Impact Of Cloud Based ERP Systems On Managing Business Operations

Development of Cloud Based ERP System

The title of the project is development of Cloud based ERP system

It is identified that the ERP system is mainly used in order to manage the operations as well as functions of the organization. Due to the use of ERP system, the organizations can be able to optimize the business process, eliminate unnecessary data and operations as well as helps in reducing cost and time. In spite of the advantages, the organizations faces lot of difficulties due to improper adaptation of data security protocols, longer time for implementation as well as due to the chances of occurring riskier upfront investment. In order to resolve the issues, the organization wants to develop cloud based ERP system.

It is found that in order to resolve the issues and challenges, the organization wants to develop cloud based ERP system. It is found that due to the development of cloud based ERP system, the organizations will be able to provide more secured environment. It is found that cloud based ERP is considered the best in context to cost effectiveness, scalability, security, flexibility as well as speed. In addition to this, the most important advantage that is facilitated by cloud based ERP is that information can be easily accessed from anywhere with the help of internet enabled device.

The project sponsor or supervisor mainly recommends that the development of cloud based ERP system must be developed within the budget that is approved. If the project does not get completed within the estimated budget then it can rise lot of financial difficulties and challenges. Therefore, it is very much necessary to manage the budget of the project properly so that the entire project is completed within the budget that is approved.

The research questions are as follows:

• What are the advantages that Cloud based ERP system provides?
• What are the challenges that are resolved by the Cloud based ERP system?
• Why the cloud based ERP system is needed by the organizations?

According to Soder and Johansson (2017), Cloud ERP is Software as a Service that helps in allowing the users to access enterprise resource planning software over the internet. Cloud ERP  has very much low costs for the upfront as it is found that the computing resources can be easily leased  monthly wise instead of buying it and maintaining it on the premise. It also helps in providing the facility of accessing business related information from any location in the presence of proper internet connection (Bindi, 2016). Cloud ERP is found to be quite valuable for small as well as medium size organizations as it helps in providing access to number of applications at a very much less price without proper upfront expenditure for the software and hardware (Nguyen, Nguyen & Misra, 2014). It is found that after utilization of right cloud provider, a company can be able to properly scale their productivity software. The advantages that Cloud ERP provides are listed below:

Flexible: Cloud ERP is flexible as the business related information could be accessed with the help of internet from anywhere, which further reflects that one can be able to make proper business decision properly (Ramasamy & Periasamy, 2017). It is found that cloud ERP is quite easier to utilize with BI tools, which are generally designed to work with cloud, which further helps in providing flexibility for selecting proper dashboards and reports, which will generally work best for the organization.

Challenges faced by Organizations in using ERP systems

Scale the growth: Cloud ERP helps in solving the dilemma of scaling because it helps in offering proper scalable platform that is not only ideal for fast growing business but also for organizations who wants to start their business (Gupta et al., 2017). It is found that cloud package can be scaled for accommodating unlimited number of users without creating hassles for maintain as well as replacing the software and hardware of on-premise.

Fast and secure: Cloud ERP is fast as the data centres are mainly hosted as well as maintained by the best hosting environments. Their purpose is only to make the data accessible quite easily as well as fast. It is found that the data centres helps in ensuring geographic diversity and assists in storing data in number of places so that they can be easily retrieved if get lost.

Rapid application design is defined as a development methodology that helps in providing advanced development tools, prebuilt, collaboration tools and objects for the development of cloud ERP system (Kotlarsky, Hooff & Houtman, 2015). This method is mainly used as the system functionality is visible clearly and as the project is for medium size organization and the entire project can be executed for shorter period of time.

It is found that the information related with the development of cloud based ERP system is collected with the help of both secondary and primary data collection method. It is found that numbers of articles as well as e-books are reviewed in order to collect information about the significance of cloud ERP (Rinderknecht et al., 2017) In addition to this, numbers of project managers are interviewed for knowing about the phases as well as activities that are required for developing the information system.

Detailed system design is used for the development of cloud based ERP system. It is identified that detailed design of the project generally follows proper architectural design and thus they reflects on the each module of the project so that the cloud based ERP system can be successfully implemented. (Yang et al., 2014)

The ethical issues, which are associated with the project, are listed below:

• Creating the pressures on the workers who are generally involved with the development of cloud based ERP system.
• Proper organizational laws and regulations needs to be followed.

It is quite necessary to maintain proper health and safety regulations so that the workers or staffs who work for the organization does not face health related challenges. Development of proper health and safety related regulations so that the chances of accidents as well as injuries can be reduced. It is also necessary to take appropriate actions so that security related problems and challenges could be reduced.

After appropriate analysis, it is identified that due to the development of cloud based ERP system, the organization will be able to get improved ERP performance for managing the operations and functions of the organization. It is sound that the organization will be able to  get  much more secured service with reduction in operational costs. In addition to this, it is identified that the services of cloud can be scaled up easily for meeting the needs as well as requirements of the project.

It can be concluded from the entire project that development of cloud based ERP system not only increases security but also assists in enhancing flexibility, scalability as well as performance of the organization. The organization will be able to access the business related information from any location by using the facility of internet. It is found that in spite of the advantages there are some problems that needs to be resolved and for which proper number of recommendations are provided. The recommendations are as follows:

• It is necessary to make proper robust design of the project
• It is quite important to document all the requirements of the project
• It is also important to create proper and strong internal management organization

Figure 1: WBS

(Source: Created by Author)

The table that is given below reflects the duration that is needed for developing the ERP system:

Figure 1: Gantt chart

(Source: Created by Author)

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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.

Gupta, S., Kumar, S., Singh, S. K., Foropon, C., & Chandra, C. (2018). Role of cloud ERP on the performance of an organization: contingent resource based view perspective. International Journal of Logistics Management, The, (just-accepted), 00-00.

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Kotlarsky, J., van den Hooff, B., & Houtman, L. (2015). Are we on the same page? Knowledge boundaries and transactive memory system development in cross-functional teams. Communication Research, 42(3), 319-344.

Nguyen, T. D., Nguyen, T. T., & Misra, S. (2014). Cloud-based ERP solution for modern education in Vietnam. In Future Data and Security Engineering (pp. 234-247). Springer, Cham.

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