Is Zero Overhead a Myth or a Reality in ERP?
In the 90's Business Process Re-engineering (BPR) focused on how businesses should work in order to cut costs, improve customer services and become world class competitors. The major thrust area was reducing consumption of resources that did not add to customer value. The focus was to build a lean organization structure with minimum overheads. While the zero overhead business model may seem a distant reality organizations can make significant cost cuttings by transforming most of their business initiatives to cloud.
Netsuite ecommerce provides several cost cutting measures given below that goes to reinforce the zero overhead business model
- Zero Leasing of Work Space - Small businesses can free up a lot of office space by transforming a lot of their business initiatives to cloud. Leasing of office space is expensive in the cities and metros. Businesses can reduce this overhead by using cloud services – ERP, telephony, data etc.
- Zero CAPEX - CAPEX or Capital Expenditure can be killing for a small business startup. Onsite, premise based ERP cost a lot of money. Servers, cooling towers, computer terminals needed for running ERP solutions are a constant drain on company resources and finances. Cloud ERP provides managed services. For a monthly subscription, small to mid sized businesses can now benefit from Fortune 500 type ERP solutions
- Zero Salaries - Onsite ERP solutions need round the cloud expertise. Any lag can lead to business loss. Netsuite Ecommerce solution is based in the cloud. It provides 99.99% uptime and 24X7 server maintenance reducing any business downtime and reducing any service time lags.
- Zero OPEX - OPEX or Operating Expense take a big chunk out of your budget in the form of electricity, software and hardware upgrades, maintenance, renewals etc. However, if you are running your ERP, Telephony, Data in cloud, you are saved from the day to day hassle or running and maintaining your operations.
- Zero training costs - Training costs can take up a lot of organization's time and money. Onsite software applications require employee training and orientation before they are fit for use. Solutions based in the cloud are easier to use and more intuitive reducing training costs substantially.