How can you use hybrid ERP solutions for your business?

1 What is a hybrid ERP solution?

A hybrid ERP solution is a type of ERP architecture that leverages both cloud and on-premise technologies. Typically, a hybrid ERP solution consists of a core ERP system that runs on-premise, and a set of cloud-based applications that extend or complement the core functionality. For example, you may have an on-premise ERP system that handles your accounting, inventory, and manufacturing processes, and a cloud-based CRM system that manages your customer relationships and marketing campaigns.

2 Why choose a hybrid ERP solution?

A hybrid ERP solution can offer several advantages, such as flexibility, cost-effectiveness, security, and customization. With a hybrid solution, you can choose which business processes and data sources to keep on-premise and which ones to move to the cloud based on your needs and preferences. You can also save on upfront and ongoing costs by using the cloud for non-critical or less complex functions. Moreover, sensitive or confidential data can be stored on-premise where you have more control and visibility over your security measures. Additionally, you can tailor your ERP solution with the cloud for functions that require more innovation and agility, and the on-premise system for functions that require more stability and standardization. Furthermore, you can integrate your cloud and on-premise components using APIs or middleware to ensure data consistency and compatibility.

3 How to implement a hybrid ERP solution?

Implementing a hybrid ERP solution requires careful planning and execution, as you must consider various aspects such as strategy, selection, migration, and optimization. When defining your business goals and objectives, it is essential to align them with your ERP vision and roadmap. You must also identify which business processes and data sources are critical or strategic for your business, and which ones are non-critical or tactical. Additionally, you must choose the right cloud and on-premise ERP vendors and solutions that match your needs and expectations. It is also necessary to migrate your data and applications from your existing system to the new hybrid ERP solution with minimal disruption and downtime. After testing and validating the data quality and integrity, as well as the performance and functionality of the new system, you should train and educate your users on how to use it. Moreover, you have to monitor the performance of the hybrid ERP solution and identify any areas for improvement or enhancement. Finally, leverage the analytics it provides to optimize your business processes and decisions.

4 What are the challenges of a hybrid ERP solution?

A hybrid ERP solution can also pose some challenges, such as complexity, security, and change management. Complexity involves managing multiple ERP systems and vendors, as well as integrating cloud and on-premise components. Security requires protecting data and applications from cyberattacks, ensuring compliance with regulations, and establishing clear roles and responsibilities. Change management necessitates managing organizational and cultural changes, communicating with users and stakeholders, and fostering a culture of collaboration. Balancing the trade-offs between the cloud and on-premise advantages is also necessary to ensure a successful hybrid ERP solution.

5 What are the best practices for a hybrid ERP solution?

To ensure success with a hybrid ERP solution, you should define a business case and value proposition that aligns with your business strategy, assess your current capabilities to identify gaps and opportunities, establish a governance structure and assign roles and responsibilities to stakeholders, select the right cloud and on-premise ERP vendors and solutions, plan and execute a smooth migration and integration of data and applications, train users on how to use the hybrid ERP solution, monitor performance and results to optimize business processes and decisions, keep the solution updated and secure, and leverage the latest technologies.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?