Cloud ERP is a tool that helps businesses save costs - increase operational efficiency - secure data - easily expand - and make faster decisions. This is an indispensable solution if businesses want to improve management capacity and accelerate digital transformation. Successful Cloud ERP implementation does not depend entirely on software, but depends 80% on internal preparation, people and processes.
In this article, let's join Bizzi to learn more about the nature of ERP and analyze the characteristics of Cloud ERP to understand the key: understand the right needs – choose the right partners – train well – manage change flexibly.
Overview of ERP and Cloud ERP
Here is the part Overview of ERP and Cloud ERP, help you understand the concept, role and difference between these two forms:
What is ERP (Enterprise Resource Planning)?
ERP is enterprise resource planning software with open source. Features of ERP:
- Integration subsystems and applications into a unified, closely linked and synchronized entity.
- Help businesses Collect, manage and store data quickly, accurately and transparently.
- Provide unified view about business operations and is the single source of truth for organizational data.
- Target is to streamline core business processes across multiple departments such as finance, human resources, manufacturing, supply chain, sales, purchasing.
What is Cloud ERP?
Cloud ERP is also known as (Cloud ERP), is a version of the ERP system that is Cloud-based deployment and hosting (Cloud Computing). What are the basic features of Cloud ERP?
- Allows businesses to use ERP features and services without No need to invest in and operate a full IT system.
- Users access information through a web browser, simply Internet connection.
- Data is stored and shared across the system in a legacy manner, increasing interaction between departments and No on-premise server required.
What are the outstanding features of Cloud ERP?
Below are the outstanding features of Cloud ERP (Enterprise Resource Planning on cloud computing platform) compared to traditional ERP:
Remote access, anytime, anywhere
Users can access data and systems from anywhere, at any time, through any technological device with an Internet connection.
Quick and easy deployment
Businesses can get up and running faster because there is no need to select and set up hardware or train IT staff. It usually takes only 3-6 months (even 90 days) compared to 12 months of On-premise ERP.
Cost-effective optimization
- Lower starting costs approx 30% compared to On-premise ERP as the vendor hosts and manages the software on their servers and provides ongoing IT support.
- Reduce upfront infrastructure costs, IT department costs, maintenance, security, and updates.
- Apply the model pay as you go (monthly/yearly recurring payment), helps reduce initial costs and optimize financial resources.
- Considered to be production cost (Operating expenditure – OpEx).
Flexible integration and connectivity
Easily integrates with many other applications and systems such as CRM, SCM, accounting software, warehouse management, human resources.
Automatic upgrades and maintenance
The system is maintained and upgraded periodically by the service provider, automatically updated to the latest version, helping businesses save time and effort.
Data security and disaster recovery
Data is stored on the service provider's server, ensuring safety, security and a backup and disaster recovery plan, helping businesses avoid data loss if there is an internal server problem.
What are the benefits when businesses apply Cloud ERP?
Business application Cloud ERP brings many practical benefits, especially in the context of digital transformation and increasing competition. Below are 6 benefit outstanding:
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Increase flexibility and adaptability
Quickly scale operations, easily collect important data, synchronize information, and closely connect departments.
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Effective support for financial management - accounting
Integrate accounting processes into daily business operations, track income and expenses, and prepare professional financial reports.
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Optimize operating costs and update in real time
Significantly reduce resource management costs, focus budget on long-term development goals, and limit work interruptions.
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Support smart and timely decisions
Providing continuously updated data in real time, helping managers grasp information quickly and make accurate decisions.
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Enhance customer engagement and interaction
Integrate with CRM, analyze and store customer data to provide more suitable services and products, increase reliability.
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Improve overall business performance
Automate multiple processes, reduce manual data entry errors, improve information accuracy and reliability, reduce costs and improve work efficiency.
Comparing Cloud ERP and On-premise ERP
Below is Detailed comparison table between Cloud ERP and On-premise ERP, helping you easily see the differences and choose the right one for your business needs:
| Characteristic | Cloud ERP | On-premise ERP |
| Deployment location | Cloud service, managed by provider | Install directly on the server, business system |
| Ownership | Use services, not own infrastructure | Owned and managed by the business |
| Expense | Low starting, recurring payments (OpEx) | Large initial investment (software, infrastructure, IT personnel), ongoing maintenance costs (CapEx) |
| Implementation time | Fast (3-6 months, even 90 days) | Longer (6-12 months) |
| Upgrade/Customize | Automatic upgrades, limited customization | Manual upgrade, highly customizable to business requirements |
| Security/Control | Dependent on supplier, adhere to strict process | Enterprises proactively control, require good management |
What are the main functional components of Cloud ERP?
The Key functional components of a Cloud ERP system usually includes integrated modules that comprehensively manage the core operations of the business. Here are the most common components:
- Financial and accounting management: Bookkeeping, accounts receivable/payable, fixed asset management, financial reporting.
- Human Resource Management (HCM/HRMS): Employee information, recruitment, payroll, benefits.
- Customer Relationship Management (CRM): Interaction, customer information, sales, marketing.
- Warehouse and supply chain management: Inventory, import and export, storage location, inventory, optimize the whole process.
- Purchasing Management: Purchasing process, suppliers, contracts.
- Production management: Planning, scheduling, factory floor control, quality management.
- Project Management: Plan, track progress, manage resources and project costs.
Which businesses should apply Cloud ERP?
Businesses should apply Cloud ERP when they need to optimize management, save costs and increase operational efficiency – especially during the expansion or digital transformation phase. Below are the most suitable types of businesses:
- Newly established and small & medium enterprises (SME): Low operating costs, flexible scalability, short deployment time.
- Businesses need to be flexible in scaling: Cloud ERP automatically scales and provides additional resources quickly as your business grows.
- Businesses focus on optimizing initial costs: Helps spread costs more evenly over the product life cycle, rather than a large initial investment.
Cloud ERP and financial automation solutions Financial Automation Solutions
Overview of the Importance of Financial Automation in Cloud ERP
Cloud ERP helps integrate multiple software and optimize operational management processes, reducing investment costs for resource management. Modern ERP systems integrate intelligent capabilities such as machine learning and predictive analytics to provide deeper insights.
A comprehensive Cloud ERP system will include modules for financial management, sales, purchasing, warehouse, manufacturing, human resources and reporting – all on a centralized platform, accessible via the Internet. Cloud ERP will be suitable for businesses that want to deploy quickly – economically – flexibly – easily expand. However, to specialize in a specific feature, especially in financial management, businesses still need a specialized solution besides Cloud ERP.
Bizzi.vn – Specialized financial automation solution supporting Cloud ERP
Bizzi is an automated platform for processing invoices and financial documents for businesses. Applying AI – OCR – Machine Learning technology, Bizzi helps digitize, check and reconcile electronic invoices, thereby shortening processing time, reducing errors and increasing transparency in accounting and financial processes.
Bizzi is trusted by hundreds of large enterprises in Vietnam such as: Grab, GS25, Thien Long, VIB, Pizza 4P's...
When integrated with the system Cloud ERP, Bizzi plays the role of bridge between financial accounting data (invoices, vouchers) and the overall management system of the enterprise.
- Main focus: Automate financial back-office operations, especially Invoice processing, expense management and debt control.
- Automatic input invoice processing (IPA + 3way): Use RPA and AI technology to upload, check, and reconcile invoices; automatically reconcile with PO and GR; verify suppliers; store input invoices for 10 years.
- Business Expense Management (Bizzi Expense): Set up budgets by department/project, monitor spending in real-time, digitize the process of creating payment requests and approving expenses, generate detailed reports.
- Business Travel Management (Bizzi Travel): Support automatic flight booking, track and manage business expenses with limits, business approval process and overview reports.
- Accounts Receivable Management (ARM): Monitor and reconcile debt, indicators such as DSO, debt aging report; create automatic debt reminder process.
- Electronic invoice (B-invoice): Create electronic invoices according to Vietnamese regulations, custom invoice templates, batch invoice issuance, easy storage and search, integrated with accounting and ERP software.
- Bizzi Business Credit Card and Funding Connection: Providing corporate credit card solutions (spend first, pay later 0%, interest rate up to 45 days), integrated with cost management applications; connecting capital sources for SMEs and startups.
- Extensive integration capabilities with existing ERP systems: Seamless integration with Oracle NetSuite, SAP, Microsoft Dynamics 365 Finance, Odoo via Open API, API connectivity, file integration.
- Bizzi.vn's target and business model: Targeting medium and large enterprises in Vietnam, serving both SMEs and startups; operating under the Software as a Service (SaaS) model; emphasizing cost optimization benefits.
In short, Bizzi.vn as a complementary solution to ERP, is a specialized tool that enhances the capabilities of existing ERP platforms by integration capabilities Seamlessly integrate with existing business management systems. Flexible API integration allows cost and budget data to be synchronized from multiple sources into a single platform, enhancing the functionality of existing infrastructure without completely replacing it.
What are the important notes when implementing Cloud ERP?
When implementing Cloud ERP, careful preparation and understanding of potential risks will help businesses optimize efficiency, avoid waste and operational disruption. Here are the most important notes:
- Human factor: Requires consensus and deep understanding from leaders to employees, ready for change.
- Detailed implementation plan and thorough evaluation: Evaluate current processes, develop plans, calculate budgets, and choose timing.
- Choose a reputable solution provider: Consult, evaluate carefully and choose an experienced, successful implementation unit.
- Ensuring stable technical infrastructure: Equipped with stable network connection, computer configuration meets requirements.
- Establish a dedicated implementation team: Team has expertise to evaluate, test and inspect the system.
- Focus and coordinate closely during implementation: Coordinate smoothly between departments, build unified workflows, and standardize data.
Conclude
Cloud ERP is not only a technology solution but also a smart strategy that helps businesses optimize operations, improve performance and flexibly adapt to the market. Understanding what Cloud ERP is, how it works and important notes when implementing it will help businesses make the right decisions and reap huge benefits.
In particular, for financial management, Cloud ERP, along with specialized supporting solutions such as Bizzi.vn, helps businesses unify data sources, professionally manage finances, optimize human resources, improve work efficiency and increase competitiveness.
To get advice and design a financial management solution specifically for your business, register for consultation here:https://bizzi.vn/dat-lich-demo/
