Factors for adoption of cloud –based ERP systems in midsized intergovernmental organizations: a case of comprehensive total nucler -ban treaty organization (CTBTO)

Abstract

Cloud based ERP systems are gradually replacing the traditional ERP in-house implementation within organizations. Cloud based ERP systems exploit the ubiquity of Internet. increasing reliability of cloud infrastructures, and the economies of skill to deliver ERP systems over the Internet at a significantly lower price and less risk that the traditional ERP implementations. In addition to the transfer of maintenance and support of the application to the vendor, cloud based ERP systems enable small and medium sized, budget limited organizations to have access to incredibly robust technologies in an affordable way, at a low cost of ownership. quick deployment and faster return of investment. Like other Information Outsourcing decisions, adoption of cloud based ERP systems is influenced by many factors, which are both external and internal to the organization. In addition, cloud based ERr systems are associated with multiple benefits as well as risks. Adoption of these systems therefore requires careful evaluation of all influencing factors, and a careful balance between the be4nefist and risks. In this study, various factors influencing the adoption of cloud based ERP systems in medium sized intergovernmental organizations are investigated, and a conceptual framework is developed to facilitate and aid organization in evaluating their cloud based ERP systems adoption decisions. The conceptual model is validated through a case study of the Comprehensive Total Nuclear-Ban Treaty Organization - CTBTO. The model validation process involves collection and analysis of qualitative and quantitative data within the case study organization. Content analysis of qualitative data provides the decision attributes specific to the case study organization, while the quantitative data provides the degree of influence of each of the decision factors on the final adoption decision. This is done through the Analytical Hierarchy Process (AHP) The findings of the model validation process shows that strategic, economical, organization and technical factors impact the organizations decision to adopt cloud based ERP systems. Further the results show that despite the many sited risks associated with cloud based ERP adoption, the anticipated benefits far outweighed the risks, and the adoption decision was the favorite decision for the case study organization For organizations evaluating their cloud adoption decisions, the model presented provides a systematic tool to facilitate and aid evaluation of their adoption decisions. For the Cloud based ERr Vendors, the research provides some insight and better understanding of the factors that clients consider when reviewing cloud based ERP systems The developed model contributes to the academic literature by presenting an integrative view of the cloud based ERP adoption decision factors.