How cloud ERP can transform Swedish manufacturing

Sweden is home to some of the world's best-known technology companies, including Ericsson, Spotify and Klarna. According to the Global Innovation Index, which compares countries' innovation capabilities, Sweden ranks an impressive second in the world. But how is the Swedish manufacturing industry doing and what challenges does it face?
Swedish mid-sized manufacturing companies are at the forefront in Europe when it comes to adopting new technologies. According to our survey on ERP in the Swedish mid-sized manufacturing market, conducted by OnePoll, a whopping 93% of companies surveyed are already using cloud-based or hybrid ERP systems – the highest proportion in Europe. But despite this, it's clear that many are still not taking full advantage of the technology to drive digital transformation and innovation.
In this blog post, we share key insights from the survey that highlight both challenges and opportunities for Swedish manufacturers. You'll also get insights on how cloud ERP can help your business stay ahead in a constantly changing industry.
What challenges does the Swedish manufacturing industry face?
The last few years have been challenging for the manufacturing industry, with the pandemic and global economic uncertainty creating issues in supply chains and limiting opportunities for businesses to grow. According to our survey, 26% of companies see global economic and political uncertainty as their biggest challenge. In addition, competition in the Swedish manufacturing industry is tough, and companies need to constantly streamline, keep costs down, stand out in the local market while attracting customers internationally. As many as 45% of companies say that timely reporting and analysis is crucial to navigating today's complex business environment.
While most companies have already implemented cloud-based or hybrid ERP systems, a full 80% say they are not using cloud technology enough to take advantage of advanced capabilities like AI and IoT. This shows a big gap between how the technology is actually used today and its true potential.
7 reasons to have your ERP in the cloud
So, how can mid-sized manufacturing companies benefit from cloud technology? Cloud ERP offers a range of benefits that make business operations more agile and secure, while reducing costs and contributing to a more sustainable future. Companies that do not take advantage of the full potential of the cloud risk falling behind in an increasingly digitalised world.
The 7 most important benefits of cloud ERP according to the survey:
- Accessibility: users can easily access the system at any time and from any location, providing flexibility and efficiency in the workflow.
- Improved data security: cloud providers often offer higher levels of security than companies can achieve on their own, thanks to advanced encryption and continuous monitoring.
- High system availability: with a cloud ERP, businesses can be sure that the system is always working properly, reducing the risk of downtime.
- Easy backup management: automatic backups protect data and reduce the risk of loss in case of system failure.
- Flexible payment solutions: businesses can choose subscription models that provide predictable monthly costs while eliminating the need for expensive local servers.
- Adaptability to a modern business environment: cloud systems can be quickly scaled up or down depending on the needs of the business, allowing for smoother management of changes in the business.
- Promotes sustainability and efficiency: cloud ERP systems support businesses in becoming more sustainable through better data management and reduced use of resources such as physical servers.
These benefits create a more agile and sustainable business model for Swedish manufacturers, making it easier to free up resources and focus on what matters most in the business.
Accessibility, scalability and sustainability in focus
It's no surprise that accessibility was the top priority in respondents' answers about the main benefits of cloud ERP. The survey found that an ERP system downtime can cost companies an average of 261 000 SEK a day, making system availability crucial!
Sustainability is also high on the agenda for many businesses – a whopping 76% of respondents say it's a priority, and 81% say an ERP helps them create a more sustainable business. Cloud-based solutions also provide the flexibility and scalability needed to meet future growth and new challenges.
How to harness the full potential of the cloud
Despite the fact that many are already using cloud ERP, the survey shows that more than three quarters (77%) of companies are not using the full potential of the cloud. To get the most out of the technology, it's important to have the right provider and a solution that offers continuous updates and new features. It's also important to choose a provider that really knows the manufacturing industry. A vendor with a good reputation may lack the specific industry expertise needed to meet your business needs.
Also, make sure to work with a cloud provider that uses AWS (Amazon Web Services). You'll benefit from AWS's innovations in cloud technology, expertise in infrastructure, scalability, and perhaps most importantly – security. But moving from on-premises to the cloud is about more than just technology. Employees need the right training and support to use the system effectively, making investment in skills development as important as the technology investment itself.
Want to know more about the survey and how your company can leverage the benefits of working with cloud ERP systems? Read the full report (in Swedish) Swedish manufacturing for medium-sized companies – technology trends, best practices and future-proofing.
Curious about how Jeeves cloud ERP can help your business? Don't hesitate to get in touch.