*By Decio Krakauer
The demand for agility, innovation and flexibility that we see in the market today poses significant challenges to growing companies. As startups evolve into scale-ups, their operational needs become more complex and, to ensure scalability and efficiency, it is essential to know how to choose appropriate technological tools, such as cloud-based enterprise resource planning systems (ERPs). These ERPs have emerged as an indispensable solution for companies seeking to align sustainable growth with the demands of a dynamic business environment.
Startups, which are usually small and agile, need affordable solutions that are easy to implement and flexible enough to adapt to rapid changes in their markets. They operate in the early stages of validating a business model, focusing on experimentation and rapid adaptation. Scale-ups, on the other hand, have already moved into a phase of accelerated and sustained expansion and their challenges are associated with operating in new markets, managing large volumes of data and complying with multiple tax and legal regulations. They are defined by the Organization for Economic Cooperation and Development (OECD) as companies that grow more than 20% per year in revenue or number of employees for at least three consecutive years, a growth rate that requires a robust and scalable technological infrastructure.
Cloud-based ERPs have become a key player in this scenario, especially for scale-ups. Their main advantage is scalability, which allows companies to increase or adjust their operations according to their needs without requiring large initial investments. Their implementation is agile, allowing operations to start in just a few months, and the possibility of real-time remote access provides greater flexibility and efficiency, especially in an increasingly digital and distributed work environment. In addition, cloud solutions offer continuous integration of new functionalities, such as artificial intelligence and machine learning, which makes it possible for companies to maintain their operations without interrupting their operations to carry out complex migrations.
Another advantage of cloud ERP is the integrated visibility into operations, which allows companies to make data-driven decisions and thus anticipate market challenges. In a dynamic business environment, predictive analytics tools are invaluable, especially for scale-ups, as they help predict trends and quickly adjust their strategies. These systems also come with best business process practices, reducing the need for costly customizations and ensuring consistent and efficient operations across different markets.
Cloud computing already accounts for around 25% of data storage in Brazil, with adoption rates double those of on-premises storage. According to IDC data, cloud infrastructure is a priority for 48% of business leaders in Brazil, surpassing other emerging technologies such as machine learning (44%) and artificial intelligence (42%). Comparatively, global cloud infrastructure spending grew by 36.9% in Q1 2024, totaling US$$ 33 billion, while non-cloud spending saw modest growth of just 5.7%.
The outlook for the sector is promising, as shown by Gartner data. Driven by the need for integration, elasticity and continuous innovation, more than 70% of enterprises are expected to adopt dedicated cloud platforms by 2027. In addition, the software as a service (SaaS) market, an integral part of the cloud ERP ecosystem, is expected to reach US$$247.2 billion in global spending by 2024, with an annual growth rate of 20%.
Predictive analytics capabilities provide real-time forecasts, helping companies anticipate trends and quickly adjust their strategies, essential in dynamic markets. Additionally, the system offers best-practice business processes, minimizing the need for customizations and ensuring simplified and efficient implementation.
For scale-ups and growing companies, choosing the right ERP goes beyond operational efficiency; it is a vital strategy for maintaining competitiveness in the market. Cloud-based enterprise management provides the flexibility needed to meet the challenges of growth while simultaneously fostering innovation and digital transformation. As the global market evolves, companies that invest in cloud-based technology will be better equipped to transform their accelerated growth into sustainable and lasting results.
While cloud ERP offers great advantages for scale-ups and growing companies, on-premises management software is still relevant for industries that demand direct control and specific requirements. The choice depends on the needs and resources of each company: while cloud ERP is ideal for those seeking agility, scalability and lower initial costs, on-premises ERP is suitable for companies that require control and customization and that have an already established infrastructure.
* Décio Krakauer is CEO of Ramo.
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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