Isolated. Disconnected. Complex. Difficult.

Sound like words you might hear in relationship counseling? You’re not too far off. Many companies are realizing that their relationship with their legacy ERP system is all those things and worse, with 72% of ITDMs stating that their organization is defaulting to cloud-based services when upgrading or purchasing new technical capabilities.

Indeed, making the transition to cloud is more urgent than ever, but at Avanade we caution our clients that technology alone can’t be viewed as an end goal; it must be viewed as a tool for intentional business transformation. When implemented with that in mind, the cloud will enable significant growth across your enterprise. Here are six reasons to make the move and jumpstart growth:

1. Bring new products and services to market quickly – Meeting the demands of today’s customers requires digitization to integrate data, identify actionable insights and foster agility. The cloud delivers these basics of the digital age and more. It also supports industry-specific applications that will strengthen your differentiators and allows you to enter markets outside of your existing footprint.


2. Meet the ever-pressing demand for innovation – Most advanced technologies such as AI, machine learning and robotic process automation are only available through the cloud. Low-code and no-code Power Apps and Power Automate workflows will enable your people to innovate at speed through rapid prototyping, low risk experimentation and a start-fast-fail-fast environment.


3. Compete for exceptional talent with an elevated employee experience – A more modern workplace bolsters your ability to attract and retain sought after talent. Cloud ERP gives them superior usability, mobile apps and interfaces that allow them to conduct business from their phones or perform work while on the go, and user-focused workspaces.


4. Accelerate divestitures and acquisitions – These transactions drive significant risks and have possible financial implications due to required business integrations. A strict timeline may be required where business continuity is critical. Cloud ERP enables you to manage these time-sensitive opportunities seamlessly.


5. Seize the opportunities of global expansion – Many companies are considering strategic advantages to international expansion, but one size will not fit all subsidiaries. There may also be a need to support these companies with a lighter finance solution while keeping the ERP backbone. The cloud allows for that platform flexibility.


6. Implement crucial security standards – While security isn’t a growth driver per se, a major security incident can certainly be a growth derailer, undermining trust with your employees and customers. The advanced security capabilities of the cloud are unmatched – from analytics to threat intelligence. You’ll also achieve greater compliance, governance and controls with simplified self-service and automated patching.

The reasons to move from a legacy ERP system to the cloud are compelling, and even more compelling is that multiple viable paths exist depending on your business objectives and their value drivers. Some companies will choose a hub and spoke model of mixed architectures, some a surround model that wraps the legacy system with modern technology, and some will go all-in on a new platform, replacing the legacy system completely. This flexibility is a big relief to our clients.

What path is right for you? Learn more here.