Flexibility and improved resource utilization through cloud based ERP systems: Critical success factors of SaaS solutions in SME

Abstract

The following paper investigates the changes of the critical success factors of ERP implementations caused by the technology “cloud computing” and by the product innovation in the area of system configuration as well as of the provided services. The methodology used is a differential analysis of the classical ERP system SAP R/3 and the on demand solution SAP Business ByDesign. The purpose of this paper is to examine whether the entrance barriers for small and medium-sized enterprises to the ERP market indeed decrease because of the business model “cloud” and the innovative configuration. As a result of these changes in technology critical success factors of ERP implementation in SME are deduced. Furthermore, specific criteria of a value benefit analysis are selected in order to support decision makers of small and medium-sized enterprises whether to implement a SaaS system.