University Name - INF60012: Cloud ERP Challenges Critical Review

This essay, prepared for the INF60012 Enterprise Systems course, critically reviews the challenges associated with Cloud ERP (Enterprise Resource Planning) systems. The student explores several key issues, including the integration of cloud ERP with existing organizational cultures and the importanc...Read More

Running head: ENTERPRISE SYSTEM
ENTERPRISE SYSTEM
Name of the Student
Name of the University
Author Note

1ENTERPRISE SYSTEM
The form of ERP (Enterprise Resources Planning) software, which is introduced by
cloud computing platform, in spite of own data of enterprise is known as Cloud ERP. There
are various challenges in cloud ERP. One of the main challenges in integrating cloud ERP is
aligning the culture of the company with change management of cloud ERP. Integrating the
cloud ERP will require a proper plan for change management. Involving the collaborative
effort and acceptance of change management in the organization will require the effective
alignment of recommended solution with the organizational system (Mckinsey.com 2019).
The process of sustaining numerous systems could be considered as a major challenge as it
will require vendor assistance and directed focus of in-house IT team (Elmonem, Nasr and
Geith 2016). Another challenge can be the complexity of designating effective training and
on boarding procedures. For reducing the complexity of cloud ERP, the IT team needs to be
well-versed with the efficiency of practicing the cloud ERP system. Budget allocation is
another challenge in the process of incorporating cloud ERP solutions. Another challenge
regarding the cloud ERP is security concerns. Data security is another risk. However, cloud
ERP offers packages, where the ERP vendor ensures security of data. The transition of ERP
adoption with the process of ensuring data security is challenging (Venkatraman and Fahd
2016). Therefore, cloud ERP solutions offers numerous benefits, which can only be utilized if
organizations invests in selecting vendors strategically, train the in-house IT team effectively
and prioritizing data security for the business activities.

2ENTERPRISE SYSTEM
References:
Elmonem, M.A.A., Nasr, E.S. and Geith, M.H., 2016. Benefits and challenges of cloud ERP
systems–A systematic literature review. Future Computing and Informatics Journal, 1(1-2),
pp.1-9.
Mckinsey.com 2019. McKinsey & Company. Cloud adoption to accelerate IT modernization.
[online] Available at: https://www.mckinsey.com/business-functions/digital-mckinsey/our-
insights/cloud-adoption-to-accelerate-it-modernization
Venkatraman, S. and Fahd, K., 2016. Challenges and success factors of ERP systems in
Australian SMEs. Systems, 4(2), p.20.