Impact Of Cloud Computing On ERP

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Enterprise Resource Planning is the most valuable and major aspects in these days of business because it allows the management in handling the entire activities more suitable and appropriate way. However, technology changes rapidly throughout the world. Cloud computing technology grasps major portion in technology development due to lack of quality in storage space. Therefore, to make the ERP system more relevant and appropriate, the vendor of ERP system such as IBM, SAP, Amazon, Google, etc. used cloud computing technology. It not only helps in reduce the problems regarding low storage space, but also allows in mitigating the problems or chances of data loss. The primary purpose of every business is to managing the work in case of saving the energy, time and the money and also to do the work in efficient a defective manner.

Therefore, this study firmly focuses on analyzing the impact of cloud computing on ERP implementation from the point of view of business in the corporate sector. Business is required to reduce the cost along with improving the quality and to give a recent response to the customer’s demand (Choo, 2014). This implementation of the cloud-based ERP system can bring the company to fulfill their aim.

This particular research proposal is designed to provide the impacts the new information technologies using the cloud computing in the ERP system of the business. Our research provides the effect that reoccurred in the business after implementation of the cloud-based ERP system. The discuss how the cloud computing is used in the Enterprise Resource Planning (ERP) system of a company in case of getting advantages over the maintaining of the stock in the online trade. The literature review about the research proposal is given in the discussion. The purpose and justification of the study along with the problems that arise are also given. A case study of the Swansway group that implements the cloud computing in their ERP system is discussed in this research proposal. The services of the cloud computing have three levels such as Infrastructure as a Service (IaaS), Software as a Service (SaaS) and Platform as a Service (PaaS) (Awad, 2014).There is also a discussion about these three levels regarding the cloud computing and there impacts on the ERP system of the business.

The aim of implementing the cloud computing in the ERP system is to provide the business of the company a better service with reducing the cost and improving the quality of the products (A. Al-Johani and E. Youssef, 2013). The idea of using the cloud computing in the business of the company is to compute the software available to the end user of the organization in the environment of the cloud and it can access according to the demand and can also pay as per needed (Bowen, Forsheit and Hutchins, 2013). In case of using the cloud system in the business the information and the data can be stored in the cloud which will reduce the cost of using much hardware and also the quality of the data can be mention. The information regarding the customer’s interest and the customer’s feedback can be stored in the cloud. The chance of loss of the information is also reduced (Breeding and Kroski, 2012). A cloud consist of the virtual and the interconnected computers which are presents dynamically and unified resources that are on the basis of the agreements of service level to the interaction of the customers and the retailers. The applications of the cloud are also run in the cloud system that will risk to very low finance.

The software of the Enterprise Resource Planning system (ERP) is mostly dependent on the platform of software, Intelligence, Database, Security and other much software. It is not possible every time for an alone development firm to treat with all the dependency software of the ERP system (Choo, 2014).

Cloud computing assures that both the vendors and the end user of the business can get the benefit. The cloud computing has a great impact on operating the IT costs. Only for the ERP system the cloud is not created but the ERP is fully supported and established from the cloud.

The ERP based on the cloud computing will provide the customers a benefit about the scalability of the application and reduce the cost of hardware (Chen, Liang and Hsu, 2015). The delivering of the ERP of a company can be made easier by using the technology of the cloud computing through a SaaS (Software as a Service) model for the customers who are willing to use the cloud ERP and do not wants to deal with any software and the hardware upgrades though dropping open expenses. The internal cloud can also build in the business to reduce the cost of hardware and manage the integrated local access in the own database server.

The main purpose of doing this study is to understand the impacts of cloud computing in the implementation of the ERP system of business. Understanding the role of the levels of cloud computing and how these levels used in the ERP system and gives a benefit to the business.

In case of both private and the public sector, the ERP systems nowadays have a great established form in the business of the big organizations. The data are collected, stored and processed in the required format in the boundaries of the organization by using the ERP system (Choo, 2014). The delivery of the software in the online basis for the distributed in many areas for further research, the integrating the cloud computing in the system of the ERP become very essential. The concept of the cloud computing is very simple, and it is also very logical. The licenses are no need to be the purchase; elsewhere they are installed in the machines that become very cheaper other than creating the software (Chen, Liang and Hsu, 2015). The data are stored in the cloud, and the demand for the pay can be done according to the use of the cloud. The capital cost, transparency of the cost, the cost of operations of the company are reduced due to using the cloud computing (Goel, Ravi and Deepak, 2011). The business flexibility, simplicity and the level of the service of the company are increased by using this system.

The process of the business is supported by the common databases that are integrated with the package of the software by using the ERP system of a company. Different structures of the company that consists of the sales, procurement, warehousing, production, etc. are reflected by supports of the ERP system of the different size and specialize (Khurana, 2014).

IaaS (Infrastructure as a Service)

PaaS (Platform as a Service)

SaaS (Software as a Service)

IaaS (Infrastructure as a Service) – the outsource supplier supply the resources of the customers to the cloud server of the company. These resources consist of memory, storage, network equipment etc. In this model, the service of a single server is shared. The bill of the service is made on the basis of the use of the cloud computing.

Platform as a Service (PaaS) – the outsource supplier supply the resources that are required to create the services and the applications for the customer’s need. The scenarios that are used are designing, progress, testing, and operation.

Software as a Service (SaaS) – this program is hosts by the service of the supplier to access the resources of the customers through the internet. In this service, the code of the same program can be used by many customers but they also can have their different space in the cloud (Mozammel-Bin-Motalab and Al Mamun Shohag, 2011).

Also, there are different types of cloud. Private cloud consists of many collections of the physical servers that can be only run for the single customer. In case of the dedicated resources, the private cloud is rented. The public cloud consists of many virtual servers where many customers shared a single physical hardware. On the case of the demands, the public cloud is rented. The hybrid cloud is a combination of the both private and the public cloud. The customers rents or operates the hybrid cloud on demands (Rani, Rani and Babu, 2015). The community cloud is shared by the different organization and is managed by the third party or the involved organization. The internal cloud is the network of the cloud that exists in the IT infrastructure of the company. The external cloud is the service of the cloud that is provided by the service provider of the cloud to the customer of the IT infrastructure (Repschläger and Zarnekow, 2011).

The ERP system supports the business on the basis of both hardware and the software.  On the basis of the social software services such as the Google and the linkedin services, the cloud computing discussion can be run.  The small companies use the cloud system in the business because cloud system helps the company to store the large amount of data in their cloud other than the hardware. This will reduce the cost of the hardware and also reduce the chance of losing the data. Some of the examples are given where the cloud systems are used in the social software services, and the levels of the clouds are also given that are used in the cloud system of the social sites. They are such as using Google with the Apps of Google (SaaS), IBM using cloud technology (SaaS), salesforce.com using the sales cloud (SaaS), Microsoft uses the Services Platform of Azure (PaaS), Amazon using the database of Amazon (PaaS), Amazon using the EC2 Amazon (IaaS) etc. (Sill, 2014).

When IaaS implements in the ERP system, the company rents the infrastructure of the cloud from the provider of the cloud server. In this case, the company can freely choose the vendor of ERP system and the license can also be the buy for the software (Vimalkumar, 2012).

This level is not really suited for the condition of the ERP system. The previously defined resources are provides to the software which is very effective for the progress, testing and distributing the software.

The software of the cloud system is provided to the ERP system. Both the roles of the vendor of the ERP and the software of the cloud system are merged in this system (Vimalkumar, 2012).

This study is to provide the details idea about how the problems that arrive in the business of the organization can be solved by using the cloud computing format in the ERP system of the business (Tari, 2014). The nature of this study is to reduce the cost and increase the performance and quality of the products and the services in the business by using the cloud-based ERP system.

The main problems that are identified in this study are the majority of vendor use SaaS-based cloud computing in terms of designing or implementing ERP system in a business. Apart from that, it has been also identified that to implement cloud computing on ERP system especially in business is finance. To develop cloud-based ERP system in business, the organization has to invest large amount. Therefore, lack of financial resources are the major problems. As the demands of the online services are increasing, loads of the cloud are also increasing and due to the overload of the services will lose many of the customers. The service of the cloud computing gives the company flexible and the scalability that only helps the needs of the customers temporarily. In case of implementing a full new module sets that are integrating by the standard ERP module, the customization becoming very difficult. Most of these problems are solved by implementing the cloud computing in the ERP system of the business (Breeding and Kroski, 2012). This study refers to gives some of more efforts in the implementation parts. Hence, some of the research questions are proposed in the further discussion.

The Swansway Group is the company that is nowadays becoming the largest online retailer company. They are selling many vehicles through the online, and there are many customers who are their regular customers all over the world. This company implements the service of cloud computing in the ERP system of the company. This company is regulated and authorized by the Financial Conduct Authority. The products that are provided by the company that include Lease Purchase, Personal Contract Purchase, and the Hire Purchase. Many awards are occupied by this company on the field of the hard-working individuals, customer service, and the while and now they also provide their best service to the customers. They are on the rank of the top 100 companies continuously for five years, and they feel very proud of it. This ranking is counted on the basis of the feedback of the customers and the employees. The employees of this company are very satisfied in the case be a part of this company. The objectives of the company are to provide the customers the high quality of services and the goods and the employees to develop their knowledge and the capability. The goal of the organization is now to not only dependent on the previous ERP system, but the cloud computing is implemented in the ERP system in case of developing the efficiency of the cost and to provide a high quality and good service to the end user (Bowen, Forsheit and Hutchins, 2013).

The aim of this research is to investigate the impact of cloud computing on the Enterprise Resource Planning (ERP) system of the selected company namely Swansway Group. This research also discusses the appropriateness of cloud computing techniques on the ERP (Enterprise Resource Planning). However, this research will explore the advanced area of cloud computing for the development of ERP within the business aspect of the organization. The research has the aim of analyzing the effective process of cloud computing within the ERP system for managing the increased databases of customers within the whole research process.

The questions of the research are as follows:

What is the importance of cloud computing in today’s world?

What is the importance of ERP system within a business organization?

What are the necessities of cloud computing within the system of ERP?

What are the advanced areas of cloud computing those can be helpful for better ERP system within the company?

H0:  Cloud computing has no impact on the system of Enterprise Resource Planning.

H1: Cloud computing has impact on Enterprise Resource Planning system.

To identify the importance of cloud computing within this modern age of technology

To investigate the importance of Enterprise Resource Planning system on the modern perspective of business

To identify the necessities of cloud computing for the ERP system

To examine the advanced area of cloud computing for developing the purpose of Enterprise Resource Planning within the business organization

This section provides the detail plan of methodology for this particular research. The research methodology section provides the detail information about the data collection process, philosophy of the research and technique of data analysis etc.

There are different types of research philosophies; those are positivism, post-positivism, realism. Research the philosophy helps to provide knowledge and proper dimension to the particular study of the research. Positivist philosophy of research helps to deal with the real fact and data of the particular research study (Acemoglu et al. 2000).

On the other hand, post-positivism helps the researcher for cross checking the real data and fact of the research. Realism deals with the objective reality of the research. Therefore, post-positivism helps to deal with different real data of the research.

In this perspective of the research, post-positivism is the best philosophy for the research. The research is involved within the post-positivism theory of the research. This research can be best to deliver with the help of post positivism research as this research is involved within the real fact of cloud computing and ERP. This philosophy helps to deliver the real fact of the aspect of the company. However, with the existing models as well as theories and concepts of the ERP and Cloud Computing post-positivism helps to progress the research (Albouy, 2008).

Research approach is of two types; those are inductive and deductive approach to research. Inducting research approach helps to analyze the data in accordance with the hypothesis of the research. With the effectiveness of inductive approach, the researcher first sets the models and theories for the research after that the researcher tries to complete the research with the help of those models and theories. On the other hand, Artadi and Sala-i-Martin (2003) argued that, deductive approach to the research helps to complete the data with the existing theories and models of the particular topic of the research.

For this purpose, the researcher will try to evaluate the whole research with the existing models and theories of ERP and cloud computing. Therefore, the researcher will take the deductive approach to complete the whole research (Bertocchi and Canova, 2002).

Figure 1: Approach of the research

(Source: Barro, 1989, pp-56)

In order to complete every research, a researcher should collect different types of data. The researcher needs different opinions for completing the research. However, the researcher should collect data from journals, books and websites for gathering effective information on the particular research purpose.

As stated by Baker (2011), sources of data are two types; those are primary and secondary data. Primary data are the live data for any of research. It is mainly collected from the respondents of the particular research. On the other hand, secondary data are the data those can be collected from different published sources like journal, books and websites of the research.

Figure 2: Data collection process

(Sources: Bergh and Ketchen, 2009, pp-45)

Data can be of two types; those are Primary and secondary data. Primary data can be gathered from the respondents as well as sample of the research.  Primary data are the data those have never published in any journal or book. On the other hand, secondary data can be collected from the different sources of data, like related journals, books and online sites etc (Barro, 1989).

Here, for this research purpose, the researcher can collect primary data from the managers and customers of the organization. The researcher will provide close-ended questionnaires to the customers. On the other hand, the researcher will conduct telephonic interviews with the managers of the organization. For this purpose, the researcher will provide open-ended questionnaires to the managers of this particular organization (Bloom et al. 2006).

For this research purpose, the researcher will take the help of probability sampling method for selecting the managers and customers of the company. With the help of simple random technique, the researcher can collect 60 potential customers of this company. On the other hand, a researcher will take interview of four managers with the help of quasi-experimental technique.

There are two types of data analysis techniques; those are quantitative and qualitative data analysis technique. For this research purpose, the researcher will take the help of mix-method data analysis technique (Bernard, 2011).The researcher will do both qualitative and quantitative data analysis of the collected data. Primary data of the customers will be analyzed with the help of quantitative data analysis technique. Apart from this, the help of qualitative data analysis technique will analyze primary data of the managers. The researcher can present the quantitative analysis in Microsoft Excel. On the other hand, the qualitative analysis will be presented in Microsoft Word page.

This area of research is involved within a car selling company that sells its cars in online method. However, this company has completed its 48 years of car selling process within the competitive sector of the market. This company sells expensive cars like Audi, SEAT, and Volkswagen and other similar cars.

As discussed by Benson and Clay (1998), online marketers often use cloud computing for providing better customer services to the customers. This company provides online selling facilities for the customers. Therefore, it should use cloud computing for effective enterprise resource planning process (Bright, 2009).

ERP can become very efficient with the help of the process of cloud computing. ERP can be able to deliver an integrated approach to the whole view of a business process within the organization. In today’s competitive world, the advancement of technology has influenced every company to utilize systems of cloud computing for the effectiveness of Business Company.  This can be very effective are of researching the essentials of cloud computing for developing the process of ERP within the business aspects of the organization (Bergh and Ketchen, 2009).

These data can be reliable but the researcher can face different ethical issues while collecting the data from the respondents. The managers often cannot provide proper and accurate information as the company is concerned for this purpose (Bryman and Bell, 2011). The researcher will not be able to validate the data, as the customers often cannot provide the real fact about their advantages or choices. On the other hand, the researcher will collect whole data in accordance with the Data Protection Act of 1998. The researcher should maintain the accuracy of the data. The researcher should take prior consent of the respondents for completing the whole research.

Final activities of the research	JUNE	JULY	AUGUST	SEPTEMBER	OCTOBER	NOVEMBER
Selection of the topic	•
Data collection of secondary sources	•	•
Layout framing of the research		•	•
review of the existing  literature		•	•
Research Plan formation			•	•
Stage of selection  of the Appropriate Research strategies				•	•
Data collection from primary sources				•	•	•
Interpretation and analysis of the collected data of Data				•	•	•
Drawing the Conclusion of the research Study					•	•
Process of forming the Rough Draft for the research					•	•
Submission of the Final research Work						•

Table 1: Time horizon for this research

(Created By Author)

This researcher will follow these time horizons for the research purpose. The researcher will collect the data from different primary and secondary sources. In the first month, the researcher will select the topic of the research. In the next month, the researcher will collect necessary data from the secondary sources. In the next month, the researcher will frame the layout of the research. In the next month, the researcher will review the existing literatures of the particular research purpose. In next month, the researcher will form the plan of the research. After this month, the researcher will select particular strategies of the research. After this month, the researcher will start collecting effective information from different primary sources. The process of interpreting the data will take two months to be completed. In this month, the researcher should be able to draw an effective conclusion from the research study. In the last month, the researcher will start to draw conclusion of the research study. This process will be continued in the last month of final submission. In this month, the researcher will finally submit the research.

In this research process, the researcher can face different barriers to completing the whole research. The researcher can face some limitations while conducting the whole process of research. The researcher can face limitations of proper time and budget. These will be the major limitations of this particular research study. The researcher within this research study will face limited period and incomplete budget.  The researcher can also face some accessibility issues while collecting proper data from different sources of primary and secondary sector.

It can be concluded that cloud computing becomes a recent trend in the modern business scenario. However, from the findings and analysis of the research proposal, it can be presumed that there are several tools and techniques that can be evaluated in the process of cloud computing. All the levels and types of cloud computing have been calculated through the process of secondary sources of the research. Also to this, the research has been conducted through the analysis of primary data collection analysis. All the respondents, that is, 60 customers and four managers have interpreted the cloud computing has a positive impact on the enterprise resource planning (ERP) system.

All the research questions namely, the importance of cloud computing system and the importance of ERP system has been evaluated with the help of both primary data and secondary data analysis of the research. In this research, the researcher have conclude to one of the hypotheses of the research i.e. H1 which states that cloud computing has a considerable impact on the overall process of Enterprise Resource Planning system. Also to this, the researcher has also accomplished the fourth and fifth objectives of the research through the analysis of primary data collection i.e. the questionnaire and secondary analysis of the research i.e. the literature review. The researcher will also evaluate the research on the basis of the cross-sectional approach. It can be further interpreted that the research has been conducted by considering all the given elements of the research.

However, the researcher has faced several challenges while conducting the given research study. These research limitations are in the form of time management and cost management. On the opposing, it can be interpreted that the researcher has conducted the research on the basis of ethical considerations. This means no data will be manipulated by the researcher and any of the information has not been disclosed by the researcher to any third person.

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