Cloud ERP Systems



What are the four key benefits of cloud ERP systems that have been reported in the existing IS/IT literature? Discuss by providing two empirical evidence in support of each benefit.



Executive Summary


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    The Cloud ERP is also defined as the type of the enterprise resource planning system.ERP is usually been hosted on the cloud and not in the place of the data owner. This system is also defined as the set of the activities which as involving in the business, purchase, customer relationship etc. Cloud ERP falls under the SaaS which is also called as the Software as a Service. This helps in the process of sharing and also transferring the files easily.
Key Benefits of Cloud ERP reported in Existing IS/IT literature
    The key benefits of the cloud ERP which is being reported in the existing IS/IT literature are being listed below such as
Improved ERP performance
    When the data (ERP) is being moved to the cloud it helps in increasing the space and the resources which are necessary. Since smaller business requires the large infrastructure they can’t able to offer that much money and hence they can use the cloud ERP based on the need. Since the cloud based system and the solutions requires the internet connectivity which is usually used by all levels of the business such as the small, medium and the large.
Decrease in the operational costs
    The ERP requires the huge hardware support which involves in the investment of the huge money. When the cloud ERP is being used, they need to pay for what they use and it could be done on the monthly basis, which could be much lower. Few providers even provide and also manage the solution by installing and also by maintaining the systems.
Security enhancements
    If the companies don’t use the ERP system they can’t able to find out the information which is being needed by them, when they need. ERP helps in the process of gathering the necessary information in the most effective manner. This solutions are being accessible only through the cloud and with the help of internet connectivity.
Increased security
    In order to hide the information from the unwanted person and the outsiders its important that the ERP system provides the highest security. The ERP system is being accessed by using the account which needs the login credentials for it to access. The access is being maintained by the panels and it offers the enhanced level of the security
Empirical Evidence – Cost
    A survey is being conducted in Swiss SMES and its being taken as the empirical evidence for the cost reduction. The factors which influence the ERP implementation costs are listed below
    • Few variables which fits the existing infrastructure poorly
    • The additional infrastructure is being proposed such as the enterprise characteristic, people and the implementation. Hence these are the factors which involves in the cost estimation.
    • The cost of the ERP always depends on the type of the modules which are being used.
    • Few of the modules which are being implemented in the ERP modules is positive.
    • Medium intensity of the relation is found in between the modules and the cost of the ERP project
Empirical Evidence –Quality
    The Enterprise Resource Planning is mostly viewed as the powerful technology used in the both the small scale industries and also in the medium scale industries. It also paves the good path for the security and the quality of the information which is being saved in the cloud. It also paves the path for the internal as well as the external process and also helps in the process of promoting the quality development. The factor analysis is being carried out in order to ensure that there are various types of the validities which are being used over the system,
    • Quality id being analyzed with the regression model.
    • Gives the clear insights regarding the factors which affects the quality.
    • Helps in the process of prioritizing the work to achieve the quality benefits




    Thus the concept of the Cloud ERP is being explained and the key benefits of using the Cloud ERP is also being described and the empirical evidence which are being involved in the Cloud ERP is being discussed over here.




Al-Mashari. Investigation of Quality Benefits of ERP Implementation in Indian SMEs. 2015. .
Eastwood, Gary. 5 benefits of using cloud ERP to deliver results. 2017. .
Equey, Catherine. Emphirical study of ERP systems implementation costs . 2016. .
Harvard. Benefits of cloud ERP. 2014. .
Rouse. cloud ERP. 2011. .

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