MIS2101 Section 702 – Amy Lavin – Spring 2014

Will Disruptive Cloud Computing Kill Enterprise Resource Planning?

This article supplies several points on why the author believes enterprise resource planning has the potential to become obsolete.  With the growth and demands of cloud computing, can ERP systems adapt?

1.  As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future?  Why or why not?

2.  Are ERPs better for the manufacturing industry as opposed to service based organizations?

3.  How can ERPs change to better serve their customers withing the next 5 to 10 years?

http://www.cmswire.com/cms/information-management/will-disruptive-cloud-computing-kill-enterprise-resource-planning-024001.php

11 Responses to Will Disruptive Cloud Computing Kill Enterprise Resource Planning?

  • It is a great possibility that cloud computing would eventually aid in phasing out ERP systems. Until something major happens to the information being stored on a cloud or hackers find a way get information from the cloud, businesses will move toward using it.

    I believe ERP systems are better used in any major industry that deals with many people and their information.

    ERPs can better serve their customers within the next 5 to 10 years by giving the businesses exactly what they need to function. There are so many businesses that have ERP systems that are unable to complete the day-to-day functions. If businesses would just take the time to research the growth of the company and where they would want to be with technology in the future and ask the people who perform the tasks, they would save time, money, and allow their employees to work efficiently.

  • 1. As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future? Why or why not?
    Not in the near future, companies need more time to understand cloud capabilities and the security around it.
    2. Are ERPs better for the manufacturing industry as opposed to service based organizations?
    ERPs are definitely good for any production environment since production needs to be consistently monitored from start to finish. But it is also key for service based since they need to keep track of finances, service calls/appointments, hr, etc.
    3. How can ERPs change to better serve their customers withing the next 5 to 10 years?
    I think the biggest is to adapt to the change in the business needs. Businesses are always changing because of customer needs, regulation or change in leadership.

  • I think that cloud computing when combined with the move towards softwarepackages becoming more compatible could replace the need for a company to spend large amounts of money on 1 specific ERP system that needs to be customized to fit their needs. More and more software systems are becoming compaitable every day, which will allow companies to pick and choose systems that mesh well from different ERP companies and save the money they might have otherwise spent on customization. The cloud in general is going to replace the need for individual companies to maintain massive servers on location, so it seems logical that with that would go the ERP systems.

    Im not entirely sure that ERPs are better for manufacturing, I think it’s more that it’s much harder to build a system that can manage customer relations that a service business needs as opposed to a system that can manage inventory and production levels for a manufcaturing company.

    I think the best thing ERPs can do to better survive is to strip down their software and programs so that they can work as easily and seamlessly as possible with other software. The easier it is for a company to use the ERP and add other software to it the more likely a business will be to use it.

  • Great article, Rahshana. Consider this quote – a legacy system as any system that is not sufficiently flexible to meet changing business needs. Basically, what I think it comes down to is that ERP companies will need to adapt their legacy systems/ERPs to be more flexible and move to a SAS version. I think the bigger names have started this movement anyway. I know that SAP has something in the works.

  • 1. As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future? Why or why not?

    From what I have learned about ERPs so far, I don’t think that they will be around if they do not have the capability to work on the cloud and adapt to the “on-the-go” technology. The cloud is becoming extremely widely used and businesses no longer want to maintain servers. If ERP systems do not catch up, they will be left in the dust.

    2. Are ERPs better for the manufacturing industry as opposed to service based organizations?

    I do not think that ERPs are better for the manufacturing industry as opposed to service based organizations. I think that every company has service based issues, regardless of the type of business they are in. ERPs can assist in the service end of a business by streamlining processes and making things easier for the end-customer. They do this by making the ordering, processing and related functions easier to track and maintain.

    3. How can ERPs change to better serve their customers withing the next 5 to 10 years?
    They can get the capability to be more portable and able to use on portable devices.

  • 1. As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future? Why or why not?
    I don’t think it will phase out I think it will be changed and adapted to the current norm. Cloud computing is increasing and it is an added benefit to be able to incorporate that in the existing ERP structure.

    2. Are ERPs better for the manufacturing industry as opposed to service-based organizations?
    The article states that service industry has not benefitted much. There is less overhead and less products to keep track of so I understand why they might lean away from ERP.

    3. How can ERPs change to better serve their customers within the next 5 to 10 years?
    Making programming easier for the common person might reduce cost of creating and training. Also incorporating the could make information more accessible. No one truly knows what new technology will bring but I am sure the designers will grow with changing technology.

  • 1. As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future? Why or why not?

    Yes, the article makes it clear that these grounded ERP systems are not only expensive to install, but more so to change an update. If this can be done through the cloud, businesses can cut costs significantly.

    2. Are ERPs better for the manufacturing industry as opposed to service based organizations?

    Yes, ERP systems were first used by manufacturing-type organizations because they met an immediate need of the industry, however it came back to bite them because these ERP systems were advancing rapidly.

    3. How can ERPs change to better serve their customers within the next 5 to 10 years?

    I honestly do not think there’s much traditional ERPs are going to be able to do once the switch to the cloud is made. The best bet is to drive down costs, which is at already a disadvantage because of all the hardware used.

  • 1. As the article suggest, do you believe the expansion of cloud computing will phase our ERPs in the near future? Why or why not?
    Yes, I believe that the expansion of cloud computing will eventually replace for the need of ERP. Because companies will eventually adapt the cloud computing system in order to avoid huge fees to keep their ERP customized applications.
    2. Are ERPs better for the manufacturing industry as opposed to service based organizations?
    Yes, for now ERPs are better for manufacturing industry than service based organization, because manufacturing industries are already invested hugely on ERPs and since it will not be easier transition from ERP to cloud for manufacturing industry.
    3. How can ERPs change to better serve their customers withing the next 5 to 10 years?
    Simply by adapting the cloud computing system and by integrating the system to hybrid will serve better to their customers.

  • 1. I do not think that cloud computing will necessary eliminate our cloud ERP systems. There still has to be sometime of hands on interaction in planning or configuring the ERP system. I do think that cloud computing will definitely aid in trouble shooting and lowering the cost for the business.
    2. I think that ERPs are suitable for all business practices, but I would have to agree it would be best for manufacturing. If it helps keep manufacturing prices low I would have to believe it would keep prices low for the service industry. In return boosting business all around.
    3. In the next five years the articles says that 30% of ERP will be in cloud computing. I think to better serve their customers ERP customers should make them as easy possible to use and offer support when needed to its users who are new to cloud computing.

  • Cloud computing has changed the entire way of business operation. It has not only made the data handling more secure but also increase the global accessibility of data see more on http://www.cloudwedge.com

  • What I think is that Cloud Computing and ERP systems are totally different concepts. ERP systems can be based on Cloud Computing.

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