Confronting, Confirming, and Dispelling Myths Surrounding ERP-in-the-Cloud

From Iron Cage to Agility

  • Tanya Beaulieu Utah State University
  • Todd C. Martin University of Idaho
  • Saonee Sarker University of Virginia
  • Niels Bjørn-Andersen Copenhagen Business School

Abstract

Although cloud computing is still in its infancy, it is rapidly becoming one of the most used buzzwords in the IS/IT field and ERP-systems are one of the fastest growing SaaS cloud applications. However, given the relative newness of ERP cloud computing, and the lack of empirical research on the topic, there is substantial uncertainty surrounding the benefits and challenges of ERP cloud computing. Consequently, as often is the case with new technologies, popular myths surrounding the technology are used to make adoption and implementation decisions. As a first step toward providing an informed understanding about the true challenges related to ERP cloud computing, it is important to examine these myths in an effort to dispel or support them. In this paper, we attempt to achieve that. Specifically, we explore eight myths related to cloud-based ERP systems through a study involving in-depth interviews with stakeholders related to an ERP cloud-based solution. Our results dispel some of the myths, while supporting others, and highlight how ERP vendors work around the different types of challenges surrounding this technology. Our study also helps understand the benefits of ERP cloud computing, and informs about how cloud-based ERP systems will free organizations from the information system “iron cage” and lead to agile organzations.

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Published
2018-08-23
Section
Article