A Model for On-Premises ERP System and Cloud ERP Integration

Abstract

Market demand changes have led to the emergence of cloud ERP solutions that have become the growing trend nowadays as that they bring new processing capabilities without making significant changes in the existing system. But it alone does not provide businesses with all necessary and best functionalities as different businesses have different requirements. So, integrating multiple best-of-breed applications with cloud to build or fortify a near-custom ERP will automate processes and increase revenue for the business. A survey done by AMR research with 639 companies on integration requirements of SaaS customers shows that 70% of the companies expect to integrate their on-premises legacy applications to the SaaS solution. Also, states that application integration strategy will play the key role in post-modern ERP market. Though integration has been around for over a decade and there are many integration approaches between the two systems, they result in a brittle environment and a progressively more complex architecture as new integrations are added over time. This study analyses whether technological integration, business integration and socio-organizational integration affect the successful integration and aims to develop a model based on the findings for successful integration.