Cloud ERP Adoption Opportunities and Concerns: The Role of Organizational Size

Cloud computing has become one of the fastest growing segments of the IT industry. In the wake of this, cloud based Enterprise Resource Planning (ERP) systems have emerged as an alternative to traditional ERPs. The marketing of cloud based ERPs states that adoption require low upfront investments and can rapidly be deployed, as they are provided over the cloud. In this study we seek to unravel cloud ERP adoption by identifying and classifying opportunities and concerns often associated with cloud ERPs with respect to organizational size. Our results show that SMEs, and in particular small companies, can best exploit cloud ERPs as many of the benefits are more relevant for them. At the same time, many of the concerns associated with cloud ERPs are not seen as important for SMEs. Large organizations on the other hand, have severe concerns related to size, in the form of complexity and specific demands. However, in the study we found that a hybrid solution, following a best-of-breed approach in which business critical and sensitive applications are kept on-premise, can allow large organizations to settle many of their concerns while at the same time enable them to gain some benefits of cloud computing

The Strategic Balance of Centralized Control and Localized Flexibility in Two-Tier ERP Systems

Two-tier ERP systems are an increasingly popular technology strategy for large, multinational enterprises. This paper examines how two-tier ERP enables organizations to balance centralized control and coordination at the corporate level with localized flexibility and responsiveness at the division/subsidiary level. The tier 1 ERP system handles core tasks like HR, finance, and IT using highly customized solutions tailored to the large corporate entity's needs, scale, and sophistication. This promotes enterprise-wide process standardization and centralized control. Meanwhile, the tier 2 ERP systems utilized by smaller subsidiaries and regional offices are less resource intensive and more configurable to address localized requirements. Tier 2 gives local divisions more control over their ERP to enable flexibility and responsiveness. This research analyzes the key drivers pushing large multinationals towards two-tier ERP, including managing complexity across global operations, enabling centralized coordination while allowing localization, integrating dispersed IT infrastructures, and controlling implementation costs. The paper explores the unique characteristics and benefits of tier 1 and tier 2 ERP systems in depth, providing concrete examples. Critical considerations for successfully deploying two-tier ERP are also examined, such as integration, change management, and striking the right balance between standardization and localization. The conclusion reached is that two-tier ERP delivers important synergistic benefits for large enterprises through its centralized/decentralized dual structure. The tier 1/tier 2 approach balances the key needs for coordination and control at the center with flexibility at the edges. However, careful planning is required for effective two-tier ERP implementation. The optimal balance between standardization and localization must be struck to fully realize the strategic potential. This research provides important insights for both academic study and real-world application of two-tier ERP systems

Strategies Managers Implement to Ensure Information Technology Infrastructure Services for Overseas Users

Information technology (IT) has become a critical success factor for businesses. IT leaders’ potential failures in implementing IT strategies aligned with the business objectives may negatively impact the success of organizations in the current global market. Grounded in the technology-organizational-environmental (TOE) framework, the purpose of this qualitative, pragmatic inquiry study was to explore the IT strategies used by IT managers of multinational companies in the United States to implement IT infrastructure services to businesses for overseas users in developing countries. The participants were nine IT leaders with experience or who have implemented IT strategies for organizations in the United States with businesses in developing countries. Data were collected using semistructured interviews. Through thematic analysis, six themes were identified: (a) hybrid cloud and on-premises adoption, (b) IT infrastructure redundancy or failover process, (c) development of standardized IT best practices, (d) IT infrastructure strategies by region, (e) measurement of the IT infrastructure services, and (f) external factors impact the adoption of IT infrastructure strategies. A key recommendation is for IT leaders to have cloud file services such as Microsoft 365 or One Drive, allowing employees to work from anywhere. The implications for positive social change include the potential to guide IT managers’ decisions that can lead to the long-term sustainability of businesses, thereby improving the socio-economic lifestyle of individuals in the United States and developing countries

Small and Medium-Sized Enterprises’ Perceptions of the Use of Cloud Services

Although cloud computing is a rapidly evolving technology and is considered one of the key technological drivers of business digitalisation, it is still a challenge for many businesses to adopt it. Implementing the right cloud services is challenging and requires the right level of knowledge. In addition, the size of the company, its digital maturity and its financial situation are also critical factors, which are particularly relevant for small and medium-sized enterprises. Therefore, in this study, we focus on the situation of small and medium-sized enterprises regarding cloud services. To this end, we conducted qualitative research to examine the studies on cloud services, their trends, research directions, and research areas and to explore the relationship between the publications and their scientific embeddedness

Differential Adoption of Cloud Technology: A Multiple Case Study of Large Firms and SMEs

Firms across the industry segments have been exploring cloud computing to derive benefits out of its technological features. Even though literature pertaining to cloud adoption by firms exists, the factors based on cloud-specific characteristics are mostly anecdotal in nature. Following a multiple case study approach, we identify factors specific to cloud technology adoption by firms. We further explain the differential adoption of the cloud between large and small firms. Overall we obtained 11 variables that differentiate large firms and SMEs in their adoption behaviour. We further contribute to theory by mapping the extracted variables of cloud adoption to Diffusion of innovation theory (DOI) and Technology organization Environment framework (TOE)

Emergence of Cloud Computing: An Institutional Innovation Perspective

Today’s global IT service industry is undergoing a collective movement toward cloud computing. This study draws upon the institutional theory to conceptualize the social processes surrounding the emergence of the global cloud computing market. Through a qualitative case study based on archives and interviews with a leading multinational IT service vendor, the research shows that as cloud computing gains increasing legitimacy as a new market category, the vendor develops a portfolio of strategies and leverages a political toolkit to respond to and shape the emergence and evolution of the market

Strategies for Cloud Services Adoption in Saudi Arabia

The adoption rate of cloud computing is low among business organizations in Saudi Arabia, despite the cost-saving benefits of using cloud services. The purpose of this multiple case study was to explore the strategies that information technology (IT) leaders in the manufacturing industry in Saudi Arabia used to adopt cloud computing to reduce IT costs. The target population of this study consisted of 5 IT leaders from 5 different manufacturing companies in Saudi Arabia who successfully adopted cloud computing in their companies to reduce IT costs. Rogers\u27s diffusion of innovation theory was the conceptual framework for this research. Data collected from face-to-face, semistructured interviews and a review of relevant corporate documentation were analyzed using Yin\u27s 5-step data analysis method, which included compiling, disassembling, reassembling, interpreting, and concluding the data. Five themes emerged from the data analysis: identify business needs and requirements, apply value realization metrics, plan for migration, choose the right cloud service provider, and provide adequate training and awareness sessions. The implications of this study for positive social change include the potential to improve the local economy in Saudi Arabia by ensuring the sustainability of firms in the manufacturing industry through the implementation of cost-saving strategies associated with cloud computing adoption

A cost-efficient QoS-aware analytical model of future software content delivery networks

Freelance, part-time, work-at-home, and other flexible jobs are changing the concept of workplace, and bringing information and content exchange problems to companies. Geographically spread corporations may use remote distribution of software and data to attend employees' demands, by exploiting emerging delivery technologies. In this context, cost-efficient software distribution is crucial to allow business evolution and make IT infrastructures more agile. On the other hand, container based virtualization technology is shaping the new trends of software deployment and infrastructure design. We envision current and future enterprise IT management trends evolving towards container based software delivery over Hybrid CDNs. This paper presents a novel cost-efficient QoS aware analytical model and a Hybrid CDN-P2P architecture for enterprise software distribution. The model would allow delivery cost minimization for a wide range of companies, from big multinationals to SMEs, using CDN-P2P distribution under various industrial hypothetical scenarios. Model constraints guarantee acceptable deployment times and keep interchanged content amounts below the bandwidth and storage network limits in our scenarios. Indeed, key model parameters account for network bandwidth, storage limits and rental prices, which are empirically determined from their offered values by the commercial delivery networks KeyCDN, MaxCDN, CDN77 and BunnyCDN. This preliminary study indicates that MaxCDN offers the best cost-QoS trade-off. The model is implemented in the network simulation tool PeerSim, and then applied to diverse testing scenarios by varying company types, number and profile (either, technical or administrative) of employees and the number and size of content requests. Hybrid simulation results show overall economic savings between 5\% and 20\%, compared to just hiring resources from a commercial CDN, while guaranteeing satisfactory QoS levels in terms of deployment times and number of served requests.This work was partially supported by Generalitat de Catalunya under the SGR Program (2017-SGR-962) and the RIS3CAT DRAC Project (001-P-001723). We have also received funding from Ministry of Science and Innovation (Spain) under the project EQC2019-005653-P.Peer ReviewedPostprint (author's final draft