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Will Cloud Make ERP Implementation Easier
Wednesday, April 16, 2014

We are seeing many articles pushing the concept of computing in the cloud. There are alsopeople (salespeople) pushing cloud solutions over in-house hosted. Statements liketraditional ERP is dead are becoming commonplace and also statements that ERP will beeasier to implement in the cloud.

ERP is a system used to integrate all of the different areas of a business to provideinformation and in some organisations (manufacturing/distribution) for the planning andcontrol over the entire supply chain from order entry to planning of materials, purchasing, factory planning and control, inventory control, costing, capacity planning and the despatch
of goods to financial management. These systems are designed to provide accurate information in real time for decisions to be made on managing the business.

The issue of whether or not the system will be in house hosted or otherwise comes down to a number of issues relating to economics, support skills and other business factors unique to each organisation.

The implementation of ERP is another matter. It doesn’t matter where the system is hosted from! Issues of software fit, data integrity, education, training, reengineering, data migration, management involvement and user engagement will all be the same whether the system is in-house or externally hosted.

Global surveys are showing that the problems in managing successful ERP projects revolve around the failure in some or all of the issues raised here and little or no mention at all about where the system is hosted as being barriers to success.

The claims that cloud hosting of ERP is easier and better than in-house hosted ERP, apart from any financial cost benefits, are undoubtedly exaggerated, and in my view, seem more in line with a marketing strategy to differentiate products from the many ERP vendors who are constantly coming up with claims and strategies to differentiate their products from
their competitors.

Make no mistake the issues of implementation are challenging to the best of organised companies and caution should be exercised when faced with various claims from those who have a major vested interest in pushing their products.

The surveys are consistently showing that ERP continues to be a problem for companies trying to implement the technology whether it is cloud hosted or otherwise!

Experience Worth Listening To!

Ray Atkinson