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What is SaaS ERP (enterprise resource planning)?

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Last editedMay 20222 min read

SaaS-based technologies are being adopted in virtually every corner of the business world, including ERP. As businesses move away from legacy systems, ERP software-as-a-service provides them with the opportunity to reduce costs, drive process standardisation, and increase speed of delivery. But what is SaaS ERP? Find out everything you need to know, from our SaaS ERP definition to the benefits of SaaS ERP implementation.

SaaS ERP definition

To understand SaaS ERP software, it’s first important to understand what ERP itself means. ERP stands for enterprise resource planning. It’s a process used by businesses to manage and integrate the most important parts of the company within a single system. Think of it as the glue that holds all the different software platforms for a large organisation together.

ERP allows employees to access each platform through just one application, enabling different departments to share information and communicate more effectively. It can also help businesses become more self-aware by linking information about HR, finance, distribution, and production together. Plus, the process of connecting different technologies used by the company can support the elimination of incompatible or duplicate tech.

So, what is SaaS ERP? Simple – it’s the term used to describe ERP that’s hosted on cloud-based software. In the past, ERP was run through traditional software models that were based on physical client servers. But like virtually every other aspect of enterprise, ERP needed to adapt to the cloud, resulting in the rise of SaaS ERP software.

What’s the benefit of ERP software-as-a-service?

With digital transformation continuing at pace – a recent study indicates that the vast majority of Australian businesses understand the need to digitally transform their business – there are enormous gains to be made by companies that are able to leverage their data effectively. However, if your company’s data is stored on multiple different systems, some of which may be incompatible, that’s going to be almost impossible. SaaS ERP software offers a solution, providing businesses with the opportunity to create a single source of company data from which to start their innovation journey.

Hosting ERP on the cloud provides numerous advantages. Traditionally, implementing ERP was a long and difficult process that forced businesses to handle complex data integration and install a significant amount of supporting infrastructure. However, SaaS ERP implementation is much simpler, since the platform is hosted by the cloud service provider and delivered through the internet. At the same time, SaaS ERP software improves speed to deliver as it enforces out-of-the-box functionality, meaning that you can get started as quickly as possible. It’s also important to remember that SaaS ERP implementation is likely to be much more affordable than on-premise ERP, as it bypasses most of the IT overheads associated with traditional ERP models.

ERP SaaS pricing models

There are a range of different ERP SaaS pricing models, including per-user pricing, per-feature pricing, freemium pricing, and usage-based pricing. While the exact pricing model depends on your provider, it’s worth remembering that there are advantages and disadvantages associated with each model. For example, while it may be beneficial for small or medium size businesses, per-user pricing may not be ideal for companies that are attempting to drive adoption, as pricing based on uptake won’t be cost-effective. It’s important to run with the ERP SaaS pricing model that aligns most clearly with your SaaS ERP implementation strategy.

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