How Foreign Market Fluctuations and Changes in the Industrial/ business Processes of the Target Country Affect a buyer’ s Decision to Choose Traditional ERP over SaaS Systems. Additional Considerations on the Pros and Cons of SaaS ERP in Comparison to Traditional ERP Software Systems.

ERP over SaaS Systems

The Various Reasons Why SaaS ERP Solutions are not Adequate for Immediate Responses to Market Challenges

To explain a little more detail about the implications of buying an SaaS erp solution instead of a traditional one, it should be noted that the disadvantages may usually have less of an impact on some companies than on others. Some of the general arguments against SaaS erp solutions center on the fact that they cannot be re-customized or rewritten by the customer once they are installed since they're not integrated into their own servers support platforms but are originally hosted by a vendor. However, smaller businesses usually find them more useful than mid size or larger companies, since the latter might have more difficulty in finding alternatives to problems arising from the necessity to occasionally rewrite the software or introduce adjustments. The reason for this is because bigger companies have a larger role to play in the global or local markets and their market operations may require more frequent and additional diversification into newer strategies of market expansion, in conformity with the fluctuations in the evolution of the industry and the international marketplace as time goes by.

Why SaaS ERP Solutions are best Suited for Small businesses rather than Mid Size or Large Companies

This condition or characteristic of big and mid size companies, requires them to re-customize or integrate additional applications into their ERP solutions on a regular basis- so as to cover all their bases to ensure maximum diversification potential and subsequent opportunities for penetration into multiple foreign markets and diverse industry sectors, and/ or depending on the needs of the moment and whenever a specific reason to make additional changes to their ERP software arises.  This spur of the moment decision to re-customize an ERP solution, may be due to several factors such as the emergence of important new data proper to the target market (or multiple target markets) during a specific stage in the process of global ERP deployment by a company, may require a revision of some of the applications originally integrated into its SaaS erp solution when it was first customized and installed into the erp vendor's servers, and that it be adapted as suited to deal with this new information.  

This new data may include also changes in the national industrial infrastructure or revisions in local industrial standards and in the business practices of the target country, or considerations such as internal political turmoil leading to divisions as well as demographic and regional differences. Larger businesses must also deal with technical and technological difficulties if implementing SaaS erp. These may result from not being able to change the software to allow the integration of significant technological innovations entering the market, in order to promote and extend the reach of their global ERP solution and further the growth of business opportunities.

Written by :

kristine H