The purpose of this report was to thoroughly research, mount and justify an argument as to whether or not CQU should abandon its current in-house supported Enterprise Systems and instead use a SaaS model.
These are the brief outline issues or problems found in CQU current ERP system. 1. Implementation. Selecting the right package, customizing the package to fit the need of the organization, training employees and may take long time to complete the implementation process 2. Integration. ERP system has to be able to integrate all areas including suppliers, sales, marketing, customer services, etc. 3. Costs. Cost of the software purchase, implementation and maintenance
These are the brief outline issues or problems of SaaS adoption. 1. Integration. The applications can’t be customized because of the vendor control. 2. Internet connectivity. Internet connection is required 3. Security and risk. Many security issues concern because of the company or organizations data out of the building. 4. Cost. Cloud computing is not always more cost effective and benefit the company or organization operations.
The major differences between ERP and SaaS applications are: 1. Software licence. ERP own the software licence and SaaS lease the software licence. 2. Infrastructure. The vendors maintain ERP application but required IT resources and staff from the organizations, while SaaS application maintained by vendor and vendor provide IT resources and staff 3. Financing. ERP application has capital expenses while SaaS application has operational expenses.
Why go with a SaaS model?
the current system that CQU university use which is traditional ERP is a well-known business management software that allow organization integrate all facets of an operation, including development, manufacturing, sales and marketing with it unified database to store data. ERP system creates and maintains a custom design software package which will cater to most organizations requirements such as solution to all the functional processes in an organization. On the other side, The IT industry has been revolutionized by cloud computing as a new platform and concept IT revolutionary of enterprise systems offers many potential benefits to the organization. Reducing cost and increased efficiencies are some of the benefit that claimed by the vendors by adopting SaaS in the organization. In general, SaaS is simpler to deploy from a technical perspective because of its independence infrastructure. The software is hosted outside the organization and maintain by the vendor. However there are many question to ask when considering the use of saas applications. Perhaps the most important question is whether large organizations such as CQU wants to rely on the software designed for use by hundreds of other company. Customization is most of the organizations need to match their requirements and business processes in ERP implementation. ERP has enable CQU to have some customization in it business module to meet their requirements and need. Where, the organizations less likely to be succeed if they need the system to be customized. (According to)The vendor are more likely to provide only one version, whether the organizations need the upgrade functions or not, and since the software is delivered over the Web, they have no choice but to accept them.
ERP systems are costly to maintain and upgrade. These are the impediments faced by The CQU in continue using ERP system, but not without a solution. However, the regular system upgrades will keep the system running reliability and efficiently. In general, SaaS can be deployed at a much lower initial cost and lower total cost of ownership; the organization can avoid costly licenses, complex hardware, software infrastructure and no technology maintain needed. However ongoing annual payment or monthly fees can be...
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