ERP, Digitization

Software Services Accelerate Digitalization

Tobias Fenster

As a result of the pandemic, managers at many companies are forced to rethink and reformulate business models and objectives. For the IT department, this means increasing capacity very quickly, implementing innovative technologies and, at the same time, shutting down obsolete systems and processes. If IT managers make use of software as a service, they can quickly and easily switch applications while simultaneously boosting digitalization within their company. If, however, IT managers rely on on-premise systems, they will often find themselves in a technological “trap”. 

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Effortless scaling

This is because they are caught in a web of license agreements, firmly implemented processes and partly outdated hardware and software. Even if they have a sufficient number of employees to program in the new requirements to the software of their legacy applications or to extend it through linking, the technology they use sets tight limits.  

Many issues that have been relevant during the pandemic and will be relevant afterwards, such as the evaluation of logistics data, the processing of production data (for example by means of IoT concepts), and the analysis and prediction of sales targets are unknown to the old ERP core of the company. In order to meet the requirements in the first place, upgrades and modernizations of the running systems are necessary.  

In this respect, an inexpensive and extremely fast alternative is opting for software-as-a-service solutions. They work with the current systems, supplement them and can even replace them in the medium term within the scope of digitalization. What’s more, instead of having to install new functions, the IT managers scale their systems by adding new functions at the click of the mouse. 

Straightforward upgrades 

Another requirement is scalability in order to be able to add further users and data points or to allow for remote access - for example in production or home office applications. In the on-premise environment, this is expensive and can only be achieved through large-scale projects.  

An affordable and pragmatic solution could be a platform offered by cloud service providers. Besides the necessary infrastructure, users also benefit from software as a service as part of the agreed services. With these applications, they map exactly the functions and processes that they require during the pandemic.  

Purchasing new licenses and software, as is necessary with on-premise environments when market changes occur, is no longer required. Even in case of downsizing after the crisis, no expensive but unused software remains in the systems. This is because the solutions are so flexible that the IT managers can simply cancel applications and functions as soon as market conditions change. 

Always up to date

Time-consuming and stressful upgrade projects are thus a thing of the past for customers of software-as-a-service providers. SaaS providers guarantee that they keep the software of the users up to date in small, easily understandable steps. Users therefore always work with the latest versions of the latest functions instead of only hearing and reading about these features and only installing them as part of the next upgrade (or the one after that). 

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Tobias Fenster
Chief Technical Officer COSMO CONSULT Group