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The “Cloud” is a common term in business. Some swear by it, while others prefer to stick with their own company’s hardware. Why switch to working in a Cloud and what are its advantages and disadvantages? A “Cloud” is an online environment where all files are stored. The physical data is stored in one of the provider’s servers, such as Google and Microsoft.

There are a lot of advantages to storing data in the cloud. For example, you can increase your storage space on demand, so you never have to worry about reaching your server’s limit. Another advantage is the accessibility. You can work whenever and wherever you want, as long as you have an Internet connection. This is not even limited to which device you use. This easy way of sharing data makes for a more dynamic workplace, where there can be faster consultation within your company. There is a lower risk of data loss than with an in-house system. There is also a backup available, so you can always go back to an earlier version of your documents if something goes wrong. The latest versions of the Cloud with the best storage and features are simple to get through updates.

All these benefits sound super, of course, but there’s always a catch. As often mentioned, the Cloud can be found on the Internet. This means that you also need a good working Internet connection to access the Cloud. Many files fit on the Cloud, there is enough storage space. The downside is that the files do need to get on the Cloud. With large files, it often takes a lot of time to actually get them on there. Uploading files is often slower with a poor Internet connection or if there are too many people on the server. Another, perhaps annoying, detail is dependence on partners. If you have hired a partner for your Cloud management, you are dependent on them. Suppose they stop managing Cloud, you lose your workplace immediately. In addition, it is difficult to switch because the Cloud of different providers do not easily work together. This makes it difficult to transfer data from one to another.  

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In the current generation of ERP systems, almost all functionalities are integrated into one system with a Single Point of Truth. Only for very specific processes was then a separate solution placed next to the ERP package. This is a big advantage. However, the disadvantage of a large, comprehensive system is that an implementation or modification can become more complex and it is more difficult to respond quickly to changes in the market.

The ERP cycle is also important. A major upgrade now occurs on average once every eight to 10 years at most companies. That period is far too long in today’s world, where developments are happening faster and faster.

The solution is obvious. ‘In a way, we are going back in time to the first generation of ERP systems,’ says Joop van Es – partner at KPMG Enterprise Solutions and active for more than 25 years in guiding ERP implementations and optimizations. ‘As with the first ERP solutions, with next generation ERP the system consists of a digital core of purchasing, sales, finance, inventory management and production, surrounded by components for additional business processes. However, the mindset this time is completely different from the first generation. The “best of breed” approach was all about functionality. But with the new generation of ERP systems, time-to-market is leading. The system is set up in such a way, using standard components, that a company can respond at lightning speed to opportunities or other changes in the market.’

That ability to respond to market changes comes in many forms. For example, a key feature of the new generation of ERP is the ability to collect data more efficiently and analyze it more quickly. Better insight into customer trends then makes it possible to tap into a new sales channel more quickly. Or to respond to changing needs in the market through product development. Next-generation ERP also plays a role in the transition from product-oriented to service-oriented sales. We also see this in the construction industry.