ERP Systems In The Cloud

Running head: ERP SYSTEMS IN THE CLOUD
ERP Systems in the Cloud
Name of the Student
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Table of Contents
Introduction................................................................................................................................2
Research Objectives...................................................................................................................3
Discussion..................................................................................................................................3
Features, Strengths and Weaknesses of ERP Software..........................................................3
Features, Strengths and Weaknesses of Cloud Computing Technology................................5
Features, Strengths and Weaknesses of ERP System in the Cloud........................................7
Practical Case Scenarios on ERP System in the Cloud........................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13

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Introduction
ERP or enterprise resource planning is a subsequent process as well as incorporated
management, which is extremely helpful towards each and every business associated
operations or processes (Hwang 2014). This is the significant kind of business related process
management system that could facilitate the organization in utilizing the overall structure of
some of the most important integrated applications as well as for an important purpose of
managing business. Moreover, automation of various back office functions, services and
human resources is also enhanced effectively. The data is easily customized or analysed to
handle the overall deployment or better up gradation (Pham and Teich 2013). This software
of enterprise resource planning eventually completes its work only mediation of software and
technology. This is subsequently referred to as the major division of business management
system, being the collection of integrated applications, which the organization is using to
collect, store, control and then interpret that relevant data from various activities of business
(De Toni, Fornasier and Nonino 2015). This software of enterprise resource planning
provides a constant integration and up gradation overview of the important business
processes with common databases, which are efficiently maintained and balanced by DBMS.
Since, this enterprise resource planning system is majorly responsible for streamlining
each and every business process to a single one, it is quite important for every organization to
implement this software in the business (Jianxin et al. 2013). Moreover, various departments
for accounting, purchasing, manufacturing or any other are well integrated with this particular
software without much complexities. Like ERP, cloud computing is yet another effective and
efficient technology that is quite important for any business for easy data transferring. When
these two specified technologies are being amalgamated, it is evident that the technology
would be considered as one of the most promising and the best for all businesses (Narimani

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et al. 2013). This research report would be providing a detailed description on cloud ERP
system. Practical scenarios would also be mentioned in this particular research report.
Research Objectives
The research questions of the research report are given below:
 To know regarding various aspects, strengths and weaknesses of the software called
enterprise resource planning or ERP.
 To learn about the various aspects, strengths and weaknesses of data transferring
technology, called cloud computing.
 To learn about the entire distinctive concept of this cloud based ERP software for any
business.
 To know about few practical scenarios regarding cloud enterprise resource planning
system.
Discussion
Features, Strengths and Weaknesses of ERP Software
Enterprise resource planning or ERP is being considered as one of the most basic and
noteworthy requirement of a business or organization, which is eventually used to properly
incorporate various organizational operations and procedures (Ptak and Schragenheim 2016).
It is a special structured approach, which is present within the software with the core purpose
to help a particular organization to automate as well as standardize all the business driven
procedures; thus increasing the efficiency of every business operation. The first as well as an
integrated and advanced approach that is quite useful for organizational management to
manage their respective business processes and also to be sure that organizational resources
are saved as much as possible for the betterment of the business (Ganesh et al. 2014). The
main requirement of any business is to integrate the organizational process or operation and

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for this purpose, it is vital to make the information flow much smoother than any other
technology. ERP system ensures that this criterion is being followed in the organization
efficiently and properly. The most prominent examples of enterprise resource planning
system are Sage X3, SAP and Microsoft Dynamics.
The major aspects or features of the enterprise resource planning system are described
below with proper details:
i) Enhances Customer Relationship: Due to the simplicity of process and system, the
customer relationship eventually enhanced or managed (Zaglago et al. 2013). The respective
customers could be properly managed as well as controlled for the betterment of business
revenue and sales. Customers are satisfied as well with the entire phenomena of easier
process implementation.
ii) Time Saver: ERP system saves time by its effective and efficient benefit of process
streamlining and integration (Alleyne and Lavine 2013). The organizational resources are
hence saved and consumption is reduced to a drastic level.
iii) Customization Capability: Another relevant and significant aspect of ERP
software is the customization capability. Each and every client can hence easily customize
business related operations without any complexity.
iv) Incorporating Business Operations: The fourth subsequent aspect of the system
of enterprise resource planning would be that it allows easy incorporation of business
operations (Hamidi 2018). ERP system also is useful for properly integrating all the business
operations in any one proper business operation and thus it is termed as an important system
for the business.
There are several significant strengths of this particular software and these are
described below:

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i) Highly Efficient: ERP is highly efficient and it provides both effectiveness and
efficiency to every business process or operation of a company.
ii) Better Flexibility and Scalability: Enterprise resource planning software is quite
flexible as well as scalable and hence business operation management becomes easier
(Bahssas, AlBar and Hoque 2015).
iii) Provides Competitive Benefits: This particular software also provides competitive
benefits to any business and this is a major strength of ERP.
iv) Increases Major Productivity: The next significant and important strength of the
ERP software is that it eventually increments the productivity of the business effectively
(Bansal and Agarwal 2015).
The weaknesses of this specific system of enterprise resource planning are described
below:
i) High Indirect Expense: Although, enterprise resource planning system is
responsible for reducing the overall business related expenses, it is being noted that indirect
expenses of maintenance of infrastructure is increased and the management of this type of
indirect cost becomes an issue.
ii) Lack of Data Security: The data security and privacy is often threatened in the
enterprise resource planning software (Hwang and Grant 2016). This is mainly because of the
fact that data extraction depends on business vendors.
Features, Strengths and Weaknesses of Cloud Computing Technology
Cloud computing is considered as one of the most effective and efficient technology
that helps to share data or resources with the help of Internet connection without any
complexity (Small 2016). It is quite useful for every user to easily transfer that data and

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information in a safe and secured manner. This is mainly because of the fact that the platform
of cloud computing is quite secured and the main aspects are described below:
i) Quality of Service: The first as well as the major aspect or feature of the cloud
computing technology would be that the service quality is improved to a higher level.
ii) On Demanding Services: The next feature of this technology is that few self-
services could be provided as per demands of users (Blount et al. 2016).
The main strengths of this technology are described below:
i) Easy Deployment: Deployment of cloud computing is extremely easier in
comparison to the other technologies.
ii) Easier Data Recovery: The second strength of this technology is the easier data
recovery.
iii) Better Data Access: Cloud computing technology provides better data access to
the users and hence data accessibility becomes quite easier (Bharathi, Pramod and Raman
2013).
In spite of having these strengths, few weaknesses are possible and these are
described below:
i) Bandwidth Problems: A major weakness of cloud computing is that there are few
bandwidth problems.
ii) Lack of Data Control: There is a lack of data control and thus the user faces issue
subsequently (Suhaimi et al. 2016). This particular issue is quite dangerous for the business
and should be eradicated on time.

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Features, Strengths and Weaknesses of ERP System in the Cloud
The specified cloud based enterprise resource planning system or simply cloud ERP
system is termed as the proper and subsequent mixture of cloud computing and enterprise
resource planning technologies (Monk and Lycett 2016). This is mainly utilized with the
purpose to allow each and every to properly access these software applications, which are
majorly running on the shared resources of computing by undertaking the help of Internet
services. All the above provided computing resources that are being shared by the users can
be promptly and easily managed and even controlled in all the data centres that is
substantially dedicated for the purpose of hosting every application on the several platforms
(Al-Shardan and Ziani 2015). This cloud based enterprise resource planning software is also
thus referred to as the most basic system and software that is subsequently driven by SaaS or
software as a service model of cloud computing technology. This presence of the cloud
architecture model of software as a service is extremely useful and important for the relevant
users to enable as well as allow all the users for accessing the system of ERP or enterprise
resource planning on the connection of Internet (Nofal and Yusof 2016). The total expenses
of the system of cloud ERP is extremely lesser since all the relevant software resources
cannot be eventually maintained, controlled and managed on the premises.
There are some of the most significant and noteworthy aspects of this system of cloud
based enterprise resource planning. Each and every aspect of this particular cloud based ERP
system is described below:
i) Better Support to the Customers: The first and the foremost aspect of this specific
software of cloud based enterprise resource planning is that it provide better support to the
various relevant customers (Azad, Shadmanfard and Zarifi 2013). It is extremely important
for the betterment of the business and so that customer relationship management is enhanced.

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ii) Better and Easy Customization: The second important and significant aspect of
cloud ERP software is its better and easy customization without any type of complexity. The
several business processes hence are easily customized as per users’ demands.
iii) Higher Flexibility or Scalability: Another vital and noteworthy feature of the
cloud based enterprise resource planning system is its higher scalability and flexibility. This
specific software is both flexible and scalable and hence it eventually becomes quite easier
for every users to manage the demands of users by not including much issues or problems
(Mesbahi et al. 2014). Every service provider of cloud thus provides several distinctive
systems, used for the efficient switching according to cloud computing technology.
Moreover, this distinct aspect helps the organizations, not willing to incur any additional cost.
Thus, cloud ERP system is even termed as cost effective in nature.
iv) Easier Usability: The easier usability of the software makes it even more popular
than the other technologies and due to the lack of complexity, implementation is also quite
easy here.
There are some of the distinctive strengths of the cloud ERP system and these are
described below:
i) Avoiding the Upfront Expenses: The respective additional up front costs are
majorly avoided in the cloud ERP software (Bavarsad, Rahimi and Norozy 2013).
ii) Easy Data Access: The entire process of data accessibility is quite easy and user
friendly and hence it is one of the most popular software in technological world.
iii) DR Plan Present: This software comprises of a disaster recovery plan and hence
even if there is a chance of data lost, it could be easily retrieved without much complexity
(Crumbly and Fryling 2013).

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iv) No Requirement of Hardware Implementation: Hardware implementation is not
required in this case and thus software could work completely out of hardware.
v) Removing the Excess Expenses: The excess technological and software costs are
majorly removed with the help of this specific cloud ERP system.
vi) Avoidance of Cyber Attacks: Due to the presence of cyber security, the cyber
attacks could be easily avoided in this specific software (Bharathi, Pramod and Raman 2013).
vii) Reducing Supports of Information Technology: This ERP system in the cloud
even provides benefits in terms of reducing the supports of information technology. This is
also required for reducing the costs as well.
Being much beneficial for the business, ERP system in cloud do comprises of few
weaknesses, which are often vulnerable to the business and these weaknesses are described
below:
i) Integration Issues: The most significant weakness of ERP system in cloud is that
there is major issue with integration (Bahssas, AlBar and Hoque 2015). Integration is not at
all easier and hence various clients try to avoid this software.
ii) Problem in Migrating Data: Data migration procedure is extremely problematic
with the enterprise resource planning system in the cloud and hence is often being avoided by
various companies.
iii) Inaccurate Decision Making Process: The third weakness of the ERP system in
the cloud is its inaccurate process for decision making (Hwang and Grant 2016). Since,
decision making is extremely important for all businesses, it is vital to implement such a
system, which could provide proper decisions.

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iv) Problem in Incorporation of Management Process: The management process
cannot be easily incorporated with this particular system of enterprise resource planning
system in the cloud and thus it might be vulnerable for the business.
Practical Case Scenarios on ERP System in the Cloud
The system of cloud based enterprise resource planning is subsequently integrated
within several famous and noteworthy business (Azad, Shadmanfard and Zarifi 2013). The
specified software is majorly responsible to eventually enhance the distinctive business
models and then gaining few of the important competitive benefits within the respective
business. Moreover, the proper execution of each and every business process or business
operation should even be completed by perfectly taking the subsequent practical scenarios, in
which the companies have got advantages after the proper deployment of cloud based
enterprise resource planning system (Bavarsad, Rahimi and Norozy 2013). Two such relevant
examples are as follows:
i) Baldinger Bakery: The first and the most important and significant example of a
case study, which proves that cloud based ERP system is extremely effective and efficient for
business processes is the case study of Baldinger Bakery (Crumbly and Fryling 2013). This is
the oldest and the most famous US based bakery that had started the business in the year of
1890. For the core purpose of obtaining subsequent growth or expansion of their business, the
particular organization of Baldinger Bakery subsequently decided to open various specified
branches in the world. Currently in last few years, this organizational business was facing
major losses within the business as well as perfectness of delivery and sales percentage was
degraded drastically through their losses in business (Nofal and Yusof 2016). Hence,
Baldinger Bakery then implemented the major software of cloud based ERP system and as a
result, in the next fewer months, around 40 per cent of their total sales and revenue was
increased and all the issues related to business were solved properly.

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ii) Living Proof: The next important and popular example of practical scenario is
about another famous US based organization of hair care products, known as Living Proof.
Although, this typical company is being considered as the major organization for hair care
products, they had been confronting subsequent losses within the organization (Al-Shardan
and Ziani 2015). This was majorly for the issue that is related to proper streamlining of
business processes. Moreover, being a distinctive business, this organization was not being
capable of maintaining the business efficiently and properly. Thus, their subsequent business
revenue had dropped to a major level. In the tenure, this business took the decision of
implementing the system of cloud based ERP (Monk and Lycett 2016). It was noted after the
deployment that there was an increment of around 330% of the entire business revenue and
sales. This made their business even better than the rest of the organizations in the entire
United States of America. This helped them in executing their business operations efficiently
and properly. Finally, the brand ability was subsequently improved and the total portfolio of
product was properly enhanced (Hwang and Grant 2016). Thus, this company of Living
Proof would be majorly advantageous by the system of cloud based enterprise resource
planning.
These two above mentioned scenarios of popular organizations within the United
States of America eventually demonstrate that the cloud based enterprise resource planning
software is extremely effective for each and every business and hence it is helpful for all the
business associated complications without any kind of difficulty and hence the important
competitive advantages are obtained in the business.
Conclusion
Therefore, from this above provided description, it is being concluded that enterprise
resource planning software is termed as one of the major and the most subsequent modular
system, which is eventually designed to integrate or incorporate the significant functional

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areas of any specific business process within a unique system and company. The respective
system of enterprise resource planning includes the major and few noteworthy components of
software, called the modules that are solely responsible for emphasizing on the relevant
business areas such as customer relationship management or CRM, supply chain management
or SCM, finance and accounting, products management, human resource management and
materials management. The several companies choose the chief modules, which can be used
based on the fact that which are important and relevant to any business. The enterprise
resource planning software substantially recognizes from a standalone target system, which
any vendor or industry analyst is referring to the best knowledge of the overall organizational
solutions. This is hence referred to as common and basic centralized databases, from which
various ERP software modules could access the accurate data.
The cloud based enterprise resource planning system is termed as a type of ERP
software, which is eventually presented over any particular platform of cloud computing;
although that data are present on their own data centres. This particular software is closely
associated with software as a service model, which helps to increment an accessibility via
Internet service and then enabling every user to share and transfer the data within real time.
As, this is hosted over cloud, these businesses are then notified for all types of updates for the
respective software immediately. The above research report has properly described a proper
discussion on this cloud based enterprise resource planning system with few practical
scenarios.

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