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Enterprise Resource Planning Systems and Challenges

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Volume 62, Issue 04, April, 2020

Enterprise Resource Planning Systems and Challenges

Subhi R. M. Zeebaree1, Baraa wasfi salim2, Rizgar R. Zebari3, Hanan M. Shukur4,
Ahmed Sinali Abdulraheem5, Abdulrahman Ihsan Abdulla6, Shhapol Madhat Mohammed7

Duhok Polytechnic University, Duhok – Kurdistan Region, Iraq1

Baraa wasfi salim, Nawroz University, Duhok – Kurdistan Region, Iraq2
Duhok Polytechnic University, Duhok – Kurdistan Region, Iraq3
Al Kitab University, Kirkuk – Iraq4
Duhok Polytechnic University, Duhok – Kurdistan Region, Iraq5
Duhok Polytechnic University, Duhok – Kurdistan Region, Iraq6
Tishk International University, Erbi – Kurdistan Region, Iraq7

Abstract—Enterprise Resource Planning (ERP) systems is a comprehensive integrated system that governs
all aspects of a business. It gives your business automation and integration for core processes such as taking
client orders, planning operations and maintaining inventory records and commercial data. Using ERP
systems provide the user transparency into the entire business development, by which all the departments
can view the information documented to guarantee that the correct procedures are happening. This enables
the ERP system to act as a central core for end-to-end workflow and data. With the advances in the
technology and customer requirement forced ERP designers to cope with the new progress. Consequently,
new designs for the ERP system were done to please companies and customers by developing new ERP
business models. Today, ERP covers a wide range of functionality within themselves and become a popular
Solution in a business organization. Moreover, among the biggest challenge for ERP program designers is
to keep their speed with the manufacturing part, which has been moving rapidly from product-centric to a
customer-centric focus. This request encouraged most ERP sellers to add multifunction and modules to
their core systems. In this paper, we discuss and analyze ERP, ERP types, the ERP design that might be
promising in the future as well as discussing factors that could affect the future of ERP systems.

Keywords: Cloud computing, ERP Cloud, Cloud service provider, and Service estimation

1. Introduction
Currently, data on the internet and distributed systems are on the sharply continuous increasing [1], [2], [3].
Hence, investments in Information Technology (IT) are essential to cope with the changing competitive
organizational environment [4], [5]. Most companies invest in Enterprise Information Systems (EIS) such
as ERP systems and Customer Relationship Management (CRM). These investments in EIS support various
operations, information and strategic functions envisaged in the IT portfolio [6], [7]. EIS is a system that
integrates various modules necessary for companies to efficiently support the execution of multiple business
processes [8], [9]. The two main subsystems that make up the EIS are the ERP system and the CRM system.

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Some of the modules considered by the ERP are, among other things, management of financial resources,
production, project management, sales, and human resources [10], [11]. CRM generally integrates various
business processes and stakeholders related to marketing, sales and customer management [12]. The CRM
can be considered as an additional module of the ERP solution. However, given its complexity, the CRM
is defining as an independent system. ERP is a software system which designed to join all functional parts
of the enterprise and extend to contain parties external the enterprise for instance supplier and customer to
involve them in the supportive integration method [13], [14]. The ERP is considered as a key element of a
structure that provides a solution to the business [15]. ERP is presented as an inclusive software packaged
that pursues to integrate the complete series of a business's processes and functions to present a complete
view of the business from an individual information technology structural design [16]. Traditional ERP
systems grouped into two types on premise ERP and hosted ERP. On-premise ERP the enterprise runs and
manages the ERP system by supporting software license. Running cost, maintenance cost, accident
recovery, loading and running the system over the enterprise infrastructure such as network, platforms,
computers, servers, etc. [17], [18]. Moreover, to hosted ERP the system hosted into an external host may
be located in a server outside the country and the services available most of the time through the direct
network [19]. The progressively competitive business of today's environment had a high pressure on
organizations to reply to unique customer desires, and new subscription has risen based delivery model for
ERP, also called cloud-based ERP or SaaS ERP. This new model of ERP is the same as traditional on
premise ERP in systems, functions, and solution. The key variance is that the infrastructure (software,
hardware, and network connection), and ERP is provided as a service [20]. The SaaS ERP model is accessed
by using internet application, and data is organized and controlled by the cloud service provider and offered
to the client as ready to use for a monthly fee [21]. A cloud-based ERP system uses the benefits of cloud
computing to provide a more flexible approach to host ERP systems [22], [23]. The major advantages of
cloud computing are accessibility, availability, affordability scalability, guaranteed through Service Level
Agreements (SLA) [24]

2. Enterprise Cloud Computing

Cloud computing is a new model in which computer resources such as storage, memory, and processing do
not physically exist in the user's position. Instead, service providers own and manage these resources and
user's access via the Internet [25]. For instance, with Amazon web services, users can store personal data
using Simple Storage Service (S3) and perform calculations on stored data using Elastic Compute Cloud
(EC2) [21]. When using this type of computing platform, the business will surely benefit. Some advantages
are the reduction of the initial capital investment, the reduction of the time required to start a new service,
the reduction of maintenance and operating costs, the effective use of virtualization and the most important
simplest disaster [26]. From all these points, cloud computing is an incredible choice. There are many
advantages in migrating computing from the desktop to the cloud. Limited power and bandwidth are the
main cause of cloud computing limitations. Cloud computing can be used effectively to save energy used
on mobile phones, but it also brings some unique challenges. Mobile systems as smartphones have become
the main computing platform for many users [27]. As a new business model, cloud computing has a big
impact on the IT industry as a whole. Integrated cloud computing in all areas of business applications
reflects value at a deeper level. With the rapid development of cloud computing, businesses can access low-
cost, high-performance IT services, and small businesses can access high performance IT services such as
large-scale IT services. At the same time, businesses can focus on their core business while reducing the
burden on IT [28]. The optimization of processes based on cloud computing can be achieved through a

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massive restructuring of the sector, generally improving IT standards and competitiveness [29]. Another
advantage of cloud computing is that there are significant benefits to communicators. And these advantages
are as follows. Availability of numerous software applications, access to superior processing power,
advanced storage and the ability to easily share and process information. All this information is displayed
on the browser anytime and anywhere via Internet access. In other words, computing capacity can be a kind
of easy-to-use and an inexpensive product like gas, water, electricity. The computer storage computing
center consists of professional network companies such as Google and IBM, so you can easily "access"
them through the cable user and easily accessible from the browser. Storage center for materials and
services applied [30]. The level of service (SaaS, IaaS, and PaaS) works closely in the cloud to reduce costs
and resources. Coordination between these three levels enables better performance, stack harmonization
(load capacity control from a central location) and maximum use of server functionality, and indicates that
the result of cloud computing is a way to use resources more efficiently. As a result, maintenance costs are
reduced [31]. Because organizations can use mobile devices and wireless data transfer networks, there is
no need to install a large and complex system in the sales room. With this process, all sales and returns
information will be immediately available for corporate headquarters and business executives [32]. Third-
generation of mobile systems like Universal Mobile Telecommunications System (UMTS) are soon
introduced in any country and will not cause a revolution, but they will reform communication technology
by delivering feature-rich content to mobile users [33].

3. Infrastructure Models of Cloud Computing

Organizations can decide the types of cloud computing restrictions to deploy applications based on the fact
that cloud computing types can be classified into three classes: public cloud, private cloud and hybrid [34].
Public, private, and hybrid expressions do not specify a location. The term public cloud is, of course, a
public Internet site "outside the organization", a private cloud is located in the structure and the private site
can also be hosted on a positioning structure. Third parties are responsible for guiding the public cloud
outside the organization. It can be grouped into various client applications in server and in-memory cloud
networks. The public cloud is hosted away from the client's location. So they play an essential role in
reducing the risk and cost of customers by expanding the company's infrastructure. The private cloud is
hosted for a single client. They provide better security, quality of service and maximum control over data.
The hybrid cloud is the result of a combination of private cloud and public cloud. Provide the staircase
provided by the exterior according to the request. Public cloud resources can even support private clouds
to maintain a high level of service against sudden fluctuations in workload. Also clearly shows the use of a
storage cloud to support Web 2.0 applications [23]. In addition to these, the hybrid cloud also helps to keep
the peak of the planned workload and, even in the public cloud, can be used to perform periodic activities
[22].

4. Types of Services Provide by Cloud companies

Cloud computing can show services provided by any level established by hardware to applications. The
cloud computing company provides services belonging to the SPI model of cloud computing. Typically,
cloud service providers offer services that can be classified into three categories [21], [35].

4.1 Software as a service (SaaS)

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Software as a service function of a complete application is provided as a service on demand. Services from
multiple terminals or client organizations use a single version of software running in the cloud.

4.2 Platform as a service (PaaS)

The platform is a service that covers the software level and presents it as a service that can be used to create
a higher level of service. PaaS has at least two views based on the viewer of the service or client creator.
• A PaaS creator can build a platform based on the integration of the operating system, middleware and
application software and then present it to customers as a service that includes the development
environment.
• PaaS is provided as an encapsulation service using the API method. The client works with the platform
through the API. Therefore, the platform uses the necessary procedures for management and extension
to provide a certain level of service.

4.3 Infrastructure as a service (IaaS)

Infrastructure as a service uses vital services such as capacity storage and determination as coordinated
services across the network. Servers, storage systems, switches, and routers are collective and can be used
to manage and manage high-performance computing applications. Meanwhile, hardware (Haas) as a service
and hardware (HaaS) as a service are methods that allow an organization to outsource services and maintain
business.

5. Services Estimation Method of ERP

The proposed method included learning and lessons designed to reduce memory participation or impairment
while improving the accuracy of the estimate. There are four phases in the estimation method: customer
requirements, range planning, estimation, and verification. Depending on the complexity and risk of the
project, this cycle can be repeated iteratively to increase the level of detail of the skills needed to obtain
project estimates [36].

5.1 Customer requirements elicitation

This means to withdraw Documenting about customer's request. It is similar to the evaluation phase of The
ASAP methodology for fast implementation of ERP and it is commonly used in the industry [37]. The ERP
service project is often called management enterprise. Therefore, engineering customer requirements also
include documentation and analysis of the business processes and improve (modification) of these business
processes to present the proposed process. It is noteworthy that reprocess of requirements is a common
way. At the initial stage of the project, "Fair" requirements are met when the client and his company have
it. Adequate understanding and agreement have been reached [38]. Typical "sufficient" Techniques for
acquiring requirements practiced in SAP include design thinking. Storyboard creation and high-level model
prototype. The stakeholders of the customer's business have involved the result of these provocations. These
techniques are combinations of prioritization requirements, their relationships, traceability each other and
sometimes high-level design [39].

5.2 Scope formulation

This refers to the purpose of the ERP service project. It is similar to the business planning phase used in the
sector for SAP projects. More in detail, this step takes as input the requirements of the previous step [37].
Therefore, it results in a priority requirement. Architects can often decide what is best (High-level design).

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So, the best technology choice based on previous experience. Architecture (currently representing a group
of functional requirements) further consultation with experts on concrete solutions that serve the following
(according to consultation) [38]. Function group it is essential to correctly evaluate the judgment of the
experts in this in this step is to incorporate different actors between the scope and the disassembly process
estimated high uncertainty [40].

5.3 Estimation
The main estimation approach is initially top-down. Estimates are initially displayed top-down. It means
that the architecture and design of the project are defined (or, in the case of continuous iteration). The level
of abstraction is determined at that level of uncertainty or risk associated with the project [40]. Advanced
project Uncertainty or risk are often required to make estimates at a complete level. In this case of
abstraction, the bottom-up approach is often made to implement a specific solution, a detailed work estimate
(time) is required. Linking current opportunities as a standard practice through the creation of objects or
functions. General rules are often created for reusable estimation purposes, but not for all. Whenever an
estimation situation occurs, this is considered a good habit. It is provided to verify these rules. The
inaccurate configurable rules are: There is little or no feedback from experts. Therefore, the management
of ERP estimation strategy to present when using these methods in which circumstances [9].

5.4 Validation
The validation phase represents the activities related to estimation validation. Techniques involve creating
processes through it. The primary estimate will be verified. The same verification procedure can use expert's
Judgment, registered real value, functional point, and group based on verification [37], [41].

6. Affecting of Technologies to the ERP Development

Over the century, ERP began as a system that can only be managed by large manufacturing companies [42].
Subsequently, ERP was moved and extended to all sectors, including retail, distribution, medical care,
government and so on. This is due to web and web technologies that form the foundation of ERP
development in web ERP [43]. Hence, the ERP more dynamic and allowed it to focus on customers. Also,
many online services have been established such as e-commerce and e-business. These Web services have
helped ERP contribute to the web business and become web based system. The programming language was
the most important fragment of the development and implementation of the system. The programming
language is the key to ERP transformation whose development positively influences the growth and
improvement of the ERP [44]. Also, it has developed ERP from an integrated client/application to a
client/server system. Through the extension of the programming language to web programming such as
XML, PHP. ERP has implemented a new version that supports web applications and services. Today the
Internet is affecting the lives of companies and organizations in which manufacturing companies need to
reform their work patterns to gain a competitive advantage in the global manufacturing sector. The Internet
has implemented a new ERP model. It is a web-oriented object-oriented model (WOOM), which uses
component technology and the Internet as an object-oriented model to achieve faster implementation and
customization. WOOM has created a new generation ERP. It is called web-based ERP. Also, WOOM has
defined an ERP system for object-oriented objects based on real-world entities such as organizations,
events, or individual roles. So it can achieve a more efficient and accurate business. As user mobility
increased, companies understood the importance of expanding their ERP systems to mobile applications
they provide to employee’s internal access and system mobility. Mobile ERP applications change the

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company's relationship with customers, partners and employees by developing and accelerating innovative
applications for critical information exchange [45]. Increase productivity, expand business relationships,
commitment to customers, competitive advantage and forever. Cloud computing depends on the network;
it is a service that allows access to the system on demand. It is also a model to provide specialized services
over the Internet. This service is a server, storage or software to enter. This technology caused rapid changes
in ERP systems and ERP vendors started to implement ERP systems based on cloud computing models and
services. Cloud ERP includes the ERP systems in the cloud [46], [47].

This hosting is done in two modes: IaaS and SaaS. IaaS means buying the required cloud infrastructure,
such as servers. SaaS means you get a cloud or rental services such as storage and software. SaaS is used
in the ERP cloud and is responsible for organizing and managing the processes required to run the IT
infrastructure (servers, operating systems, databases, etc.) and completing the solutions. ERP is becoming
a more comprehensive solution used in small and large organizations and industries. Introduction of ERP
in web (web-based ERP) is connecting mobile to Cloud. ERP made a complex composition of security
problems. Mainly due to the complex ERP structure that provides internally available security [22].
Furthermore, the ERP structure and architecture include various vulnerabilities at all levels, from the
network to the application. SAP is an ERP developer who invented a new ERP system that supports in-
memory computing. The definition in-memory computing as "a new technology that allows the analysis of
large non-aggregated data at an exceptional rate in the local memory [48]. Compress and store a large
amount of information in the primary column format in the main memory. Also, this technology facilitates
parallel processing in a multi-core architecture by moving the intensive calculation of data from the
application layer to the database layer [49].

7. Conclusions
Today’s constructor and distributor face an innumerable of business challenges. Using ERP system provide
the user automation and integration in their core business processes. Here we can conclude that both types
of ERP systems have many benefits to help with overall business implementation management for the
different organization offering intelligence, transparency, and efficiency across all the corners of the
business. Providing the trustful user program and allowing your business to become digitalized. Moreover,
the benefits of the Cloud ERP provide substantial commercial benefits in running costs, timetable
compliance, and on-time release. In addition, cloud ERP become a focus to receive attention from different
companies, it can be anticipated that the level of influence of the identified cloud ERP barriers may fluctuate
in organizations running in different sectors. Further studies required scrutinizing and exploring these
factors in relation to the specific circumstances of diverse industries.

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