Cloud-Based ERP – Advantages, Disadvantages And Challenges

Cloud ERP and Its Advantage

Cloud computing, also known as software as a service allows different users to have an access to different software based application. It generally runs on shared system resources to run on various computing resources like processing power, disk storage and memory by the help of internet connection. Computing resources are easily maintained in different data centers which is required for hosting different application on wide range of applications. Cloud ERP is known as Software as a service which creates a platform for various user to have an easy access to ERP software on the given internet.  Cloud ERP has much lower cost of upfront cost which results due to purchase of outright and is maintained on the given premise. Cloud ERP provides a platform for various organization to that they easily use business application at any geographical location and instance. The major distinguish between Cloud based ERP and on-premises ERP is that the software is located is located on physically which is known to be major differences. Cloud is important and valuable to small and medium size organization as it provides an easy access to different application at much lower rate. By the implementation of cloud based ERP a business can easily gain business productivity software as the business grows whenever a new software is added in the organization.

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The coming pages of given report provides a concept about cloud based ERP software. After that ten articles on cloud based ERP have been reviewed. The integrated content for forming team report has been provided in detail. A case study has been selected which can be reflecting on implementation of cloud based ERP.

Gupta, S., Misra, S. C., Singh, A., Kumar, V., & Kumar, U. (2017). Identification of challenges and their ranking in the implementation of cloud ERP: A comparative study for SMEs and large organizations. International Journal of Quality & Reliability Management, 34(7), 1056-1072.

Enterprise resource planning (ERP) is well known business organization program which is considered to be a part of composed procurement which is needed for storing and directing data (Gupta, 2017). It is mainly inclusive of certain number of parameters like marketing and sales, management of inventory, shipping and payment. ERP can be easily stated as a system in the domain of business which provides an individual to easily look for efficient and effective use of various resources. It is done by giving total solution of integration for organization which is needed for organizing the needs of the information. Cloud based ERP focus on addressing the rigidity of the current ERP program which is achieved by existing ERP program. It mainly permits the various organization to pick the choice of organization which is needed for filtering the need of the organization. Cloud based ERP is known to be providing benefits for little and medium estimated organization. Cloud based System are becoming popular within manufacturing industry. Cloud based ERP system makes use of web browser or web service which is needed for establishing communication with data to point out production of workers in the cloud. It mainly differs from on premise ERP system which needs to configured properly, updating and remote installation on physical installation of central installation. The cost involved in the installation of ERP can easily differ with cloud based ERP which comes up with monthly subscription. It requires on premise ERP system which has only one-time licensing fee. Some of the advantages of ERP system are quick implementation, feature for accessibility, enhancement and integration of data and lastly non-physical servers.

Review of Articles on Cloud-Based ERP

Jain, D., & Sharma, Y. (2016). Cloud computing with ERP-A push business towards higher efficiency.

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Enterprise resource planning (ERP) system tend to provide certain number of benefits which can be used for benefit to different organization. ERP system can easily help the given enterprise to easily share and transfer important data containing vital information in various units which is both inside and outside of the organization (Jain & Sharma, 2016). Sharing of important data between enterprise department help in analyzing various aspects and aims for various aim. Cloud computing is well known model that takes over internet and provide certain number of things like scalability, availability and reliability and lastly low measures of computer.  Implementation of ERP system over the cloud tends to provide certain number of benefits and advantages irrespective of certain number of benefits application. Cloud computing tends to provide certain number of benefits like lower upfront costs, quick implementation, scalability, makes use of advanced technology, easy integration with cloud services, transparency in terms of cost, uses standard encryption and lastly it provides easier integration with cloud services. ERP is a well-known system software which focus to add all the functional part of the given enterprise in much better way. It can also include some important parties like supplier and customers which are outside the enterprise. ERP is known to be a key element of infrastructure which tends to provide solution to business. In other words, ERP can be stated like software which aim to deliver complete set of business processes and function. With the passage of time, ERP system has upgraded a lot in the process of enhancing it capability and increasing its capabilities. ERP vendors like SAP and Oracle which is needed for development in different given modules. It is mainly needed for covering and supporting all the given function of the enterprise. Traditional ERP system are classified as on premise and hosted ERP. Only on premise ERP system are loaded with certain number of infrastructure like social, network and computers. Enterprise tend to run on certain number of platform which manages ERP system as per the license of software model.  

Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of Enterprise Information Management, 28(1), 107-130.

Cloud based ERP solution are provided through SaaS (Software as service Model). Various kinds of ERP system are there in the industry like cloud based ERP system. ERP system is known to be cloud based has gathered by characteristic of cloud computing (Gangwar, Date & Ramaswamy, 2015). Cloud based ERP system tend to be influenced by given characteristics of cloud computing. Cloud based ERP system are mainly accessed through web browser in the internet. It does not require any kind of installation or configuration of system which is at user side. The major kind of cloud ERP in the software system industry is SAP design. ERP system can easily spare organization which is known to be a considerable amount of time and cash. Apart from the various benefits, cloud computing can be cost-effective and have been found to provide certain number of benefits. Cloud based ERP implementation can provide certain number of profit to organization in different ways. Cloud based ERP can provide certain number of benefits which can be used for upgrading it. With the rapid implementation which focus on configuration along with integration which needs to be implemented in the coming time. It is encountered that scalability where user can easily expand which focus on integration on implementation in the given weeks. It comes up with scalability when one can easily add users which can be used for growth. Cloud based ERP system provides certain number of benefits but apart from it comes up with certain number of issues. Cloud based ERP software are used by small and medium size organization and good for fit into the organization. It emphasizes on new business division which is there in current organization. Cloud based ERP software are Sage, SAP and Oracle. Manufacturing of ERP system have easily slowed down the move into the cloud domain. With increase in quantity of manufactures the concept of implementing Cloud ERP system comes up into action. Various organization round the globe are more focused on implementation of cloud. The most vital aspect in cloud computing is all about moving to cloud ERP based ERP system.

Case Study on Cloud-Based ERP Implementation

Tao, F., Cheng, Y., Da Xu, L., Zhang, L., & Li, B. H. (2014). CCIoT-CMfg: cloud computing and internet of things-based cloud manufacturing service system. IEEE Transactions on Industrial Informatics, 10(2), 1435-1442.

Cloud is considered to be valuable thing for both small and medium size firm as it can provide easy given an access to large number of application at much reasonable given price without any kind of upfront of expense of hardware and software. Use of cloud provider, a firm can scale up their productivity of business software as the business grow when a new organization is added (Tao et al., 2014). Cloud based ERP software comes up with certain number of benefits like reduction of involved cost. It aims to avoid any kind of upfront cost for various computing infrastructure like hardware and data server. Reduction of IT support aims to reduce because the IT support are mainly provided by data center. It eliminates any kind of payment which is there for software license in a monthly manner. Only payment is required for different computation resources. It creates a platform where system can be accessed by organization from any geographical location as internet is there is each and every location.  Choosing the right ERP system can be challenging one for any organization. Precision, technological improvement is becoming a major factor in cloud technology. Supply chains are changing at much faster rate. Technological advancement is mainly implemented through manufacturing and industries for production. It is taken into account for certain number of aspects like whether and avoiding ERP system which is cloud based system (Bhatia & Gupta, 2016). Cloud computing comes up with certain number of disadvantages or drawback like data security, limitation of customization and completion of price. Security of data is known to be one of the biggest issue relating to supply chain in the domain of cloud computing. Any kind of breach in cloud computing can easily result in failure of system. The cost involved in cloud based ERP system are greatly outweigh by cost of on premise ERP system.  As ERP system is technological advanced it is considered to be superior and can involve cost.

SARMED intends to handle the management of various goods. It can easily range from small object to various kind of non-commercial vehicles. It tends to provide a large number of logistic and 3PL service which covers the entire chain of supply. Moreover, the organization in this case study aims to provide the design and development of various warehouse and complex and various cargo to easily meet the requirements. SAMRED makes use of WMS system which comes up accounting and functionality of finance. SAMRED needs to come up with ability to easily import, analyze and lastly access the updated information which is related to proper management of accidents. It aims to provide claims in warehouse and human resource which is unified at a given location. NUBIS cloud ERP aims in assisting the given organization which is needed for creating a comprehensive EPR. As the warehouse of the organization is connected to Nubis Cloud which helps in properly monitoring of supply procedure. It can easily provide huge amount of information which is needed for attending the warehouse of the employee. It aims in providing proper supply procedure which is needed for providing huge amount of data. Nubis Cloud EPR aims in integrating with this SAMRED call center which helps in adding important value for the functioning of the customer support. All the incoming calls are recorded in Nubis cloud which is a monitoring case which works throughout the competition phase. By the help of Nubis cloud SAMRED can easily provide business to business portal which is needed by client. It aims to provide all kind of useful information which is all about the respective orders.  

Challenges of Cloud-Based ERP

ERP ( Enterprise Resource Planning) is known to be a business organization program which is used in association for composing storing direct and indirect data. Cloud computing can be used in various domains like marketing and sales, management of inventory. ERP is known to be business software which enables an individual to effective make use of various resources. It can be achieved by providing for different organization information and its processing needs. Cloud computing is known to be a well-known platform which requires variety of computer system for delivering computer services. It can be easily achieved by establishing communication network like internet. Currently there are large number of organization which provides certain kind of services like Apple, Sales force. Cloud computing is known to be another kind of computation technology which is known to be an exceptional domain of cloud computing. Cloud computing comes up with large variants of option for packages. It provides benefit to major section of the society. It provides certain number of advantages which is to be used. It provides certain number certain number of opportunities like flexibility, security, profit and unlimited storage. There are large number of problems related to cloud computing which emphasize on preserving confidentiality along with integrity of data. Cloud computing is not only a technology but a well-known approach which tackles various kinds of virtual machine. There are certain number of models which are accessible for execution of cloud computing. They are mainly four types of cloud models that is hybrid, public, community and private. In public model, organization can easily host different kind of services. It is easily available by general public by different supplier in the cloud. Private model is used by organization which can easily host their business in cloud. It is mainly done so that there is better kind of data security and control which makes it easily available to public model. Cloud services are mainly provided in three ways that is IaaS, PaaS and SaaS.

In infrastructure as a service model, various customer can easily purchase the required infrastructure as there is no kind of compulsion in buying the whole model for some little use. In this the user need to pay for some small parts which is required. Cloud ERP is mainly focused on providing ERP program which permits the program by permitting the organization to pick the choice of the organization. Cloud ERP is known to be adaptable and financial data for both little and medium size and organization. It offers profit for the development and extension. Cloud ERP enhances ERP on cloud provider. Decrease in the expense can easily result in reducing diminishing of organization framework of IT framework or cost of infrastructure. The given frameworks are manly inclusive of software, hardware and other kinds of involved framework.  ERP system can easily spare various organization which is known to be considerable measure of time and cash. Generally, cloud computing project are cost effective in nature and easily improve profit of an organization. Cloud based ERP can easily improve the overall profit of the organization. There are large number of features of cloud ERP which is known to be frequent innovation which comes up with new features without any kind of upgradation. Rapid implementation can easily emphasize on two important aspects like configuration and integration. Scalability is a well-known platform which can easily expand into proper markets and new geographical location. Different organization round the globe can encounter issues between on premise ERP and cloud ERP. It is difficult for organization to make decision in some of the situation. With the passage of time, cloud based system are becoming popular in industry of manufacturing. Cloud ERP system can easily make use of web browser or web services which is needed for communication of data point production and workers for the cloud. ERP system comes up with certain number of advantages like

Conclusion

Quick implementation: Making investment in new hardware and update on slower basis is not required for cloud based system. It mainly makes use of web because update takes place without any kind of human interaction. Cloud service providers (CSP) tend to provide certain number of ERP solutions. The output or solution can be used for satisfying the requirement of enterprise. A choice must be there for various solution and the given product takes place as per the need of the organization. Implementation process can be easily accelerated by the help of proper selection process.

Accessibility features: As the updates are much faster, more number of features can be easily implemented with each and every update. It can easily improve the system and increasing its functionality.

Data and Enhancement of Integration: In the given cloud based ERP system, integration and data accuracy can be easily improved. Development of technology can easily blow past orders which is based on ERP system. It can easily take place due to lack of accuracy of data and overall integration of system.

Non-physical Server: Hardware maintenance is not a vital factor because there is no physical hardware at the given site. It is plus point for operation which requires maintenance of hardware. It is known to be big plus for operation which require constant hardware maintenance. It mainly emphasizes on certain areas of production facility.

Conclusion 

The above discussion relates us to fact that the report deals with implementation of cloud based ERP system. Implementation of ERP in the domain of cloud computing has resulted in overcoming certain number of issues. It has also helped in gaining advantages and some little disadvantage where mix of two things can easily result in discussing time. ERP system helps in accomplishing in more productivity and benefits as it can focus on improving provision of an organization. It can be used to store some of the vital information of the organization. It ranges in certain number of domains like manufacturing, sales and marketing and lastly management of inventory. Cloud computing tends to provide certain number of services which can used for certain features like security, unlimited storage, access to file in unlimited way. Cloud ERP is considered to be nothing more than ERP which is hosted on the platform of cloud by different cloud providers. Cloud based ERP is known to be an adaptable and financial benefits choice for different organization. The most vital challenges in cloud computing are risk of security, risk of performance, customization and limitation of integration. Other kind of challenges which are involved in are expense of subscription, risk of strategic, loss of IT, sensitive information. Before moving into cloud ERP system, clients of cloud base ERP should easily maintain balance between its challenges and benefits. One benefit in ERP cloud can easily led to many kinds of challenges which can be overcome by benefit.

References 

Gangwar, H., Date, H., & Ramaswamy, R. (2015). Understanding determinants of cloud computing adoption using an integrated TAM-TOE model. Journal of Enterprise Information Management, 28(1), 107-130.

Gupta, S., Misra, S. C., Singh, A., Kumar, V., & Kumar, U. (2017). Identification of challenges and their ranking in the implementation of cloud ERP: A comparative study for SMEs and large organizations. International Journal of Quality & Reliability Management, 34(7), 1056-1072.

Jain, D., & Sharma, Y. (2016). Cloud computing with ERP-A push business towards higher efficiency.

Tao, F., Cheng, Y., Da Xu, L., Zhang, L., & Li, B. H. (2014). CCIoT-CMfg: cloud computing and internet of things-based cloud manufacturing service system. IEEE Transactions on Industrial Informatics, 10(2), 1435-1442.