Creating Business Value from Cloud-Based ERP Systems in Small and Medium-Sized Enterprises

This qualitative study focuses on how small- and medium-sized enterprises (SMEs) can realize benefits and create information technology (IT) value by investing in cloud enterprise resource planning (ERP) systems. We interviewed 19 respondents from cloud providers and cloud clients and found that their SMEs experienced both benefits and challenges when implementing cloud ERP systems. The digital value was obtained through work process automatization, fast updates of system functionalities, enhanced security of data storage, and increased access to critical business data from multiple digital units. Challenges in realizing these benefits related to organizational compliance with standard solutions and the need for organizational changes for employees to optimize system usage. The SMEs preferred an informal process for realizing benefits and creating digital value from the system. In contrast, the providers wanted to integrate benefits realization as part of their formal implementation methodology. Based on frameworks identified in the literature, we integrate a benefits realization model with an information systems value model to understand how SMEs realize benefits and create business value from cloud ERP systems. We contribute to the SME literature and explain the value creation process for SMEs implementing cloud ERP systems.