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Additionally , scalability is a vital factor , as cloud ERP solutions are easily adjustable to accommodate changing business needs . The growth of cloud ERP is driven by the on-going trend of digitisation , the pursuit of high ROI , lower upfront costs and the increasing need for improved employee productivity and efficiency .

Security , sovereignty and permissions concerns

Security , sovereignty and permissions are crucial considerations in the context of cloud-based ERP systems . Data security depends on several access touchpoints , such as network , hosting infrastructure , container software and access applications . Cloud solutions offer robust security measures , including data encryption , compliance certification , physical security , firewall and intrusion prevention systems , regular patching , identity and access management , fine-grained permissions and audit trails .

Cloud providers also have legal agreements in place to comply with the laws and regulations of the countries in which they operate . Data residency options and contractual commitments to data sovereignty provide users with the flexibility to choose the hosting location for their data .

Navigating the shift to cloud ERP and managing risk

To navigate the shift to cloud ERP effectively , organisations should start by setting both longterm and short-term business goals , defining objectives and identifying the associated business cases and problem statements . This approach helps organisations identify their motives and justifiable business cases .

Moving to the cloud should be a transformative initiative , encompassing process reengineering and organisational change management , in addition to technology adoption and change . It ’ s crucial to identify business problems and evaluate costs related to security , scalability , growth , future projects and performance .

Managing risk is a vital aspect of any transition . Key risk factors include deployment strategy , data residency and availability , consumption and customisation and the overall compatibility of the new system with the current state .

TO NAVIGATE THE SHIFT TO CLOUD ERP EFFECTIVELY , ORGANISATIONS SHOULD START BY SETTING BOTH LONG- TERM AND SHORT-TERM BUSINESS GOALS .