Principles and practices for the implementation of Cloud based ERP in SMEs

Enterprise systems provide integrated information for all activities in an organization. These systems serve as a vital asset to any organization and hence it becomes mandatory to ensure their security. In the present scenario these services are offered on the cloud mainly to reduce inherent risk associated with the traditional enterprise systems. Cloud computing represents a significant shift in the way that IT resources are managed, operated, and consumed. This change exposes several benefits to enterprises, promoting greater IT efficiency and agility. This paper is intended to suggest a theoretical basis for studying the factors that influence SMEs' adoption of cloud computing. It will first explain the integration between the Technology-Organisation-Environment (TOE). Based on this technology innovation adoption process is influenced by three aspects of an enterprise's context. The technological context represents the internal and external technologies related to the organisation, both technologies that are already in use at the firm, as well as those that are available in the marketplace but not currently in use. These technologies may include either equipment or practice. The organisational context is related to the resources and the characteristics of the firm, e.g. size and managerial structure, while, finally, the environmental context refers to the arena in which a firm conducts its business; it can be related to surrounding elements such as industry, competitors and the presence of technology service providers. Enterprise Systems help in carrying out various tasks with greater operational efficiency and reliability. They also facilitate to keep information updated and available across the organization 24 * 7. As enablers of successful business reengineering projects, they help the organizations to save money, keep their business data consistent, current and available, speed up business processes, and improve the quality and reliability of the processes.