Factors of Cloud Solutions Choice for ERP-Systems of Industrial Enterprises.

Authors

  • Elena Nyemkova PhD, Associated professor, National University «Lviv Polytechnic», m.Lviv, Ukraine
  • Olena Orlova PhD, Associated professor, Precarpathian Institute named M.Grushevsky IAPM, Ukraine

DOI:

https://doi.org/10.31498/2225-6407.17.2018.147183

Keywords:

ERP-systems, cloud technologies, business strategy, business analytics, business case, IT strategy, business efficiency.

Abstract

The article is devoted to consideration of the factors on the basis of which industrial enterprises can make a choice to ensure success in implementing cloud solutions of enterprise resource planning systems (ERP-systems). The following main factors were considered: the cost of cloud technologies for most enterprises, expressed as a percentage of annual income; ERP project implementation time in months; most popular software vendors; ERP-systems deployment options - local and cloud. Numerical data on the selection factors for a large number of respondent enterprises in 2018 are given. It is shown that the choice of the cloud implementation of ERP systems should be considered the main trend. The technological prospects were analyzed for the implementation of cloud ERP-systems, as well as the benefits that companies receive from such an implementation. The following benefits were considered: better business analytics, fast implementation, high usability, the ability to focus on core competencies, cost savings and data security. It was noted that the creation of a business case, performance indicators and benefits realization plan helps with the definition and measurement of the success of the enterprise, recording both pain points and opportunities for improving business efficiency. Another advantage is the establishment of responsibility for the benefits achieved and the management of expectations. The introduction of cloud ERP-system entails significant risk. To reduce the risk, the choice of the cloud solution of an ERP system by an industrial enterprise should be based on an understanding of the interaction of its business strategy and IT strategy. It is concluded that the best choice for an industrial enterprise will depend on its organizational structure and business strategy. The benefits for which the ERP technology is being implemented will depend on the execution of the project before, during and after its implementation.

References

Список використаних джерел:

1. Топ 10 Українських SaaS сервісів. Електронний ресурс, режим доступу: http://www.livebusiness.com.ua/tools/saasua/.

2. Panorama Consulting Solutions. Електронний ресурс, режим доступу: https://www.panorama-consulting.com.

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4. А.И. Грачев и О.А. Страхов, "Сравнительная характеристика способов построения облачных ERP-систем," Прикладная информатика/Journal of Applied Informatics, 2018, vol.13, no.4(76), с.84-89.

5. D. Reuther and G. Chattopadhyay, "Critical factors for enterprise resources planning system selection and implementation projects within small to medium enterprises," in Engineering Management Conference, 2004. Proceedings. 2004 IEEE International, 2004, vol.2, pp. 851-855.

6. S. Y. Huang, S. Huang, T. Wu, and W. Lin, "Process efficiency of the enterprise resource planning adoption," Industrial Management & Data Systems, 2009, vol. 109, pp. 1085 - 1100.

7. S. Maguire, U. Ojiako, and A. Said, "ERP implementation in Omantel: a case study," Industrial Management & Data Systems, 2010, vol. 110, pp. 78 - 92.

8. A. Madapusi and D. D'Souza, "The influence of ERP system implementation on the operational performance of an organization," International Journal of Information Management, 2012, vol. 32, pp. 24-34.

9. R. Jha and A. K. Saini, "ERP Redefined: Optimizing Parameters with Lean Six Sigma for Small; Medium Enterprises," in Communication Systems and Network Technologies (CSNT), 2011 International Conference on, 2011, pp. 683-687.

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11. R. A. Burgelman, C. M. Christensen, and S. C. Wheelwright, Eds., Strategic Management Of Technology And Innovation. Boston: Mcgraw Hill, 2009.

Referenses (BCI):

1. Тоp 10 Ukrainskih SaaS servisiv. Electronic resource, access: http://www.livebusiness.com.ua/tools/saasua/ [in Ukrainian].

2. Panorama Consulting Solutions. Electronic resource, access: https://www.panorama-consulting.com.

3. Ravi Seethamraju. Adoption of Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems in Small and Medium Sized Enterprises (SMEs). Inf Syst Front (2015) 17:475–492, DOI 10.1007/s10796-014-9506-5.

4. А.I. Grachev and О.А. Strahov, "Sravnitelnaya harakteristika sposobov postroeniya oblachnyh ERP-system," Prikladna Informatika/Journal of Applied Informatics, 2018, vol.13, no.4(76), с.84 – 89 [in Russian].

5. D. Reuther and G. Chattopadhyay, "Critical factors for enterprise resources planning system selection and implementation projects within small to medium enterprises," in Engineering Management Conference, 2004. Proceedings. 2004 IEEE International, 2004, vol.2, pp. 851 - 855.

6. S. Y. Huang, S. Huang, T. Wu, and W. Lin, "Process efficiency of the enterprise resource planning adoption," Industrial Management & Data Systems, 2009, vol. 109, pp. 1085 - 1100.

7. S. Maguire, U. Ojiako, and A. Said, "ERP implementation in Omantel: a case study," Industrial Management & Data Systems, 2010, vol. 110, pp. 78 - 92.

8. A. Madapusi and D. D'Souza, "The influence of ERP system implementation on the operational performance of an organization," International Journal of Information Management, 2012, vol. 32, pp. 24 - 34.

9. R. Jha and A. K. Saini, "ERP Redefined: Optimizing Parameters with Lean Six Sigma for Small; Medium Enterprises," in Communication Systems and Network Technologies (CSNT), 2011 International Conference on, 2011, pp. 683 - 687.

10. C. Low, Y. Chen, and M. Wu, "Understanding the determinants of cloud computing adoption," Industrial Management & Data Systems, 2011, vol. 111, pp. 1006 - 1023.

11. R. A. Burgelman, C. M. Christensen, and S. C. Wheelwright, Eds., Strategic Management Of Technology And Innovation. Boston: Mcgraw Hill, 2009.

Published

2018-05-31

Issue

Section

Статті