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Introduction Enterprise Resourci'on, Risks of Cloud ERP Systems

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Added on  2021-06-15

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ERP Systems in cloud computing Student Name Introduction 2 On-premise Enterprise Resource Planning 2 Benefits of on-premise ERP 2 Risks of on-premise ERP 3 Hosted ERP system 4 Benefits of hosted ERP systems 4 Risks of hosted ERP systems 5 Cloud ERP systems 6 Benefits of cloud ERP systems 7 Risks of cloud ERP systems 8 Conclusion 10 References 11 Introduction Enterprise Resource Planning or ERP is defined as a process by which an organization monitors different aspects of its business. On-premise Enterprise Resource Planning Enterprise Resource Planning systems

Introduction Enterprise Resourci'on, Risks of Cloud ERP Systems

   Added on 2021-06-15

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ERP SYSTEMS INCLOUD COMPUTINGStudent NameTable of ContentsIntroduction.................................................................................................................................................2On-premise Enterprise Resource Planning..................................................................................................2Benefits of on-premise ERP........................................................................................................................2Risks of on-premise ERP.............................................................................................................................3
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Hosted ERP system.....................................................................................................................................4Benefits of hosted ERP systems..................................................................................................................4Risks of hosted ERP systems.......................................................................................................................5Cloud ERP systems.....................................................................................................................................6Benefits of cloud ERP systems....................................................................................................................7Risks of cloud ERP systems........................................................................................................................8Conclusion.................................................................................................................................................10References.................................................................................................................................................111 | PageYour nameStudent ID
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IntroductionEnterprise Resource Planning or ERP is defined as a process by which an organization monitorsdifferent aspects of its business. An ERP management information system within theorganization deals with areas like planning, purchasing, management of human and financialresources, marketing and sales of an organization. The purpose of this paper is to discuss threedifferent types of ERP systems; on-premise ERP systems hosted ERP systems and cloud ERPsystems which are used within the organization. Furthermore, it will also review the benefits andrisks associated with each of these systems and how it impacts the business of an organizationwith the help of case studies. On-premise Enterprise Resource PlanningEnterprise Resource Planning systems is a software program which is designed to improve theflow of communication between different departments of an organization (Leon, 2014). On-premise ERP is a traditional approach in which an organization purchases the licenses andinstalls this system within their premises. The fee associated with this license depends on thesize of the organization or the number of users using the same system. In this approach, thesoftware runs on computers and servers of an organization rather than some remote location. Theorganizations have to pay for the installations within their premises and have to bear additionalcosts for different features of this system. The IT teams of an organization modify or customizeit according to their business needs in order to improve the performance of the organization(Chiu et al., 2014). This system offers a wide range of flexible and innovative services to theorganizations alongside delivering standard outputs. On-premise ERP systems provide a higherlevel of safety, security, and control over data than other ERP systems. These systems areconsidered as a capital expenditure of the company, as they have to pay only once to install thissoftware. However, they have to pay for support, regular updates and training of the employees. Benefits of on-premise ERPThere are several benefits associated with on-premise ERP systems within an organization.These benefits are costs of the initial setup, data security, customization, less dependency on thevendor, and its implementation. ERP systems are developed to manage confidential andsensitive business information. On-premise ERP systems allow the organization to control their2 | PageYour nameStudent ID
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data thus providing better data security to the organization (Al-Mashari and Al-Mosheleh, 2015).The firms using these systems do not have to depend on their vendors to make some upgrades tothe systems thus giving flexibility to the organization. The organizations can move towardsmore advanced ERP systems with convenient ease. IT teams within an organization can easilymodify these systems to improve the performance of these systems. Organizations have morecontrol over the implementation process of these systems, unlike the other ERP software systemimplementation. Many industries use this system to have a greater quality of control of data over their businessdata, which affects the credibility and reliability of their businesses. These firms are able tomodify these systems according to their business needs, thus increasing the performance of theseorganizations. These systems allow the IT teams of these organizations to maintain and supportthese systems (Tian and Xu, 2015). They should be able to come up with a customized recoveryplan to manage any performance disasters of the organizations. On-premise ERP systems allowbusiness owners to control and manage their business data, thus allowing them to protect theprivacy of their confidential and sensitive data. The functionalities of these systems arecustomizable and flexible, thus these owners do not have to depend on vendors to update andupgrade their systems. Organizations with more control over their data will be able to increasethe level of their performance, increasing their profitability and productivity. Risks of on-premise ERPOrganizations using on-premise ERP systems have to pay upfront costs to set up these systems,which can be considered riskier. They also have to pay more to install latest and upgradedsystems in their premises. The organizations have a control of their data, but they may not havebetter data security protocols to increase the security of their data (Antero, 2015). This can leadto loss of data from the software systems of the organization. Loss of data plays a significant rolein decreasing the reputation and goodwill of an organization among the stakeholders of theorganization. The customization of these systems can delay the implementation time of thesesystems and thus make the implementation time of these systems much longer than intended.These customizations can lead to problems in the future if they ever decide to change from on-premise ERP to cloud-based ERP systems. Delay in the implementation of these systems canhave a negative effect on overall performance of the organization. 3 | PageYour nameStudent ID
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