ERP in the Cloud and the Modern Business

Enterprise Resource Planning

An ERP system is an attempt to integrate all functions across a company to a single computer
system that can serve all those functions specific needs. Integration is the key word for ERP
implementation. It may also integrate key customers and suppliers as part of the enterprises
operation. It provides integrated database and custom-designed report systems.It adopts a set of
best practices for carrying out all business processes.

The Business Value of ERP
At its core, ERP helps employees do their jobs more efficiently by breaking down barriers
between business units. More specifically, an ERP solution:
Gives a global, real-time view of data that can enable companies to address concerns
proactively and drive improvements
Improves financial compliance with regulatory standards and reduces risk
Automates core business operations such as lead-to-cash, order-to-fulfillment, and
procure-to-pay processes
Enhances customer service by providing one source for billing and relationship tracking.

Cloud computing
Cloud Computing is a general term used to describe a new class of network based computing
that takes place over the Internet. It is basically a step on from Utility Computing , a
collection/group of integrated and networked hardware, software and Internet infrastructure
(called a platform), using the Internet for communication and transport provides hardware,
software and networking services to clients.
This platform hide the complexity and details of the underlying infrastructure from users and
applications by providing very simple graphical interface or API (Applications Programming
Interface).In addition, the platform provides on demand services, that are always on, anywhere,
anytime and any place. Pay for use and as needed, elastic, scale up and down in capacity and
functionalities.The hardware and software services are available to general public, enterprises,
corporations and businesses markets.

Cloud Architecture



The Changing Business Environment
We have three main components of the environment which are modifying due to following
reasons.
1. Industry
Competitive Pressures
Cheap Bandwidth &
Storage Multiple Device
2. Customer Choice
Flexibility
Rich Consumer Like Experiences
Ease of acquisition & deployment

3. Delivery Model
Hybrid Model Prevailing
Scalability is Key
Best of Software + Services Worlds
All three are combined now and are interdependent

Cloud ERP Approach
Requirement : Technology is needed to store the large volumes of data used in the changing
business analysis Enormous amount of data that is now available for BI use from all the available
sources, including ERP systems, Web sites, corporate databases, scientific research, Twitter, and
other social networking applications.
So now Cloud computing and mobile technologies are changing where ERP data is stored and
how it is delivered. Business intelligence technologies are turning data in ERP systems into
valuable information.




Cloud computing is not a completely new concept. It represents the latest stage of the
development of computing and the Internet . Cloud ERP is an approach to enterprise resource
planning (ERP) that makes use of cloud computing platforms and services to provide a business
with more flexible business process transformation.
The promise of cloud computing is that it will provide an opportunity for business to completely
transform how it uses and pays for information technology. For example, cloud sourcing legacy
ERP applications might eliminate the need for a business to purchase the necessary server and
storage hardware and maintain it on site.
Cloud enterprise solutions no doubt will have a lot of value to add, not just reducing computing
or IT costs but it also enables one enterprise to connect seamlessly to other enterprises be it their
customers, retailers, suppliers etc, unlike the existing ERP infrastructure it is a nightmare and
enormous spending project to do so. Samsung spent like more than US$ 100 million just to
integrate all its SAP ERPs worldwide into one solution many instances connected.

The other advantage is you can use the solution anytime anywhere since it is on the cloud.
Currently all ERP solutions that is on premise sits within the company LAN which means you
have to go through a VPN to access your system when you are out of the LAN. This inhibits the
convenience and productivity of employees.

However despite all the optimism and future of Cloud solutions, it will take sometime to reach to
the big companies. Hence the early adopters will be the smaller companies who wanted to take
advantage of the cost saving and resource savings of having cloud ERP. After which the
midsized companies will start to use it and eventually the big companies.
The speed of whether Cloud enterprise solutions will come to a full explosion will depends on
how our internet speed, data storage capacity, computing power will take us from here.
These limitation across the globe are still inhibiting the growth of the cloud solutions.