In summary, the market is trending more towards new businesses entering the ERP space utilizing the cloud, but large companies utilizing the on-premise. As discussed above small businesses are moving to the cloud-based ERP due to:
• Lower initial cost which allows me entrants to ERP due to it’s affordability
• Speed of conversion is much faster as the company only needs internet connection
• Little IT staff is required
• Upgrades are managed by provider
• Scaling up is easy, cost increases as usage increase
Large businesses are staying with the on-premise ERP because:
• Have already made substantial investments in previous on-premise software
• Some legacy systems were critical to the business and management decides to keep that way.
• The predictability of the current on-premise system is higher and the company is uncomfortable losing control of their data with Cloud.
• Some compliance issues are easier to meet with an on-premise system.
This trend will continue with the availability of the cloud. Over time, we may even see many large businesses move to a cloud-based ERP system.
Implementation / …show more content…
The implementation can go smooth in all but one area and that one can bring the entire process to an end. The correct software package must be chosen, have proper leadership, meet deadlines, test the data, etc etc. Areas will begin to and/or continue an upward trend with the increased entry into ERP market, high failure rates, and high costs associated with failure. First, the number of failures and failure rate will continue to increase in the short term. This is due to the large number of small businesses entering the ERP market. Large companies regularly fail, granted they are more complex but they also have very knowledgeable staff working on the projects. Small businesses will have a limited number of people, excluding the ERP or third party implementation team, to assist with the implemenation. Which leads me to the second item, as more and more companies buy into ERP the need for individuals specific to that area of the business will increase. Look more highly skilled individuals to be in the marketplace to assist with these projects. Also, degree programs with a specific focus and/or tracks to increase the knowledge base of ERP systems currently in the market place. Lastly, there will be an increase in third party companies offering implementation services. There are currently companies who do this, but there will be other companies entering the space for niche markets based on cloud