Evolution of ERP systems in the cloud: A study on system updates

Abstract

Cloud-based enterprise resource planning (ERP) systems emerged around the new millennium, and since then there has been a lack of research regarding the evolution and update processes of these systems. From the users’ perspective, updates in a traditional on-premise ERP system are carried at their own request; while cloud-based ERPs are compulsory updated. Through an established ERP lifecycle framework, this study investigates how the process of updates is conducted in a cloud ERP context, from both the users’ and vendors’ perspectives. A multiple case study was conducted in Norway at 10 client organizations, as well as a cloud ERP vendor. Our main findings suggest that the vendor and the users view the process of updates differently. The main challenges with the process of updates from the users’ perspective are the size and date of the updates, lack of information and communication during the process, and extinction of certain functionalities. Yet, the main advantages are that all system users will always have the same version of the system, users do not need to spend time on updating the system and paying attention to the ERP market, which leads to more focus on their core competences instead.