Cloud-Based ERP System: A Case Study on Organizational Benefits

This case study examines the significance of cloud-based ERP systems in enhancing business operations. It highlights the benefits of cloud ERP, such as reduced complexity, cost-effectiveness, and improved decision-making through centralized data management. The study addresses the requirements for cloud ERP in organizations, analyzes feasibility, and discusses potential issues arising from incomplete requirements elicitation. It also explores the risks associated with business process re-engineering (BPR) and ERP customization, presents current and proposed business processes, and outlines the reasons for organizational change. The case study showcases the advantages of using an ERP system, including data redundancy reduction, inventory accuracy, and improved customer satisfaction, while also touching on the risks of cloud-based ERP implementation and the need for strategic alignment. The analysis uses the example of a hospital and a legal firm to illustrate the practical application and benefits of cloud ERP in managing records, improving efficiency, and driving organizational change.

Case Study

EXECUTIVE SUMMARY
This report brings out the importance of Cloud-based ERP in business. The cloud based
ERP will reduce complexity of organization as all important data records will be installed
centrally on system. Updating of records can be done automatically and it is a cost-effective
process. It will also help to make faster decisions at workplace by handling the record in more
easy and convenient way.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
DISCUSSION .................................................................................................................................1
Requirement of Cloud-based ERP in the organizations..............................................................1
A feasibility analysis...................................................................................................................2
Issues that may arise in the organization due to incomplete elicitation of requirements............2
Risks associated with BPR and ERP customisation...................................................................3
Current business processes..........................................................................................................4
Proposed changes to the business processes...............................................................................5
Reason for organisational change ..............................................................................................6
Benefits of ERP system in the organizationThe various advantages of using the ERP system
in the organization are as follows-:.............................................................................................6
CONCLUSION ...............................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The Cloud Enterprise Resource Planning (ERP) is dependent on cloud to help the
organizations to share data across various departments. All essential functions that are required
to run a business are integrated by Cloud ERP into one complete system. To provide shared
computing resources such as processing, power, memory and disk storage the Cloud-based
computing makes use of internet (Singh, Vaishya and Javalkar, 2017).
This case study will examine need and the importance for Cloud -ERP in organization. It
will address problems that may arise in the business if information is not maintained through
Cloud-ERP. It will also discuss advantages and benefits business can get by using it.
DISCUSSION
Requirement of Cloud-based ERP in the organizations
There are various issues that are faced by organization who are not using the Cloud-based
ERP, because for different processes they need different software. This will make it difficult for
the employees in order to maintain records, track and process information. So, there is a
requirement of single database in a business that contains accurate and real-time data. In order to
find sales and other key performance metrics companies depend on the spreadsheets that need to
be updated constantly that would take long time. As the pace of business is faster than before so
the employees in a company require immediate access to key data. The maintenance of multiple
system can be a difficult task as the customization and up gradation of these system can take a lot
of time and resources. The CRLS maintain the records of the customers manually due to which
major issues are faced by them in order to maintain the records (Zuo, Tao and Nee, 2017).
So today many small and large businesses are adopting cloud-based ERP in their business
in order to increase their business capabilities. To address the operations of the businesses, cloud
computing system makes use of Internet to access software and hardware resources. With the
help of cloud computing ERP system regular updates takes place. The up-front and the other
expenses can be reduced with the help of cloud-based ERP system. The constant maintenance of
all applications and hardware resources take place by using such software. The web based cloud
computing offers exciting benefits and amazing features. By using this type of software in the
organization it will help to control multiple tasks, at the same time it is cost-effective and its
regular maintenance is required without using human resource. For an instance in a hospital in
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order to keep up the records of number of patients visiting, their ID, phone number and other
details related to employees and patients there is a requirement of a Cloud-based ERP as it will
be easy to monitor the records by the management team. However, on the other side it is
complex and a time-consuming process to store data on spreadsheets (Singh, Vaishya and
Javalkar, 2017).
A feasibility analysis
In order to deal with the complexity that arises in managing the data of the organization
as the data may be spread across various departments. There are also major issues that are faced
by the organization in order to maintain records of employees and customers. As records are
scattered and to maintain them is a complex process as each records needs to be find out and it
may take a long process.
So, in order to cope up with such type of problems in business, most of the organization
have shifted to cloud based ERP. As market is changing today, so in order to be competitive in
the market, there is a need in the organization to implement the effective ERP system that
addresses not only the current wants but also the future ones. The foundation of the growth for
future can be built by organization by making use of ERP system.
The cloud based ERP is an Enterprise Resource Planning software that can be used with
the help of “the Cloud”. The only difference between Cloud ERP and on-premises ERP is that
how the software is been kept. In cloud based software it is hosted on the server of the vendor's
and can be accessed through a web browser. However, on the other side, the on-premise software
is locally installed on their own computers and servers of the company. In the cloud software no
additional recurring fees for support, training and updates is needed and the pricing is done on a
monthly or annual subscription basis. While in implementing, on-premise software pricing is
done under a one time perpetual licence fee (Singh, Vaishya and Javalkar, 2017). Additional fees
are needed for support, training and updates. The manual record maintaining concept used by
CRLS is a time-consuming and complex process in order to maintain the records of their client
details, and services they provide.
Issues that may arise in the organization due to incomplete elicitation of requirements
The major issues that can be faced by the organization if the requirement is not elicited
properly can be as follows-:
Data redundancy
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If the company does not gather the requirement correctly then there are high chances of
duplicate data. One can decrease any redundant data by making use of ERP system.
Inventory Inaccuracy
In order to handle inventory on paper or on separate software solutions which are not
integrated with manufacturing and sales, a major issue is addressed by the business. In order to to
make sales in product marketing an ERP system have proven to give an accurate inventory
numbers.
Insufficient Reporting
It is related to failure of reporting across various department and also the decisions
makers will not able to make appropriate decision due to incomplete information.
Low customer satisfaction
The needs and requirement of the customers will not be gathered in a proper and effective
way which may not positive effects on the customers. In order to respond faster to customer’s
need and take accurate decisions well connected and departments are aware about the
requirements
Maintaining separate systems
If the company is using accounting applications, spreadsheets, desktop applications then
the chances of contradictory data is increased by the system as they are hard to maintain and
update (Rahi, Bisui and Misra, 2017).
Risks associated with BPR and ERP customisation
The risk that are associated with the ERP customization are as follows-:
During implementation, the ERP customization can create problems as the horror stories related
to failure of ERP is largely attributes to over-customization of ERP systems. Customization is
complex to manage and can destroy the implementation budget so customization is a very valid
concern. The customization is also sending the organization down by relying more on unproven
functionality.
After implementation, the ERP customization can create issues even though the risk associated
with customization implementation is successfully navigated. More problems can be faced later
on after implementation. To support newer versions of the software the code needs to be
rewritten which makes the upgrades more difficult. The newer clients are looking for
replacement of their old ERP systems as they have the customized software, so they can’t take
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advantage of new versions of the software due to risks associated with doing so (López and
Ishizaka, 2017).
Strategic disadvantages can be created by Vanilla ERP system. The main issue is that no
matter how good an ERP software is, it is not going to meet up all requirements of the
organization. There are some organizational change issues that are faced due to Vanilla ERP
system. While this pure vanilla approach is the best approach for the minority of organizations,
but it needs to be addressed in more dedicated way to bring organizational change
The risks that can be associated with BPR can be lack of flexibility as the markets are
becoming more flexible and this can be a big problem for operational management. The other
factor can be due to lack of skilled workforce. The workers are not skilled enough to increase the
productivity and profit of the company.
Risk associated with implementation of cloud based ERP
 Implementation of this process comes up with the major risk of sharing confidential
information with cloud provides which can sometimes be risky for the organisation. The
cloud computing process overlaps the trust boundaries to cloud buyers because its based
on information technology in which the enterprise have to share the information with IT
resources.
 Even the company do not know wheat governance control is and how the providers are
working over issues as it is the external process.
 It is very risky for the enterprise as it leads to dependency on one cloud provider and
when it has to shift from one to another its creates difficulty in revealing all confidential
data.
Current business processes
The hospital currently has a total of 60 volunteers in 3 branch offices and details related
to services is addresses manually in books. The management is struggling to maintain books up
to date. Due to heavy cost that is involved in purchasing and implementing computerized system,
the management did not think of using a computerized system. In order to record, track and
process information it is causing difficulty in finding out each detail of patients and it is a
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complex and a time-consuming process. Also, the current process that is used by CRLS is based
on maintaining the records of clients and customers manually. It is a difficult process to search
for every record manually and can reduce customer retention (Lasisi, Owens and Udagedara,
2017).
Proposed changes to the business processes
After attending seminar on ERP systems which explains the benefits that business can get
with ERP system, the management hospital has decided to make use of technology that would
implement ERP system. The major issue that the hospital is facing is the low efficiency in
managing different departments, so there is a need of ERP to solve this issue. This ERP system
should be able help to integrate all hospital departments into a single, cohesive platform. There
needs a clear picture of its functioning and faster performance. They require greater control over
daily planning, surgical and nursing care. Across the hospital ERP system should be able to
reduce data redundancy and administrative time. As per the given report ,the proposed changes
in the CRLS will not only assist them in producing a computerized system to maintain records
but also help them to in identifying and recognizing that which lawyers have provided services to
client each month, list of pending cases and their contact details (Khot, Mudur and
Doulatramani, 2017).
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Illustration 1: ERP System
(Source: ERP System Model, 2017)

Reason for organisational change
Due to problems that are faced by CRLS regarding the maintenance of records manually,
there is need of a system known as Cloud-ERP that will help to solve this issue as multiple books
are required to be maintained for the records of customers and employees. This Cloud-ERP
concept will help to keep a single system for multiple departments.
Alignment of an ERP with the organization's goals.
A number of operational problems are solved by efficient ERP system. For decision
making the information will be available both for planning and performing individual tasks. As
employees are considered as an important part of organization so a good ERP will make it easy
for employees to manage common processes for entry, shipping and receiving (Jalil and Bakar,
2017). In the case of CRLS a well-maintained ERP system will help to manage the records of
lawyers and clients etc.
Issues faced by business in implementation of cloud based ERP
 The implementation process demands appropriate training and development of staff
members.
 It is very challenging for business to match the compatibility of ERP Modules.
 It consumes lot of time in implementation because it requires break down of every task
and requirement in the enterprise.
 The major challenges faced by the firm is investment and infrastructure because its
requires appropriate and adequate place for storage if not given it works very slow which
is again a problem for the entity.
 Selecting a perfect software package is a technical challenge faced by organisation
because it rules over complete confidential information of the firm.
Benefits of ERP system in the organizationThe various advantages of using the ERP system in
the organization are as follows-:
Employer productivity
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In the implementation of ERP, most obvious and logical benefit is the optimization of
ERP system in process management, it will enhance the productivity and capability of the
employees.
ERP is beneficial for security purpose
Crucial information of CRLS can be protected properly in two different ways. At
different levels, there will incorporation of authorization or access. However on the other hand to
prevent any failure, the information can be centralizes and automatically scheduled backup can
be done.
Ease of adaptability
The use of ERP systems can be changed by redefining the different processes that will
make it easy to adapt and restructure to meet the new requirements.
Avoiding data redundancy and operations
By making use of ERP system at CRLS two things can be avoided that are; duplicate or
multiple records of the same data in the system and duplication of operations for lack of updating
the record on them (Jafari and Fouladi, 2017).
Providing better services to customers
As the ERP will help the CRLS to update information and will also update all data in real
time. This increase the customer efficiency by helping the customers to access accurate and
updated data (Huang, Liang and Yi, 2017).
Limitations of cloud-based ERP Some of the disadvantages of cloud-based ERP can be as
follows-: Limited customization – The customization is now being offered as standards as the cloud
products are becoming more and more configurable.
 Limited product suits – In order to meet the most user requirements very few providers
are offering a single suite of products.
The cloud based ERP for the CRLS can be very helpful in terms of cost savings. As the
complete ERP software for CRLS will he hosted on the cloud, business will get an advantage of
huge savings that would be useful in the management of inventory, fixed assets and human
resources. Adoption of ERP system at CRLS will help them to keep the record’s details up to
date (Chen and Chiu, 2017).
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The organization will try to identify and understand success of ERP implementation by
taking specific actions and making recommendations that support them. The ERP
implementation will have impact on how the company operates its business.
CONCLUSION
By summing up the above case study, it can be concluded that cloud-based ERP is
required to manage and maintain records in the organization. Since the records that are
maintained manually consumes a lot of time and it is difficult to update these records. There are
also various issues addressed by the organization due incomplete elicitation of requirement such
as low customer retention.
There are various risks that are associated with ERP implementation such customization.
The ERP will help to meet desired goals of the organization by providing faster access to
information and it is a cost-effective process. The organization will try to make the
implementation of ERP successful in order to be more effective and quicker at their work.
RECOMMENDATION
 The company should implement Cloud based ERP in the organisation as it assist in
making systematic design of business operation which leads to smooth functioning of
every department.
 The firm should implement the software as it is time consuming but reduces the workload
of maintaining records manually which assist the enterprise in maintaining systematic
record of data related to consumer and employees and will help in overcoming the
problem of insufficient reporting.
 The business should implement this cloud ERP software as it enables strong internal
project management.
Thus, to deal with the issues regarding implementation of Cloud base ERP the company can hire
skilled technical staff which can assist the business in making decisions regarding choosing the
best soft ware. Moreover, the individual can help the firm in determining the ways which can
help in securing confidential data. To deal with the issue of matching the compatibility of
software the company can organize training and development session in which the employee
should be trained according to the technicalities of software which will make easy functioning of
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business operation. Thus, the firm should implement the software because initially it will be
complex but at last it will enhance the organisational functions.
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REFERENCES
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Huang, C.C., Liang, W.Y. and Yi, S.R., 2017. Cloud-based design for disassembly to create
environmentally friendly products. Journal of Intelligent Manufacturing, 28(5). pp.1203-
1218.
Jafari Navimipour, N. and Fouladi, P., 2017. Human resources ranking in a cloud-based
knowledge sharing framework using the quality control criteria. Kybernetes. 46(5).
Jalil, D. and Bakar, M.S.A., 2017. Adapting Software Factory Approach into Cloud ERP
Production Model. International Journal of Computer Science and Information Security.
15(1). p.221.
Khot, N., Mudur, K. and Doulatramani, Y., 2017. Information Intendance System on Cloud.
Lasisi, M.O., Owens, J.D. and Udagedara, S., 2017. Key benefits of enterprise resource planning
adoption within small family businesses: a conceptual framework.
López, C. and Ishizaka, A., 2017. GAHPSort: A new group multi-criteria decision method for
sorting a large number of the cloud-based ERP solutions. Computers in Industry. 92.
pp.12-24.
Rahi, S.B., Bisui, S. and Misra, S.C., 2017. Identifying the moderating effect of trust on the
adoption of cloud‐based services. International Journal of Communication Systems.
Singh, H., Vaishya, R. and Javalkar, C.S., 2017. Review of Adopting Cloud Controlled
Manufacturing Technique (CCMT) in India. International Journal of Theoretical and
Applied Mechanics. 12(5). pp.873-879.
Zuo, Y., Tao, F. and Nee, A.Y.C., 2017. An Internet of things and cloud-based approach for
energy consumption evaluation and analysis for a product. International Journal of
Computer Integrated Manufacturing. pp.1-12.
Online
ERP System Model. 2017. [Online]. Available through:
<https://www.foodonline.com/doc/improving-visibility-and-traceability-with-cloud-based-
erp-systems-0001/>. [Accessed on 29th August 2017].
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