Challenges of Cloud ERP System in Retail Sector at Saudi Arabia

Running head: RESEARCH SKILLS AND CONSULTANCY PLANNING
Analysis on the customization challenges associated with Cloud ERP System in
Retail Sector at Saudi Arabia
[Name of the Student]
[Name of the University]
[Author note]

1RESEARCH SKILLS AND CONSULTANCY PLANNING
Table of Contents
1. Introduction:..............................................................................................................3
1.1. Background:.......................................................................................................3
1.2. Aim of this study:...............................................................................................5
1.3. Research Significance........................................................................................5
1.4. Research Questions:...........................................................................................6
1.5. Research Objectives and Framework:................................................................6
2. Literature Review:.....................................................................................................6
2.1. Challenges faced by Cloud ERP system by the retail Sector of Saudi Arabia:..7
2.2. SAP ERP Software:............................................................................................9
2.3. Needs related to customization of the Cloud ERP system:..............................11
2.4. Critical success factors:....................................................................................13
3. Research methodology:...........................................................................................15
3.1. Research philosophy:.......................................................................................15
3.2. Research Approach:.........................................................................................15
3.3. Data collection method:....................................................................................16
3.4. Research design:...............................................................................................17
3.5. Time and cost Frame:.......................................................................................17
3.6. Ethical considerations:.....................................................................................18
References:........................................................................................................................20

2RESEARCH SKILLS AND CONSULTANCY PLANNING

3RESEARCH SKILLS AND CONSULTANCY PLANNING
1. Introduction:
1.1. Background:
ERP or the Enterprise Resource Planning is considered to be one of the most effective
system which is associated with assisting the retail sectors in running of the business along with
allowing the power of having control over the overall business process by means of adaptation of
an organized way. It has been reported that most of the organization fails in executing the ERP
system because of lack of proper administration support and also due to proper selection of the
ERP vendors (AlBar and Hoque 2017). So it can be stated that the cloud based ERP system is
one of the recent technology which has been developed by the ERP vendors for the purpose of
monitoring the various organizational activities in various geographically distributed locations.
Besides the marketers existing within the retail sector is also associated with facing a lot of
challenges while using the traditional ERP system. Major issues and the challenges that are faced
by the ERP system includes the security issues, issues related to customization, issues because of
the provider lock-in, problems related to flexibility and the data ownership.
Amongst the various issues, the issues related to the customization is mainly faced by the
Cloud ERP systems. The reason behind this is that each of the enterprise is unique and the
company generally requires new software packages which is to be used for supporting the
various business process. The situation when the issues mainly arise is when the expectations of
the customers from the Cloud ERP system is related to fact that the Cloud ERP system is
working as per the needs of the customers and is also associated with providing a similar level of
customization upon the on-premise ERP solutions (Akhter 2017). This is considered to be a valid
concern which is related to the system and is associated with stating the fact that the Cloud based

4RESEARCH SKILLS AND CONSULTANCY PLANNING
ERP system is providing less flexibility along with less customization than the traditional ERP
systems, In case when the ERP system is not associated with bringing any significant value then
it is expected that the end users should move towards the adaptation of the new processes so as to
run the business.
Two type of approaches are generally used by the ERP systems while they are being
implemented like the big bang along with the phased approach. In case of the big bang approach
the company is associated with saving time as well as money. However this this is the particular
approach which is likely to face huge challenges in the retail sector. The end users are generally
not capable of keeping the change with the new system. The lack in the data storage is associated
with the creation of a negative impact upon the development of resistance towards the system.
Followed by this is the phased approach which is associated with rolling out the business
functions at a time (Abunar and Zerban 2016). This particular approach is associated with
spending a time upon the data conversion and on the duration along with being associated with
phasing the legacy system which an organization is having. Due to the outdated architecture of
legacy of most of the enterprises it is associated with providing a structure to the retail sectors
which along with being inflexible is also rigid. Besides this the lack of flexibility is also
associated with preventing the usage of the legacy software with the current products which are
obtainable from the market and this in turn would be associated with adding of value to the
retailing business operations.
The literature review conducted upon the ERP is seen to be very rich and along with this
most of the literature is focused upon the on-premises ERP. The research conducted upon the
cloud ERP is very limited and besides the benefits provided by the cloud technology and the
cloud ERP is seen to be very frequent and is emphasized by the cloud providers. The major

5RESEARCH SKILLS AND CONSULTANCY PLANNING
challenges which are associated with the New ERP deployment methods has been exposed fully
and discussed with respect to the retail sector based in Saudi Arabia (Bahssas, AlBar and Hoque
2015). This respective country is having a growing preference related to modern retail formats
like the hypermarkets, super markets and many more. It is essential to makes sure that the super
markets are meeting all the standards that are set up by the retail sector of the western countries.
1.2. Aim of this study:
The main aim of this research study includes providing of a brief understanding of the
challenges related to customization which are generally faced by the retail sector because of the
Cloud ERP system implementation. Besides this the study is also aimed at analyzing the key
reasons for not implementing the ERP system. This study is going to assist the researchers in
having a better understanding of the various situations related to the usage of the cloud based
ERP within the retail business sector. One of the major aim also includes meeting the objectives
of the research study along with briefly reviewing the research conducted upon the challenges
faced by the ERP.
1.3. Research Significance
The research is mainly associated with discussing about the challenges that are faced by
the cloud based ERP systems that are being used in the retail sector. However it is observed that
the aspects of each retail sector is different from the other and for this reason the challenges are
also seen to be varying in accordance to the retail sector. Some of the challenges mainly includes
the security related issues, issues related to customization, lock-in of the providers, flexibility,
and data ownership. This issues are in turn associated with having a huge impact upon the
selection of the appropriate type of cloud ERP system which are required by the various retail