Enterprise resource planning in the cloud requires care during the transition

12/20/2011 at 11:13 am by The Sage ERP Team

If there has been one stark trend in enterprise resource planning during 2011, it has been the exploding popularity of cloud computing. Whereas companies were once constrained by their physical limitations and hardware requirements, businesses today can essentially run any kind of computation and access all kinds of records from the relative convenience of cyberspace.

However, transitioning to the cloud by 2012 isn't something that should be done without a bit of forethought. After all – it entails the wholesale movement of records and their attendant programs from one computer system to another. As a result, companies should be sure to use such an opportunity to make changes that will set them up for success going forward. Here are some of the important steps to take after the decision to migrate to the cloud has actually been made.

Security policies
No enterprise worth its salt can survive without some security measures in place. They can be as complicated as using encryption and obfuscation programs to mask their data, or they might be as simple as password-protecting their computer systems. Either way – it is quite a bit easier to securely monitor and track systems and applications that are firmly rooted in the real world. That's because only people who are onsite will ever actually be able to see sensitive information.

However, the cloud is a different story. All of the information stored in the cloud is theoretically being transferred hundreds or thousands of miles over fiber optic cables. Consequently, security measures need to be tightened, or at least reviewed, before a migration to the cloud is made.

Management reorganization
It might seem unwanted, but management positions should be reevaluated in light of cloud ERP adoption. Managers are meant to oversee projects and ensure that work is being carried out effectively. With cloud-based ERP systems in place, records are generated more quickly and fewer meetings are necessary. Businesses won't need quite so many eyes and opinions, so management could benefit from shifting people to other departments where oversight is at a premium.

Adding additional software
Of course, any ERP or business intelligence move will set up the perfect moment for a review of application assessment. That is, it is a great time to add other kinds of software since one is being installed anyways. Consider inquiring with vendors during the planning stages of an implementation about other programs that might suit a company's needs.