1. I would trust my external provider with my organizations data because I know that if they didn’t keep all my information a secret, and people found out about this, they would lose most if not all of their business. Other businesses would find out about this and they too would stop using the provider that I was using. If I was really unsure about using cloud based software applications, I would need the company to make guarantees that my information would not be spread across the internet. It would also make me feel more secure if they set up a way where I could choose which computers were only allowed to use the applications. For example, it would be more beneficial if I could make my information more secure so that the only way you could access my information is by using a computer or device that I list. So when I use my Smartphone to access my web based service, the site knows that I am using a device that I have registered under my business. Something like this idea would make me feel more secure.
2. There are many drawbacks of using an in-house database. You may pay too much for the purchase of the database, and you may find that the price you paid for it, outweighs the benefit. Maybe you only used it for one month, and then you never used it again. Now you have this database application sitting on your computer that you will never use again. Because this database is not linked to the internet, once you buy it, you may never get a free upgrade. Because you made your one big purchase of the software, you may be able to use it for a year, and it may be a great system. But once it becomes obsolete, you will have to buy the new version, so you will have to make another large purchase. The good part about buying this type of database is that you can customize it however you like. If you want to make any types of changes, you are most likely able to do that, compared to the web based service that doesn’t quite allow you to make those changes. Obviously one of the best advantages of having a database right on your computer is that it is very safe. The only way someone could steal your information is if someone were to log onto your home computer and access the program. Basically, it’s much safer to have the database on your computer at home. A downside is that you won’t be able to access the database to anywhere eels but your computer at home. Say you need to input some information while you’re at work because you don’t want to forget about it when you get home; you won’t be able to do this if your database is not online.
If you were to buy the SaaS database solution, you would pay when you needed it. So if you stopped using it so much at one point, the subscription would run out and you wouldn’t be wasting money. Also, these vendors want to make sure they have the best applications for businesses to use, so they constantly keep up with the business environment so that when you purchase their database, it will be up to date with the current market conditions.
I feel that it depends on what type of business you have will determine which type of database you should use. If you run a simple business that doesn’t need much customizing and you’re only going to run your business for a short period of time, you should stick with the in-house database. If your business is very complex and you invest a lot of time and effort into it, you should use the online database. If you compare the two, I believe that the online database is better. It constantly keeps up with current market conditions, you pay as you go so you save money, and you can access your business database anywhere you want.
3. There are a few applications that should only be purchased rather than obtained though a Saas relationship. If there is an application that deals with all the social security numbers of all the citizens who live in the United States, this information should be completely secure. If anything were to happen to this information, and if it was leaked out, this could cause very large problems. Any type of information regarding people’s personal bank accounts or investing information should be kept completely secure. Information regarding government secrets should also be used at a home database. Say the government had information about aliens and they didn’t want the people to find out about this; this is the type of information that is too valuable to be let loose in society.
1. The advantages of using an ERP system are that ERP systems allow everyone in the business to do their specific goal in the organization. The scalability (the ability to handle organizational growth) of the module system is a key strength of ERP systems. If new modules need to be added to the ERP system, you can do that and the old ones won’t get disrupted. They have the ability to aggregate huge amounts of data and manage organizational resources and activities. The disadvantages are that many users are unsatisfied with their ERP’s performance and return on investment (ROI). People don’t consider the total cost of ERP implementation. Buying new computer hardware and infrastructure upgrades to run the ERP system can often cost a lot of money. A consulting firm is usually hired to manage the implementation because the technology of ERP systems is either foreign or too complex for most in house experts to handle. Consultants help the organization map out how the new system will interact with business processes, customize the ERP software to meet task requirements, and train users on how to work with the new systems. These all cost a lot of money. Most of the time, the implementation process will take much longer than expected, driving consultant fees and dissatisfaction with the project ever higher. Software licensing fees are also expensive. 54% of businesses exceed their budget when using these ERP’s. The organizational change can be costly also. Now that the system has changed, you have to teach all your employees how to use it, so that takes a long time. Also, since new systems can be better than the old, sometimes there is no longer a need for certain positions. This may make workers feel like their job is threatened. Since data is more easily to be spread, it’s hard to keep track of which data is necessary and which is not. Having open access to information can lead employees to having a sense of being watched or feeling that their positions are threatened. Usually humans resist to change during these times. Managers don’t really think about whether it is even worth it or not to have a new system implemented. Businesses don’t always think that they make more money off of the new system or their ROI is often dissatisfying.
2. If I was the chief information officer of a large company, I may or may not implement a new ERP system. If my business was running just fine with the old software, I probably wouldn’t change to a new system. This is because there are just too many disadvantages to a new ERP system. Using an ERP system seems like a good idea when you have a lot of disposable income with a business. If you have money lying around and you want to put it to good use and make your business better, than you should invest in a new ERP system. But the only problem with this is that it takes a lot of money, time, and effort. Many people won’t understand how to work the program so you’ll have to teach all your employees how to use the new software. Those employees might feel like their job is in danger, and they will probably resist change. The only time I would consider doing something like this, is if my business is very old and needs some remodeling. If I wanted to change my whole business and keep up with the times, I would use an ERP system.
3. A small business could avoid experiencing “just another ERP failure” by not investing in an ERP at all. One way to avoid the problem is to not get involved at all. As it states in the text, many business owners feel that the new system is better than the old system. So why implement the new system at all? On the other hand, if a new system is necessary, there should be specific steps to follow to avoid such failures. First of all, managers should realize the money it takes to implement something like this. Managers should also try to prepare their employees for this new change technically and emotionally. The employees should be talked to so that they don’t feel like they are going to lose their jobs. Managers need to give their employees motivation to not resist the change that the business is going through.
