Exploring the Impact of Shifting ERP Systems to the Cloud

Abstract

The demand for improving efficiency, productivity, and business processes through cloud-based enterprise resource planning (ERP) has grown substantially in recent decades. This study aimed to investigate the benefits and challenges of moving traditional ERP to the cloud, as well as the success factors that facilitate the transformation process. To the best of our knowledge, few studies have explored these areas in depth. To achieve the specified aims, semi-structured interviews were conducted with government, semi-government, and private companies that had moved their traditional ERP to the cloud. The data were analyzed using thematic analysis. It showed that the movement to the cloud would bring significant cost savings, standardization of business processes, improved accessibility, mobility, and usability and facilitate rapid implementations and upgrades and strict security standards. However, organizations may face challenges during the transformation process, such as customization limitations, organization, and user resistance, concerns about internet reliability and security issues. To ensure the success of the transformation process, the following typical success factors were identified: business process re-engineering, careful planning of the transformation approach, the quality of the project team, and effective communication. This paper provides valuable insights for businesses considering implementing or migrating to cloud-based ERP.