ERP software is a must-have business tool. All kinds of organizations could do with an ERP platform. However, one mistaken notion that most companies have is that ERP software needs to be on-premise or cloud-based. The new buzzword currently trending is a hybrid ERP system. It is breaking barriers across the globe, and many companies have transitioned to hybrid ERP tools.

Why settle on one when your organization can benefit from the best of both worlds? It is low on cost but ranks high on functionality and operational efficiency. The best part about one-hybrid ERP systems is that they cost just a fraction of the implementation cost of an on-premise tool. It comes power-packed with a range of advanced and innovative features characteristic of cloud-based ERP software.

Hybrid ERP platforms need for any kind of business. Start-ups, small to medium enterprises, and corporate giants can all use hybrid ERP software. It can help them achieve all the important enterprise resource planning tools functions. Core functionality processes of on-premise systems remain, allowing cloud data access. Hybrid ERP is the perfect multi-sourced modular solution for the digital networked enterprise. It can make a positive difference in bottom-line results and the end products of an organization.

What is Hybrid ERP?

A Hybrid ERP system is a combination of on-premise and cloud ERP solutions. Allows companies to manage all aspects of their business processes within a single application.

It is a good idea for organizations with a main location with many nerve centres and warehouses. Hybrid ERP systems are also adapted to build up the accessibility of staff members, even on the move.

On-premise ERP Solutions

This deployment model is traditional yet highly popular. Here organizations run their applications on servers in their personal data centres on-premise. ERP software can be purchased or leased out for a fee. On-premise ERP systems do not come cheap or affordable. Acquisition, maintenance, and routine operations of servers are expensive and build up the organisation’s budget.

On-premise ERP software definitely means a higher investment for companies – both in financial resources and the time frame for investment recovery. On-premise ERP may work for organizations with robust in-house IT staff that can handle the maintenance of services. It would also be a good option for companies with one location. Hence they may not find the need to invest in cloud services.

Cloud ERP Option

Cloud-based ERP systems have been adopted in most organizations as they have tremendous advantages. This dynamic solution can be shared equally between multiple users due to the virtualization of resources. Cloud ERP tools can be hosted and managed internally or by independent third parties. They are very affordable as they help organizations achieve economies of scale.

Cloud ERP systems facilitate low cost, scalability, and a fast time frame for return on investment. They are affordable for start-ups and smaller businesses with lesser financial power. It is also useful for organizations with multiple worksites scattered over different geographical locations.

Long-Term Efficiency of Hybrid ERP Systems

New technologies that enhance digital transformation in ERP are on the rise. The internet of things, cloud computing, and machine learning are the future in the business arena. In such a scenario, one question that comes to mind is about the long-term efficiency of hybrid ERP software. Managers want to be certain they are making the right decision by opting for a hybrid approach. It should be a viable financial decision for the organisation’s long-term survival.

The truth is that hybrid ERP software will lead the way forward in modern workplaces. Here are some strongly compelling reasons that throw light on why it is a smart business ideal to go in for hybrid ERP solutions that will deliver long-lasting efficiency:

• Combination of the Best

Hybrid ERP platforms are both more realistic and contemporary. They try to blend the best features of cloud ERP and traditional on-premise systems. This enables hybrid software to be more agile and responsive. It can quickly respond to any unexpected changes in the corporate environment. These solutions automate most repetitive tasks, leaving managers available to focus on more strategic decisions.

• Flexible and User-friendly

Most organizations need solutions that are flexible enough to suit their business requirements. This aspect makes hybrid ERP systems very popular as long-term options. They follow a loose coupling system. Highly customizable, hybrid ERP systems allow business firms to choose particular modules they will require in the long run. This ensures seamless task flow management and prevents organizations from paying for unnecessary ERP modules or useless features.

• Increases Core Focus and Functionality

Certain growing industrial sectors have not been serviced well by on-premise ERP software. Some include business services, digital media, advertising, and other allied services. Most of these fields can be better served by professional hybrid ERP solutions. Companies in these industries have moved on to the cloud, and the trend is expected to continue.

• Advanced Analytics

Hybrid ERP software has the capability to store and handle large volumes of data. It organizes and structures vital business information in a streamlined manner. Not only do hybrid ERP platforms store data, but they also help managers make complete sense of it. Real-time reporting and sophisticated analytics ensure senior management can gain complete business visibility. Hybrid ERP systems facilitate content-rich human-machine interaction, reducing manual administrative work and fostering productivity.

• Agile Two-Tier Architecture

Hybrid deployment of components from both on-premise and cloud ERP software is innovative. It maintains a bi-modal structure as a core building block for all business functions. One useful aspect of this diverse two-tier architecture is that it promotes micro-vertical functionality. This promotes the smooth flow of information between departments and enhances cross-functionality.

• Integration

open-source ERP solutions can easily be integrated with many other existing organizational systems. Managing multiple APIs from multiple players is a huge plus point for organizations previously dealing with one platform. This allows uninterrupted and quick synchronization of business intelligence. Easy transfer and sharing of real-time information is a big reason that hybrid ERP systems are a must-have corporate tool.

Deciding to opt for hybrid ERP software is not a simple decision that can be taken lightly. Organizations must keep in mind the overall implications before making the switch. Undoubtedly, moving over to hybrid ERP platforms will be highly cost-effective and efficient in the long run. It can help organizations gain a competitive advantage and increase business revenues exponentially.

Cost-Effectiveness of Hybrid ERP Systems

It is no secret that enterprise resource solutions can greatly revolutionize your workplace. However, when it comes to hybrid ERP systems, managers always have a nagging doubt – will it be worth their investment?

No business wants to waste time, money, and effort in implementing a system that will not pay off in the future. So that is why it is taking organizations time to adopt hybrid ERP technology. The good part is that hybrid ERP platforms are highly cost-effective. It reduces costs and ensures that organizations can capture the best from both worlds- cloud ERP solutions and on-premise platforms. Let us can look at the affordability and cost-effectiveness of variants:

What are the Advantages of Hybrid ERP?

The need for an on-premise ERP system is abating as businesses and customers evolve their thought processes. The radical new technology of hybrid ERP systems has taken the business world by storm. It is the ideal mixture and allows organizations to benefit from on-premise capabilities and cloud access.

• It facilitates the consistent movement of master data to enable advanced reporting and analytical capabilities.
• The solid functionality of hybrid ERP is it helps organizations increase their bottom-line profits in key areas.
• Hybrid ERP software has the ability to utilize a cloud-based system to supplement the on-premise ERP solution.
• It is cost-effective. For different units or regions, it manages from a single ERP system throughout every aspect of the company.

It definitely makes perfect business sense to move towards the hybrid effect. Cost-savings, responsiveness, and agility are benefits firms can gain through hybrid ERP solutions. They can boost operational efficiency and increase profitability through a rapid investment return!

Sharad Bhardwaj

Sharad Bhardwaj is a content analyst at SoftwareSuggest. He loves to advise and help people. In leisure time he likes to be involved in sports activities and listening to music.