Classifying systemic differences between Software as a Service- and On-Premise-Enterprise Resource Planning

Item Type Journal paper
Abstract Purpose - The technological innovation of Software as a Service-Enterprise Resource Planning (SaaS-ERP) opens several relative advantages, which may be realized by choosing the proper operation mode. Thus a company looking for a new ERP system faces the question: When and under what conditions does it make sense to choose a SaaS-ERP system? The paper aims to discuss these issues. Design/methodology/approach - The relative advantage criterion of the diffusion of innovation theory, derived as operation mode differences, determine the conditions under which SaaS- or On-Premise-ERP is preferable: a classification of all main systemic operation mode differences between SaaS and On-Premise for the more complex ERP systems is presented. The systemic differences were identified by analytic generalization using triangulation between a literature review and a multiple case study with four ERP producers. Findings - The most significant decision factors between ERP operation modes are flexibility, customization, cost, and operation and maintenance. General strategies have been derived by bringing the theoretical reasons together with the operation mode difference criteria. Typical criteria for selecting SaaS-ERP are a lack of IT-capacity or capabilities, as well as high need for flexibility, due to business development, seasonality, growth, collaboration and/or expansion. On-Premise-ERPs should be selected if specific or strategic resources would be outsourced or when major customization is a need. Research limitations/implications - Case research is limited in that it reveals only ERP producers' view and omits outlying cases. Practical implications - The findings implicate that ERP selecting customers should consider and expand their criteria for ERP selection by operation mode criteria. Originality/value - The classification of the most essential operation mode differences allows, for the first time, ERP selecting customers to design selection strategies. ERP selecting companies should strategically favor the operation mode that best suits their respective organizational characteristics so as to obtain the best possible support from the ERP operation modes.
Authors Link, Björn & Back, Andrea
Research Team iwi3
Journal or Publication Title Journal of Enterprise Information Management
Language English
Keywords ERP delivery mode, ERP operation mode, Operation mode difference, SaaS-ERP, Selection strategies, Systemic difference
Subjects information management
HSG Classification contribution to scientific community
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date 13 October 2015
Publisher Emerald Group Publ.
Place of Publication Bingley
Volume 28
Number 6
Page Range 808-837
Number of Pages 30
ISSN 1741-0398
ISSN-Digital 1758-7409
Publisher DOI
Depositing User Prof. Dr. Andrea Back
Date Deposited 13 Oct 2015 12:18
Last Modified 20 Jul 2022 17:25


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Link, Björn & Back, Andrea (2015) Classifying systemic differences between Software as a Service- and On-Premise-Enterprise Resource Planning. Journal of Enterprise Information Management, 28 (6). 808-837. ISSN 1741-0398

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