Adoption of cloud-based enterprise resource planning payroll system state-owned enterprises in South Africa

Letlapa A Nakeng,Sello N Mokwena,Michael N Moeti

doi:10.4102/sajim.v23i1.1357

Abstract

Background: Cloud computing simplifies the access of applications and data from any location worldwide using Internet connected devices. Whilst adoption of cloud computing seems to be attractive, most companies are still using the on-premise enterprise resource planning (ERP) systems. Cloud computing provides organizations with scalable computer resources; nevertheless, state-owned corporations in South Africa have a poor adoption rate for integrating ERP and, in particular, payroll into the cloud (SOEs).Objectives: The goal of the study was to investigate factors affecting the adoption of ERP payroll cloud solutions in SOEs and basing on these factors develop an ERP payroll cloud solution adoption model.Method: In this study, a qualitative research approach was employed. Data were collected through observation, interviews and document reviews, and were analysed using thematic analysis method.Results: The a priori themes for this study: policy, security, cost, compliance and privacy were confirmed, whilst Protection of Personal Information Act, data centre location and top management emerged and were found to have a substantial influence in cloud ERP Payroll adoption process in SOEs.Conclusion: To move from on-premise to cloud ERP solution, SOEs managers need clarity on: Protection of Personal Information Act (POPI) act adherence, data centre location, top management support, privacy assurance, security guarantee, cost effectiveness, compliance controls and policy formulation adoption and implementation. The studied SOEs were not yet ready to migrate from on-premise solution to a cloud solution because of these factors. Addressing the above-mentioned concerns may enable SOEs’ managers to gain confidence in adopting cloud services.

Highlights

Cloud computing denotes storing and accessing data and programmes over the Internet instead of the computer’s hard drive (Rashid & Chaturvedi 2019)
The findings of this study show that the intention of cloud enterprise resource planning (ERP) Payroll adoption can be predicted by emerged themes
The non-pragmatic data retrieved from the literature, together with the pragmatic findings, demonstrated that there are a number of factors that impact cloud-computing adoption in the studied state-owned enterprises (SOEs) as summarised here:

Summary

Introduction

Cloud computing denotes storing and accessing data and programmes over the Internet instead of the computer’s hard drive (Rashid & Chaturvedi 2019). Many companies are still using onpremise enterprise resource planning (ERP) systems. An ERP system is described as software solution that integrates the range of business processes that enables companies to gain a holistic view of the business enterprise (Al-Shboul 2018). The ERP uses one data repository to coordinate different organisational processes in different organisational units by means of software modules. Whilst adoption of cloud computing seems to be attractive, most companies are still using the on-premise enterprise resource planning (ERP) systems. Cloud computing provides organizations with scalable computer resources; state-owned corporations in South Africa have a poor adoption rate for integrating ERP and, in particular, payroll into the cloud (SOEs).

Objectives

Methods

Results

Conclusion