This document provides information and questions for two assessments related to cloud computing and ERP systems. For Assessment 1, students must create a 10-slide PowerPoint presentation explaining how cloud computing relates to an organization's strategy and value chain. For Assessment 2, students must write a 1200-word report explaining how ERP can add value to an organization and identifying potential risks of implementing a cloud-based ERP solution. Both assessments are based on information and issues raised in two blog posts - one on cloud computing and one on mobile ERP in the cloud.

1. Assessment 1
Assessment value 15% Due date 29th August 2014
The assessment is based on two blog entries, Blog 1 and Blog 4 which are
copied below.
These two blog entries come from a blog based on your text and posted
earlier last year. You are required to answer one question from each blog
entry produced here. It may also be helpful to read the overview that was
developed for the blogs and it can be found at:
http://romneyaccounting.wordpress.com/category/overview/
Blog 1: Cloud computing
Posted on February 27, 2013 by Joseph M. Mula
What is cloud computing?
Cloud computing is a new technology that has all the constructs of our systems framework— input,
process, storage and output—but may not be used for all of these activities by all organisations.
The National Institute of Standards and Technology (USA) defines cloud computing as:
a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks, servers, storage, applications, and services) that
can be rapidly provisioned and released with minimal management effort or service provider
interaction.
<http://pre-developer.att.com/home/learn/enablingtechnologies/
The_NIST_Definition_of_Cloud_Computing.pdf>
Cloud computing uses hardware, software and communications (via the internet) to provide
computing services to an organisation. If a firm decides to undertake all its information systems

2. activities in the cloud, it would not own and have on its premises—other than terminals (either
‘dumb’ or PCs) —any hardware, software, servers or stored data. The company pays a monthly fee
to a cloud service provider for managing the infrastructure. For more, see
http://www.youtube.com/watch?v=ae_DKNwK_ms.
An example you may be familiar with is Dropbox <www.dropbox.com>. If not, watch the video on
this site and read the blog <https://blog.dropbox.com/>. Google Drive is another free cloud service
<https://drive.google.com/&gt;.
For AIS, there are a number of cloud providers, including MYOB
<http://myob.com.au/products/small-business/accounting-finance/liveaccounts1257828367166>,
QuickBooks <http://www.intuit.com.au/quickbooks-online/smallbusiness-accounting-software.
jsp?gclid=COvQz822r7MCFcZfpgodZkAAeg>, Xero <http://www.xero.com/partners/> and
Saasu <http://www.saasu.com/pricing/> (see a review of cloud providers at
<http://www.batescosgrave.com.au/files/docs/2011-SoftwareGuideDetailed.pdf>.
There are references to cloud computing in Chapters 6, 14, 15 and 16 of the textbook.
Are there any new risks that may arise as a result of cloud
computing?
Data privacy is by far the greatest concern. Data might be stored on servers located in a different
country from a firm, and the firm may not know in which country the servers are located, let alone
whether other organisations have access to those servers, even with strong access controls.
What if the cloud service provider goes out of business?
What if a hurricane hits the area where the service’s hardware is located and it loses power, as
happened with hurricane Sandy?
Will cloud computing be the catalyst for any organisational
and/or structural adaptations to change?
Cloud computing enables the development of a virtual organisation structure of separate
companies that may or may not be legally related. Cloud computing is like grid computing, which
uses a distributed computing infrastructure that spans across multiple virtual organisations (VO).
Cloud computing goes beyond grid’s focus of applications and infrastructure, to one of providing
services backed by infrastructure. Each VO can consist of either physically distributed or logically
related organisations. The goal of such a structure is to enable combined use or sharing of
resources in dynamic and distributed environments.
<http://arxiv.org/ftp/arxiv/papers/0901/0901.0131.pdf>.
However, even in a physical distributed organisation, cloud computing allows for economical
sharing of information at the output end to inputting transactions for anywhere in the world.

3. This could have inter- and intra-organisational structural implication to take advantage of cloud
computing.
Are there any external changes and pressures an
organisation may face as a result of cloud computing?
Globalisation is the main driver of cloud computing. As companies become more global in their
vision and markets, they need systems that can be accessed from anywhere. Access to suppliers
and customers along with providing access to catalogues and ordering systems through traditional
EDI and FEDI has created problems of compatibility of systems and flexibility. In a cloud
environment, flexible virtual organisations can be created, even for a particular transaction or
project, giving access no matter where the parties are located.
The use of cloud computing can provide a quick system, cutting development time for minimal
cost. Organisations can pay for what they need when they need it. Pressures from competitors
require that costs are lowered for support services and cloud computing can help. However, as we
indicated earlier cloud has the same risks.
Are there any ethical issues and/or social impacts from
implementing cloud computing?
In our opinion (you may have a different view), the only ethical issues are those created when the
cloud provider is located in a country where labour laws and working conditions are not consistent
with those in the country where a firm is based. Exploitation of workers is an ethical issue as well as
a social one. If your firm is using a Triple Bottom Line approach (see an example of Toyota’s TBL at
<http://www.toyota.com.au/toyota/sustainability/externalreporting/our-triple-bottom-line-scorecard>
or reporting under GRI
<www.globalreporting.org>, these matters need to be considered. It is all very well to gain a
reduction in costs and consequent increase in profits and dividends distributed, but these should
not be at the cost of pain and mistreatment of people. Just because the workers are in another
country, it does not mean that due diligence can be ignored.
Assignment Question 1 (7.5%)
Create a PowerPoint Presentation to provide a succinct explanation of
how the implementation of cloud computing relates to an organisations

4. strategy and how it could affect a company’s value chain. Use a recent
announcement by a company to illustrate your explanation. Your
presentation should be a maximum of 10 slides. Please include any
accompanying notes (in the note section of your presentation) you would
use for a 10 minute presentation. Alternatively you can use Voice over
PowerPoint to provide a 10 minute presentation. Ensure you refer to the
marking criteria specified in the subject outline.
Blog 4: ERP floats to a mobile cloud
Posted on March 25, 2013 by Joseph M. Mula
What is ERP?
ERP, or enterprise resource planning, is a system that integrates all aspects of an organistation’s
activities into one accounting information system.
A number of ERP suppliers have recently announced plans to become a player in cloud computing,
moving from being a software as a service (SaaS) provider to a platform as a service (PaaS)
provider. They are embracing mobile platforms such as iPads and smartphones to deliver users
access to applications and on-demand financial information on the go.
Wanting to get close to customers is driving suppliers such as SAP, who has developed a new
application, Social Customer Engagement OnDemand, which enables SAP to communicate with its
customers over sites such as Facebook.
<http://news.techworld.com/virtualisation/3357928/sap-lays-out-cloud-strategy-sinceacquiring-successfactors/>
Organisations such as IBM believe large organisations are hesitating to use public cloud computing
resources because of the self-service model provided by various suppliers. IBM has added a new
PaaS, named Smart Cloud Enterprise+, which includes software life-cycle support for updating
patches and identity management.
<http://news.techworld.com/applications/3423617/ibm-targets-aws-with-enterprise-cloudoffer/>
References to ERP can be found in the text in Chapters 2 and 8 with SaaS covered in Chapter 6.

5. Are there any new risks that may arise as a result of a
mobile ERP in a public cloud?
As ERP is an integrated system, this could cause problems for organisations as they have all their
data in ‘one basket.’ Should there be a technology, system or network failure, the organisation
could come to a standstill, without appropriate disaster recovery strategies and plans. Building in
redundancy could mitigate the risks of system failures. As we have discussed in an earlier blog,
systems and data in a cloud has its own risks of privacy and continuity of service provider. Mobile
technologies can create gaps in a firm’s security.
Will mobile ERPs in the cloud be the catalyst for any
organisational and/or structural adaptations to change?
Besides the cloud being able to support a virtual organisation, an ERP supports such an
organisation as the whole information system is integrated and distributable, even by using mobile
devices. These changes in traditional information systems design will have significant impacts on
organisation design and process.
Are there any external changes and pressures an
organisation may face as a result of an ERP?
The pressures of competition and globalisation are pushing large organisations towards distributed
mobility. An ERP system with its holistic design philosophy on information provides the ideal
application to support a globalised multinational.
Are there any ethical issues and/or social impacts from
implementing cloud computing?
Two aspects of the issues and impacts should be considered. The first relates to staff and what
training they need to effectively use a mobile ERP cloud. The second is the need for organisations
to recognise the social implications of leaks of private data should a cloud-base system be accessed
by unauthorised or scrupulous intruders.
Assignment Question 2 (7.5%)
Your manager has requested a report explaining how ERP can value add.
Include in your report any potential risks that should be avoided when
implementing a cloud based ERP solution in an organisation. Use the
blog post above as a starting point. Your report, including executive
summary should be maximum length 1200 words.

6. Rationale
This assignment is designed to enable you to demonstrate your ability to:
• understand and apply foundation principles relating to
computerised information systems in contemporary organisations
• explain the role of data analysis tools and data mining;
• to illustrate typical network configurations and identify the
components of a network, particularly identifying the role that cloud
computing has in a network;
• evaluate accounting information system architecture, particularly
identifying the role that cloud computing and ERP have as the basis
for an accounting information system;
• identify organisational risk and the impact that cloud computing
and ERP systems have on that risk