The enterprise resource planning or simply ERP could be eventually stated as one of the integrated controlling of major business procedures in real time. These business processes are solely mediated by technology and software (Leon, 2014). The enterprise resource planning is the significant category of the businesses as the respective management software. There is a specific suite of the integrated applications, which the company could utilize for the purpose of collecting, storing, managing as well as interpreting the sensitive or confidential data from the several business activities (Chiu et al., 2014). This ERP software gives a continuous and integrated upgraded overview of major business procedures with the help of common databases that are maintained by the DBMS or database management system. These systems of enterprise resource planning can easily track the business resources like production capacities, raw materials and cash. Moreover, the status of the several business commitments such as payroll, purchase orders and orders. These types of applications allow this particular system to share the data in each and every department (Shaul & Tauber, 2013). The flow of information between the departments is well facilitated within the business functionalities and hence proper connections are managed with the outside stakeholders with an ERP system.
The following report outlines a brief description on the cloud ERP system and its various features, advantages and disadvantages. The technology of cloud computing is the most important technology to transfer the confidential data from any one location to another. As the information flow from one department to the other is vital, the cloud computing technology is highly required for all organizations (Das & Dayal, 2016). The cloud ERP software often hosts the platform of cloud computing for the purpose of obtaining access of the enterprise’s data centre. The various advantages, disadvantages and features of cloud ERP system will be depicted in this report with relevant details.
The enterprise resource planning software is considered as one of the important and significant software that helps to integrate several business operations and processes (Hoch & Dulebohn, 2013). This particular software comprises of some of the major features and all of these features are provided below:
iii) Reduction of Time Consumption: ERP system helps to decrease the overall consumption of time subsequently and thus the time consumption is kept low. ERP software is popular for each and every company (Matende & Ogao, 2013). The consumption of time even reduces the costs of the organizational processes.
The major benefits of the enterprise resource planning software are provided below:
iii) Cost Effectiveness: The next important advantage of the ERP software would be that this is highly cost effective and hence can be easily afforded by everyone. Since, it does not incur huge costs; any medium sized company has the ability for affording this particular software (Shen, Chen & Wang, 2016). Moreover, the various expenses related to the administration and operations are also reduced the enterprise resource planning software.
Although, the enterprise resource planning software consists of some of the most important and significant features and advantages, there are some of the noteworthy disadvantages that make this software often problematic for the users (Ha & Ahn, 2014). These issues are provided below:
iii) Higher Indirect Costs: Although, this software of ERP is cost effective in nature, the total indirect cost of the software is much higher in comparison to any other software.
Cloud computing is considered as one of the most secured and the safest methodology to transfer data from one location to the other (Arora, Parashar & Transforming, 2013). There is a significant usage of several resources with the cloud computing technology. Some of the most significant aspects of the cloud computing technology are present and all of these are given as below:
iii) On Demand Services: This specific technology of cloud computing helps to provide on demand services and is completely based on self services or service models (Hashem et al., 2015). A proper interaction is required in the cloud technology to perform the required tasks.
The major advantages of the cloud computing technology are given below:
iii) Provides BCP: The business continuity planning or BCP is the next important benefit of this technology.
Although, this system of cloud computing consists of some of the most important features or benefits, few of the important demerits, which make this often at risk for its clients.
iii) No Control: This particular technology has no control on the data or the services and thus is termed as vulnerable for the users.
Cloud enterprise resource planning system is the specific type of ERP software, which could be hosted over the respective proposal of the cloud computing. Their own data centre of any particular company is hosted by this software (Jain & Paul, 2013). There are several different parts in a business, like inventory management, purchasing, finance management, CRM as well as SCM. The several applications of ERP even incorporate some of the major aspects of HCM and HRM. Cloud ERP system can be referred to as the significant kind of SaaS model of the cloud computing that helps to increase the total accessibility through the connection of Internet and even enables its users for sharing and transferring data in every business department and even externally. Real time data transfer is highly encouraged in this software and since this is cloud hosted, the businesses are being notified for any update to software (Antero, 2015). The other characteristics of the cloud based ERP software is that the availability, backup and certain disaster recovery plans are provided for the core purpose of reducing any type of interruption to this software.
The payment modes are also easier in this type of software. The enterprises could easily pay for the utilized resources in every month and a fixed payment of the upfront cost is eliminated (Kurbel, 2016). Since, they is no fixed payment for the resources, the user have to pay for only resources that are being utilized. Moreover, the requirement of the additional hardware or maintenance on site is eradicated and hence the operating costs are decreased. As change is important in every business, the respective enterprises could easily alter the amount that is to be used for the scale resources and cloud services. The most significant dissimilarity between the on premises ERP and the cloud ERP software is the physical location of this software (De Toni, Fornasier & Nonino, 2015). The overall business productivity is majorly incremented with the presence of software and the growth of the business is highly affected by this. The substantial up front expenses for the software and hardware are reduced by the cloud ERP software.
Some of the major and important features of this cloud ERP are as follows:
iii) Customer Service: The third important feature of this software is that it provides customer services constantly and hence the customers are much happier with the organizational services (Sadat Safavi, Amini & Javadinia, 2014).
There are some of the most significant benefits of this cloud ERP system and these advantages are provided below:
iii) Provides DR Plan: The next important benefit of this particular software is that it provides disaster recovery plan and hence the data that is being previously lost, could be eventually recovered (Garg & Garg, 2013).
Although, this system of cloud based enterprise resource planning consists of some of the most important and significant features and advantages, there are some of the noteworthy disadvantages that make this software often problematic for the users (Shaul & Tauber, 2013). All of these demerits of cloud ERP system are provided below:
iii) Difficulty in Data Migration: The respective users often overcome through major difficulties for their migration of data and services. This is mainly because of the complexity of data migration in cloud based enterprise resource planning software.
These above mentioned disadvantages of the cloud based enterprise resource planning software majorly depict that this software is not always feasible enough for the users.
Cloud based enterprise resource planning software is being utilized by various popular and significant organizations for the growth of their businesses easily and promptly. This particular software comprises of some of the major and noteworthy features and advantages that help the businesses to grow rapidly and obtain competitive advantages. Moreover, they are able to reach to their target customers, without having any complexity. One of such popular case study example of an organization using the cloud based enterprise resource planning software is the organization of Living Proof. This is one of the most famous hair care products organization. This organization had been going through major financial issues within their business. The sales of this company were decreasing drastically and they were not being able to overcome the losses. Hence, they took the decision to implement the cloud based enterprise resource planning software in their business. Since, this software helps to integrate the departments and business processes, the total revenue of this organization was again increased eventually and they were able to increment the portfolio of the products. More than 330% of the total revenue of this Living Proof Company was increased and hence more popularity and success were obtained by them. The brand name of this organization even became famous in comparison to any other organization. The sales related issues were thus resolved by this organization without any type of complexity. 30% of the total sales of this organization were increased only in three months. Hence, it could be said that cloud ERP software is extremely useful and important for any specific organization.
Conclusion
Therefore, it could be concluded that cloud ERP system enables its users’ right to use to the software applications, which run on the shared resources through Internet. This cloud ERP helps in reducing the upfront costs for the organizations, since the computing resources could be leased monthly and are maintained by the on premises ERP. This specific software even provides its users the major access to the business related applications irrespective of time and location. There are various features of this software, which help to demonstrate the major characteristics of this specific software, and thus the several advantages or disadvantages could be easily depicted. The first advantage of this cloud ERP system is that it helps to provide utmost flexibility within the organization, and hence the business processes are executed easily and promptly with this particular software. Data security is the next important benefit of this software. There is extremely less chance of data loss with this software and the ability for adjusting the cloud services is also provided here. However, some of the major disadvantages are also present in this software, such as the overall implementation cost of the cloud ERP software is extremely high and hence it is unaffordable to several organizations. The above report has properly outlined the importance of cloud ERP system with its various advantages and disadvantages. The several features of this system are also identified in this research report. Moreover, a real time case study is also taken into consideration for understanding the significance of cloud ERP system.
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