ERP (enterprise resource planning) software is a popular topic. But did you know that there are several types of ERP out there, each of which have their advantages? One of the most popular is hybrid ERP. This is a two-component solution that delivers the reliability, control, and security of on-premises with the flexibility and agility of solutions based in the cloud. So, what is hybrid ERP, or a hybrid ERP platform, and what could it mean for your business. Let’s discuss.
What is a Hybrid ERP Platform?
To begin, let’s define hybrid ERP. Hybrid ERP is a, yes, hybrid approach that combines on premises and cloud ERP. It allows companies to stick with what works while also adapting new technology.
Why Choose a Hybrid ERP Platform?
There are several reasons businesses are taking a hybrid approach to ERP software. Let’s look at each so that you can better decide whether hybrid ERP is the right one for you.
Top Considerations
Security
Security is a paramount concern for businesses, especially those operating in sectors with strict data handling regulations. These industries often deal with sensitive information, and any security breaches can have severe consequences. By opting for a hybrid ERP solution, companies can strike a balance between maintaining compliance with industry regulations and harnessing the benefits of modern technology.
Hybrid ERP combines the robust security features of on-premise system with the additional layers of protection provided by a cloud-based solution. On-premises ERP systems offer a high level of control over data storage and access. This can be critical for industries with specific security requirements. The on-premises component of the hybrid system allows businesses to keep sensitive data within their physical premises, reducing the risk of unauthorized access.
On the other hand, cloud ERP systems often come with advanced security measures and continuous updates to address emerging threats. The cloud component ensures that data is encrypted, backed up, and stored in secure data centers, providing an extra layer of protection against potential data breaches.
Scalability
As businesses expand and grow, their ERP systems must be able to keep up with increasing demands. On-premises ERP systems may become cumbersome to scale up, especially when new branches or locations need to be integrated into the existing infrastructure. Heavy upfront capital investment is often required to expand the on-premises ERP infrastructure, which may not be cost-effective for rapidly growing businesses.
In contrast, hybrid ERP’s cloud-based element offers unparalleled scalability. Companies can easily integrate new branches or locations into the cloud-based system without the need for significant upfront expenses. The cloud’s flexibility allows businesses to adjust their resources and services as per their requirements, making it an ideal solution for managing expansion.
Furthermore, when businesses need to explore new technologies or applications to achieve long-term goals, the cloud-based component allows them to conduct trial periods quickly, cost-effectively, and with minimal effort. This agility enables businesses to test and implement innovations faster, gaining a competitive edge in their respective industries.
Additionally, as businesses form partnerships with other companies or take on new partners, having a cloud-based component in the ERP becomes essential. It enables seamless collaboration and data sharing with external parties, fostering efficient communication and collaboration between multiple entities.
Customization
No two businesses are exactly alike, and each industry has its unique requirements. Traditional ERP solutions often provide standard functionalities that may not cater to specific niche needs. Hybrid ERP’s customizable nature addresses this issue, allowing businesses to tailor the ERP system to fit their exact requirements.
By adopting a hybrid approach, companies can combine industry-specific features from their existing on-premises ERP with custom-built functionalities available in cloud-based ERP systems. This integration ensures that businesses get a bespoke ERP solution designed to meet their precise needs and workflows.
Customization enables businesses to streamline their processes, enhance productivity, and gain a competitive edge. It empowers them to adapt swiftly to changing market conditions, business models, and customer preferences. The ability to customize the ERP platform according to specific business needs ensures that businesses don’t have to settle for a one-size-fits-all solution but get a system that aligns perfectly with their operations.
An Easy Upgrade
Industries, like manufacturing that adopted early on-premises ERP solutions may find themselves struggling to keep up with the rapid advancements in technology. These legacy systems might lack modern features, integrations, and efficiencies needed to compete in today’s fast-paced business environment. However, replacing an entire on-premises ERP infrastructure can be a daunting and costly task.
Hybrid ERP systems offer a cost-effective upgrade path for these companies. By integrating a cloud-based component, businesses can enhance their existing ERP system with the latest technologies and functionalities. The cloud-based element acts as a bridge that brings modern innovations and updates to the existing on-premises ERP. This effectively future-proofing the system.
This easy upgrade path enables companies to stay competitive, optimize their operations, and remain agile in an ever-changing business landscape. By modernizing their ERP systems, businesses can ensure they are well-prepared for future challenges and technological advancements.
A hybrid ERP platform gives you the best of both worlds. If you have explored hybrid ERP at your own company, tell us all about your experiences below. If you would like to explore your own options for hybrid, hosted or cloud-based ERP, visit this webpage.
