Experience of Companies in reinforcing the advantages 6

Running head: CLOUD ERP SYSTEM
CLOUD ERP SYSTEM
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CLOUD ERP SYSTEM
Table of Contents
Introduction................................................................................................................................2
Purpose of the report..............................................................................................................2
Report structure......................................................................................................................2
Body...........................................................................................................................................3
On-premise ERP system........................................................................................................3
Hosted ERP system................................................................................................................4
Cloud ERP system..................................................................................................................4
Experience of Companies in reinforcing the advantages.......................................................6
Experience of Companies in reinforcing the Disadvantages...............................................10
Conclusion................................................................................................................................13
References................................................................................................................................15
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CLOUD ERP SYSTEM
Introduction
Enterprise Resource Planning or ERP is an enterprise application that is used in a
business to analyse and customize critical business information and is used to handle
deployment and upgrades. Nowadays, most of the organizations are moving from the old
legacy system to the new ERP systems to replace the accounting software and home-grown
systems (Developing 2013). The latest ERP system software currently available in the market
is the cloud-based ERP system. Other ERP systems include the on-premise ERP systems and
the hosted ERP systems.
In the following report, the different types of ERP system has been discussed and the
advantages and disadvantages of the systems has been applied to real-world case studies.
Purpose of the report
The purpose of the report is to understand the various ERP systems that are present in
the market now and assess their advantages and disadvantages.
Report structure
The report structure is differentiated into three sections. The introduction section
discusses about the ERP system in general and mentions the scope of the report. In the
discussion section, various ERP systems are discussed. Two case studies demonstrating the
ERP systems advantages have been discussed and two case studies demonstrating the
disadvantages of the ERP system has been mentioned. The conclusion part summarizes all
the key points of the report.
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CLOUD ERP SYSTEM
Body
On-premise ERP system
This ERP system includes the use of the technology within the company and
maintains the entire ERP system physically in an office. Instead of ordering the services over
the internet or availing a vendor supplied system, the on-premise ERP system includes cost of
implementing the technology may be higher, the total ownership cost might end up lower
than expected.
The technology involves the use of various systems such as accounting and payroll to
assist the organization in certain business processes such as supply chain management and
inventory control (SMALL 2016). The ERP system includes technology that allows it to
implement customizations that are specific to the company.
The on-premise ERP system uses the two-tier architecture.
The advantages of the ERP system are proper control over the business informations
such as business intelligence, logistics of supply chain management, accounting expenses and
social security numbers of employees (Peng and Gala 2014). It also allows for lesser
dependency on the vendor. The company can change aspects of the ERP system as per the
requirements. Although the initial cost of owning the ERP system is relatively high, the cost
tends to justify the implementation in the long run.
The disadvantages of the on-premise ERP systems are its longer implementation
process and the extra IT and hardware costs. The one-time perpetual fee may be too much for
certain organizations.
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