Enterprise Security Architecure

Cloud ERP Systems: Anatomy of Adoption Factors & AttitudesMoutaz Haddara (presenter)Asle FagerstrmBjrnar Mland

Westerdals- Oslo ACTDepartment of Technology

This presentation is about Cloud-ERP, specifically delivered as SaaS ERP1

General IntroductionMethodology & HypothesesFindingsDiscussionAgenda2Motivation/Aim

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ERP Systems

ERP Systems are modular software that support the different business functions inside organizations. They are process based, not business function based.3

Cloud ComputingPaaSUCaaSSaaSIaaS4InteroperabilitySecurityScalabilityPublic/Private/CommunityEaaS

UCaaS:Unified Communications as a ServiceEaaS: ERP as a service4

SaaS - EaaSSoftware as a service (SaaS) software is a method of deploying ERP software in a hosted or on-demand environment. Unlike the traditional method of purchasing ERP software licenses, the software as a service software model allows for the ERP software package to be rented or licensed for a protracted period of time. The ERP software is either hosted on the ERP developers web server or via a third-party provider commonly referred to as an application service provider (ASP).SaaS-based ERP is sometimes referred to as ERP as a service (EaaS).

Challenges with on-premise ERPOn-premise ERP implementations are complex;ERP projects are costly and resource consuming;Many companies dont possess the required resources/skills for such a project;Majority of ERP implementations fail;

Panorama Consulting Group ERP report 2014

6Why do we need to study cloud based ERP? Because on-premise ERP projects are costly and they fail frequently.

Main Cloud ERP advantages over on-premiseSaaS-ERP is promised to provide organizations with:Lower up-front, maintenance, & upgrade costs;Lower TCO;Expedited implementations;Limited need for technical support;Accessibility;Scalability;Etc

Main EaaS Concerns (previous work)SecurityAvailabilityEaaSData OwnershipLack of standardsVendor Dependence

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Research Motivations/AimsThere might be a great opportunities and potentials in SaaS ERP implementations in organizations. And we would like to know which benefits and disadvantages of SaaS-based ERP systems shape organizations attitudes and perceptions toward them?

Theory of Planned BehaviorThe Theory of Planned Behavior. Adapted from (Mathieson, 1991)Behavioral Beliefs& Outcome EvaluationsNormative Beliefs & Motivations to ComplyControl Beliefs & Perceived FacilitationAttitude Toward Behavior

Subjective Norm

Perceived Behavioral ControlIntention

Behavior

The theory of planned behaviour (TPB) is based on theory of reasoned action (TRA) and its extensionWhile TRA has gathered significant empirical support since its inception, there is also considerable empirical evidence that implies that the addition of PBC tends to improve the predictability of intention (O'Keefe, 2002).To uncover which salient beliefs that hold the highest predictive impact on attitude towards Cloud- and SaaS-based ERP systems, a regression analysis was applied.10

TCOResearch HypothesesAccessibilitySecurityBenefitAttitudeDisadvantageH1H1H3H3H2H2

H1: Total Cost of Ownership (TCO) will be perceived as the most significant benefit, and will be a significant predictor on attitude.H2: Security issues will be perceived as the most significant disadvantage, and will be a significant predictor on attitude.H3: Accessibility will be perceived as a significant benefit, and will be a significant predictor on attitude.11

Method/Survey factsLikert Scaled (1-10) respondents were asked to state their level of agreement (1 = strongly disagree, 10 = strongly agree) or perceived probability (1 = Low perceived probability, 10 = High perceived probability) with statements that represented beliefs. Probability was used for SN and PBC-related statements.The Wikipedia entry for Norwegian companies was used to get an overview of companies. The company database/search engine www.purehelp.no was used for respondent acquisition;839 companies contacted;237 respondents/surveys - 28.24 %. response rate;180 usable complete surveys - 20.31 % of the total sample;Regression and correlation models were used.

Techniques can be found in the gathering respondents part12

Respondents Overview

PB1: Lower TCO PB2: Lower demand for internal competencyPB3: Lower maintenance and upgrade costsPB4: Lower start-upPB5: Accessibility anytime, anywhere from numerous devicesPB6: Environmentally friendlyPB7: Scalability and strategic flexibilityPB8: Easier internal collaboration and data-sharingPerceived Benefits

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PD1: Lack of standards PD2: Data ownership and controlPD3: Lack of customizationPD4: Service downtime PD5: Bankrupt service providerPD6: Vendor dependencyPD7: Security issuesPerceived Challenges

TCOAccessibilitySecurityBenefitAttitudeDisadvantageH1H1H3H3H2H2Main Findings

H1: Total Cost of Ownership (TCO) will be perceived as the most significant benefit- Not supported, and will be asignificant predictor on attitude- Supported .H2: Security issues will be perceived as the most significant disadvantage and will be a significant predictor onattitude- Not supported .H3: Accessibility will be perceived as a significant benefit and will be a significant predictor on attitude- Supported.16

Main FindingsRespondents found Accessibility and Scalability to be the most significant benefits, with a mean score of 7,71 and 7,04 respectively. Respondents found Vendor dependency to be the most negative aspect of SaaS ERP systems, with Lack of customization options as the second ranked issue, with a mean score of 7,04 and 6,84 respectively. Security issues is the least significant disadvantage.

DiscussionApart from a few notable exceptions, the findings are relatively congruent with existing literature:The high ranking of scalability/strategic flexibility, as well as the concerns regarding vendor dependency and limited tailoring capabilities goes a long way in echoing the tendencies found in the assessed literature. The regression analysis uncovered that Scalability and Easier collaboration were both benefits with a relatively significant predictive qualities towards attitude, while vendor dependency is a negative trait with a similar impact. One uncommon finding was that respondents did not consider lower TCO to be a particularly strong benefit of SaaS-based ERP.

DiscussionAnother unexpected outcome was in regards to data security. The issue of data security was by no mean a key concern of the respondents, as both the total sample and all segmented subsamples rated it to be the least significant disadvantage. Nor did it hold any particular predictive power on attitude.Accessibility was - with a significant lead - perceived to be the most compelling benefit.

Thank you for your attention!

moutaz.haddara@Westerdals.no

Img Source: http://fc06.deviantart.net/fs12/i/2006/284/e/5/Cotton_Clouds_by_bronze_dragonrider.jpg20

Selected Bibliographyhttp://panorama-consulting.com/erp-software/software-as-a-service-saas/http://go.panorama-consulting.com/rs/panoramaconsulting/images/2014-ERP-Report-2.pdf?mkt_tok=3RkMMJWWfF9wsRonsq%2FKZKXonjHpfsX67uorT%2Frn28M3109ad%2BrmPBy92IABWp8na%2BqWCgseOrQ8llwLV9W%2FRM0RqqI%3D Haddara, M. and A. Elragal, ERP adoption cost factors identification and classification: a study in SMEs. International Journal of Information Systems and Project Management, 2013. 1 (2): p. 5-22.Mathieson, K. (1991). Predicting user intentions: comparing the technology acceptance model with the theory of planned behavior. Information systems research , 2 (3), 173-191. Elragal, A. and M. Haddara, The Future of ERP Systems: look backward before moving forward. Procedia Technology, 2012. 5 (0): p. 21-30. Mell, P. and T. Grance, The NIST definition of cloud computing. 2011. Feuerlicht, G., L. Burkon, and M. Sebesta, Cloud Computing Adoption: What are the Issues. Systmov integrace, 2011: p. 187-192. Benlian, A. and T. Hess, Opportunities and risks of software-as-a-service: Findings from a survey of IT executives. Decision Support Systems, 2011. 52 (1): p. 232-246.