Importance Of Cloud-Based ERP Solutions For Business Growth And Effectiveness

Implementation Plan for Cloud-Based ERP Solutions

This report depicts the importance and essential necessity of implementing cloud based ERP solution in any business organization. The cloud based ERP solution has come across a long direction not only in terms of increasing business effectiveness and commercial growth but also focusing on multiple business activities (Demi and Haddara 2018). The major sub types of the innovation are elaborated in this report. Apart from that, the paper also demonstrates important milestones associated to the cloud based ERP solution implementation plan.

The executives and project heads of all organizations are required to follow professional project management tools and practices before implementing the cloud based ERP solution. In order to gain long term and continuous business success innovation of ERP solution is very helpful. The organizational business process will be accelerated through the implementation of the cloud based ERP solution. It will provide a competitive edge to the business organizations. A timetable and a cost chart for the innovation project are also illustrated in this report.

Different types of ERP solution are available in the market and based on organizational operation features and activities the suitable ERP solution needs to be chosen for the business organization. The types of ERP solutions those are mainly implemented in the business organizations are elaborated in the below section:

• Generalist ERP
• Open source ERP
• Vertical ERP
• Small business ERP

Milestone	Duration Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Responsible person
Project initiation phase	12 days	Project manager, finance manager, operational manager and
Project planning phase	20 days	Operation manager, system developer, designer,
Project execution phase	25 days	System designer, developer, project manager, business analyst
Project monitoring and control phase	12 days	Chief Information Security Manager, system tester and project manager
Project closure phase	10 days	Project manager

Organizational innovation, its relationship and persistence along with innovative technologies influence the performance of the business organization. Utilizing integrated organizational level data set innovation can be obtained precisely (Fowley et al. 2017). The Enterprise Resource Planning (ERP) serves different services in terms of customer web portal, distribution, time and project, finance, manufacturing, purchasing, customer relationship management and sales. The ERP system helps to improve the relationship between consumers and service providers. The despondent consumers would swing in competition to help while voicing the disappointment via different portal of social media (Meganathan and Jeyanthi 2016). The ERP system offers high usefulness so that the key procedures can deliver high commercial success. The companies which provides innovative services are capable to offer up to date demand forecasts to improve the announce capacities during expansion of the benefits and making extra value of clients. The cloud based ERP solution gives data backup abilities that means that if data is found to be lost from the server can be retrieved easily (Mezghani 2019). On the other hand, the overall business and application efficiency gets improved with this innovation. Apart from this, disaster recovery is the other profit that can be achieved with the application of a cloud based ERP solution. The ERP solution use business data for improving and strengthening the business security (Jain and Sharma 2016). It helps to make use of community knowledge so that the company can stay on the top of the regulation. These approaches give the employees much power to increase power so that revenue can be generated. The business organizations that use ERP solution would be able to take better beneficial decision. The style of security sense gets improved with regulatory compliance and general accepted accounting principles.  Moreover, it can be said that the challenges of ales, consumer acquisition, revenue, manufacturing outputs and web traffic will be completely minimized. Though, incorporation of real time KPI is the other needful approach that helps to improve the organizational

Example

Types of ERP Solutions Suitable for Business Organizations

Most of the large business organizations use cloud based ERP solution in these days to improve the business effectiveness and competitive growth.

Amazon web service: The Company Amazon is a cloud vendor and also uses cloud based ERP solution in their business to increase the sales and revenue rate. With the implementation of ERP solution it has successfully improved their business efficiency (Deshmukh, Thampi and Kalamkar 2015). In fact the relationship between the consumers and services providers has also been improved a lot with such design and development innovation.

IBM: IBM is the other MNC that uses cloud based ERP solution in their organization to retain reliability, flexibility, security. They have been successfully able to store huge set of information with high security. It implies that none of the users would be able to access information from the server without proper permission. This is one of the most cost effective solutions identified and used these days (Meganathan and Jeyanthi 2016). Management of the information set will also become easier and time savings. The business operation and functional management would also implement in a flawless manner. Complete customization will also improve the reporting and planning approach. The system will offer collaboration and workflow approach. The business organizations that use ERP solution develops the supply chain management to facilitate the regulatory compliance. 

For future development and innovative success some recommendations are also elaborated:

Incorporating training and development program: The company owner should incorporate timely training and development program for the working employees. It will help them to become technically knowledgeable and skilled as well. On the other hand, disruptive, application, product, marketing, integration and value engineering are the innovation types regarding which the business organizations will be able to gain more knowledge.

Encryption mechanism: In order to secure the information stored in the server proper encryption mechanism should be incorporated (Nguyen and Luc 2018). It is expected that, encryption mechanism will secure the information and none of the unwanted user would be able to access any information without permission. The encrypted data cannot be decrypted without proper access and presence of shared key.

Documentation of the requirements: At the project initiation phase, the project scope should be designed and developed. The shared project scope needs to be followed and maintained by all the business associates. These requirements should be documented in a preliminary draft and must be approved by the project manager (Venkatraman and Fahd 2016). The objectives that the head of the business organization requires to achieve must setup baseline at the initiation phase. Strong project management prcatices, resource management plan and stakeholder management plan needs to be incorporated by the business organization.

Benefits of ERP Solutions for Business Organizations

Timetable

The timetable that needs to be followed by the business associates and organizational head while implementing innovation and cloud based ERP solution the timetable requires to be followed is as follows:

Costs/charts

Task Name	Duration	Start	Finish	Resource Names	Cost
Developing project schedule	79 days	Tue 3/26/19	Fri 7/12/19		$16,880.00
Project initiation phase	12 days	Tue 3/26/19	Wed 4/10/19		$2,560.00
Scope statement design	4 days	Tue 3/26/19	Fri 3/29/19	Project manager	$960.00
Feasibility study	4 days	Mon 4/1/19	Thu 4/4/19	finance manager	$704.00
Detail innovation plan	4 days	Fri 4/5/19	Wed 4/10/19	operation manager	$896.00
Project planning phase	20 days	Thu 4/11/19	Wed 5/8/19		$4,200.00
Outlining the ERP system prototype	10 days	Thu 4/11/19	Wed 4/24/19	operation manager	$2,240.00
Selection of vendor	5 days	Thu 4/25/19	Wed 5/1/19	system developer	$760.00
Incorporating cloud features to the ERP solution	5 days	Thu 5/2/19	Wed 5/8/19	Project manager	$1,200.00
Project execution phase	13 days	Thu 5/9/19	Mon 5/27/19		$3,848.00
Defining the driving expenses	5 days	Thu 5/9/19	Wed 5/15/19	Chief Information Security Manager	$1,000.00
Identifying the value conveyed	7 days	Thu 5/16/19	Fri 5/24/19	operation manager	$1,568.00
Access undertaking, services and contracts	8 days	Thu 5/16/19	Mon 5/27/19	system designer	$1,280.00
Project Testing	25 days	Mon 5/27/19	Fri 6/28/19		$4,080.00
Unit testing	10 days	Mon 5/27/19	Fri 6/7/19	system tester	$1,440.00
integrated testing	5 days	Mon 6/10/19	Fri 6/14/19	Project manager	$1,200.00
Acceptance testing	10 days	Mon 6/17/19	Fri 6/28/19	system tester	$1,440.00
Project closure phase	10 days	Mon 7/1/19	Fri 7/12/19		$2,192.00
Stakeholder signoff	3 days	Mon 7/1/19	Wed 7/3/19	Project manager	$720.00
Submission of final project draft	4 days	Thu 7/4/19	Tue 7/9/19	Chief Information Security Manager	$800.00
Final design documentation	3 days	Wed 7/10/19	Fri 7/12/19	operation manager	$672.00

Conclusion

From the overall discussion it can be concluded that, innovation is referred to as a key for commercial growth. As fast as the organizations will include new technical services that sooner the company would be able to reach their preliminarily decided goals and objectives. This is the reason for which cloud has become one of the most preferred ERP solutions. Cloud based ERP offers scalabilities, flexibilities, reliabilities to the innovations. The other features those are offered by cloud based ERP solution include application resilience, disaster recovery and data backup. The data server needs to store all needful information and should also secure those with needful security mechanisms in terms of cryptography, application firewall and DMZ. Moreover, it has been determined that managing innovations are mandatory to gain commercial success and competitive advantages in the marketplace. 

References

AlBar, A.M. and Hoque, M.R., 2015, April. Determinants of cloud ERP adoption in Saudi Arabia: an empirical study. In 2015 International Conference on Cloud Computing (ICCC)(pp. 1-4). IEEE.

Demi, S. and Haddara, M., 2018. Do Cloud ERP Systems Retire? An ERP Lifecycle Perspective. Procedia computer science, 138, pp.587-594.

Deshmukh, P.D., Thampi, G.T. and Kalamkar, V.R., 2015. Investigation of quality benefits of ERP implementation in Indian SMEs. Procedia Computer Science, 49, pp.220-228.

Fowley, F., Elango, D.M., Magar, H. and Pahl, C., 2017. The Role of Experimental Exploration in Cloud Migration for SMEs. In CLOSER (pp. 301-306).

Gupta, S., Misra, S.C., Singh, A., Kumar, V. and Kumar, U., 2017. Identification of challenges and their ranking in the implementation of cloud ERP: A comparative study for SMEs and large organizations. International Journal of Quality & Reliability Management, 34(7), pp.1056-1072.

Haddara, M., Fagerstrøm, A. and Mæland, B., 2015. Cloud ERP Systems: Anatomy of Adoption Factors & Attitudes. J. Enterp. Resour. Plan. Stud, 2015, p.22.

Jain, D. and Sharma, Y., 2016. Cloud computing with ERP-A push business towards higher efficiency. Annaul Research Journal of SCMS Pune, 4.

Meganathan, R. and Jeyanthi, P., 2016. Adopting Cloud ERP in Small and Medium Enterprises: Benefits and Challenges. International Journal on Recent and Innovation Trends in Computing and Communication, 4(11), pp.180-183.

Mezghani, K., 2019. From On-Premise ERP to Cloud ERP. In Advanced Methodologies and Technologies in Business Operations and Management (pp. 816-826). IGI Global.

Nguyen, T.D. and Luc, K.V., 2018, November. Information Systems Success: Empirical Evidence on Cloud-based ERP. In International Conference on Future Data and Security Engineering (pp. 471-485). Springer, Cham.

Sørheller, V.U., Høvik, E.J., Hustad, E. and Vassilakopoulou, P., 2018. Implementing cloud ERP solutions: a review of sociotechnical concerns. Procedia computer science, 138, pp.470-477.

Venkatraman, S. and Fahd, K., 2016. Challenges and success factors of ERP systems in Australian SMEs. Systems, 4(2), p.20.