Getting Your Manufacturing Unit on Cloud 9
Decoding the top 5 reasons to adopt the cloud-based ERP solution makes business sense
The Indian manufacturing sector has clearly taken center stage post the announcement of the current government’s ‘Make-in-India’ initiative aimed at raising global competitiveness of the sector for the country’s long term-growth. The vision of this first-of-its-kind policy is to witness an increase in the share of manufacturing in the country’s Gross Domestic Product from 16% to 25% by 2022. The government has listed technology as of the key contributing factors in achieving this target.
A lot rests on the Indian manufacturing sector to up the ante in terms of growth performance to compliment efforts made to make India ‘the next manufacturing destination’. According to a research report on the technology adoption trends among manufacturing enterprises in India, ERP is the largest priority for spend in a CIO’s budget with significant growth expected over the next 5 years. In a nutshell, a cloud-based ERP solution helps streamline the manufacturing process, and free up capital, while giv- 64 www.dqindia.com ing the necessary flexibility to meet evolving operational needs.
Below are the top five reasons why moving to a cloudbased ERP solution makes business sense. COST REDUCTION Whether or not a particular industry is going through a lean period, companies will always try to cut corners and cloud adoption are means to this end. A recent survey of global CFOs carried out by Deloitte indicated that reduction in IT investments (54%) emerged as the most important strategic drivers for organizations to switch to Cloud computing. A study by Computer Economics shows that organizations that moved most or all of their systems to the cloud saw an average 15% reduction in IT spending. This reduction came not only from a reduction in data center spending, but also in IT personnel costs.
In addition, advantages of cloud-based implementations include requirement of less development and testing