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ApresentaçãO Cistm 2012 V14

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ApresentaçãO Cistm 2012 V14

  1. 1. How to achieve process agility using ERP in a cloud organizational environment Instituto Superior de Línguas e Administração de Lisboa Filipe Pereira – filipe.pereira@lx.isla.pt Câmara Municipal de Cascais Nuno Lopes – nmlopes@cm-cascais.pt Universidade Lusófona de Humanidades e Tecnologias Pedro Maia Malta – pedro.malta@ulusofona.pt 10th Annual CISTM on Information Science and Technology in a Virtualized World 21 and 22 June 2012 Lisboa, PORTUGAL
  2. 2. How to achieve process agility using ERP in a cloud organizational environmentAgenda Introduction ERP´s benefits Implementation in a Cloud Environment Research Methodology Field Work Conclusions and Further Work 2
  3. 3. How to achieve process agility using ERP in a cloud organizational environment Introduction“Actual organizational environments depend oncomputer-based information systems. These onessupport all organization´s processes, in order toaccomplish every defined activity. No matter toolsor technologies used, the processes complexitywithin an actual organization is huge.” 3
  4. 4. How to achieve process agility using ERP in a cloud organizational environment IntroductionOrganizational Processes complexity• The appearance of ERPs, or Enterprise Systems was the realization of a dream, promising the integration of all information that flows in the company [1].• Although there are numerous cases of failure to adopt ERPs usually are business problems that companies fail to reconcile with business needs and with the technological requirements of the Enterprise System[1].• The ERP can not support all intended processes and may not provide the necessary information to the business, but ensures that the information generated is always consistent [1]. 4
  5. 5. How to achieve process agility using ERP in a cloud organizational environment IntroductionOrganizational Processes complexity• Organizational processes are complex and difficult to follow in modern enterprises;• The volume of data that each of us (and the organization itself) has access, is tremendously big, and getting bigger each day. This creates the necessity to filter and select;• Process Complexity motivates their simplification trough Information Systems usage, like ERP and Cloud Technologies, however there are some requirements…• Data Quality is essential as Eckerson (2011) refers 3 advantages: 1. Business Activities alignment with organizational strategy; 2. Better resource management and alocation; 3. Complexity reduction;• Data Governance programmes, allowing better data management and decision making (Eckerson, 2011) [8] . 5
  6. 6. How to achieve process agility using ERP in a cloud organizational environment ERP´s benefits• ERP improves business processes and the use of information across an organization by integrating functions such as finance, order management and purchasing into a set of interconnected modules[8].• ERP applications automate and support a range of administrative and operational business processes across multiple industries, including line of business, customer- facing, administrative and the asset management aspects of an enterprise [8]. 6
  7. 7. How to achieve process agility using ERP in a cloud organizational environment ERP´s benefitsERP’s reduces Organization Processes Complexity• Gable et al (2000) , define ERP as software packages that aim to integrate a complete set of functions and organization processes to give a general business overview [10].• Musaji (2002) refers that ERP can help the automatization of organizational processes, therefore reducing complexity and implementing an integrated user interface with agreggated data and integrated code [5]. 7
  8. 8. How to achieve process agility using ERP in a cloud organizational environment ERP´s benefits – dangers• The Enterprise System, by its nature, imposes its own logic to the organization strategy and company culture, which may not be the best solution [3].• Pushes the company to the full integration, forces also a standardization of the processes which can be a source of competitive advantage [3].• If the company is rushing to install an Enterprise System without first having a clear understanding of the implications for business, the dream of integration can quickly become a nightmare[3]. 8
  9. 9. How to achieve process agility using ERP in a cloud organizational environmentImplementation in a Cloud Environment[9] 9
  10. 10. How to achieve process agility using ERP in a cloud organizational environmentImplementation in a Cloud Environment 10
  11. 11. How to achieve process agility using ERP in a cloud organizational environment Implementation in a Cloud EnvironmentChallenges:•Confidence in the security model proposed by the provider•Loss of physical control; scattering data and privacyin the cloud.•Guarantees of service quality.•The clouds start to form a high value target for hackers.•Encryption needs.•Access to cloud resources, administrative access aceinstances, applications, data.•Authentication and authorization requests.•How to ensure data security.•Definition of the owners of the data. [4] “Its a fundamental change to the way our government operates by moving to the cloud. Rather than owning the infrastructure, we can save millions.”, Vivek Kundra, CIO EUA 11
  12. 12. How to achieve process agility using ERP in a cloud organizational environmentImplementation in a Cloud Environment 12
  13. 13. How to achieve process agility using ERP in a cloud organizational environment Research MethodologyUsing a Case Study, start by:• Use inquiries before and after ERP´s implementation• Inquiries’ analysis and relation of results with the evidencies from existent studies. 13
  14. 14. How to achieve process agility using ERP in a cloud organizational environment Field WorkUse ERP solution´s implementation in the Cloud:• AS-IS analysis – how the organization is before ERP implementation: inquirie first use;• After ERP implementation – inquirie use to identify benefits: • Of ERP´s; • Of Cloud. 14
  15. 15. How to achieve process agility using ERP in a cloud organizational environment ConclusionsConclusions of this work will try to validate or not the following propositionsin three diferent areas:•Best practise business processes • P1- The standardization of business processes resulting from a ERP implementaton decreases the processes agility. • P2- The implementation of existing transactions in a ERP decreases the agility of business processes 15
  16. 16. How to achieve process agility using ERP in a cloud organizational environment Conclusions • P3- The implementation of best practices in a ERP business processes increases business agility. • P4– When using ERP’s it is possible to increase business processes efficiency and business agility. • P5- In the cloud enviroment the implementation of best pratices is more difficult to achieve.• Information and processes • P1 – In a cloud enviroment the information is better shared across the organization, improving process agility, and increasing decision making by managers. 16
  17. 17. How to achieve process agility using ERP in a cloud organizational environment Conclusions• Platform Control •P1 – In a cloud enviroment the control of a ERP platform increases agility, decentralizing the controls thus providing information centralization management. •P2 – New competences will be necessary such as: process management capabilities, process modeliing and process complexity. •P3 – Working Knowledge Mangement processes will improve the efficiency of business processes, thus increasing ERP and decision making agility. 17
  18. 18. How to achieve process agility using ERP in a cloud organizational environment Further Work• Investigating the Total Cost of Ownership of a SAAS ERP;• Using BPM as a tool to align and increase SAAS ERP agility;• Understanding possible tendencies for future Cloud and ERP developments;• Determine if critical areas exist in Cloud ERP; 18
  19. 19. How to achieve process agility using ERP in a cloud organizational environment References• [1] Davenport, T.H., Harris, J.G., and Cantrell, S.(2004) “Enterprise systems and ongoing process change” Business Process Management Journal, vol.10, n0.1, pp.16-26• [2] Scheer, A.W. and Habberman, F. (2000), “Enterprise resource planning: making ERP a success”, Communications of the ACM, vol. 43, no.4, pp.57-61• [3] Davenport, T.H. (2000) Mission Critical: Realizing the promise of Enterprise Resource Systems, Harvard Business School Press, Boston• [4] NIST – National Institute of Standards an Technology - Cloud research team http://www.nist.gov/index.html• [5] MUSAJI CH. ERP System Implementation Overview.2002. Disponível em:http://media.wiley.com/product_data/excerpt/80/04712351/0471235180.pdf, em 25-12-2011• [6] STEYN, E, Ashley. “A Framework for Assessing Enterprise Resource Planning Systems”, Short Dissertation. Rand Afrikaans University, Johannesburg. p7, October 2004• [7] Gartner Hype Cycle for ERP Service Providers, 2011• [8] Gartner Key Initiative Overview, 2010 19
  20. 20. How to achieve process agility using ERP in a cloud organizational environment References• [9] IDC – Maria Spínola –An essencial guide to possibilities and risks of Cloud Computing• [10] GABLE, C, Guy; ROSEMANN, Michael; KLAUS, Helmut. What is ERP?, Information Systems Frontiers 2:2, p141-162, 2000 20
  21. 21. How to achieve process agility using ERP in a cloud organizational environmentQuestions?Comments?Suggestions? 21

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