Accessed via: http://b2b.cbsimg.net/whitepapers/Cloud_Industry_Forum___Buyers_Guide_to_ERP_Business_Management_Software_1_.pdf
Summary of Paper
This whitepaper outlines the value Enterprise Resource Planning (ERP) can bring to a business, its importance on transforming a business, the way how businesses can benefit from Cloud ERP solutions and considerations that need to make organizations before implementing an ERP system.
The Value of ERP
ERP systems “help employees to do their jobs more efficiently by consolidating the use of disparate systems, removing isolated spreadsheets and breaking down barriers between departments or business units”(Cloud Industry Forum, 2015)
According to Stevenson (2015) there are three major reasons why companies undertake ERP:
- To integrate financial data
- To standardize manufacturing processes
- To standardize HR information
The way on how to realize the full benefits and value from ERP investment continues to challenge researches (Nwankpa, 2015) and this paper does not provide any efforts toward this area.
Cloud ERP Solutions
As more and more IT services are moving to the cloud, organizations might need to consider moving their ERP systems also to the cloud. This paper offers an analysis of the framework on the way how to choose when buying an ERP system, and it also provides a very useful detailed table for comparing and highlighting benefits of on-premise and Cloud-based ERP systems.
On-premise ERP solutions – ERP systems are installed locally and managed by IT staff
Cloud ERP solutions – in which the ERP system is distributed from the cloud and accesses by end-users using a web browser.
Even though the papers include enough facts on On-premise ERP solution, it is more focused on the idea of Cloud ERP solutions offering benefits by listing advantages of Cloud ERP solutions over On-premises and also by highlighting seven bullets why businesses are moving to loud ERP.
- Lower costs
- Ongoing maintenance and updates
- Existing customization and integration with the third party applications are unaffected by system upgrades
- Uptime, continuity and system performance are managed by the vendor, not the customer
- Scaling to match growth
- Cost saving
- Automated updates
- Gaining s ‘single version of the truth
- Compliance and Governance – almost as a by-product
The author also lists questions that an organization can answer for choosing whether they want to jump to cloud ERP or not. Listed below are the questions to be considered whether the on-premise ERP solution is capable of support the future strategy of the business:
- Is your business experiencing rapid growth?
- Is your business seeking new markets to enter?
- Does your business operate in multiple geographies?
- Are you reliant on spreadsheets to consolidate information between departments and regions for reporting?
- Would employees benefit from having real-time access to your business applications 24/7?
- Does your business plan include mergers, acquisitions or a probable IPO?
- Will your current business management systems be able to support your future business requirements?
(Cloud Industry Forum, 2015)
Overall, the paper is written in a very professional way, well structured and the issues that were addressed are very well explained.
In this paper were analyzed only pros of moving ERP services to the cloud, rather than analyzing also cons or negative sides such as data risks, loosing the control of critical data, and organizational resistance etc.
From this paper it is obvious that ERP in the cloud is the future and no matter the size of the company, they should all consider this option if they want to have lower costs.
- Buyers’ Guide to ERP Business Management Software, (n.d.). Retrieved from http://b2b.cbsimg.net/whitepapers/Cloud_Industry_Forum___Buyers_Guide_to_ERP_Business_Management_Software_1_.pdf
- Nwankpa, K.J. (2015), ERP system usage and benefit: A model of antecedents and outcomes, Computers in Human Behavior, Volume 45, 335-344
- Stevenson, J.W. (2015). Operation Management (12th). New York: MCGraw-Hill Education