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Hybrid Enterprise Resource Planning (ERP) Solution for the Lesley Stowe Fine Foods

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Hybrid Enterprise Resource Planning (ERP) Solution for the Lesley Stowe Fine Foods Lecturer: Hybrid strategy in ERP involvesa combination of process line, phasing, and parallel implementation; however, the strategies are rarely predicted precisely at the onset of ERP implementation. The hybrid solution at LSSF is essential since it allows the system to change, as people understand the software and as the scope of the enterprise changes. Most implementations of hybrid ERP strategies have their basis on their flexibility that allows adaptation to certain needs of a situation. Through Hybrid strategies, LSSF can specifically alter implementation of the ERP system to meet its needs like the need to fulfill business processes and functions like production, order fulfillment, exception handling, and material management (Compeau & Scott, 2013).

The hybrid strategies would have a positive effect on the firm performance only if there are suitable arrangements in the organization to solve tension that may arise from the hybrid strategies. Failure to have the suitable arrangements in the organization, then the strategies would negatively affect the organization’s performance. SaaS applications seldom function as stand-alone applications because organizations have SaaS for CRM, SaaS for HR and in-house analytic hardware with most of the information fed to ERP system within an organization’s data center.

However, enabled processes allow secure flow of information among these systems (Leon, 2008). Therefore, the ERP system LSSF requires is a hybrid since it is characterized by various information systems for different business functions. The requirements for the ERP system for the business describe a hybrid ERP cloud since resources use many delivery options that link to each other and not all of them are managed by the business.

Nevertheless, the applications need to somehow work together in order to provide the organization business value. The vendor of the hybrid ERP software may run the software from the vendor’s data centers or run its offering in public clouds. However, SaaS running in vendor’s data centre is not necessarily stable; moreover, a great software running on unreliable third party is of no use. Hybrid ERP software offer an environment where one or more premise or cloud systems are connected. The clouds in the cloud-based ERP system may be private, public or community clouds.

Private cloud is managed by one enterprise for its use while public clouds are available to all users and community cloud is limited to a set of organizations (Kugel, 2014). Within the LSSF enterprise, it seems appropriate to have a hybrid ERP system that supports premise enterprises that are linked to a community cloud, which support the organization’s several enterprises and functions. Any aspect in LSSF business capable of benefiting through mobile deployment like inventory seems to be ideal candidate for cloud deployment in the organization.

Through hybrid ERP software, LSSF would enable the enterprise maintain applications in cloud while meeting the local requirements like retaining customer records in their physical jurisdiction. However, one main challenge for the business is the security issues associated with cloud-based system. Nevertheless, to improve business administration in LSSF, a hybrid ERP system that blends cloud application and on-premise application is essential in taking advantage of process flexibility, improved functional fit, as well as low cost arising from the hybrid. Besides, creating hybrid ERP solution offers great risk of fragmenting the enterprise and diluting value where value of aggregated divisions is less compared to the whole.

As well, a hybrid solution risks attracting less strategic approach through focusing on rate of implementation instead of long-term provision of value (Greenbaum, 2012). Pure on-premise ERP and the notion information technology is an inside phenomenon needs to diminish with the hybrid ERP solution for the enterprise (Leon, 2008). The need for integration in LSSF calls for automated interaction in every aspect of the business in order to eliminate the need for back-office connectivity.

Therefore, a hybrid ERP solution that supports on-demand CRM as well as other SaaS models and co-exists with on-premise software is ideal for LSSF enterprise. However, having cloud-based hybrid ERP solution posses functionality limitations since it does not rely on mature systems like the conventional ERP systems (Greenbaum, 2012). Considering hybrid ERP systems that involve cloud-based solutions as well as those on-premise solutions offers considerable insight into their advantages and drawbacks. The cloud-based hybrid solutions offer cost benefit and can be implemented rapidly however, the main drawbacks in these solutions include security risks and performance that involves communication that relies on connectivity between the client and the cloud service provider.

On the other hand, the on-premise and hosted ERP solutions generally outperform the cloud-based hybrid solutions in categories such as performance, integration and customization capabilities as well as security and standards (Duan, Faker, Fesak and Stuart, 2013). References Compeau J. & Scott D. (2013). Lesley Stowe Fine Food: The ERP decision. Richard Ivey School of Business Foundation. Duan J., Faker P., Fesak A., and Stuart T. (2013) Benefits and Drawbacks of Cloud-Based versus Traditional ERP Systems.

Retrieved 2 August 2014 from http: //www. academia. edu/2777755/Benefits_and_Drawbacks_of_Cloud-Based_versus_Traditional_ERP_Systems Greenbaum J. (2012). The Rise of the Hybrid Enterprise. Retrieved 2 August 2014 from http: //www. informationweek. com/applications/the-rise-of-the-hybrid-enterprise/d/d-id/1103056? Kugel R. (2014). ERP’s Future is Hybrid Cloud. Retrieved 2 August 2014 from http: //robertkugel. ventanaresearch. com/2014/03/21/erps-future-is-hybrid-cloud/ Leon, A. (2008). Enterprise resource planning. New Delhi: Tata McGraw-Hill.

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