A Framework for ERP Systems in SME Based on Cloud Computing Technology

Abstract

Present Enterprise Resource Planning (ERP) offers expensive models which are hard to implement in Small and Medium Enterprises (SME) due to budget limitations. Moreover, current ERP systems are associated with several issues such as mutual synchronization of multi-typed resources, limited customization, bulky upgrading cost, solution integration, industry functionality, backup hedge and technology updates. These issues render ERP systems implementation painful, complex and time consuming and generate the necessity of a massive change in ERP framework to enhance ERP systems infrastructure and functionality. Cloud Computing (CC) platforms possess the ability to overcome ERP systems discrepancies with cost-effective, customized and highly available computing resources. The goal of this research is to merge ERP and CC benefits together to reduce the factor of expenditure cost and implementation delays through a proposed framework. For this purpose, we firstly analyze the prominent issues in current ERP systems through a comprehensive comparison between ERP before and after moving to CC environment. Secondly, we propose a generic framework for “Cloud-based ERP systems” in favour of SME. The proposed framework follows multi-instance based cloud infrastructure that initiates different ERP instances for different industries. Finally, the feasibility and efficiency of the proposed framework is tested through the study of the ERP system in “Awal” Company.