The Day I Realized That Cloud ERP Was The Only Meaningful Option For Our Business

2021-04-20

Back in 2003, when we were evaluating ERP and CRM options for our business, it was already pretty clear that the cloud was going to become the main architecture for business software applications, whether it was ERP & CRM systems, file server systems, platforms for e-commerce websites, etc. So I instinctively felt that a cloud system would be a better, more future proof investment. Moreover, cloud business management systems like NetSuite are generally easier to customize, easier to integrate and easier to deploy than on-premise systems with software architecture based on technology from the 1990s. I also didn’t like the idea of installing and maintaining a whole bunch of servers by ourselves, especially when we expanded globally; that seemed like it would be a massive headache.

That being said, cloud was still quite a young concept. I wouldn’t say it was totally unproven, because plenty of companies in the U.S. and Europe were using NetSuite and other cloud applications, but at the time there were virtually no companies using cloud systems to manage accounting, CRM and operations in China at the time (there are a lot more now, of course). So there were concerns among some of the team about whether choosing a cloud system was a “safe” choice. However, there was one specific incident that made me realize a cloud-based ERP system like NetSuite would be a significantly a better option for us…

Back at the end of 2002, China experienced the SARS outbreak. Beijing was a ghost town; everyone was in quarantine. Our staff couldn’t get into the office, so our business basically stopped for a couple of weeks. As most business owners who were working at that time remember, this was a tough time to be running a company. The uncertainty that the incident created and the fact that no one knew how long it would last was a huge source of stress. At the time, we had grown our operation to around 50 people. So we weren’t the smallest company, but we were still horribly exposed to this kind of unforeseeable incident. My background is in security, so I think quite hard about issues surrounding risk management. I realized: if we had an internet-based business system in place, it would be easy for our staff to continue working, doing basic things like sending invoices, preparing quotations, managing accounting and so on, but we didn’t have this kind of system at the time and suffered quite a significant loss. If all your business information is only available at one physical geographical location, it actually creates a huge risk for your business.

I don’t think mid-sized companies that have all their ERP systems on on-premise realize how vulnerable their business data is. If the roads have been shut down, or there’s a viral outbreak, or a flood or fire at your office this can be a huge disruption for your business. I realized that having a system that is available anywhere through the internet and on any computer or online device is a huge asset to any business. The experience of going through the SARS crisis made it very real for me…

People mainly evaluate ERP systems based on what functions they offer; whether the system is suited to their particular industry and if the system can help them manage their data more efficiently. But even today, I think a lot of people don’t think too hard about the value of Cloud-based ERP to business continuity.