Critical success factors and challenges for cloud ERP system implementations in SMEs: A vendors’ perspective

Abstract

To reduce costs and enhance the efficiency and effectiveness of enterprises, implementation of enterprise resource planning (ERP) systems is required in a highly competitive market. ERP systems have evolved from on-premise to cloud-based, which employ cloud computing features through an application-oriented software for storing data on remote servers. However, there have been few studies that have investigated the critical success factors (CSFs) and challenges for cloud ERP systems, particularly from a vendors’ perspective in the New Zealand (NZ) environment. This paper evaluates the CSFs and challenges which influence implementation of cloud ERP systems in NZ SMEs, based on vendors’ perspectives. Indepth interviews are conducted from six cloud ERP vendors in NZ to provide a comprehensive understanding of cloud ERP implementations. Findings reveal technology-enhanced skillsets, good governance, and innovative culture as the key CSFs and lack of information compatibility between departments, failure in governance, and cost overruns as the major challenges for cloud ERP implementations in NZ SMEs. Findings from this study provide practical insights to vendors and company managers that can assist in implementing cloud ERP systems.