THE FUTURE OF CLOUD ERP IN SMEs OF PAKISTAN

Abstract

Purpose: - The purpose of this study is to test the impact of the factors (Cost, Maintenance, Short deployment time, Data security risk, and Adaptability) on using cloud-based ERP systems as solution for their enterprise. The scope of the research was limited to the study of smalt and medium sized enterprises of Pakistan. ERP systems are used for the management and implementation of information system. Cloud computing is a service that helps organization to outsource their database management system. In this thesis, our study identifies the SMEs willingness to adopt cloud-based ERP as solution for their information system. Methodology: - A questionnaire was used to collect data from different respondents. The questionnaire was sent through email to the 565 people belonging to IT department of the different SMEs. 254 people responded to the questionnaire. The respondents differentiated based on the position, industry experience and the size of their enterprise. Findings:- The hypothesis tested in the research clearly shows that the variables Cost, Maintenance, Short deployment time, has positive impact on the adaption of the cloud-based ERP systems as solution for management information system. Whereas, data security risk has a negative impact on its adaption, because of the high risk involved in data being leaked and the less trust on the cloud service providers. Practical Implication:- The outcome of this research is to analyze the willingness of the SMEs to adopt the cloud-based ERP systems based on the core factors of Cost, Maintenance, Deployment time, and Data security risk.