Adoption of Cloud-based Erp Systems: Evidence From Case Study 2022

Cloud-Based ERP Systems 1
Adoption of Cloud-based ERP Systems: Evidence from Case Studies
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Cloud-Based ERP Systems 2
Contents
1. Introduction.........................................................................................................................................3
2. Cloud ERP: Definition and Description...............................................................................................4
3. Cloud ERP System Adoption Frameworks..........................................................................................5
4. Cloud ERP Implementation.................................................................................................................7
5. Conclusion...........................................................................................................................................9
6. Bibliography......................................................................................................................................10

Cloud-Based ERP Systems 3
Adoption of Cloud-based ERP Systems: Evidence from Case Studies
1. Introduction
Consumption of cloud computing services has been on the increase for the recent past.
Many companies and organizations are continually exploring possible ways through which they
can effectively use cloud computing in all their operations at cost effective budgets while
maximising their profits (EMMI, et al., 2018). Throughout history, Enterprise Resource Planning
(ERP) systems’ adoption has been a critical consideration in businesses and has always involved
significant long-term investments. Considering both financial and resource demands, the
adoption of ERP systems requires critical considerations and evaluation.
With the emergence of cloud computing technologies, various companies have
considered options for migrating their ERP systems and other systems onto cloud. These
decisions are informed by cloud accessibility, mobility, flexibility and budget-friendly features
of cloud computing services models (Haddara, et al., 2015). However, there is limited research on
both theoretical and practical approach to the migration of ERP systems onto the cloud-based
service models. The purpose of this report is to provide a theoretical and practical solution for
the adoption of cloud-based ERP SaaS systems. This is achieved by first defining and describing
the domain (cloud, ERP, SaaS and cloud ERP), then describing two cloud ERP system adoption
models as described by existing literature, analyzing the challenges and advantages of this
undertaking as reported by literature and providing empirical evidence in support of identified
advantages and challenges. The report concludes by making final personal remarks about the
suitability of Cloud ERPs in business contexts.

Cloud-Based ERP Systems 4
2. Cloud ERP: Definition and Description
ERP systems can be defined as an information system that is used to integrate all
organizational data and processes. Data is stored in a central database from where it is shared
among all other departments on need-arise basis (Elragal & Moutaz, 2012). These systems have
been known to aid organizations in achieving competitive advantage and market shares. ERP
systems’ adoptions are described as the technical and operational integration of business
functions as well as the synchronization of information and material flow. Businesses to resort to
ERP systems when they want to unify and exploit, and administer massive information flow in
addition to acquisitions, mergers and joint ventures. ERP systems are however complex and
require a lot of computational resources and have, therefore, in the past few years, become a
major subject of research. It has been evident that they require extensive organizational changes
that are fraught with risks of failure if proper planning, execution and implementation is not
done. Their complex and resource-intensive nature has prompted the development of many
technologies and solutions such as web-based, cloud computing-based and service oriented
agreement ERP systems.
Among these solutions, cloud-based ERP technology stands out particularly due to its
ability to revolutionize virtually all business process while incurring least cost and having least
infrastructural consumptions. Cloud computing, which was initially started as a foundation for
such technologies as virtualization, shared services, clustering and dynamic resource
provisioning, has emerged to become an alternative to traditional ERP system. Cloud-based ERP
system is defined as a software application that runs on a shared platform of computing resources
and is accessible through the internet (Acumatica, n.d.). With cloud computing, organizations
enjoy the benefits of resource efficiency, scalability, mobility, compatibility and other benefits.