Implementing Cloud Computing Technology in Enterprise Resource Planning Systems

Transcription

1 Implementing Cloud Computing Technology in Enterprise Resource Planning Systems Pragya Kulhare 1, Sukriti Lumba 2 1 Assistant Professor, Computer Science Department, Jaipur National University, Jaipur 2 Assistant Professor, Computer Science Department, Jaipur National University Jaipur 1 pragya733@gmail.com 2 lumba.sukriti@gmail.com Abstract Cloud computing is a way of computing, via the Internet that broadly shares computer resources instead of using software or storage on a local PC, it enables us to store vast amount of data on remote server on Internet, and access it anywhere in the world, with just a browser. In today s environment of reduced IT budgets & expanding application footprints, organizations are investigating alternative models for delivering IT services. Several ERP use cases will be provided for each Cloud service as well as how to leverage existing IT investments in each Cloud service area. Cloud computing define the various cloud models such as public, private and hybrid. It enables Espouse the cases for utilizing Cloud services that can easily be applied for IT department. The paper is an attempt to find how External Cloud Services (especially SaaS) can help make the customer s total ERP experience simpler, faster and better, its applications and tremendous scope in the emerging business world. Index Terms Cloud Computing Models, Platforms, Advantages, Enterprise Resource Planning, Scope, Implementation. I. INTRODUCTION Cloud computing is the access to computers and their functionality via the Internet or a local area network. Users of a cloud request this access from a set of web services that manage a pool of computing resources (i.e. machines, network, storage, operating systems, application development environments, application programs). When granted, a fraction of the resources in the pool is dedicated to the requesting user until he or she releases them. It is called cloud computing because the user cannot actually see or specify the physical location and organization of the equipment hosting the resources they are ultimately allowed to use. That is, the resources are drawn from a cloud of resources when they are granted to a user and returned to the cloud when they are released. A cloud is a set of machines and web services that implement cloud computing. Cloud computing define various models such as public, private, hybrids. Public Cloud Computing - Public cloud or external cloud describes cloud computing that anyone can access using the Internet. Someone else constructs, configures, manages, and monitors the backbone of the public cloud in their data centers. We manage our custom assets that operate within the cloud (data, applications), and pay just for what we use. Typically, there are no long-term commitments required to use a public cloud, so we are free to ride the cloud whenever you like. Private Cloud Computing- Private clouds give users immediate access to computing resources hosted within an organization's infrastructure. Users self-provision and scale collections of resources drawn from the private cloud, typically via web service interface, just as with a public cloud. However, because it is deployed within the organization's existing data center and behind the organization's firewall a private cloud is subject to the organization's physical, electronic, and procedural security measures and thus offers a higher degree of security over sensitive code and data. In addition, private clouds consolidate and optimize the performance of physical hardware through virtualization, and can thus markedly improve data center efficiency while reducing operational expense. Hybrid Cloud Computing- Hybrid clouds consist of both private and public clouds. When an application in a private cloud experiences times of abnormally high demand, the application scales out to use resources in a public cloud (or private segment of a public cloud) this type of scaling is known as cloud bursting. 2015, Leiutis Pub. All Rights Reserved Page 20

2 II. CLOUD APPLICATION PLATFORMS Every cloud is essentially an application platform where we or somebody else deploys applications. Some cloud platforms allow us to build applications locally and deploy to the platform, while others require that we both build and deploy an application using the platform itself. Different types of cloud platforms support different types of application deployment units and provide resources for different types of applications Infrastructure as a Service- IaaS (Infrastructure as as Service) style clouds provide access to collections of virtualized computer hardware resources, including machines, network, and storage. With IaaS, users assemble their own virtual cluster on which they are responsible for installing, maintaining, and executing their own software stack. For reference, some public IaaS clouds available today include Amazon Web Services, RackSpace Hosting, and FlexiScale. Software as a Service- SaaS (Software as a Service) style clouds deliver access to collections of software application programs. SaaS providers offer users access to specific application programs controlled and executed on the provider's infrastructure. SaaS is often referred to as "Software on Demand." Software as a service (SaaS) and cloud computing continue to grow, but some applications are moving to the cloud more slowly than others. Thus, while many businesses take cloud-based for granted, movement to the cloud of more complex or critical applications such as ERP has been more cautious. However, new cloud based ERP solutions are multiplying, setting the stage for acceleration of the delivery of ERP functions as cloud-based services. Platform as a Service- PaaS (Platform as a Service) style clouds provide access to a programming or runtime environment with scalable compute and data structures embedded in it. With PaaS, users develop and execute their own applications within an environment offered by the service provider. Some PaaS systems limit what we can and cannot do to preserve the reliability, availability, and predictable performance of the overall platform. Such restrictions may limit what type of applications we can build. PaaS offerings include Force.com, Google App Engine, Heroku, and Engine Yard. III. ADVANTAGES OF CLOUD COMPUTING The various advantages of cloud computing is [1]: Self-service Provisioning- Allows users to deploy their own sets of computing resources (machines, network, storage, etc.) as needed without the delays and complications typically involved in resource acquisition; IT supports ongoing customization and enhancement of cloud user experience, while monitoring, managing, and expanding as required the underlying cloud infrastructure. Scalability- Decouples the fluctuating needs of individual users from typical infrastructure constraints, thus easily accommodating rapid increases or decreases in resource demand. Reliability and fault-tolerance- IT can focus on improving critical pieces of infrastructure to achieve predetermined levels of reliability. Policies addressing expected levels of reliability can be continuously reassessed and updated without user involvement. Optimization/Consolidation- Maximizes the usage and increases the efficiency of existing infrastructure resources. Extends infrastructure lifecycle. Reduces capital expenditure. QoS (Quality of Service)- Allows IT to dynamically reassess the SLA associated with users or groups of users for the resources allocated. Allows the organization to react quickly to changing conditions without unnecessary user involvement or knowledge. Well defined API- Using a well-defined and stable industry standard API avoids lock-in and ensures interoperability with an ever-growing number of tools and cloud service providers. As-needed availability- Aligns resource expenditure with actual resource usage thus allowing the organization to pay only for the resources required, when they are required. 2015, Leiutis Pub. All Rights Reserved Page 21

3 IV. PROPOSED ERP SYSTEM An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. [2] An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. [3] ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way. ERP referred to the way a large organization planned to use its organizational wide resources. Formerly, ERP systems were used in larger and more industrial types of companies. However, the use of ERP has changed radically over a period of few years. Today ERP can be applied to any type of company, operating in any kind of field. V. IDEAL ERP SYSTEM An ERP system would meet the criteria as the best model for enterprise wide solution architecture, if it chains all the below organizational processes together with a central database repository and a fused computing platform. Manufacturing- Engineering, resource & capacity planning, material planning, workflow management, shop floor management, quality control, bills of material, manufacturing process, etc. Financials- Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and billing (contract/service). Human Resource- Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people management. Supply Chain Management- Inventory management, supply chain planning, supplier scheduling, and claim processing, sales order administration, procurement planning, transportation and distribution. Projects- Costing, billing, activity management, time and expense. Customer Relationship Management- Sales and marketing, service, commissions, customer contact and after sales support. Data Warehouse- Generally, this is an information storehouse that can be accessed by organizations, customers, suppliers and employees for their learning and orientation. VI. IMPLEMENTATION OF AN ERP SYSTEM Implementing an ERP system in an organization is an extremely complex process. It takes lot of systematic planning, expert consultation and well structured approach. Due to its extensive scope it may even take years to implement in a large organization. Implementing an ERP system will eventually necessitate significant changes on staff and work processes. While it may seem practical for an in-house IT administration to head the project, it is commonly advised that special ERP implementation experts be consulted, since they are specially trained in deploying these kinds of systems. 2015, Leiutis Pub. All Rights Reserved Page 22

4 VII. ADVANTAGES OF ERP SYSTEMS There are many advantages of implementing an EPR system. A few of them are listed below A perfectly integrated system chaining all the functional areas together The capability to streamline different organizational processes and workflows The ability to effortlessly communicate information across various departments\ Improved efficiency, performance and productivity levels Enhanced tracking and forecasting Improved customer service and satisfaction [4] VIII. IMPLEMENTATION OF ERP AS SaaS SaaS was initially widely deployed for sales force automation and Customer Relationship Management (CRM). Now it has become commonplace for many business tasks, including accounting software, computerized billing, ERP software, invoicing, human resource management, financials, content management, collaboration, document management, and service desk management [5]. (A) Key characteristics SaaS, or web based applications such as ERP are opening up technologies to the masses by smashing the costly constraints required by on-premise applications. Rather than purchasing new software licenses and hardware to accommodate new employees and growth, companies can just add employees to their account with their application service provider who is the server and the data center making expanding and shrinking user demand incredibly fast, flexible and affordable. Users and IT managers are finding that cloud computing and SaaS ERP software are more than just solutions for offloading desktop applications to the Internet. It is enabling companies to achieve greater collaboration, flexibility and communication with employees and business partners at multiple locations on a variety of key business processes and operational activities in a real time, uniform manner. SaaS ERP enables smaller, budget limited companies to have access to incredibly robust technologies in an affordable way with its low cost of entry and quick and easy deployment. Generally, SaaS applications are more flexible, scalable, eliminates the ongoing maintenance and upgrade costs inherent with traditional on-premise software models and enables an organization to focus on what is does best and outsource the IT headaches to a third party. The key driver for the popularity of SaaS applications has been the attractive costs to get started, and the overall low cost of ownership. However, companies are realizing that the scalability features of the SaaS, software on demand model is a key driver in its own right as companies become global and open up multiple locations domestically and internationally. The cohesiveness that is inherent in the web based model is significant and the cost saving huge when dealing with international locations with technology compatibility issues both on the software and hardware side. Businesses are adopting cloud-based ERP solutions, and achieving success with them even SAP offer varying takes on ERP in the cloud. Many of these businesses began their explorations of ERP in the cloud with an open source solution. IX. SCOPE OF EXTERNAL CLOUD COMPUTING External Cloud Computing can be applied to various areas of IT as [6]: External Cloud computing makes traditional IT better, faster and cheaper and it has the potential to change both the business and IT landscapes in fundamental ways. External Cloud computing in combination with integration standards like web services and service-oriented architecture has the potential to enable inter-enterprise processes at an industrial scale: complex business 2015, Leiutis Pub. All Rights Reserved Page 23

5 International Journal of Innovative Research in Engineering and Technology processes that snake through multiple companies and their IT systems and that can be configured and reconfigured on the fly. The current IT paradigm may be called an endoskeleton model of IT: Data centers and applications support a company from inside its firewalls. Cloud computing provides an exoskeleton model of IT: Data centers and applications can support a company from outside its firewalls.. Smaller companies can have access to sophisticated IT capabilities without incurring the overhead of running an IT shop. External Cloud computing is much more than on-demand pricing or lower IT costs. It provides a new model for sourcing computing, which, in turn, will lead to significant changes in the business and IT landscape. To quote film producer Leonard L. Levinson, A pessimist only sees the dark side of the clouds, and mopes; a philosopher sees both sides and shrugs; an optimist doesn t see the clouds at all he s walking on them. X. CONCLUSION The ERP and Cloud Computing landscape has been changing dramatically over the last decade, but even more so over the last several years. Given the unprecedented economic drivers of the global financial meltdown and subsequent global recession, companies of every industry and size are scrambling to meet the challenges of the marketplace with ERP applications and solutions. In this scramble, ERP Cloud Computing applications have been getting tremendous following and demand for companies battling the formidable business challenges of the day which include revenue shortfalls and uncertainty, increasing competition, higher customer expectations and turnover, and changing market dynamics. Because of tightening budgets IT manager are looking for more affordable, high powered enterprise systems and ERP software solutions such as the web based ERP applications. IT managers in many cases are finding cloud computing applications easier to use and deploy thus further reducing the time and cost of meeting specific business needs with robust, on demand ERP Cloud Computing technologies. Software as a service (SaaS) and cloud computing continue to grow, but some applications are moving to the cloud more slowly than others. Thus, while many businesses take cloud-based for granted, movement to the cloud of more complex or critical applications such as ERP has been more cautious. However, new cloud based ERP solutions are multiplying, setting the stage for acceleration of the delivery of ERP functions as cloud-based services REFERENCES [1] visited on 09 August [2] Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1, John Wiley & Sons, Inc. p [3] Khosrow-Puor, Mehdi. (2006). Emerging Trends and Challenges in Information Technology Management. Idea Group, Inc. p [4] visited on 17 September [5] Biddick, Michael (Jan. 16, 2010). "Why You Need A SaaS Strategy". visited on 03 October [6] Kishore S. Swaminathan October 2010 issue of Outlook, an Accenture publication. 2015, Leiutis Pub. All Rights Reserved Page 24