Criteria for ERP SaaS Applications

Criteria for ERP SaaS Applications should fit regardless of the chosen deployment model like on-premise, SaaS or hybrid, an ERP system should be functional and users should not be confused with a wish list. In the previous article, Demystifying Contracts for ERP in the Cloud, we discussed the needs and other points. Important for a successful project is the interaction of people, technology and processes. Although, at this moment SaaS is no longer advised for questionable security and lack of privacy, even if a company or business want an ERP as SaaS Solution, the basic checklist must match the criteria for ERP SaaS Applications depicted in this article.

Criteria for ERP SaaS Applications : Leading ERP systems hardly differ

Functionally, the leading ERP systems hardly differ. However, there are technical differences which can make the projects more expensive and complex. Hopefully, to solve this problem, transferring the technical responsibility of the SaaS provider would work, however, it would be be too simplistic and there was no need to write this article or may be no review of services on Internet would ever required.

The challenge is not just in larger projects, the installation of a program on a server, but the configuration and the definition of business processes also counts in ERP solutions. This are also true in SaaS mode. A high standard is recommended and only where it is imperative to have a possible release-ready adjustment.

Criteria for ERP SaaS Applications : From the perspective of the users

If a provider offers a so-called hybrid operating model – i.e. the technical basis for on-demand and on-premise version is identical – user can easily put together the system according to their needs. So the service provider is in the center point, the on-premise version that contains customizations, for example for production.

For subsidiaries and branches can fall back on the on-demand version. Advantage is that the ERP system remains consistent, financial consolidations are easier and the training time is reduced. Advantage for Collaboration and Procurement from the user’s point of view, are well-defined functional modules which are suitable for the SaaS application.

Whole ERP suites hardly play a role. Researches from the perspective of users have positive response but still it is a long way to market. Given the still young history, however, this is not surprising. Just as the different of assessments of the functionality is present. Company size also plays a role in affinity of the cloud ERP solutions – the smaller the company are more suitable for the SaaS solutions versus standalone self-hosted. This is also due to lower functional requirements and demands. The advantages of SaaS ERP are predictable costs, standardization, security and backup scenarios and the disadvantages are such as limited customizability, the compulsion to have permanent online availability of users, barely existing industry standard templates and where appropriate, data protection issues from the user perspective.

With SaaS investments, users should also refer to the data points and return survivability of the provider. More and more smaller customers are willing to have mission-critical applications running externally. Only providers who provide a convincing answer to questions about security, privacy, price and industry partners, offers expertise will be successful in the future. The growth is initially driven by individual functional modules and additions, nothing more or less.