Companies that have already invested in SAP find that they can achieve even better results from their existing investment with cloud technology and eProcurement. After the initial investment, companies find certain roadblocks preventing mass user adoption and diminishing cost savings. Issues such as inability to stay connected, lack of insight into data, and complex and fragmented business rules stop businesses from using the full power of SAP. As cloud application technologies advance, companies gain the benefits of rapid deployment cycles, increased self-service tools, and faster performance. Vroozi delivers on the promise and power of eProcurement in the Cloud with seamless integration into SAP.
SAP users looking to the cloud generally face a few questions, including:
- How can I benefit from using cloud procurement?
- Will my transition to the cloud be cost-effective?
- How will my business processes be affected by cloud technology?
To understand the benefits of cloud technology to existing SAP users, let’s evaluate three procurement strategies that highlight the power of cloud procurement.
Return on Investment (ROI) is a central factor in any procurement strategy. Buyers and trading partners of cloud procurement solutions need to feel confident that solutions will lead to cost savings and higher productivity and efficiency. Users quickly see returns by focusing on user adoption, compliance, and spend management. Spend Management allows companies to visualize purchasing spending patterns and usage and drives employees to leverage preferred pricing with contract suppliers. To increase user adoption and compliance, the cloud empowers a mobile workforce with the right resources and experience so everyone stays connected and available so that business is not disrupted. As user adoption and compliance frameworks increase with cloud-based systems, organizations gain immediate cost savings in procurement by decreasing transaction costs and preventing spend leakage with your supply chain.
Process efficiency is key for a successful, healthy business. Cloud technology enables better processes by keeping everyone connected through a mobile experience and automating transaction tasks through the use of machine learning and pattern matching. With a centralized, unified system, cloud automation can yield immediate benefits in requisition to invoice and payment business processes and reduced errors and issues leading to higher productivity and decreased processing costs. Further, by allowing employees to interact with cloud procurement via smart Phones and tablets, business can continue to move with efficiency and speed.
IT Cost Savings
Perhaps no determinant is more important in realizing the benefits of cloud technologies versus traditional on premise software is in IT Cost Savings. Systems and applications which required large physical infrastructure and monetary investments can now provide inexpensive and scalable solutions through the Cloud and cloud infrastructure providers. A procurement solution that integrates with SAP is easier to access, less expensive, and takes a fraction of the implementation time companies once faced with traditional software solutions. Cloud technology relieves the user of hidden costs such as hardware, consultants, infrastructure, maintenance, and costly upgrade cycles, providing lower risk and lower total cost of ownership.
The cloud offers little upfront expense, automatic upgrades, and pre-integrated best practices which allow organizations to focus on business growth and improved operating margins. Vroozi’s eProcurement solution that takes SAP solutions to the cloud empower users with better returns, better processes and higher savings, so their overall SAP investment’s ROI is accelerated.
According to IDC, spending on Cloud computing is growing at 4.5 times the rate of IT spending since 2009 and is expected to continue growing at more than 6 times the rate of IT spending from 2015 through 2020. (via Forbes) This massive growth is easily understood when businesses understand the power and value of cloud solutions. With the Vroozi Platform, companies can take advantage of robust eProcurement technology delivered in the Cloud and integrated seamlessly with SAP.
About the Author
Brad Hill spent the last 20 years building Enterprise Sales and Product strategies with leading IT Services organizations. His entrepreneurial strategies served a vast number of Fortune 500 industries and verticals. Brad received his B.S. in Biology and Psychology from the Southwest Baptist University.