VINSUN Infra Engineering: ERP on Premise or on Cloud
(4 pages of text)
The managing director of a small- to medium-sized electrical firm faces a major challenge: he realizes that the firm he founded has grown so significantly that information management has become very difficult. For solving issues of data integrity, redundancy, incompleteness and backup, he obtains quotations for implementation of enterprise resource planning from different vendors. Meanwhile, he discusses the issue of implementing the new system with his management team, who respond in different tones, leaving him confused. He also has to ensure that the initiative does not put strain on the firm’s finances. He ponders various options such as whether to adopt enterprise resource planning on premise or on cloud and whether to go with the safe but costly option of engaging a well-established firm or to risk dealing with a start-up.
- To expose students to decision-making in a small- to medium-sized enterprise on the adoption of emerging technologies.
To understand the cost drivers of enterprise resource planning on premise (product) and on cloud (software as a service).
- To understand the paradigm shift in costing of information technology services as a utility.
- To conduct a cost benefit analysis with the long-term view of software as a product versus software as a service.
The case is appropriate for courses in the concepts in management information systems (MIS), managing IT services, business enterprise, enterprise resource planning and emerging information technologies.
Professional, Scientific, and Technical Services
India, Small, 2010
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