Explain how the implementation of cloud computing relates to an organisations strategy and how it could affect a company’s value chain. Use a recent announcement by a company to illustrate your explanation?
(Awad, H. (2014) stated that a special type of the computing which is mainly relies on the basis of doing the sharing of the computer resources to a certain extent so that it becomes more easy to handle the personal devices and also the applications. It is mainly one of the types of the ‘internet based computing’ which offers various services which includes applications, storage and the server. Cloud computing is mainly used in the traditional supercomputing which is mainly used to provide the storage data and also the immersion in the computer games.
This whole assignment is parted into 2 parts. In the first part it mainly deals with the proper implementation of cloud computing and also how it relates to the organizational strategy and also how this relation causes an effect in the value chain of the company. Then in the second part it mainly tells about how the ERP can help in the value add and also deals how to stay away from the potential risk at the time of the implementation of the solution of the cloud based ERP.
In the relation of the organization strategy, the implementation of the cloud computing and also it causes effects on the company’s value chain with the much possibility to do the changes which are listed below (Awad, 2014):
Value delivery: It mainly deals about the proposition of the values with all over the delivery cycle and also ensures how IT does delivery of the benefits on the basis of the strategy and also by putting the concentration on the optimization of the costs and also the availability of the inherent values of IT. Through the cloud computing it offers the several options which can also changes the features of the model and also needs to free up of the more IT budget on the basis of the innovation and also the association supports and the utilization of the hard ware. Some of the tools which are mainly based on the cloud computing enables the prototyping rate and also the allowing the quick delivery of all the applications mainly the business applications. With the potentiality of the cost saving the projects which were cost prohibited now get the fund so that it can get the support from the additional projects. With the availability of the right type of the strategy and also the combination of the advancement of the technologies, IT can deliver the more values with the potentiality of the less money. So that to ensure the appropriate value being delivered, the IT firms needs to take hold of internal cost structure of the organization in order to drive the investments more correctly (End-user satisfaction in ERP system: application of logit modeling, 2014).
Risk management: It is also one of the most critical areas which are greatly impacted by the implementation of the cloud computing. There also arise some of the critical questions by conveying the cloud computing in to the existing ecosystem of IT. It also mainly based on the protection of the data and also the continuity of the business which includes the impacts of the recovery plan of the disaster, restoration and the backups of the data documentation policies and also plans of the business continuity is affected. In this cloud it also includes the quicker of the cloud completion by doing the provision of the resources with the help of the cloud and also the uses of the cloud resources so that it can speed up the prototyping and also the high rate efficiency by doing the proper use of the personnel resources and the funding. IT organizations also need to do the review and also the adjustment of the measurements and also the metrics as per their requirements (Hussain and Abdulsalam, 2012).
Resource management: Resource management is also one of the key challenges for the department of the Information technology under the governance of the corporate sector. With the availability of the varieties of the ways, the resources get available for doing the effective management under the effect of cloud computing. Through the cloud computing technology, it helps in removing of all the barriers and also does the effective interaction between the suppliers and the clients so that it can helps in the proper understanding of the increase percentage of the value chain in doing the better business.
Addressing of the risk equation: Cloud computing possess the greater ability to do the proper mitigation of the risk mainly on the basis of the evaluation of the changes and also on the inheritance of the risk. The service delivery models and the policies, the robust matrices of the cloud computing takes account the storage of the sensitive data. Apart from this, the available models and policies of cloud computing takes the regulation of control of the data, offering of the data security and also the issues on the compliance basis. The important effects of cloud computing is the circumstances of doing the data recovery. Moreover, cloud computing also allows the international law of data access and also the implication of the taxes for doing the business strategy on the basis of which they can expand the business also on the international background (Awad, 2014).
Transformative impact: To do the proper creation of the new opportunities for doing the business for any of the organization in doing the business, the cloud computing techniques and the tools becomes most powerful and also most efficient in nature. It also has the ability to do the facilitation of the services, businesses and also the revenues. In the context of the value chain management process, the one of the effective method of creation in the terms of doing the timely interaction among the customers and the marketers is also known as cloud computing. Also in the perspective of the information technology, the services of cloud computing offers consistency, cost reduction, speed, agility etc. The other types of the functional activities which mainly occurs in the business organization includes the proper monitoring of the staffs, maintenance of the database and also the daily updating, personnel management cloud computing becomes the innovative resources. Cloud computing occurs transformative impacts on the rapid growth of the corporate industry which includes customer relationship management, information technology, human resource management etc.
Several providers of cloud services which are available in the market are OS, Apache, and MySql etc.
Here order to increase the performance of the organization and also by preparing the system of the best accounting information, the business sector organization needs to engage the Enterprise Resource Planning (ERP). It is also an incorporated system which can simply create the organizational process in a single process. SAP is the one necessary supplier of the ERP system for doing the business. Conversely, it is also noticed that ERP is one of the biggest information technology platform which not executed properly. Due to this, the company also faced more troubles to do the proper execution of the program. Furthermore, the development of the ERP system is more costly in nature. For the small business firm it becomes very much impossible to do the proper implementation of the ERP system. To meet the rapid development of the technology growth, the ERP suppliers’ needs to initiate the process of cloud computing for the implementation of the ERP solution in the business organization. It becomes cost effective in nature and also becomes easier to do the proper execution. The concept of the plans of the cloud based ERP solution introduces the moving facility of the resources from the software service to the platform service. The implementation of cloud ERP in the business of the organization helps them to deliver some of the high quality benefits (Illeris, 2014):
Reduction of the total cost of ownership: cloud based ERP solution allows the organization in doing the proper building of the application with the low budget and also allow to do the access. It also helps to maintain their analytical report, HR department; CRM etc. cloud based ERP system helps to generate the automatic process and also helps to decrease the software and the hardware requirements and also the IT teams of the organization.
Better arrangement of investment in IT: in the cloud based ERP it needs the less capital than the traditional ERP. The cloud based ERP system solution is more flexible in nature rather than the other traditional ERP system. To do the development of the ERP system, the organization needs to put up with the little improvement in the technologies. Hence, () recommended that the cost of the costs of the solution of the cloud based ERP system can go up and down on the basis of the organization infrastructure. The third party vendor needs to take the full responsibilities in doing the proper development of the cloud based ERP system. On the basis of this, companies of the business industry can improve their IT investment in a better way. For an instance, if the organization implements the cloud based ERP system it helps the organization in doing the monitoring of the whole system and also ensure the system up gradation (Supramaniam, Abdullah and Ponnan, 2014).
Access on global basis: the cloud based ERP system gives the opportunities to all the employees and the staffs to do the proper accession of the information. On the other hand, the cloud based ERP system was offered by some of the large organization which include Amazon, Google, and Microsoft etc. As a result the risk of the information threats in doing the accession from the outside of the office becomes lower in nature. With the availability of the internet, it becomes easy to do the proper accession of the information from the anyplace.
Dynamic solution of business: the cloud based ERP system becomes the effective and also the efficient resources through which it can scalable the costs. It also allows in doing the purchasing of the large amount of the resources. So the accessible IT staff can give more focus on adding the values of the projects to maintain the every day’s operations (Wang, 2014).
Solution of all sized organization: the cloud based ERP system helps to do the connection of the entire business process in the one system so that the information of the supplier, clients etc.
Risk which needs to avoid at the time of the implementation of the cloud based ERP system:
To do the implementation of the cloud based ERP system solution inside the organization, it also can face some of the risks. For doing the implementation of the ERP system it needs to avoid some of the risks which include (Tari, 2014):
Violation of security: the violation of the security is one of the key risks which occur at the time of the implementation of the cloud based ERP solutions due to the third party implementation of the ERP system. Due to the presence of the leakage of the any information based on the security may rise to the several types of the risks. So to avoid the security risk at the time of the implementation of the cloud based ERP system it needs to follow some of the rules and the regulations (Velu and Jacob, 2014).
Apprehension of business owner: the business owner needs to involve more closely with the involvement of the implementation process of the ERP system. Due to this result, the third party of the vendor incapable to do the proper implementation of the ERP system and also needs to install and also to describe the entire process more clearly on the basis of the proper requirement of the organization.
State and Federal regulation: it is also the other factors in which it needs to consider to avoid the risk at the time of doing the implementation of the cloud ERP solution. So to avoid the risk of the implementation of the cloud based ERP system needs to involve some of the rules and the regulation so that it can cover up all the information or the sensitive data specially the organization like health care organization, financial organization etc (WANG et al., 2014).
Conclusion
In this whole study it concluded the whole impacts of the cloud computing in the corporate strategy and the value chain and also causes the effects of the cloud based ERP system in the context of the business. It also needs to suggest the solution to avoid the risk at the time of the implementation of the cloud based system of the ERP solution in business.
References
Awad, H. (2014). Investigating Cloud ERP Challenges in Public Universities in the Middle East “Field Studyâ€Ã‚Â. IOTCC, 2(3), p.12.
Awad, H. (2014). Investigating Cloud ERP Challenges in Public Universities in the Middle East “Field Studyâ€Ã‚Â. IOTCC, 2(3), p.12.
End-user satisfaction in ERP system: application of logit modeling. (2014). Applied Mathematical Sciences.
Hussain, M. and Abdulsalam, H. (2012). Software quality in the clouds: a cloud-based solution. Cluster Computing, 17(2), pp.389-402.
Illeris, K. (2014). Transformative Learning and Identity. Journal of Transformative Education, 12(2), pp.148-163.
Supramaniam, M., Abdullah, A. and Ponnan, R. (2014). Cost Analysis on ERP System Implementation amongst Malaysian SMEs. International Journal of Trade, Economics and Finance, pp.72-76.
Tari, Z. (2014). Security and Privacy in Cloud Computing. IEEE Cloud Computing, 1(1), pp.54-57.
Velu, C. and Jacob, A. (2014). Business model innovation and owner-managers: the moderating role of competition. R&D Management, p.n/a-n/a.
Wang, h., warner, m., tian, y. And zhu, d. (2014). Public owner with business delivery mode in china: case study of the shanghai public bus system. Annals of Public and Cooperative Economics, 85(1), pp.147-164.
Wang, J. (2014). Design of Stadium Management ERP System. AMR, 926-930, pp.4709-4712.
Weng, F. (2014). Competition and Challenge on Adopting Cloud ERP. International Journal of Innovation, Management and Technology.
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