It might sound too good to be true, but there is a way to gain greater visibility over group cash, reduce payments fraud, and extract further value from ERP systems – without migrating decentralized subsidiaries into the ERP environment. Cloud technologies offer key benefits in that aspect, but many users still have security concerns around how they can achieve the best of two worlds – comfortable mobility and maximum security.
There are many reasons to switch to the cloud including lower costs, scalability and improved collaboration. Nevertheless, many organizations are taking a cautious approach and reservations remain high. The idea of companies allowing data to leave the confines of their own four walls makes many IT pros shudder. The truth is, security doesn’t have to be compromised for the sake of increased flexibility.
Quite the contrary, with constantly evolving cyberthreats, it is extremely difficult for one business to keep on top of the changes. A specialist provider will have the resources and experience on hand. Furthermore, an on-premise system can be a known target for criminals whereas the relative anonymity of a data center provides cover.
A trend taking treasury by storm is the development of a new hybrid cloud ERP model, a combination of on premise and cloud solutions. These systems offer an optimal combination of a smoother payment process in a more secure environment. Within the hybrid cloud model, ERP and cloud users also have improved visibility into everything happening with treasury and Accounts Receivable/Accounts Payable, with one central source of data being updated in real-time.
In many cases, organizations have to deal with a large number of banks in an even larger number of countries and they need to be aware of whom they are doing business with at all times. Underpinning these priorities, there is a clear desire to use technology in a smarter way. Treasurers are keen to extract the maximum value from existing ERP system investments while leveraging new technologies like hybrid cloud solutions. The goal is to optimize the payment processes, ensure fraud and compliance checks are met and gain greater visibility and control over cash. Treasurers also need to have a firm handle on bank accounts and balances across the group.
In the hybrid cloud world of payments, treasury can work in an environment with a user-friendly interface, where every transaction that is keyed into the cloud, and every approval that is made in the cloud is automatically updated in the ERP system. Simultaneously, the Accounts Receivable and Accounts Payable department, can continue to work in the ERP environment but have seamless visibility over all of the information and transactions carried out in the cloud. And any changes made in the ERP system are instantly reflected in the cloud environment.
The hybrid cloud model is the greatest way to achieve centralization without the logistical challenges of migrating multiple decentralized subsidiaries onto ERP systems. Organizations can trust the system and focus on finding the right technology company to partner with. The benefits will give treasurers a better handle on all of their payments data—and the peace of mind that their systems are secure.