Benefits of using Cloud ERP (DOC)

Assignment

Contents
1. Introduction...................................................................................................................................2
2. Purpose..........................................................................................................................................2
3. Overview of the case study............................................................................................................2
4. Discussion.....................................................................................................................................3
Benefits of using Cloud ERP:............................................................................................................4
Key Drivers of Cloud ERP for the Astra Organization......................................................................6
5. Conclusion.....................................................................................................................................9
6. References:..................................................................................................................................10

1. Introduction
With the technological advancements, company are moving their tactics to the cloud
environment for enabling sharing of resources among the team members for improving the
work efficiency of the employees to get better result. The companies want to transfer their
traditional working approach with the ERP system. The inclusion of cloud service model with
the ERP system helps in sharing of information among various business units and partners
(Navneethakrishnan., 2013). The cloud service model is deployed in three structures
according to the requirement of organization such as Software as a service model, platform as
a service model, and infrastructure as a service model. The ERP system helps in finding
strength and weaknesses of the different departments of the organization. The cloud ERP
system is based on the Software as a service model to access the resources and software
application of the organization among different business unit (Saini, Saini, Yousif, Khandage,
2011). The deployment of Cloud ERP system is helpful for managing hardware and software
premises for reducing the cost of the project. In this paper, we are looking forward to focus
on analysing the benefits and disadvantages of implementing ERP cloud in the working
structure of the enterprise.
2. Purpose
The purpose of this paper is to investigate the case study on the organization which have
employed ERP cloud in its working environment. It helps in analysing the benefits and the
risks associated with the transformation of the traditional operational working of the
enterprise with cloud ERP environment. It focuses on the cross sectional overview of the
enterprise for analysing the impact of cloud ERP in improving the technical advancement,
new operational working plan, and elimination of the environmental hazard.
3. Overview of the case study
Astra private limited organization is the cotton textile manufacturing industries which have
recently open its branches in Sydney and Queensland. The organization has transformed its
traditional working environment with the cloud ERP system to improve flow of information
between different units of the enterprise to increase the operational working environment of
the enterprise. The Astra private limited organization is facing problem in aligning the
strategic plan of the business with the operational branches at site location. The organization

was inefficient in handling the tasks, resources, hardware, and software of the enterprise
among the working employees of the business to manage and increase their working
capabilities and productivity of the organization. The owner of the company had decided to
change its operational plan and network connectivity among the business unit with the ERP
cloud system. The organization is implementing software as a service cloud model for
increasing the communication between varying units of the enterprise. The manufacturing
process of the Astra enterprise can be effectively improved by minimizing the interruption
which occurs due to the shortage of raw material. The analysis of the case study helps in
demonstrating the benefits and risks associated with the ERP cloud environment.
4. Discussion
The manual working of the enterprise departments such as human resource, Account,
production, inventory, and marketing was employed in the traditional working of Astra
private limited organization. The company is facing problem of inaccuracy in managing the
supply and demand of products, accounts information for getting knowledge of return on
investment and profitability, retention bonus and promotion for HR, management of
Inventory, and marketing policies. The inefficiency of the organization depends on improper
management of resources and communication plan among the internal and external unit of
the enterprise (Jia, 2015). It directly affects the declination of the return on investment, return
on equity, return on assets, and profitability of the organization.
With the deployment of cloud ERP system the organization gains advantage by managing
good communication platform between internal and external units of the business
organization. The cloud ERP system increases the functionality and accuracy of the human
resource, Account, production, inventory, and marketing department of the organization. The
new system provides efficient facilities for improving the sharing of tasks, resources,
hardware, and software of the enterprise among the working employees of the business to
manage and increase their working capabilities and productivity of the organization (Hoesini,
2015). The deployment of the SAAS cloud model helps in lowering and minimizing the cost
spent on managing the operational plan of the enterprise and provides an efficient platform
for communication between site locations of the enterprise which directly results in aligning
the strategic plan with the operational plan of site location. The Implementation of the ERP

system helps in transforming manual working of the enterprise with the automation and
computerisation of the whole firm.
Software as a service model is deployed as a cloud ERP by the organization to manage its
working process (Habadi, Samih, Almehdar, Aljedani, 2017). The installation of the SAP
system helps in bringing automation in different departments of the organization such as
marketing, finance, accounting system, human resources, and others. It brings accuracy in the
working procedures of the enterprise which in turn increases the profitability of the enterprise
by reducing the administration cost associated with the project development.
Benefits of using Cloud ERP:
From the analysis of the case study, we are able to conclude that the efficiency of the
business organization can be effectively improved with the deployment of the cloud ERP
system in the traditional working platform of the enterprise (Peng, and Gala, 2015). With the
involvement of cloud ERP system, the organization successful manages its working business
plan with its site locations located at Sydney and Queensland by interchanging of resources,
information, network, hardware, software, and data between internal and external employees
effectively. The planning and control policies framework used for managing the inventory
and stock can by effectively handled by the inclusion of cloud ERP in the supply chain ERP
system. The manufacturing process of the Astra enterprise can be effectively improved by
minimizing the interruption which occurs due to the shortage of raw material. The global
marketing of the products through e-business helps in managing good and healthy
relationship with the customers from all over the world. The Implementation of the ERP
system helps in transforming manual working of the enterprise with the automation and
computerisation of the whole firm (Kiadehi, and Mohammadi, 2012). The requirement of the
customers can be fulfilled by analysing the feedback and review system report of the
enterprise. The formulation of ERP in the current working structure of the enterprise
inclusive with cloud architecture helps the project manager to think beyond the expectation of
the customers and provides them an effective product according to their need and
requirement which helps in building strong bonding and relationship with the customers
(Sharma and Keshwani, 2014). The application of the cloud ERP system helps in enhancing
the working forum of the enterprise by increasing the efficiency of customer relationship
management program, human resources management, supply chain management, decision
support system, and others. Some of the benefits to the working culture of the Astra
Enterprise are listed below:

Minimizing the upfront and administration cost:
The effective management of resources and data through the process of pooling helps in
minimizing the software and the hardware cost incurred on the different premises of the
enterprise. The deployment of cloud ERP system does not requires extra cost on changing the
infrastructure of the organization. The cost required on monitoring and administrating
different site locations can be minimized by developing the centralization system of
monitoring the premises (Saa, Costales, Moscoco, and Mora, 2017).
Minimizing the operation cost of the enterprise:
The isolation of the business operation with the centralization of different units helps in
reducing the operational cost of the working forum of the enterprise. The aligning of the
strategic plan of the business organization with the operational plan of the site location helps
in reducing the operational cost of the enterprise.
Minimizing implementation cost:
The implementation of the Cloud ERP system requires very less changes in the business unit
of the enterprise. The traditional infrastructure can be effectively used for the deployment of
cloud ERP system.
Scalability:
The expansion of the business unit can be easily upgraded with the cloud ERP system with
negligible changes in the existing architecture. The resources of the current architecture can
be effectively used with the addition of new site location in the working platform of the Astra
enterprise. The deployment of cloud ERP system helps in providing centralization of the
different working business units of the organization which helps in increasing decision
making capability of the project manager.
Automation in the working units:
The deployment of cloud ERP system helps in managing automation in the different
departments of the enterprise such as finance, human resource, inventory, marketing, sales,
manufacturing, and others. The automatic upgrading of the information helps in managing
business operation with ease.
Accessibility and availability of the information:

The deployment of the cloud ERP system helps in managing flow of information between
internal and external parties. The employees and customers can fetch the required
information effectively from the premises of the enterprise (Elragal and Kommos, 2012). The
accurate information is provided to them.
Increased in Sales:
The strong bonding between the customers and the enterprise helps in increasing the sale of
the products with the inclusion of global customers from all over the world.
Key Drivers of Cloud ERP for the Astra Organization
The key drivers of the cloud ERP system which helps in increasing and improving the
operational plan and working criteria of the Astra enterprise are highlighted in the table
below:
Key Drivers of Cloud
ERP
Description
Valuation to the
organization
The deployment of the cloud ERP using SAAS model in the
traditional on-premises of the Astra group helps in gaining
advantage for increasing the valuation of the organization. The
consistency in the departmental works can be improved by the
deployment of cloud ERP on the on-premises of the enterprise.
Innovations in the work
practices
The deployment of the cloud ERP system helps in managing
open communication between internal and external partner of
the enterprise. The communication platform helps in sharing
ideas, thoughts, and opinion of the employees for increasing the
working efficiency of the enterprise through the accumulation of
new ideas and procedures (Elmonem, Nasr, Geith, 2016).
Scalability The ERP cloud platform is scalable in working tactics which is
useful for the expansion of the organization to other site
locations. The growth of the organization can be easily handled
with the scalable program of the ERP cloud. The success of the
organization can be measured with the ease of handling business
operations performed by the organization unit.

Strategy and policies for
globalization
The business excellence can be achieved with the marketing
policies for attracting customers from the global world. The
globalization of the business unit helps in managing
transparency in the working platform of the enterprise. The
management of resources among the different units of the
enterprise helps in increasing the working capability of the
employees and the productivity of the organization. The
consistency in the managerial functions can be effectively
handled because of the synchronization of business activities
into a single forum.
Expansion of the business
unit
The Expansion of the organization can be easily handled with
the scalable program of the ERP cloud. The success of the
organization can be measured with the ease of handling business
operations performed by the organization unit. The deployment
of the cloud ERP system helps in synchronising the expanded
units of the business into the single platform for increasing
working efficiency of the enterprise (Salleh, Teoh, and Chan,
2015).
Long term sustainable
plan
The deployment of the cloud ERP system opens door for
achieving long term sustainability of the enterprise. The cloud
ERP system is successful in managing scalability of the business
expansion which helps in developing long term sustainability
plan for the enterprise
Centralization The deployment of cloud ERP system helps in providing
centralization of the different working business units of the
organization which helps in increasing decision making
capability of the project manager (Singh and Nagpal, 2014)
Specialization The division of tasks and responsibilities done according to the
working efficiency of the labour helps in increasing the working
capabilities and productivity of the enterprise
Configuration The restructuring of the business units can be effectively done
with the deployment of the cloud ERP in the working forum of
the enterprise
Flexibility The structure of the organization can be effectively flexible

according to the organization need and changes required in the
functional program of the enterprise (Cloud Security alliance,
2015)
The analysis of the functionality and operational program of the Astra enterprise helps in
analysing the challenges which the organization faced with the deployment of the ERP cloud
architecture in the working forum of the enterprise. The technological advancement in the
business organization increases the risks of security concern for handling business processes.
Some of the challenges are listed below:
Extra cost incurred on License and subscription program: The subscription fees had to be
paid for initializing the cloud ERP program in the working tactics of the business enterprise.
The subscription fees add extra amount to the budget organized for completing the business
activities.
Risks associated with the security of the enterprise: The deployment of cloud architecture
increases the security risks of the enterprise because it deploys the information, data,
resources, network hardware, and software on the public cloud for effective retrieving of the
information which can give privilege to the hackers for hacking the information (Bjorn,
Johnson, Alajbegovic, Amar, Alexopoulo, Vaseleios, Desalermos and Achilles, 2015).
Internet connectivity risks: The high speed broadband connectivity requires for the ERP
cloud architecture for the enterprise. The inefficient internet connectivity can affect the
working structure of the Astra Enterprise. The proper monitoring program have to be laid
down for managing the high speed internet connectivity of the business organization.
Risks associated with the strategic plans: The strategic plans of the organization should aligns
with the operational plan of the business units in different site location for providing effective
results of the cloud ERP system.
Policy framework: The standard mechanism is not followed for handling tasks and resources
from the cloud among the employees which creates the risks of compliance.
Service Level Agreement: It is a complex task to mention all the requirement of the business
units associated with the ERP cloud on the service level agreements.

Controlling of Cloud ERP:The functional programs of the cloud ERP system are facing
difficulty to control the geographically apart business units.
Inclusion of Hidden cost: The hidden costs associated with the deployment of the cloud ERP
system increases the budget of the organization which can create complexity in the financial
statement of the enterprise (Arora and Erturk, 2015).
The analysis of the case study on Astra enterprise helps in analysing the benefits which the
organization gains in getting competitive advantage with the deployment of cloud ERP
system in the traditional working platform of the enterprise and the challenges and weakness
of the cloud ERP system in handling the business operation effectively. The examination of
the on-premise SAAS implementation helps in bringing automation in the different
departments of the enterprise. The transformation of the organization culture with the cloud
ERP system helps in bringing automation in the collaboration of the different business units.
The centralization of the different site location helps in increasing the efficiency of the
project manager in taking effective decision in the betterment of the organization (Algarni,
and Alsanad, 2015). The organization should look towards some cryptographic procedures
and firewall protection system for preserving the premises of the enterprise from the data
leakages through the inclusion of the third party. The security concern should be taken into
consideration for increasing the efficiency of the enterprise. The deployment of the
cryptographic procedures helps in storing the data and information in the cipher text form
which reduces the risks of data leakages and the inclusion of firewall protection system
restrict the unauthorised accessing of the information from the organization cloud
environment from the third party. The organization security capabilities can be effectively
improved with the deployment of security procedures such as cryptographic approach,
encryption techniques, development of the virtual private network, and firewall protection
system.
5. Conclusion
The concluding remark of the case study analysis on the deployment of cloud ERP system in
the Astra Enterprise is that the organization gain competitive advantage and increased
profitability ratio with the deployment of the cloud ERP system in the working platform of
the enterprise. The SAAS cloud model helps in increasing on-premise management of the

resources and information among the participating units effectively. It is most economical
solution for bringing automation in the working platform of the enterprise. It does not require
much infrastructural changes in the traditional working platform of the enterprise. The
deployment of cloud ERP system increases the flow of information between the site location
of the enterprise located at Sydney and Queensland. The centralization of the different site
location helps in increasing the efficiency of the project manager in taking effective decision
in the betterment of the organization. The Expansion of the organization can be easily
handled with the scalable program of the ERP cloud. The success of the organization can be
measured with the ease of handling business operations performed by the organization unit.
The deployment of the cloud ERP system helps in synchronising the expanded units of the
business into the single platform for increasing working efficiency of the enterprise. The
analysis of the functionality and operational program of the Astra enterprise helps in
analysing the challenges which the organization faced with the deployment of the ERP cloud
architecture in the working forum of the enterprise. The technological advancement in the
business organization increases the risks of security concern for handling business processes.
The organization should focus on the security concern associated with the cloud ERP model
with the implementation of cryptographic procedures and firewall protection mechanisms.
The secure transformation of the information without the possibility of data leakages
increases the operational efficiency and profitability of the enterprise. The accuracy in the
information retrieved from the business unit increases the decision making capabilities of the
project manager with regards to the financial condition of the enterprise.
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