What's next for ERP? Tear down the walls
This vendor-written tech primer has been edited by Network World to
eliminate product promotion, but readers should note it will likely
favor the submitter's approach.
Few systems are more
efficient at managing internal data than enterprise resource planning
(ERP), but business today happens between companies, and when it comes
to managing external information and relationships, ERP falls short. To
fill this gap, many organizations are turning to open, hosted platforms
that can be more easily accessed and shared.
If you have ERP in
place, you've heard about the cloud connection. There's cloud-based ERP,
cloud add-ons, widgets and processes where you can take your existing
structure, migrate it to the cloud and live happily ever after. And the
reason to migrate is becoming increasingly compelling. Constellation
Research concludes that moving to a third-party provider could free up
cash to install SaaS products that add new juice to the legacy system.
But where do you start?
A recent CIO study identified a few areas where the cloud can help an
ERP platform break out of its shell. These areas leverage a
network-centric model to connect multiple business partners and automate
shared businesses processes, especially purchasing and financial
transactions across multiple systems. And enterprises of all sizes are
using them across functions to streamline processes and accessibility
for a variety of initiatives, including ERP. Here's how:
Spend management. ERP
systems allow a company to issue purchase requests, route approvals and
generate orders. But they stop at the end of the enterprise with the
generation of an approved order that must be routed through various
channels that are disconnected, and often only semi-automated -- from
fax and email to proprietary and costly EDI networks and point-to-point
portals.
In cloud computing,
services and technologies are delivered over the Internet in real time.
The supporting infrastructure is separate from the customer's IT
environment. The customer sends the data it needs to share with partners
to the cloud, where partners can access and respond to this data. When
cloud-based supply chain management applications are integrated with ERP
systems, buyers and sellers benefit from a robust network that enables
more efficient trading relationships and collaboration across a shared
community, regardless of which back-end systems a party uses.
Financials
applications. ERP systems excel at managing financial transactions
within the organization. But processing an invoice involves
collaboration between buyers and sellers. Cloud-based financial
solutions can support this multi-enterprise connectivity and
collaboration, and allow companies to better manage the electronic
settlement process, such as enabling suppliers to convert paper-based
purchase orders and invoices into electronic ones, delivering detailed
remittance with electronic payment, and enabling dynamic or
sliding-scale early payment discounts.
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