Jeffrey Cummings, University of North Carolina Wilmington
ERP Rigidity and the Cloud Computing Effect
D. Lance Revenaugh
Montana Tech University
Montana Tech University
Thursday - 11/1/2018 in Chesapeake 2 at 11:45 am
Enterprise Resource Planning (ERP) systems as well the broader Enterprise Systems (ES) has become a major part of many organizations (e.g. all Fortune 1000 companies) and are continuing to grow as a needed application in corporate environments. ERP itself handles many different aspects of business and must be flexible to meet each business’s different needs. Throughout this paper we will examine the use of ERP in cloud computing through Software as a Service (SaaS.) Through the use of SaaS, each organization’s ERP solution can greatly benefit by becoming more available and flexible for potentially any employee. In turn, a business can reap the benefits of increase data availability through ERP flexibility, all while directly supporting a more efficient and effective workforce.
ERP’s greatest challenge is its’ limited flexibility. Through the use of cloud computing and software as a service (SaaS), however, it has the potential to increase flexibility through higher availability and mobility. As with any new technology implementation, there are certainly risks behind deploying ERP as a SaaS. This paper analyses these risks, applies the Technology Acceptance Model (TAM), and extends Chung’s (2008) ERP Success Model. A Conceptual SaaS and ERP Success Model is offered for consideration. Finally, detailed pros and cons of the use of SaaS and cloud computing in ERP are presented.
Through ERP’s effective use of cloud computing, these new flexibility concepts can create additional ways to manage enterprise resource systems through the use of customer and supplier portals. By doing this, some of the benefits can easily include improved capability for each organization to more accurately keep warehouses stocked, project sales for the next quarter, and more quickly understand and respond to customer needs and wants.
Keywords: Cloud Computing, Cloud Infrastructure, Enterprise Resource Planning (ERP), Software as a Service (SaaS), Technology Acceptance Model (TAM)
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