We will take advantage of this article to simply present what is SaaS mode, what are its advantages and disadvantages? and what cloud computing is.

Definition of SaaS mode

The SaaS management allows a company to not install applications on its own servers but to subscribe to online software and pay a price that will vary depending on their actual uses.

Operation in SaaS mode

By using the SaaS model, the company will not host its applications and will not store its data internally.

It is therefore not necessary to directly acquire these applications and have servers to host them. In addition, the maintenance and updates of the applications will be managed externally by the service provider.

Business users will simply need a computer and online service access codes to be able to work.

The advantages of SaaS mode

Management in the SaaS model allows a company to benefit from many advantages:

• no software to install on company hardware,
• no data stored internally,
• updating automatic applications,
• the application can be used anywhere and anytime: just a simple internet connection and a computer,
• management in SaaS mode provides a level of security generally higher than internal management.

The first two advantages cited by using SaaS mode also allow the company to save on these investments in computer equipment.

SaaS model is a service, the cost of which constitutes an expense immediately deductible from the result of the business, whereas an investment is deducted from the result through depreciation spread over several years.

The disadvantages of SaaS mode

The SaaS, however, presents some drawbacks, including:

• the company is dependent on the service provider who provides the service, the latter owning the applications, and hosting the company’s data. What happens if you don’t have it? Filing for bankruptcy? or if a dispute arises?…
• moreover, it will then be difficult for the company to change provider and transfer the data to it,
• for applications often used by the company and by several users, the cost of operating in SaaS mode can be much higher than acquiring the application.

The differences with cloud computing

SaaS and cloud computing are two concepts that are similar but that does not mean much for the same.

The cloud computing (cloud computing) will allow the company to benefit from a complete IT infrastructure remotely to use applications. This operation, based on the pooling of resources, allows unlimited capacities (both in terms of storage and bandwidth).

The SaaS is meanwhile only to provide a subscription to an application via the Internet.

Cloud computing is therefore a much broader concept than SaaS and includes both the provision, via the internet, of the following 4 services: Applications, data storage, application execution, and infrastructure.

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What is ERP?

ERP distribution management software allows you to consolidate the database of the entire company and better manage it via a single platform with all the services (called modules) within the company such as production, stock, accounting, and many more. All departments, therefore, have access to the same database and the same information. When an employee enters or changes data within a department, the database is immediately updated throughout the company. If, for example, a sale was made during the day and the salesperson enters it into the database, this modification will be instantly applied to the other services., such as accounting, inventory management, production management, etc. There is therefore no need to check or enter this new sale in the database of each service. Remember that ERP is not only aimed at large companies, but also at SMEs that want to better organize their activities.

Modules

Large companies such as SMEs can choose the modules to integrate into the ERP according to their needs. The publishers offer tailor-made versions, aimed at meeting the requirements of companies, whatever the size and whatever the sector of activity. Indeed, there are different versions for different sectors of activity.

Commercial management

This module includes inventory management, which allows you to keep an eye on the available stock, the stock already reserved but also to manage supplies. Purchasing management helps to better manage suppliers, prices, and supplier deadlines. It also allows you to control quotes as well as orders placed with suppliers, possible imports, etc.

The commercial management module also includes sales management. It facilitates the management of prices as well as items for sale. It offers a better overview of the quotes drawn up, the purchase orders as well as the delivery.

To maintain good relationships with customers, CRM management is an integral part of this business management module. It allows you to manage contacts while classifying the exchanges already made with customers. This module includes the management of ongoing marketing campaigns and their impact.

Accounting management

Whether general, auxiliary, or analytical accounting, this module allows you to keep an eye on the financial situation of the company as well as on all financial movements in the company, even the smallest.

This module allows you to update the FEC or the File of accounting entries in real-time. Remember that any business is obliged to present this file to the tax authorities. This file relates all the accounts of the company.

Production management

This module makes it possible to manage the list of nomenclatures (elements necessary in the manufacture of a product), the manufacturing process but also allows better quality monitoring. It allows the monitoring of the site over time in the case of a construction of a detached house for example.

Decision reporting

The decisional reporting is based on the various data of the company to make a statement of the evolution of the company by taking into account the production and the costs incurred.

What would you gain from setting up an ERP?

The implementation of an ERP in your company offers you a multitude of advantages:

• First, it gives you the opportunity to improve the organization within your company. By centralizing and automating data, this system allows you to remain reactive and above all very competitive in your activity.
• Centralized data prevents loss of time and allows each department to work simultaneously.
• The risk of errors is minimal, even almost nonexistent with this system since there is no longer any risk of the data being duplicated.
• It is not uncommon to lose some data when the data is entered manually. ERP quickly loses data that can be precious to you.
• Optimization of management processes (economic and financial flows),
• The consistency and homogeneity of the information (a single item file, a single customer file, etc.) which makes it possible to comply with standards,
• The integrity and uniqueness of the Information System,
• Sharing the same information system facilitating internal communication or mobility,
• The globalization of training (same logic, same ergonomics),
• A productivity aid,
• Centralized control of the company,
• Help in making a quick decision.

But the disadvantages?

The use of an ERP is not without drawbacks:

• It is a complex system that requires a certain know-how. It will, therefore, be necessary to think of in-depth training for your employees, but also a period of adaptation that can be longer depending on each person.
• However, the game is worth the effort as you can optimize productivity with this system. An ERP processes a very large database, so think about using a tool that offers powerful servers that will allow you to navigate smoothly.
• Once implemented, an ERP is difficult to uninstall. So you find yourself a little “hooked” to the ERP editor. It is therefore more than important to think carefully before choosing a publisher.
• Request for organization and thoroughness,
• The complex implementation,
• Good knowledge and questioning of business processes,
• Difficulties of appropriation by the personnel of the company linked to the changes,
• Every ERP has at least one Achilles heel: the modules are of unequal value.

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