Moving enterprise resource planning (ERP) systems to the cloud: the challenge of infrastructural embeddedness

Abstract

Cloud enterprise resource planning (ERP) solutions allow organizations to support and coordinate key business processes by leveraging virtualization. Nevertheless, moving ERPs to the cloud is not straightforward, and organizational cloud ERP initiatives raise multiple concerns. We conducted an in-depth systematic review of relevant research literature and identified six key concerns related to cloud ERP implementation: a) the introduction of new ERP work arrangements, b) the migration of legacy data, c) the assurance of compliance with extant rules and regulations for security, d) the continuous alignment between ERP functionality and business processes, e) the ongoing integration between ERPs and the rest of the organization’s application portfolio, and f) the establishment of adequate reliability levels. The identified concerns are associated with both transition management and operations supported by cloud ERPs. All the identified concerns are also related to the need to achieve infrastructural embeddedness. This need sets ERPs apart from other types of cloud-based applications, such as office automation solutions that do not have as many dependencies and exchanges with other systems and repositories within an organization’s information infrastructure. We argue that the challenge of embeddedness has different implications for organizations of different sizes, and we call for further empirical research.

Bridging the Nexus Between Cloud ERP and Enterprise Resilience

“…Additionally, extensive collaboration and functional intersections across organizational boundaries make business partners more flexible and agile to adapt to change (Elgohary, 2019;Liu et al, 2018;Tongsuksai, 2023). Therefore, based on the beneficial effects of cloud ERP such as scalability, agility, data security, and transparency, it is capable of improving ER response capabilities in times of uncertainty (Hustad et al, 2020;Ma et al, 2021;Shajrawi, 2023). For example, cloud ERP possesses the capability to transform conventional risk management and mitigation processes, into cloud ERP-enabled resilience management by stipulating multi-layered protection (Borangiu et al, 2019;Margherita et al, 2021;Polireddi & Sekhar, 2023).…”

“…Wang et al, 2022). Regarding the response, cloud ERP enables enterprises to respond timely to market changes such as customer requirements through asset tracking, information sharing, and order fulfillment automation (Hustad et al, 2020;Ma et al, 2021). As for the recovery, cloud ERP plays a facilitative role in enhancing cutting-edge capabilities, including real-time reconfigurations, increased data retention, redundancy or disaster recovery and thus rebounding emergency plans in case of unprecedented events (Jesus & Lima, 2021;Pirmanta et al, 2021).…”

A Structural Framework for Assessing the Digital Resilience of Enterprises in the Context of the Technological Revolution 4.0

“…Organizations, regardless of size, driven by the need for higher productivity and lower costs, are moving their application portfolio to the cloud. In addition to the many benefits of migrating applications to the cloud, there are several critical challenges that companies face while adopting the cloud [51,52], which have different implications depending on the size of the organizations [53], the variety of cloud providers [54], and whether managers choose evolutionary or transformative digital migration [55]. Thus, an assessment of cloud running costs and accessibility of migration [56], as well as security issues (threats and attacks that may occur), is needed to take appropriate countermeasures.…”

Procesos operativos y sistemas de planificación empresarial y su incidencia en las Mypes

“…En la actualidad, existen cambios que están determinando en gran medida la dinámica de las empresas, entre ellas: la competencia y la internacionalización de los mercados, junto a estos, la disminución de las barreras comerciales, el acceso a la información y los avances tecnológicos" (Castañeda, 2014, p. 130). Con el arribo de la pandemia, muchas empresas se han visto en la necesidad de cambiar por lo que ha sido necesario la creación de sistemas que no solo creen innovación sino, además, tecnología para alcanzar el éxito, así como la satisfacción en los clientes (Hustad et al, 2020;Refri y Nugroho, 2021) De allí que las organizaciones y empresas ameritan nuevas y destacadas formas para su avance y rendimiento. Uno de estos factores son los sistemas de planificación cuyo objetivo estriba, en la organización no solo de los recursos existentes, sino también de su personal.…”