BENEFITS AND CHALLENGES OF CLOUD-BASED ENTERPRISE RESOURCE PLANNING (ERP): A CASE OF BANK OF ABYSSINIA

Abstract

In today dynamic world, organizations use Enterprise Resource Planning (ERP) to integrate business functions to the organization by joining the core process under a single database and it assist the enterprise to use the same information and transfer data between all functions. Many organizations in Ethiopia implement their ERP on premise. However, because of the high cost of dedicated and customized ERP software, cloud-based ERP is viable for organizations. Therefore, Bank of Abyssinia implemented its ERP system in cloud. The major objective of this study is to assess insight of employees on cloud-based ERP, the benefits and challenges of cloudbased ERP project implantation in the bank and to identify the gap and recommend the best solution. Data was collected from target group by means of questionnaires and interviews including observation. The data was analyzed with the help of SPSS version 20 and then presentation, interpretation and discussion was done by using table, percentage and mean values. The researcher used descriptive research method. Accordingly, the paper focused on insight, benefits and challenges of cloud-based ERP. Regarding insight of employees on cloud computing and cloud-based ERP, some of respondents were aware of it. But, the majority of respondents were not highly aware of cloud computing, cloud-based ERP and concepts related with them. The study also considered and identified that cloud-based ERP project implementation has many benefit and challenges related with cost, security, customization and implementation. Finally, the researcher discussed his possible recommendation and suggestions like: filling the knowledge gap of employees about cloud computing and cloud-based ERP, large organizations should know and understand, as there are more customization or modify their process to standard one For cloud-Base ERP project, the bank should integrate ERP with data ware house on premise and the bank should be certain to meet compliance issue not to put customer data in the cloud. Finally further study is necessary since it is a new technology and not practiced well in Ethiopia.