A framework to apply cloud-based enterprise resource planning in the United Arab Emirates manufacturing companies-a case approach

Abstract

Enterprise Resource Planning (ERP) systems provide great benefits to companies. Companies in the Middle East realises that there is an urgent need for understanding ERP adoption and implementation issues since use of ERP systems are still in the early stages in these countries. Also, use of cloud ERP is very limited and there is no much empirical study has been carried out in this field. The purpose of studying this topic is to examine factors that influence the selection and adoption of cloud based ERP in UAE manufacturing companies. A comparative study was carried out in UK and UAE SMEs to evaluate the differences in the perception and application of cloud based ERP. Through empirical study and extensive statistical analysis, the technological and cultural barriers that impede the adaptation and implementation of cloud based ERP successfully in UAE manufacturing companies were recognised. Based on the critical success factors identified in the analysis, a cloud based manufacturing ERP model (CBMERP) with a specific focus on flexibility, scalability, faster deployment, access to advanced technologies and more ease of use was developed. Validation study of CBMERP revealed that UAE SMEs which experimented the proposed model achieved improvement in their manufacturing operations through shorter cycle times, reduced manufacturing costs, improved supply chain management practices and shorter delivery times. This research contributed to the existing body of knowledge by identifying that a significant gap exists in the factors that influence the success of an ERP system in manufacturing SMEs particularly in UAE. This study addressed this gap by providing a conceptual framework of the influential factors involved in the success of a cloud based manufacturing ERP model suited for UAE SMEs.