University of Kelaniya, Sri Lanka

Mrs. Neranjana Ekanayake

MSc (Mgt, Specialized in Finance) USJP, BBA (Accounting Special ) Col’,
CIMA Passed Finalist, Dip in ERP
Lecturer

Department of Commerce and Financial Management

E-Mail – [email protected]
Department of Commerce and Financial Management, University of Kelaniya, Sri Lanka
CLOUD ERP
Enterprise Resource Planning
COMF 31443

Session 04

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University of Kelaniya, Sri Lanka 2
Learning Outcomes
At the end of this session students should be able to;
• Explain the concept cloud ERP
Case study – Don’s pizza(Logistics)
Case study – Don’s pizza(Computing)
• Identify cloud technology types
• Identify common cloud providers
• Explain the concept hybrid ERP
• Explain Pros and Cons of Cloud ERP
• Describe the Future of Cloud ERP

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 What is Cloud?

Outcomes
Triggers

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 Case study – Don’s pizza (Logistics)

Outcomes
Triggers

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 Case study – Don’s pizza (Computing)

Don’s pizza - Kandy Don’s pizza - Galle

Outcomes
Triggers

Don’s pizza - Colombo

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 Activity 01
• According to the above discussion, what are the
advantages of using Cloud computing to Don’s
pizza?

Outcomes
Triggers

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 Types of Cloud Technology
Private cloud

• Buy the software, rather than install in my building or my

computer, hosted in the cloud and access via the internet
• However Still my software, I can do what ever I want (install,
customized, upgrade and break it)

Software as a Service (SaaS)

• Multiple organizations/users accessing the same software

Outcomes
• Same version and same workflows you also as
Triggers other
users/organizations
• Data secure and private to you

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 Common Cloud Providers & Capabilities
• Hosting capabilities

• Provide cloud version of software

• Internet of things (IOT)

Outcomes
Triggers
Automation of the shop flow

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On-Premises vs. Cloud ERP

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 Activity 02
• Explain the difference between On-premises ERP and
Cloud ERP in terms of the following aspects;
- Cost
- Speed of deployment
- Technology expertise
- Ease of use
- Scalability
- Features and customization
Outcomes
Triggers
- New features and upgrades
- Control

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 On-Premises vs. Cloud ERP
1. Cost - With on-premises ERP, you make a substantial up-front
capital investment in hardware and software licenses, plus you’ll
need time and resources for installation and maintenance. In
contrast, cloud ERP is generally provided in the form of Software-
as-a-Service (SaaS): you pay for what you use on a subscription
basis.
2. Speed of deployment - Cloud ERP is generally faster to deploy
because there’s no need to install IT infrastructure.
3. Technology expertise - To run on-premises ERP, you generally
need skilled IT staff to install, manage and upgrade the system.
Triggers With cloud ERP, your supplier manages and upgrades the systemOutcomes

automatically.
4. Ease of use - Cloud ERP solutions are often easier to use and
require less training.

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 On-Premises vs. Cloud ERP contd.

5. Scalability - Cloud ERP and on-premises ERP can generally both

scale to support more users as your company grows. But scaling is
easier with cloud ERP because you just buy more subscriptions.
With on-premises ERP, you may have to install more powerful
hardware.

6. Features and customization - Both cloud ERP and on-premises

ERP systems are generally customized to fit your business. But
some on-premises ERP systems have been developed over many Outcomes
Triggers
decades, so they have acquired very extensive sets of features
and are also extremely customizable.

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 On-Premises vs. Cloud ERP contd.

7. New features and upgrades - When suppliers incorporate new

features into cloud ERP quickly, they immediately become
available to you. With on-premises ERP, it takes longer to
upgrade because you need to install each new release.
Organizations also find that customizing on-premises ERP is a
two-edged sword: If you have extensively customized the
software, it can be extremely difficult to upgrade to new releases.

8. Control - If you need absolute control over where your data isOutcomes
or
Triggers
how you run your software, an on-premises ERP system may be a
better fit.

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 Pros and Cons of Cloud ERP

Convenience – No
Flexibility – Invest time
investment required
and money on core
for IT infrastructure
business

Limitations are there –

In SaaS has to limit Cost – Initially, the cost
on, what Cloud would be higher than
provider is providing on premises ERP Outcomes
Triggers
to you

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 Lot of organization and people move into
Cloud

Cloud is really hot at the moment, but

The Future some limitations and higher cost is there
of Cloud
ERP Hybrid balance approach might be better,
some solutions in cloud and some solutions
in on- prem
Triggers High growth and highly dynamic Outcomes

organizations, cloud technology might not

be the best fit

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HYBRID ERP

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 Hybrid ERP?
• With hybrid ERP, you use a combination of on-premises and cloud
solutions to support your company’s needs
• Two-tier ERP – Use the existing on-premises ERP system for
corporate functions (tier 1), but adds cloud ERP systems to
support some or all business units or regions (tier 2). This two-
tier ERP approach can reduce overall cost and allow those
groups to move more quickly to meet local needs.
• Supporting specific business functions (tier 2) - You may find
that cloud solution suppliers provide better support for specific
functions, such as CRM or the ability to access ERP features from
Triggers phones or other mobile devices while on the road (mobile ERP). Outcomes

In this arrangement, you’ll use cloud ERP or those specific

functions.
https://www.youtube.com/watch?v=gVg1I7LtKsk

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 Recap
• What is cloud?
• Unlimited storage, Data backup to multiple locations - Easy recovery,
Only pay what we used, Can use new kind of services available in cloud
(Email, OneDrive, Power BI), Data security, High availability ,More focus
on business rather than the technology
• Cloud technology types - Private cloud & Software as a Service (SaaS)
• Common Cloud Providers - Hosting capabilities, Provide cloud version of
software, Internet of things (IOT)
Outcomes
Triggers
• The future of cloud
• Hybrid ERP = On Premises ERP + Cloud ERP

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 Thank You!

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