How is Cloud-based ERP different than Legacy Software?

ERP systems are a great resort to the traditional methods of manual resource planning and management. They substantially transform the work structure of an enterprise and instill a more standard and accurate management system.

Legacy and Cloud-based ERP are two variations of ERP that are often compared with each other. While Legacy ERP came first in the picture, Cloud-based ERP can be viewed as a technological upgrade to the same. However, each of them has its own distinct features.

In this article, we will discuss how is cloud-based ERP better than legacy software?

The article will also walk you through the definitions of Legacy ERP, Cloud-based ERP and the differences between them.

What is Legacy ERP?

Legacy ERP or Legacy Enterprise Resource Planning System consists of robust specifications for business management. However, it needed constant upgrades to meet the evolving industry standards. As a result, the creators of the product needed to continually come up with codes to meet the requirements of their existing customers. This process became tedious for both the creators and the consumers, and Legacy ERP was eventually declared to be outdated.

You may also like to read : What is ERP and Why is it Used in a Company?

What is Cloud-based ERP?

Cloud ERP is an upgrade to the traditional Legacy ERP system. Unlike an on-premise system, it is not limited to a network or location. It is linked to a cloud platform that allows the user to access the portal in a remote and flexible manner.

A cloud-based ERP system automates different office processes and integrates them into a common platform. This inculcates convenience and efficiency in the workspace.

Legacy Versus Cloud ERP

The major differences between Legacy ERP and Cloud-based ERP are highlighted through the methods of installing and assessing the software. Cloud ERP presents a more convenient interface in terms of access and flexibility as compared to Legacy ERP.

Legacy ERP works with network servers and system restrictions. These are the fundamental distinctions between the two kinds.

Let’s have a look at some more differences stated below-

Cost, Time & Effort

Cloud ERP are available as SaaS i.e. Software as a service. They allow the user to enjoy an integrated work platform by paying a subscription fee. The user gets access to the software portals, its tools, and the freedom to use the application on any hardware device or network server. It also gives the user the liberty to select from different plans and purchase the package that suits the requirements and budget of the buyer.

Software like Juntrax is a prime example of comprehensive and user-friendly software that does not require any expertise and can easily be operated by anyone having a basic understanding of IT and technology.

You may also like to read : Affordable and Complete ERP Solution for SMEs

In contrast to cloud-based ERP systems, Legacy ERP requires the user to purchase the software along with the hardware. In case if the office does not have a well-maintained hardware system, they will have to invest in building one, if they wish to install the software. They can not be operated with basic knowledge and therefore require a dedicated team of professionals.

Upgrades and Customizations

Most of the companies offering legacy and cloud ERP systems, provide an option to upgrade and customize the software as per the requirements of the company.

In the case of a cloud-based ERP system, updates can be handled easily as the process is automated and directly handled by the vendor via the cloud.

However, in the case of Legacy ERP, the user or the manager is required to look after the updates and manage them. The updates need a well-versed IT team in order to get installed and implemented. Therefore, it becomes complicated to get a Legacy ERP updated in comparison to a cloud-based ERP.

Mobile Access

Cloud-based ERPs can be accessed through Internet browsers and are therefore advantageous in terms of remote access. They are not restricted to a server and can be used anywhere at any time. They are also flexible and can be used on interfaces like Windows, Android, iOs, and Apple. Many Cloud-based ERPs come with mobile applications to further simplify the user experience.

You may also like to read : Reasons why your organization must have a Mobile ERP

In the case of a Legacy ERP also known as On-premise ERP, the user can only access it on the device on which it has been installed. It also has network restrictions and only functions on authorized servers.

How is Cloud-based ERP better than legacy software? – Difference

	Legacy ERP	Cloud-based ERP
1	They function on hardware infrastructure and require system installations.	They do not need on-premise installation and function on a cloud interface on any Internet server
2	They are created with the help of a proprietary or legacy programming language. These languages tend to get outdated and discontinued in the future.	They are developed using prominent web-based tools like java and HTML. These languages will never get outdated and therefore present a long-term advantage.
3	Legacy ERP software can only be installed manually with the help of CDs.	Most of the cloud-based ERP software are installed with the help of a cloud without any manual struggle.
4	Implementing a Legacy ERP requires a considerable amount of time as every process is performed and managed manually.	Cloud-based ERP software have a pre-built design and perform in an automated manner. They also offer an integrated interface and therefore save a considerable amount of time and effort.
5	Applications of a Legacy ERP require periodic updates and therefore incur extra cost, time, and effort.	Applications of a cloud-based ERP get updated, administered, and maintained in an automated discourse on a periodic basis.
6	It is not very cost-effective	It is very Cost-Effective

Conclusion

The market is filled with rigorous competition and to stay ahead of all your competitors it is important to know your needs, enhance your workspace and adopt technology that will boost the potential of your enterprise.

An ERP system fulfills those requirements. The decision to select between a cloud-based ERP and a Legacy ERP must be made after carefully assessing your needs, your budget, the workspace, and the future prospects of your enterprise. A Cloud-based ERP can be your shield on the battlefield while a Legacy ERP might slow down your pace.

What is ERP and Why is it Used in a Company?

What is ERP and Why is it Used in a Company-Introduction

ERPs connect every aspect of an enterprise. An ERP software system infuses better performance and project management that helps an enterprise in planning, budgeting, predicting and accurately reporting on its financial health and other office management processes.

What is ERP?

ERP stands for Enterprise Resource Planning.

It refers to software and systems that are employed to plan and organize all essential tasks in an organization. It looks after the vital supply lines, manufacturing processes and details, financial department, Human resources and other processes of an organization.

An Enterprise Resource Planning software is instrumental in automating and simplifying individual activities that take place in an organisation. These activities include accounting, project management, attendance management, managing merchant details, attendance management, compliance and employee management.

How Does an Enterprise Resource Planning System functions?

The primary objective of an ERP system is to improve the organizational efficiency of a company. This objective is achieved by organizing and planning the ways in which the company’s resources can be utilised in a more effective manner. The key to effectively improving the growth and profitability of a business is to assess the amount in which the number of required resources can be increased or decreased without sacrificing the quality of their work output.

You may also like to read : Affordable and Complete ERP Solution for SMEs

Enterprise Resource Planning Systems generally cover all facets of business operations in an enterprise. Some of the primary features of ERP are :

1. An integrated system platform
2. A common database
3. Real-time processing
4. Dedicated portals for all system operations
5. Common user interface
6. Employee Self Service
7. Flexible and remote access

Different Types of ERP

ERP has different variations depending upon the requirements of every enterprise. The most common types of ERP systems are :

On-Premise ERP

An On-premise ERP software works in specific office locations.

It is instrumental in maintaining a physical office space within an organization. This software is only hosted on the computer systems and servers of the organisation. This grants the organisation and the admin full control, assistance and possession of the entire system.

Cloud-based ERP

A Cloud-based ERP software is the most celebrated form of ERP. It is an internet-based solution and is a SaaS (Software as a Service).

This Enterprise Resource Planning system assisted companies in getting back on track after the pandemic caused offices to shut down. With cloud-based ERP software like Juntrax, an organisation can access, store, process and utilise all their data simply with the help of an Internet connection and a system to run the software. This system is guarded by security credentials and allows flexible and remote access to its users.

Also read : Reasons why your organization must have a Mobile ERP

Hybrid ERP software

Hybrid ERP software refers to an amalgam of a cloud-based EFP system and an on-premise ERP system.

As the name indicates, these ‘hybrid‘ solutions offer a combination of deployment and hosting services to the organisations.

Operating Areas of ERP

In many Enterprise Resource Planning systems like Juntrax by Juntrax Solutions, common operational areas are grouped as ERP modules.

Some of these modules are:

1. Accounting
2. Human Resources
3. Manufacturing
4. Payroll Processing
5. Employee Benefits
6. Project Management
7. Employee Portal
8. Attendance Management
9. Timesheets
10. Claims and Reimbursement
11. Purchase Order Management
12. Sales and Purchases

Ways in which ERPs can help a business grow and improve

ERP systems are used to assist businesses, irrespective of their magnitude, withstand challenges and come up with a business management setup that allows them to function in a better manner.

ERP systems tackle numerous different departments and processes of a company.

Here are some of the ways in which ERP can help a business grow and improve:

Collection and Comparison of metrics

Enterprise Resource Planning Software allow companies to collect and compare their metrics across different departments of their office. It then assists them in formulating reports based on the data. These reports are effective in identifying flaws, formulating better action plans and gaining a complete insight into the workspace without any chaos.

Central information database

An ERP software provides a central database of information. This supports the enterprise in enriching its analytics and assessment. It serves as an outstanding business intelligence tool that records and stores data at a common platform that can be accessed in a convenient manner. Reports that would consume a lot of time, if formulated manually, take hardly to present a tabulated data structure.

Most ERP solutions like Juntrax provide a customizable dashboard so executives can see reports and cards when they first log into the system. These cards may include everything from income and expense statements to sales and purchase information. The means to have access to these reports quickly enables you and your team to make favourable decisions more promptly.

Organize Regulatory Compliance.

Managing Regulatory compliance is very important from a legal and ethical perspective.

An ERP software keeps an eye on these factors and provides built-in auditing tools to assist companies with the documentation of their tax provisions. This also makes it easy and saves time in formulating reports and sharing them with the concerned authorities/departments.

Scalability

An Enterprise Resource Planning system infuses convenience and accuracy to the work setup. Since it is automated it reduces a considerable amount of burden from the shoulders of the manager and the admin. This allows them to focus on planning and expanding their infrastructure without worrying about the challenges of manual management.

Mitigate and reduce risk

ERP systems automate all the core business procedures of an enterprise. They serve as an advanced alternative to manual engagement with the company’s processes and management. On account of their automated setup, the ERP system is effective in creating an error-free database.

It also provides tools for managing risks and builds accuracy throughout the office setup across all departments. Some ERPs also come with forecasting tools and allow their users to assess their data and predict factors related to budget, profits and accounting.

Enhance teamwork

It breaks down communication barriers for efficient collaboration and coordination to improve job efficiency. It is also instrumental in improving the supply chain and distributing network reliability.

Synchronisation of reports

ERP software like Juntrax helps in coordinating reports from different office management systems. This feature helps in saving time and makes it easy to filter and fetch information between different departments. It provides a well established integrated platform that makes it easy to assess, overview and handle important information.

Conclusion

ERP software have proven to be resourceful for numerous industries. From large enterprises to SMEs and startups, it assists companies in boosting their productivity and potential. From inculcating transparency to the workspace to automating all major office management processes, ERP brings convenience and efficiency to the office.

To check our ERP Software, book a FREE Demo now!

Reasons why your organization must have a Mobile ERP

Mobile ERP can be viewed as one of the basic necessities for an organization to function.

Keeping the current Covid 19 situation in mind It becomes even more essential to have a mobile ERP.

There are numerous business ventures which have faced a backlash due to the current pandemic. This scenario has increased the demand for a solution that could help sustain businesses and get them back on track. Making significant and quick business decisions is the need of the hour.

Regardless of your presence at office premises or away from it, there are processes which need to be constantly worked upon. Sacrificing work as a result of distance or lack of company information can evidently cause the downfall of an enterprise. But with the current technological advances, the world is growing so fast that it has removed the factor of distances and replaced it with ease and accessibility.

Mobile ERP is one of the most prominent ways through which people are working remotely and carrying forward the success, future and sustainability of their company.

There was a time when business deals were finalized only at offices while tracking the records on company computers. But then the technology migrated us toward the laptops that could be held anywhere. Currently, we have mobile devices that are changing our working style and have almost changed the business landscape through mobile ERP software.

This software allows the admin and the employees to access company data remotely. It also allows flexible access and comes with compatibility to all system interfaces like Widows, iOS, apple and android.

What is Mobile ERP?

Mobile ERP is an Enterprise Resource Planning system that can be accessed over mobile devices like phones and tablets. This system can be accessed remotely outside office premises. In the current Covid affected times, mobile ERP is one of the most convenient and feasible mediums to manage and plan office resources.

It allows a flexible work environment with transparency in accessing data and using it as per the requirement of the employees. It also provides an easy outlook for managing employee data, their work status, and other aspects related to their management.

Mobile ERP has empowered businesses to continue their work from the comforts of their home. It comes with numerous features and tools to assist the admin and the employees in extracting data, uploading files and managing their work.

Mobile ERP for Small Businesses

People often associate ERP software only with large enterprises. They also have many misconceptions regarding ERP. One of the most common misinterpretations is that people believe large-scale organizations are the main focus of an ERP.. But that is not the actual scenario.

The benefits of ERP in small businesses are as important and consequential as in the case of large companies. The modern software is offering features to small businesses where they can access data and manage inventory. This reduces the maintenance cost of preserving a complicated IT infrastructure.

An ideal solution for small businesses is introducing Cloud-based ERP. A cloud-based ERP simplifies the process of collaboration and builds a smooth flow throughout the supply chain.

Mobile devices, aside from conveying real-time information, can also actively contribute to all business aspects.

Why do Small and Medium Enterprises Need Automated Solutions?

Reasons why Small and Medium Enterprises should be using Mobile ERP in their businesses:

Spot on Reporting

Mobile ERP makes reporting more customizable. It also brings in the aspect of accuracy to data storage and calculations. It helps the employees exercise real-time data entry. An ERP also updates information and processes it as soon as the employees collect it from the field. Timely and accurate data entry empowers administrators to make informed decisions that drive the company’s growth. It also enables the manager to find potential threats before time and work them subsequently. Employee Management can see the updated information of employees on the Mobile ERP app even when they are not present at the office location.

Enhance Productivity

Many people have shown a preference for working outside the office. Mobile ERP can help employees to utilize their time in a more productive manner. With Mobile ERP Application, employees can produce better results and perform certain actions even from the home or somewhere else. For example, an employee can submit his/her expense report or contact the Manager regarding a project while he is away from the office at that moment.

Competitive Advantage

Competitive advantage is another great aspect of it because Mobile ERP apps have an approach to real-time business information which can absolutely help the organizations to ameliorate their competitive edge. It is very simple to understand when all the mobile devices have access to ERP applications, it would be easy for decision-makers to make instant decisions and better control business operations. As a result, it enhances productivity and reduces turnaround time.

Faster Decision Making

The business world significantly relies on faster decision making. Mobile ERP increases your productivity and speeds up your thoughts and ability to make instant decisions. So, it improves your decision-making abilities and helps you to keep your business flow maintained. The better you manage the business data, the closer to success.

Conclusion

A Mobile ERP software comes with unlimited features that facilitate an organization with its exceptional benefits. It is especially helpful for small and medium businesses as it gives them a user-friendly and sophisticated frame to store and manage their data.

In short, a Mobile ERP app helps employees to access data any time from anywhere. It also centralizes information and is entirely inexpensive. It also provides a real-time platform to share and access the information with proper security credentials.

Crafted By: Aditi Srivastava