Configuration as a Service in Multi-Tenant Enterprise Resource Planning System

Abstract

Abstract-Enterprise resource planning (ERP) systems are the organizations tickets to the global market. Thus, organizations can manage and coordinate all functions, processes, resources and data from different departments by a single software. However, many organizations consider the cost of traditional ERP is expensive and look for alternative affordable solutions within their budget. One of these alternative solutions is providing ERP over a software as a service (SaaS) model. A key feature of any SaaS system is the multi-tenancy architecture where multiple customers (tenants) share the system software. However, the SaaS developers accommodate each tenant's unique requirements by allowing tenant-level customization or configuration. While customization requires source code changes and in most cases a programming experience, the configuration process allows user to change many features within a pre-defined scope in an easy and controlled manner. Although literature provides many techniques to accomplish the configuration process in different SaaS systems, the nature and complexity of SaaS ERP are merely described in previous researches. Thus, this research is built on strong knowledge regarding the configuration in SaaS to define specifically the configuration borders in SaaS ERP and to design a configuration service with the consideration of the different configuration aspects.Index Terms-Configuration, software as a service, multi-tenancy, ERP.

New Implications for Customization of ERP Systems

“…cloud ERP has gained ground. The delivery model most used for cloud ERP is SaaS [44] but PaaS solutions are also becoming more common. The provisioning of ERP through the cloud also differs a lot, from fully multitenant as in for example 24SevenOffice, through a combination of multi-tenancy and single tenancy as in Oracle business suite to the single instance solutions offered by Lawson in cooperation with Amazon.…”

“…Compared to other cloud enabled systems, ERP systems are integrated software packages and have multiple services integrated in single software [44]. Configurations in regard to cloud ERP can therefore be expected to have more apprehensions than for other cloud-based systems [44].…”

“…Configurations in regard to cloud ERP can therefore be expected to have more apprehensions than for other cloud-based systems [44]. Reference [24] argues that cloud might weaken the ability of enterprises to innovate due to customization issues.…”

“…Further, [45] show that customized software is more strongly supporting innovation capability within a company as opposed to standard software solutions. Compared to on-premise ERP, customization of cloud ERP has been identified as one of the main obstacles [22][23] while advanced configuration possibilities are considered a key factor for success [44,46].…”

“…It is also important, both for customers and vendors of cloud ERP to understand the aspects of customization in cloud ERP to be able to manage their systems efficiently and deliver full value to their businesses [19,44]. Already in 2008 reference [19] stated that ERP vendors, supplying cloud solutions, needed to create a strategy for the enabling of customization by their customers themselves.…”