Confronting, Confirming, and Dispelling Myths Surrounding ERP-in-the-Cloud
From Iron Cage to Agility
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.
References
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[56] Yin, R. K. (2003) Case Study Research: Design and Methods, Third Edition, Newbury Park, CA: Sage.
[2] Allen, N. (2010) “Getting Ahead in the Clouds”, Logistics Manager, pp. 34–35.
[3] Anthes, G. (2010) “Security in the Cloud”, Communication of the ACM, Vol.53, No.11, Nov. 2010
[4] Armbrust, M., A. Fox, R. Griffith, A.D. Joseph, R. Katz, A. Konkwinski, G. Lee, D. Patterson, A. Rabkin, I., Stoica, and M. Zaharia (2010) “A View of Cloud Computing”, Communication of The ACM, (53)4, pp. 50-58.
[5] Arnesen, S. (2013). Is a Cloud ERP Solution Right for You?. Strategic Finance, 95(2), 45-50.
[6] Bellovin, S.M. (2011) “Clouds from Both Sides, IEEE Security & Privacy, (9)3, pp. 88–88.
[7] Bolman, L. G. and T. E. Deal (1984) Modern Approaches to Understanding and Managing Organizations, San Francisco: JosseyBass.
[8] Burns, M. (2011) “ERP Software Survey 2011”, CA Magazine, (144)7, pp. 14–15.
[9] Choudhary, V., & Vithayathil, J. (2013). The Impact of Cloud Computing: Should the IT Department Be Organized as a Cost Center or a Profit Center?. Journal Of Management Information Systems, 30(2), 67-100.
[10] Cohen, P. S. (1969) “Theories of Myth”, Man (4)3, pp. 337–353.
[11] Columbus,L.(2015)“RoundupofCloudComputingForecastsand Market Estimates, 2015”, Forbes, Retrieved February 25, 2015 from: http://www.forbes.com/sites/louiscolumbus/2015/02/22/whyenterprise-mobile-apps-are-most-lucrative-to-build-in-2015/
[12] Conboy, K. (2009) “Agility from First Principles: Reconstructing the Concept of Agility in Information Systems Development”, Information Systems Research, (20)3, pp. 329–354.
[13] Cooper, R. B. and R. W. Zmud (1990) “Information Technology Implementation Research: A Technological Diffusion Approach”, Management Science, (36)2, pp. 123–139.
[14] Creswell, J. W. (1998) Qualitative Inquiry and Research Design: Choosing among Five Traditions. Thousand Oaks, CA: Sage Publications, Inc.
[15] Davenport, T. H. (1998) “Putting the Enterprise into the Enterprise System”, Harvard Business Review, (76)4, pp. 121–131.
[16] DeFelice, A. (2010) “Cloud Computing”, Journal of Accountancy, (210)4, pp. 50–54.
[17] Dutta, A., Guo Chao Alex, P., & Choudhary, A. (2013). RISKS IN ENTERPRISE CLOUD COMPUTING: THE PERSPECTIVE OF IT EXPERTS. Journal Of Computer Information Systems, 53(4), 39-48.
[18] e-conomic.com. (2015) Security with e-conomic. Retrieved February 25, 2015 from: http://www.e-conomic.com/accountingsoftware/security.
[19] Fineberg, S. (2011) “Microsoft Strategy is Cloudy”, Accounting Today, (25)5, pp. 8.
[20] Frost, P. J. and G. Morgan (1983) “Symbols and Sensemaking: The Realization of a Framework”, Organizational Symbolism, Creenwich, CT: JAI Press.
[21] Garrison, G.,S.Kim,andR.L.Wakefield.2012.“Success factors for deploying cloudc omputing.” Communications of theACM 55(9):62– 68.
[22] Gill, R. (2011) “Why Cloud Computing Matters to Finance”, Strategic Finance, (92)7, pp. 43–47.
[23] Gill, R. (2011b) “The Rise of Two-Tier ERP”, Strategic Finance, (93)5, pp. 35–40.
[24] Giniat, E. J. (2011) “Cloud Computing: Innovating the Business of Health Care”, Healthcare Financial Management, (65)5, pp. 130– 131.
[25] Gosain, S. (2004) “Enterprise Information Systems as Objects and Carriers of Institutional Forces: The New Iron Cage?”, Journal of the Association for Information Systems, (5)4, pp. 151–182.
[26] Grabski, S. V., S. A. Leech, and P. J. Schmidt (2011) “A Review of ERP Research: A Future Agenda for Accounting Information Systems”, Journal of Information Systems, (25)1, pp. 37–78.
[27] Hirschheim, R. and M. Newman (1991) “Symbolism and Information Systems Development: Myth, Metaphor and Magic”, Information Systems Research, (2)1, pp. 29–62.
[28] DC Forecast (2014) IDC Forecasts Public IT Cloud Services Spending Will Reach $127 billion in 2018 as the Market Enters a Critical Innovation Stage, Retrieved February 25, 2015 from: http://www. idc.com/getdoc.jsp?containerId=prUS25219014.
[29] Joint, A., E. Baker, and E. Eccles (2009) “Hey, You, Get Off of That Cloud?” Computer Law & Security Review (25)3, pp. 270–274
[30] Katzan Jr., H. (2010) “On the Privacy of Cloud Computing”, International Journal of Management and Information Systems (14)2, p. 1.
[31] Klause, H., M. Roseman, and G. G. Gable (2000) “What is ERP?” Information Systems Frontiers, pp. 141–162.
[32] Landry, B. J. L., S. Mahesh, T. Sridhar, and K. R. Walsh (2011) “A Decision Table for the Cloud Computing Decision in Small Business”, Information Resources Management Journal, (24)3, pp. 9–25.
[33] Lee, A. S. (1991) “Integrating Positivist and Interpretive Approaches to Organizational Research”, Organization Science, (2)4, pp. 342–365.
[34] Lee, A. S. and R. L. Baskerville (2003) “Generalizing Generalizability in Information Systems Research”, Information Systems Research, (14)3, pp. 221–243.
[35] Marston, S., Z. Li, S. Bandyopadhyay, J. Zhang, and A. Ghalsasi (2011) “Cloud Computing — The Business Perspective”, Decision Support Systems, (51)1, pp. 176–189.
[36] McAfee, A. (2011) “What Every CEO Needs to Know About The Cloud”, Harvard Business Review, (89)11, pp. 124–132.
[37] Mell, P. and T. Grance (2010) “The NIST Definition of Cloud Computing”, Communications of the ACM, (53)6, p. 50.
[38] Meredith, S. and D. Francis (2000) “Journey towards Agility: The Agile Wheel Explored”, The TQM Magazine, (12)2, pp. 137–143.
[39] Miranda, S. (2013). ERP in the Cloud: CFOs See the Value of Running Enterprise Applications as a Service. Financial Executive, 29(1), 65-66.
[40] Morgan, L. and K.Conboy.2013. “Key factors impacting cloud computing adoption.” Computer 46(10):97–99.
[41] Orlikowski, W. J. and J. J. Baroudi (1991) “Studying Information Technology in Organizations: Research Approaches and Assumptions”, Information Systems Research, (2)1, pp. 1–28.
[42] Pakath, R. (2015). Competing On the Cloud: A Review and Synthesis of Potential Benefits and Possible Pitfalls. Journal of Organizational Computing and Electronic Commerce, (forthcoming).
[43] Patton, M. Q. (1990) Qualitative Research & Evaluation Methods 2nd ed. Thousand Oaks: Sage Publications, Inc.
[44] Peng, G. C. A. and C. GALA (2014) “Cloud Erp: A New Dilemma To Modern Organisations?”, Journal Of Computer Information Systems, (54)4, p. 22-30.
[45] Sarker, S. and S. Sarker. (2009) “Exploring Agility in Distributed Information Systems Development Teams: An Interpretive Study in an Offshoring Context”, Information Systems Research (20)3 pp. 440–461.
[46] Sarker, S. and J. Nicholson (2005) “Exploring the Myths about On-line Education in Information Systems”, Informing Science Journal, (8) pp. 55–73.
[47] Silva, L. and J. Backhouse (1997) “Becoming Part of the Furniture: The Institutionalization of Information Systems”, Proceedings of the IFIP TC8 WG 8.2. Philadelphia, PA, Chapman & Hall, pp. 389– 416.
[48] Stake, R. E. (2000) Handbook of Qualitative Research. Thousand Oaks, CA: Sage Publications, Inc, pp. 435–454.
[49] Sommer, T., & Subramanian, R. (2013). Implementing Cloud Computing in Small and Mid-Market Life-Sciences: A Mixed-Method Study. Journal Of International Technology & Information Management, 22(3), 55-76.
[50] Strong, D. M. and O. Volkoff (2011) “Understanding Organization-Enterprise System Fit: A Path to Theorizing The Information Technology Artifact”, MIS Quarterly, (34)4, pp. 731–756.
[51] Tingling, P., & Parent, M. (2002). Mimetic Isomorphism and Technology Evaluation: Does Imitation Transcend Judgment? Journal of the Association for Information Systems, 3(1), 5.
[52] Trice, H. M. and J. M. Beyer (1984) “Studying Organizational Culture through Rites and Ceremonials”, Academy of Management Review, (9)4, pp. 653–669.
[53] Tzuo, T. (2012) The End of ERP, Forbes, Retrieved February 25, 2015 from Forbes: http://www.forbes.com/sites/ciocentral/2012/02/09/the-end-of-erp/ [current June 2, 2012].
[54] Ward, B. and J.C. Sipior (2010) “The Internet Jurisdiction Risk of Cloud Computing”, Information Systems Management, (27)4, pp. 334-339
[55] Yang, H. and M. Tate (2012) “A Descriptive Literature Review and Classification of Cloud Computing Research”, Communications of the Association for Information Systems, (31)2
[56] Yin, R. K. (2003) Case Study Research: Design and Methods, Third Edition, Newbury Park, CA: Sage.
Published
2018-08-23
How to Cite
[1]
Beaulieu, T., Martin, T.C., Sarker, S. and Bjørn-Andersen, N. 2018. Confronting, Confirming, and Dispelling Myths Surrounding ERP-in-the-Cloud: From Iron Cage to Agility. AIS Transactions on Enterprise Systems. 3, 1 (Aug. 2018).
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