ERP Systems in the Cloud

Running head: ERP SYSTEMS IN THE CLOUD
ERP SYSTEMS IN THE CLOUD
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ERP SYSTEMS IN THE CLOUD
Table of Contents
Introduction....................................................................................................................2
Discussion......................................................................................................................2
On-premise ERP system............................................................................................2
Benefits of on-premise ERP systems.....................................................................3
Challenges of on-premise systems.........................................................................4
Hosted ERP systems..................................................................................................6
Cloud ERP systems....................................................................................................8
Benefits of Cloud hosted ERP systems......................................................................8
Risks of cloud ERP systems.....................................................................................10
Conclusion....................................................................................................................12
References....................................................................................................................14

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ERP SYSTEMS IN THE CLOUD
Introduction
This report intends to discuss the topic ERP systems in the cloud. The traditional ERP
systems is briefly discussed in this report. The benefits of implementing the conventional
ERP systems is clearly stated in this report. The hosted ERP system, which is commonly
known as IaaS is briefly stated in this report along with the risks and benefits of
implementing such system is stated in this report. A brief discussion of the cloud ERP system
along with the risks and the benefits of implementing such system is briefly discussed in this
report. Lastly, this report concludes with an appropriate conclusion for this report.
The decision of choosing which technology to implement for the businesses that
would help in the innovation combined with growth of the company. Whether the businesses
is small or large, there are various benefits of implementing ERP software for the company to
gain from (Nour and Mouakket 2013). The ERP is a combination of customisable
applications that permits the integration and management of the most important business
processes. The ERP systems consists of several advantages along with several disadvantages.
Discussion
On-premise ERP system
The On-premise ERP denotes to the decision of a company to source the software of
ERP within the business and then maintain it from any physical office, instead of ordering it
for any delivery over internet or use the hosted system of ERP that are supplied by vendors.
The ERP system in the companies could involve several products, ranging from the items
using which the payrolls of the employees are handled to the accounting, to the system that
are used for analysing or simulating the processes or the functions that controls the inventory
or the issues of supply chain (Powell, Riezebos and Strandhagen 2013).

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ERP SYSTEMS IN THE CLOUD
Benefits of on-premise ERP systems
Complete transparency: This is the major benefit of using the ERP systems. The ERP
system offers complete access to each critical process in the business with creating the data
from each department of the company easily accessible to anybody with proper access
whenever required and the senior management also gets access to this data. The inventory
level can be monitored on daily basis that includes the future consignments that would be
undertaken by the company in the future and the present inventory in the transit (Almajali,
Masa'deh and Tarhini 2016). With the knowledge of the present inventory levels the working
capital can be controlled with increased precision.
Total customisation: The aspect of modular makeup is one of the major advantages of
implementing the ERP systems in businesses. Several ERP vendors provides the applications
which could be implemented combined according to the requirements of business. Barring
some of the exceptions, the designing of every application is done for enabling to working
independently or combine the larger suite. Using this method, the company can choose the
components that works appropriately and eliminate the things that are not required. One more
aspect of the customisation includes the method of how implementation of the software is
done (Galy and Sauceda 2014). Using the on-premise systems, the physical software should
be purchased and then installed on all the servers and computers of the company.
Enhanced planning and improving: Addition to the enhanced transparency, increased
insight is provided, which is the major advantage of implementing ERP. Implementation of
ERP suite all across the departments would lead to the sole, combined system of reporting for
the organisation regarding each process. With the implementation of a single source of
information, the ERP systems provides the ability of generating the essential results and the
analytics simultaneously (Fakoya and van der Poll 2013). This software provides the ability