This document discusses how to achieve process agility using ERP systems in a cloud organizational environment. It begins with an introduction that outlines the complexity of organizational processes and how ERP and cloud technologies can help reduce this complexity through integration and standardization. The document then explores the benefits of ERP systems in automating processes and integrating functions. It also notes potential dangers if an ERP system is not properly aligned with business needs. Next, it discusses implementation challenges of moving ERP systems to the cloud, such as security and loss of control. It proposes a research methodology using a case study approach. The document concludes by proposing several hypotheses about how ERP and cloud computing can impact process agility and efficiency to be validated through the case

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. How to achieve process agility using ERP in a cloud organizational environment
Agenda
 Introduction
 ERP´s benefits
 Implementation in a Cloud Environment
 Research Methodology
 Field Work
 Conclusions and Further Work
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3. How to achieve process agility using ERP in a cloud organizational environment
Introduction
“Actual organizational environments depend on
computer-based information systems. These ones
support all organization´s processes, in order to
accomplish every defined activity. No matter tools
or technologies used, the processes complexity
within an actual organization is huge.”
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4. How to achieve process agility using ERP in a cloud organizational environment
Introduction
Organizational 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].
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5. How to achieve process agility using ERP in a cloud organizational environment
Introduction
Organizational 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]
.
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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].
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7. How to achieve process agility using ERP in a cloud organizational environment
ERP´s benefits
ERP’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].
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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].
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9. How to achieve process agility using ERP in a cloud organizational environment
Implementation in a Cloud Environment
[9]
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10. How to achieve process agility using ERP in a cloud organizational environment
Implementation in a Cloud Environment
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11. How to achieve process agility using ERP in a cloud organizational environment
Implementation in a Cloud Environment
Challenges:
•Confidence in the security model proposed by the provider
•Loss of physical control; scattering data and privacy
in 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 ace
instances, applications, data.
•Authentication and authorization requests.
•How to ensure data security.
•Definition of the owners of the data. [4]
“It's 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
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12. How to achieve process agility using ERP in a cloud organizational environment
Implementation in a Cloud Environment
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13. How to achieve process agility using ERP in a cloud organizational environment
Research Methodology
Using 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.
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14. How to achieve process agility using ERP in a cloud organizational environment
Field Work
Use 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.
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15. How to achieve process agility using ERP in a cloud organizational environment
Conclusions
Conclusions of this work will try to validate or not the following propositions
in 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
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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.
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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.
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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;
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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
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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
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21. How to achieve process agility using ERP in a cloud organizational environment
Questions?
Comments?
Suggestions?
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