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Hybrid ERP: What Is It and What Are Its Advantages?
Businesses in every line of industry need ERP software to keep up with the ever-changing demands of the market. But, when most people hear about an Enterprise Resource Planning (ERP) solution, they immediately think: on-premise or cloud? You’d probably be surprised to know there’s a third option. Yes, a hybrid ERP solution that provides the best of both worlds and enables you to incorporate cloud-based features into an on-premise solution.
In addition to cost-effectiveness, high functionality and efficiency are among other reasons motivating countless small, medium, and giant companies to adopt hybrid ERP solutions. The accessibility of on-premise solutions, along with the ingenuity of cloud-based ERP systems, have made hybrid ERP into a multi-sourced solution that perfectly suits the operational needs of many enterprises.
Even though hybrid ERP is quite popular, some businesses are still unclear about what it is and what benefits it offers. If you feel the same way, keep reading this article.
What’s Hybrid ERP?
When you combine the power of on-premise and cloud solutions in segments such as CRM, collaboration, sales, and order fulfillment, you get a two-tier model known as hybrid ERP. Hybrid
ERP is one of the fundamental pillars of a digital enterprise platform enabling companies to produce reports and analyze data in real-time while performing speedy transactions.
Businesses can deploy such software to operate critical applications with unique technical limitations or requirements. They can run such tasks in their data center or cloud space. All authorized users will simultaneously have access to these applications from public clouds. This will cut down implementation timeframes and lower operational costs.
Why Businesses Need Hybrid ERP
As with any software or system, the emergence of IoT, AI, ML, and cloud computing have transformed ERP platforms. Since hybrid ERP is fairly recent, it’s only logical for many to have questions about its long-term efficacy. As a business, you want to make sure you’ve made the right choice by opting for a system that can help you survive and thrive in your industry.
Understanding the benefits of a hybrid ERP solution will go a long way in proving to you it’s a wiser choice in the long term. Here below are the five primary benefits of hybrid ERP:
- Competitive Advantage in All Frontiers
Advanced features in areas such as analytics, the internet of things (IoT), eCommerce, and artificial intelligence are just some of the reasons for the widespread adoption of cloud ERP in many industries. They allow businesses to simultaneously provide a range of new features to their customers.
However, companies still largely need their on-premise ERP systems to perform slower-changing tasks that are fundamental to the output of their operation. With a hybrid ERP solution, they can roll out these new features to stay ahead of the curve while meticulously focusing on resolving glitches and improving the quality of their work, allowing companies to provide superior products and services.
"Flexibility Businesses" consist of various parts that come with unique needs and requirements. Therefore, they need a solution that can be tailored to each of those needs. Hybrid ERP solutions are the perfect candidate because they operate on a loose coupling mechanism and offer particular modules that businesses will need in the long term.
Too often, companies opt for features and modules necessary for a particular stage of their operation. But they end up paying for them long after they’re not needed anymore. That’s not an issue with hybrid ERP solutions because you’ll only pay for what you need when you need it.
- Higher Functionality & Specificity
As you already know, on-premise ERP systems cannot properly service a growing number of sectors such as advertising, business services, and digital media. Why? Because on-premise systems mainly deal with asset and product-driven industries. As a result, a large number of companies moved towards cloud solutions, and many in these sectors already see hybrid ERP as a better fit for their needs.
- Best of Both Worlds
While it’s true that on-premise solutions are considerably more costly and time-consuming than cloud systems, they provide certain features not easily replaceable. Companies often utilize cloud solutions to save money and time, but the tradeoff is giving up on those on-premise features.
This is exactly where hybrid ERP systems come in. While they’re cheaper and faster than an on-premise solution, companies still get to enjoy those features without needing to abandon all of them. That’s the beauty of this two-tier model. Using a single, universal ERP template is often too complex for small offices and subsidiaries.
A hybrid solution is cost-effective and flexible enough to fit all operational needs by offering the best of both worlds.
- Superior Analytics
One of the advantages of a hybrid ERP system over previous generations is that it can store and process massive volumes of data in a streamlined manner. In addition to storing such data, they provide a detailed analysis, providing executives with a clear idea of the current state of their operation.
By offering real-time reports and superior analysis, managers/executives across all departments can continuously monitor their workflow and resolve minor problems long before they create significant losses for the company. Thanks to the human-machine interaction on hybrid ERP, people can spend less time on manual work and focus on the core aspects of their business.
- Integrability
A great upside to hybrid ERP solutions is they can be easily integrated with the existing systems within a company. While organizations dealt with only one platform before, now they can manage multiple APIs from several players. By doing so, they can synchronize business intel quickly with no interruption. Easy data sharing in real-time is a major reason for making hybrid ERP a must-have tool in all industries.
Too often, businesses find that switching from an on-premise system into a cloud-based one is costly and inefficient. Instead of spending a lot of money setting up a new server, hybrid ERP allows businesses to incorporate cloud features into their existing platform. In addition to saving money, it’s a shortcut leading to a brand new solution for companies.
Bottom Line
Moving towards hybrid ERP systems can have drastic implications. Companies can easily move master data to produce superior reports on sophisticated analytics. By combining the much-needed functionality of on-premise systems with the speed of cloud solutions, they can hit higher figures in their revenue and customer satisfaction.
Should you take the leap and opt for a hybrid ERP platform? You need to carefully consider your business needs and your existing model to find out what works for you. The beauty of hybrid ERP is there’s no fine-size-fits-all. There’s a wide range of features able to help your business in every stage of operation.
Easy integration, flexibility, and cost-effectiveness are just some of the few benefits that have lured a wide range of companies into hybrid ERP for their business needs. We at IMTS provide the perfect solution to boost your operational efficiency and profitability while allowing you to focus on staying on top of the latest trends in the market.
Hence, what are you waiting for? Just contact our team of experts, and let’s get going!