Cloud ERP Is the Key to Long-Term Investment Benefits

To begin with, in today’s fast-changing world, whether an ERP system is cloud-based has become the top priority. The second consideration is whether the ERP vendor has sufficient R&D personnel to regularly maintain and update system functionalities. Only by meeting these two criteria can companies achieve long-term systematic investment benefits with minimal costs.

Non-cloud ERP systems require significant investment in server infrastructure and incur increasing maintenance fees annually, without guaranteeing that the system will keep up with market demands. In contrast, cloud-based systems offer faster access, regular updates, and AI support.

Which ERP vendors can I choose from in Taiwan?

Setting aside the cloud aspect, Taiwan’s ERP vendors can be broadly categorized into international and local brands.

International brands

The advantage of internationally renowned brands is that the parent company has huge funds, and is usually more willing to invest in research and development costs to regularly update system functions to improve user experience and management benefits, such as Microsoft’s Dynamics 365 system updates twice a year, and as early as 2023, it will start to build in Copilot AI support.

Local brands

Local brands tend to focus on the domestic market and the specific needs of local businesses. They are often praised for being small yet refined. Typically, their financial interfaces and operational logic align more closely with the workflows of Taiwanese users. However, when a company begins to scale or seeks to expand internationally, these systems may struggle to support foreign tax regulations, currencies, languages, and even cross-border connectivity and AI capabilities.

List and features of ERP vendors in Taiwan

So, which well-known ERP systems are available in Taiwan? Below, we’ve listed vendors that offer cloud-based ERP solutions along with their flagship cloud ERP products for readers’ reference. All descriptions and information are sourced from the official websites of each vendor.

International brand ERP system

Representative system SAP S/4 HANA

Founded in 1972 and more than 50 years ago[Note 1], SAP S/4HANA Cloud Standard Edition is a ready-to-use, cloud-based ERP that provides the latest industry best practices and continuous innovation. Execute with industry best practices with ready-to-use, pre-configured processes. Reinvent business models and redefine work in real-time to push the envelope. [Note 2]

Cloud Architecture: Own Cloud HANA [Note 3]

Represents the system Dynamics 365 Business Central/Dynamics 365 Finance and Supply Chain Management

Microsoft’s ERP system originated from Damgaard Data and Navision, Europe’s largest system vendors[Note 4]. After being acquired by Microsoft in 2002, it not only has the largest ERP system in Europe, but also supports the advantages of Microsoft’s complete ecosystem, so that these two systems can be easily integrated with Microsoft’s native systems such as M365, Azure, and Copilot, and become an international-level ERP system. The high degree of flexibility in customization and the close introduction price to local ERP systems have become the reasons for its popularity.

Cloud architecture: Own cloud Microsoft Azure

Representative System Oracle Fusion Cloud ERP/Oracle Netsuite ERP

Founded in 1977 [Note 5] and known for its Java and Linux[Note 6 collections,Oracle Fusion Cloud ERP is a complete, modern cloud-based ERP suite that delivers advanced capabilities to your team. For example, AI technology can automate manual processes that slow down progress, analytics can respond to market changes in real time, and auto-updates can keep you up-to-date and stay ahead of the competition. [Note 7]

Cloud architecture: Own cloud OCI

Local brand ERP system

Representative system Dingxin AI business application cloud

Founded in Taiwan in 1982 and a joint venture with Digital China in 2001 [Note 8], Dingxin Computer has a cloud-based ERP solution that includes basic modules such as purchase, sales and inventory, accounting, and value-added modules such as batch number management and chain account management[Note 9]

Cloud Architecture: Provision of services through Microsoft Azure [Note 8]

Stands for System CERP

Founded in 1985, Winton provides customers with packaged industry-specific application software systems and services for planning and setting up computer operating environments. By effectively integrating hardware and software, users receive the most comprehensive support for digitalization. Its flagship system, CERP, features multi-language support, cross-platform compatibility, zero deployment, low maintenance, high security, and low cost. It utilizes Microsoft Azure cloud computing services. [Note 10]

Cloud Architecture: Provision of services through Microsoft Azure【Note 11】

Representative systems T 3/5/7, T8, T9 (cloud computing solutions are also available)

CHING HANG INFORMATION was founded in the 1990s [Note 12]. Its T3/5/7 series is designed based on the principles of “practical, sufficient, user-friendly, and easy to use.” The T8 system combines standard features with customization to meet user-centric personalized needs. The T9 system focuses on the management and operational needs of medium to large enterprise groups, emphasizing the healthy development of management models and risk control. [Note 13]

Cloud Architecture: Services Delivered via Microsoft Azure [Note 14]

How to choose the right ERP?

There are far more ERP system vendors in Taiwan than the few mentioned above—over 30 can be counted. Due to space limitations, only a select few are listed for reference.

So, with every vendor claiming to be the best, what criteria should be used to evaluate and choose a system that fits your industry and internal workflows? Below are several recommended evaluation standards for reference.

Import Total Price & Budget

When implementing an ERP system, companies must prioritize the project budget. Typically, ERP implementation costs consist of three main components: server infrastructure, system purchase or licensing fees, and consulting and implementation fees. Choosing a cloud-based system can eliminate the significant expense of setting up servers. For example, Microsoft Dynamics 365 is a fully cloud-based system that can be accessed via mobile devices or computers as long as there is an internet connection. Additionally, its licensing fees can be tailored based on the number of users or organizational levels.

Return on investment

In addition to considering the input cost and expected benefits brought by the project introduction, the return on investment also needs to consider the subsequent derivative costs and long-term benefits. For example, the local system needs to spend a lot of money every few years to update the server or update the latest version of the ERP system, and the MA maintenance fee increases year by year.

The long-term benefits need to be considered whether the same system can meet the needs of the company’s growth, such as whether the system can cope with the increasingly cumbersome work content after the company’s expansion, as well as the information connection between cross-departments and the reduction of heavy work to improve efficiency.

Industrial applicability

Different industries have applicable information systems, to be honest, the existing ERP system can not meet the needs of all industries, after all, ERP is derived from MPRII (Manufacturing Demand Planning) in 1970, it is also conceivable that the architecture and logic of ERP system will be more suitable for manufacturing, food industry, or biotechnology industry and other industries related to manufacturing demand planning. Therefore, when selecting a system, you can first refer to the manufacturer’s successful cases and solutions to measure the applicability.

Introduced a consulting firm

The introduction of ERP system is not only to make the company’s data electronic, but also to re-examine the internal operating process (SOP) through the introduction of the system, and to reduce rework and improve internal work and management efficiency with a good system is the core value of ERP. It is also the most important benefit that every enterprise invests so much cost. Therefore, how to choose the right consulting company to assist in the introduction of the system is also the core factor to consider, after all, the cases of import failure caused by poor consultant quality account for the very direct reason for ERP implementation failure.

summary

As mentioned at the beginning of the article, the priority of the ERP system is whether the system is on the cloud, which can not only reduce the cost of implementation, but also reduce the burden of the company’s internal IT personnel, and then choose the right system according to the size of the company and the type of industry.

The introduction of ERP is a key milestone in the transformation of the enterprise, how to reorganize and optimize the internal operation process through the introduction of the system and with the assistance of consultants is the key value of the introduction of the ERP system.

Tianwei Information has 20 years of professional experience in the field of ERP, successfully assisted more than 200 well-known enterprises at home and abroad to introduce Microsoft Dynamics 365 ERP system, and has in-depth professional knowledge in manufacturing, food, biotechnology, retail, green energy, non-profit business, e-commerce, trade, trading industry, deeply loved by customers and recommended by word of mouth.