Cloud Computing as an Enterprise Essay

Pages: 10 (2648 words)  ·  Bibliography Sources: 15  ·  File: .docx  ·  Level: College Senior  ·  Topic: Education - Computers

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All of these factors were achieved by streamlining integration to legacy systems, in addition to ensuring each aspect of new product development, supply chain planning and execution, distribution and sales were all unified with the new cloud-based ERP system (Yoo, 2011). Olympus was also able to customize their ERP systems much more efficiently than had been the case in the past, as on-premise ERP systems from SAP had to be reconfigured through a highly unique, hard-to-understand programming language called ABAP. SAP designers had specifically created ABAP as a transaction processing language, choosing to define their own to ensure commonality across all SAP ERP versions. The challenge for many enterprises is that ABAP doesn't easily integrate into legacy environments due to byte ordering, compression and unique syntax requirements. Cloud computing-based integration applications were able to replicate ABAP code and emulate the functions of an ABAP controller, creating a unified network. The agility and speed of cloud computing as a platform in general and specifically at the IaaS level in Figure 1 underscore this fact. What Olympus had been able to do was create an entirely new enterprise computing platform and in so doing, accelerate the most critical business processes their business relies on. Cloud computing technology used as the foundation of this shift from on-premise applications is one of the primary catalysts of their turn-around as a global competitor in camera, imaging and advanced optics markets.

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TOPIC: Essay on Cloud Computing as an Enterprise Assignment

Based on an analysis of cloud computing and its revolutionary impact on the economics of software in general and in the enterprise specifically, a paradox also emerges for many organizations. With so much latent demand to replace monolithic ERP systems that are on-premise and costing millions of dollars a year in maintenance, it is clear that many organizations are evaluating cloud computing-based platforms today (Dhar, 2012). The paradox is that the economies are so compelling yet the change management strategies and initiatives within businesses so slow to react (Lin, Chen, 2012). It isn't the technology that slows businesses down from adopting and using cloud computing, it is the high cost of changing how people work. It is also the very strong resistance to change so many have to modifying how work gets done in their daily work lives. This is the paradox of cloud computing productivity: how to get the economic gains of new technology while managing the human side well. Based on the research completed for this analysis, the paradox of these two factors leads to the following series of conclusions and Recommendations.

First, like ERP, cloud computing faces a significant challenge from a change management standpoint. To overcome these challenges organizations need to follow the ERP New Implementation Critical Success Factors (CSF) shown in Table 1, ERP New Implementation Critical Success Factors. These are comparable to large-scale cloud deployments as well, as the most successful cloud implementations in the enterprise completely change business processes, making them more efficient and focused. The same holds true for ERP hence the use of these factors in the analysis. And clearly they apply directly to cloud-based ERP implementations as well.

Table 1: ERP New Implementation Critical

Success Factors

Sources: (Velcu, 2010) (Nah, Delgado, 2006)

For enterprises that are evaluating cloud computing-based architectures and applications today, the most critical decision is how to structure the decision framework. Too often enterprises look at new technology with strong assumptions about cost savings, which often don't fully materialize. For cloud computing-based architectures and applications to deliver the full value they are capable of, a framework needs to be created that weighs or factors the specific business strategy contributions of the cloud-based applications first. When the total value of the cloud-based architecture can be determined, then the decision to pilot the system needs to be made (Low, Chen, Wu, 2011).

Second, Top management support is essential for any cloud-based architecture or application to succeed. Not only can a member of top management clear organizational roadblocks out of the way, they often serve as a role model as well (Truong, 2010). This second aspect has to do with attitudes about the change and how the change management program will be defined. The third most critical success factor is the clear definition of goals and focus on a balanced project team. This is essential for unifying the first two critical success factors in addition to setting the foundation for defining a strong project management team. All of these critical success factors build on each other over time; they create a solid foundation of change management that increases the probability of success for an enterprise adopting cloud computing.

Third, user participation, education and training and Business process Re-engineering (BPR) requirements are also all critical to the success of any cloud computing program. Software and development troubleshooting is also a critical requirement which serve as the unifying aspect of all critical success factors. All of these elements taken together create a strong catalyst for change management, cutting through the paradox of new technologies to bring lasting business change into an enterprise.

References

Aljabre, A. 2012, "Cloud Computing for Increased Business Value," International Journal of Business and Social Science, vol. 3, no. 1, pp. n/a.

Armbrust, M., Fox, A., Griffith, R., Joseph, A.D., Katz, R., Konwinski, A., Lee, G., Patterson, D., Rabkin, A., Stoica, I. & Zaharia, M. 2010, "A View of Cloud Computing," Association for Computing Machinery.Communications of the ACM, vol. 53, no. 4, pp. 50.

Bentley, R. 2008, Call in the SaaS, Sutton, United Kingdom, Sutton.

Bowers, L. 2011, "Cloud Computing Efficiency," Applied Clinical Trials, vol. 20, no. 7, pp. 45-46,48-51.

Corbett, S. 2009, "SaaS answers technology SOS," Chartered Accountants Journal of New Zealand, vol. 88, no. 8, pp. 29.

Dhar, S. 2012, "From outsourcing to Cloud computing: evolution of IT services," Management Research Review, vol. 35, no. 8, pp. 664-675.

Dihal, S., Bouwman, H., de Reuver, M., Warnier, M. & Carlsson, C. 2013, "Mobile cloud computing: state of the art and outlook," Info: the Journal of Policy, Regulation and Strategy for Telecommunications, Information and Media, vol. 15, no. 1, pp. 4-16.

Lin, A. & Chen, N. 2012, "Cloud computing as an innovation: Perception, attitude, and adoption," International Journal of Information Management, vol. 32, no. 6, pp. 533.

Low, C., Chen, Y. & Wu, M. 2011, "Understanding the determinants of cloud computing adoption," Industrial Management + Data Systems, vol. 111, no. 7, pp. 1006-1023.

Nah, F.F. & Delgado, S. 2006, "Critical Success Factors for Enterprise Resource Planning Implementation and Upgrade," The Journal of Computer Information Systems, vol. 46, no. 5, pp. 99-113.

Sanborn, D. 2008, "Bandwidth in the Back Office," Lodging Hospitality, vol. 64, no. 5, pp. 60-60.

Truong, D. 2010, "How Cloud Computing Enhances Competitive Advantages: A Research Model for Small Businesses," The Business Review, Cambridge, vol. 15, no. 1, pp. 59-65.

Velcu, O. 2010, "Strategic alignment… [END OF PREVIEW] . . . READ MORE

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