Shifting to successful ERP implementation projects in the Cloud

S. Roos · Utrecht University Repository (Utrecht University) · 2012

The new Cloud paradigm is arising in the complete IS/IT domain. Many companies adjust their IT-strategies towards this shift. While minor complex systems, like Cloud CRM, are already successfully offered and implemented in the Cloud, the adoption within the Enterprise systems domain faces more complexity and resistance. In this conducted research an initial Cloud ERP Implementation Table is constructed to support scientists and practitioners in the shift to the Cloud Enterprise system; Cloud ERP. To research the adoption aspects of Cloud ERP it is obvious to focus on the factors influencing the success of a Cloud ERP implementation. This is expressed in the main question at the start of this research: “Which factors are critical in the implementation phase of Cloud ERP and to what extent?” A specific focus is made on the implementation phase within the ERP lifecycle because of the broadness of the complete ERP lifecycle. The lack of research and immatureness in the Enterprise Cloud domain impedes this research. To cope with this immatureness the traditional ERP CSFs (Critical Success Factors) research is combined with the general research on Cloud Computing. This is performed with an extensive literature research on both domains. The most impacting and leading research from the traditional ERP CSFs domain is researched thoroughly. This resulted in the selection of the overview research of (Finney & Corbett, 2007). They listed the most cited CSFs for traditional ERP implementations. This list of CSF is used for the further analysis within the Cloud context. New factors were added to the list by identifying those in general Cloud literature. To gather a more complete list of factors for Cloud implementing, two brainstorms sessions were conducted within HSO (implementation partner of Microsoft Dynamics AX). The outcomes of the brainstorms were two new factors which are added to the list of critical factors. The list of factors, with its initiated impacts, is validated with one unstructured and six semi-structured interviews. The semi-structured interviews use a questionnaire which assesses the impact of the factors and its ranking. The results of these interviews are analyzed quantitatively and qualitatively. The Cloud ERP Implementation Table is constructed on these processed results. The Cloud ERP Implementation Table consists of multiple attributes on the CSFs: Level of Impact, Public Cloud Impact, Private Cloud Impact and Organizational Level. Those attributes provide interesting implications on (future) Cloud implementations. The Level of Impact helps selecting the most import factors which can be used by Implementers and Customers to prepare and streamline their organizations for the arising paradigm. In combination with this Level of Impact, the Organizational Level can be used to assess implementation strategies and plans (of those factors) for the different levels within companies. Scientifically the artifact of the research, the Cloud ERP Implementation Table, provides an initial base for interesting and useful future research. The main question is answered with the table. The table provides the list of factors critical for implementing ERP in the Cloud. The extent of the factors is elaborated by the Level of Impact attributes provided by the table. The manageability of Cloud implementing compared to traditional ERP implementations is an interesting additional question. In the context of this research no hard guarantees on this can be stated. It is more likely that the manageability impedes and the implementation risks increases according to the outcomes of this research. This can also be reasoned by the total number of CSFs which increases within the implementation phase of the lifecycle. Also the total change of impact increases. This means that Implementers and Customers should be very well prepared and aware of those factors before implementing and adopting the Cloud. On top of this, they must also be able to steer and manage on the aspects and implications of these factors. When those parties are not able to cope with those two requirements the Cloud is likely to surprise negatively. This research stresses the importance of a thorough vision and strategy according to future Cloud ERP. The delivery and deployment appearances of the future Cloud ERP system aren’t crystallized yet, but it is reasonable that this will develop towards a kind of Hybrid Cloud on an EaaS (ERP as a Service) model. The delivery model is abstracted to an EaaS because the Enterprises should be able to fully use this services no matter how the underlying service is provided (SaaS, PaaS and IaaS). Concluding, the (forced) shift to the Cloud ERP will result in many advantages which can be profitable when Implementers and Customers prepare and steer towards this paradigm. Therefore this research provides an initial proposed artifact (Cloud ERP Implementation Table) and useful future research paths, so supports both Scientists and Practitioners to cope with the arising paradigm.

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