Many companies are investigating how an ERP System can help increase efficiencies and profits. Companies are presented with a number of options which they need to consider when deciding on an ERP system. ERP Decisions: On-premise – refers to the traditional approach; a company purchases a license for an ERP system and install the system on its own server. Hosted ERP System – refers to purchasing a license for an ERP system but a third party hosts the system in the cloud. This is also referred to as Infrastructure as a Service (IaaS). Cloud ERP System – refers to an ERP system that is developed to operate entirely in a cloud environment. The company pays a subscription to access the ERP system and shares it with other companies. This is also referred to as Software as a Service (SaaS). Instructions: For this week’s assignment you are tasked with investigating and analyzing which of the above mentioned ERP System set-ups would work best for A small company with less than $1 Mill. in revenue; 3 employees; projected growth in revenue over the next 5 years is 15% year over year. Company management plans to hire 4 additional employees over the next 5 years. A large, well established organization that has some ERP components in place, but wants to strengthen its Operations Management by integrating the various systems into one robust ERP System. Provide a table where you perform a comparative assessment of the three systems described above. You will then decide, based on your comparative assessment, which system works best for the two scenarios described under a) and b). Be specific and explain your decision! Use sources to support your decisions!
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