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Answered Same DayAug 29, 2021ITECH5402

Answer To: Dashboard Profile Profile pictures Files Journals Résumé Plans Notes Content  Pages and collections...

Abhinaba answered on Sep 08 2021
151 Votes
CLOUD BASED ERP SYSTEM
CLOUD BASED ERP SYSTEM
Introduction
Cloud based ERP systems are softwares which are used as a service.
usually accessed from a common browser over an internet connection
flexible and financially beneficial
Cloud based ERP systems are softwares which are used as a service and allows users to access ERP softwares over the internet. These systems are usually accessed from a common browser over an internet connection. This
is a more adaptable choice for organizations as it is more flexible and financially beneficial.
2
Brief history of cloud ERP systems
Came into existence in year 2005.
Before this traditional ERP systems were used in the 1990s
Development of cloud based system shifted focus form traditional system
Growth of cloud
ERP systems
over traditional
ERP systems:
After the year 2005 the focus shifted for traditional ERP to cloud ERP systems. These systems have been widely adapted since then because of their lower cost and lesser tie required for the implementation. Moreover they allow maintaining consistent organization processes along all the locations of the organization.
3
Research design and data collection
Literature review of articles published in or after 2006.
While reviewing journals cloud ERP basics and other factors were noted.
Case study has been included
Summaries of various papers are mentioned
Literature review of several papers has been done. Papers that have been considered are published in or after 2006 because cloud ERP came into existence in 2005. While reviewing the journals it will be noted what the author has to say about the cloud based ERP and other particular factors of the topic. While summarizing main contents for each journal most of the opinions have been paraphrased that reflect the advantages and challenges in adopting cloud ERP system.
Case study mentioned is a good example
4
scope
Research based on software as a service ERP based on public cloud.
Advantages and challenges are mentioned considering cloud based ERP systems.
In this paper our research is limited to software as a service ERP based on public cloud. Thus the advantages and challenges which will be mentioned will limit only to cloud based ERP systems.
5
Identification of ERP characteristics
True cloud based ERP systems are those that can be accessed via a common browser over the internet
In some paper cloud based ERP systems may be replaced by hosted systems but this is not true.
Cloud ERP systems provides access having a little dependency on client configuration.
In an article by Scavo et al. (2012) it is mentioned that some ERP solutions are marked as cloud based but actually they are hosted ERP solutions. True cloud based ERP systems are those that can be accessed via a common browser over the internet. This type of system provides access having a little dependency on client configuration.
6
Advantages
Lower upfront cost
Rapid implementation
Lower operating cost
Focus on core competences
Improved accessibility,
mobility and usability
These advantages have lead to
rapid growth of cloud ERP as
Seen in the image:
Lower upfront cost: in a paper by Marston et al. 2010 it is mentioned that cloud computing reduces the expenses of an organization in order to implement ERP systems. The cost which is mainly reduced includes expenses on hardware, user training and user licenses.
Rapid implementation: cloud ERP can be implemented very fast as compared to traditional ERP systems. Time to provide new services have been substantially reduced.
Lower operating cost: operating costs such as maintenance, upgrades and configuring can be substantially reduced when using cloud based ERP systems.
Focus on core competences: resources which may be used to maintain an IT department for traditional ERP system can now be used to focus on the core competences of the business.
Improved accessibility, mobility and usability: these systems have very high levels of user friendliness and are easier to use anywhere and anytime.
7
Challenges
Security risks
Subscription expenses
Performance risks
Interoperability limitation
Compliance risks
Security risks: Engebresthson (2012) reported that security risks are among the top challenges of implementing a cloud based ERP system.
Subscription expenses: for using cloud based ERP systems from different vendors a periodic subscription fees need to be paid.
Performance risks: The performance of ERP systems on...
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