Why does Trigger only recommend “Cloud-based” ERP Solutions, not on-premises solutions?

It is true that the majority of ERP solutions used today are still on-premises systems, despite the rapid adoption of cloud-based systems. However, Trigger recommends cloud-based solutions to companies adopting or upgrading an ERP/CRM system because they provide secure platforms for your data and can help companies to increase their business performance for a lower initial investment.

Recent research indicates that even though cloud-systems are relatively new, the companies already using cloud-based ERP/CRM systems are typically among the highest performing businesses in their industry.

How do cloud-based ERP/CRM systems benefit my business?

Understanding the specific benefits of cloud-based solutions depend on the unique characteristics of your business and our SaaS consultants would be happy to speak with you and help you understand this in more detail.

Generally speaking, the benefits of cloud-based ERP systems towards any business include:

1. Higher business performance achieved by more efficient management of finance, sales, purchasing and HR processes.

2. More efficient business systems help employees to be more productive. Recent research also suggests that employees are more likely to use cloud-based ERP systems than out of date, on-premises systems.

3. Instant access to company data anywhere in the world allows managers to react to events on the ground with greater agility.

4. Cloud-based systems are easily scalable, as they do not require high initial capital investments. Organisations no longer need to worry about IT costs as they expand their global businesses.

5. Statistics regularly show that >80% of IT budgets is spent on routine maintenance. With cloud systems, IT departments can spend less time and money system maintenance and are free to explore new technologies to enhance the capabilities of their organisations.

What is the difference between “cloud computing” and “software as a service” (SaaS)?

Many publications refer to “cloud computing” and “Software as a Service” (SaaS) interchangeably, but they are two separate concepts. The generally accepted definitions are as follows:

Cloud computing refers to a collection of IT resources, including data centres, network infrastructure, and software applications that are shared by multiple users. SaaS refers to the delivery mechanism for software that uses these IT resources.

SaaS ERP/CRM systems are a typical example. Whereas in the past, clients had to buy and install to run on-premise ERP solutions, SaaS services make software immediately available through a web browser with no installation required. Because it is constantly available through a fixed subscription fee, it is considered to be software provided “as a service”. Cloud-based ERP/CRM solutions are the main type of SaaS service provided by Trigger Networks.

Are cloud systems more or less secure than on-premise systems?

Cloud-based ERP systems are typically more secure than on-premises systems. There is a perception among some companies that on-premise ERP systems are safer than cloud-based systems because it is more secure to manage data directly on premises than to put this data on the server of a third party.

However, this is a dangerous misconception for several reasons:

1. First, the fact is that cloud systems are proven to be more reliable than on-premises systems. While neither type of system can guarantee 100% security for your data, recent studies have shown that users of cloud-based email systems experienced 58% fewer malware infections, 45% fewer incidents of data loss or data exposure, 45% less security related downtime and 93% fewer audit deficiencies. This translated into avoided losses equal to more than $3 million on average for each company.

2. While it is theoretically possible to guarantee adequate security for your data using an on-premises system, it requires constant equipment and software upgrades and constant monitoring by your IT staff, which is a considerable drain on the time and resources of any enterprise.

3. Cloud service providers stake their reputation on being able to protect your data, just as banks’ reputations depend on protecting your money. They therefore invest heavily in security measures and highly robust network infrastructure on a scale that only the largest software companies can match. They also have comprehensive service level agreements in place to protect your data, including virtually 100% system uptime commitments, and compliance with various relevant SSAE and ISO and SOC standards. Companies concerned about risk should therefore consider whether they can realistically match the security measures of the best of breed cloud-computing service providers by using on-premise systems.

How do I guarantee the security of my cloud-based business systems?

Many companies are understandably cautious about storing sensitive business data with a third party. The best of breed web-based ERP/CRM providers each have robust security guarantees, and companies can check these by asking questions including the following:

1. What system uptime guarantee do you provide in your service level agreement? (99% or higher is considered standard ERP/CRM providers).

2. What data backup and network redundancy measures do you have in place?

3. How do you ensure the physical security of your data centre and network equipment?

4. Do you comply with SSAE 16 and ISAE 3402 auditing standards?

How do I make sure my ERP system meets my business needs?

Put simply: effective implementation is the key. There are two crucial stages to this. The first is a detailed, standardised business requirements building process that helps companies to define their business objectives for the ERP system.

The second stage is careful project planning with predetermined deliverables to be completed according to a fixed timeline by responsible stakeholders in both the implementation provider AND the client company. Remember, if your business plan isn’t viable, a cloud-based ERP/CRM system will not solve your problems. It is also essential to make sure the cloud-based system provides functions that serve your business goals effectively.

How do I ensure end users in my organisation use the ERP/CRM system correctly?

This is perhaps the most challenging aspect of adopting an ERP/CRM system, after ensuring an effective implementation. At Trigger, part of our service includes ongoing support and guidance to help you drive engagement with your system among your employees. To ensure end users get onboard with any new cloud-based system, there are 4 vital steps that every organisation must follow:

1. Company executives must show their full support for the new ERP system. This should be done not only by promoting internal awareness among all employees; executives also need to draft new company policies to ensure that correct use of the new system is an inseparable part of all employees' work expectations.

2. Employee performance assessments should be tied to the correct use of your ERP/CRM system. Management needs to make sure employees know that using the ERP/CRM system is not optional it is mandatory. Managers should also implement process to monitor correct usage of the system. Remember if just one team doesn’t use the system correctly, this can devalue the investment in the ERP/CRM system for the entire organisation.

3. Your cloud-based system should be part of a sound business plan that effectively serves the professional objectives of every end user of the ERP/CRM system.

4. A comprehensive training and awareness program is vital. Well-trained employees are much more likely to engage with the new system and use it effectively during their daily work.

Is Cloud-based ERP/CRM lower cost than on-premises systems?

Cloud-based ERP/CRM systems generally have a lower total cost of ownership than on-premises systems as they do not require a large initial capital investment. However, in some circumstances, the lifetime cost of on-premises solutions can be lower, especially if a solution is used for 10 years or more, as on-premises solutions do not require an ongoing subscription. However, if we accept the “5 year rule”, meaning that business software is generally replaced with a more up to date solution after around 5 years, cloud-systems are a more cost effective option as software and services are upgraded continuously with no more major implementations required.

We also emphasise that while cost is an important consideration, the ability of the solution to help companies meet their business objectives should always be the primary consideration for any ERP/CRM system purchase.

How do I calculate the lifetime total cost of owning a cloud-based ERP system?

Total cost of ownership calculations depend on your company’s growth projections, global expansion plan, global footprint, number of intended users and the service package required for your company over a fixed time period, to name a few conditions. Trigger’s consultants can assist you in calculating these costs for your business, though we recommend that you set the calculation parameters yourself rather than relying on the assumptions of product vendors, as they may not apply to the unique growth path of your business.

When comparing with on-premises solutions, also bear in mind the hidden costs of theses systems that may not be reflected in a quotation, such as electricity and space requirements, ongoing manpower and equipment costs for system maintenance, software upgrades and virus protection updates.