collection from different industrial units.

These and many other benefits will be considered by managers when they assess the viability of both traditional ERP and cloud ERP. But it is important to remember that, before moving to the cloud, each industry must carry out a complete assessment of its strategies and needs, in order to select the cloud ERP that best adapts to its business and its vision of the future.

And you, do you think companies' resistance to migrating to the cloud is decreasing? Do you know of any industry cases that are already using ERP in the cloud? Share with us in the comments!

 

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.