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Created page with "{{DISPLAYTITLE: The Impact of Culture Differences on Cloud Computing Adoption}} === Abstract === To cut cost, while increasing competitiveness, more and more small and me-dium..."

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{{DISPLAYTITLE: The Impact of Culture Differences on Cloud Computing Adoption}}
=== Abstract ===
To cut cost, while increasing competitiveness, more and more small and me-dium-sized enterprises (SMEs) are considering cloud computing technology for supporting their business processes. However, initial cost, possible long term cost, security, accessibility and transformation issues are concerned by the organizations. By adopting LEADing Practices and Hofstede national culture dimensions, this study provides substantive conclusions about the transformation effects of national culture dimensions on cloud compu-ting acceptance in organizations.

== Introduction ==
During the last decade, many small and medium-sized enterprises (SMEs) have tried to adjust their business operations to cope with dramatic changes in the market. Over the past few years, many initiatives have come to life for organizations: Initiatives from service–oriented architecture (SOA), business process management (BPM), value management (VM), enterprise resource planning (ERP), and with this not only the enablement of technology and information to put it into the cloud. SMEs are trying to adopt a better solution to improve the effectiveness, efficiency and quality of their business processes. Benefits from ERP systems are obvious.

Gattiker and Goodhue describe the ERP benefits in following aspects:

#improving the integration of information flow between sub-units;
#centralizing the administrative activities, such as accounts payable and payroll;
#reducing costs of system maintenance;
#increasing the ability to deploy new IS functionality; (5) enabling transformation from inefficient business processes to accepted best practices.

In this case, an ERP system seems to be one of the best to SMEs. Since the majority of large companies have already implemented ERP systems, today ERP vendors are shifting their focus towards SMEs. Several reasons have encouraged the interest of ERP vendors towards SMEs. These include the saturation of the market, as most large enterprises have implemented ERP software, the supply chain integration between large and small enterprises, the high number of SMEs compared to the number of large enterprises, and the technologies development together with the availability of relatively cheap hardware.

However, to compete in the new economy, SMEs are now facing challenges to become more responsive and agile. Most SMEs operate in a highly dynamic world, where both internal and external requirements may change. Changes may come from the need to be more cost-effective, from customers in the form of requirements for new products and product variants, from govern-ment agencies in the form of regulations, or by advances in technology. Often the SME is the weaker part in a supply chain and thus the ability to adapt to changes imposed by customers or suppliers will be an important competitive factor.

Most SMEs have utilized the flexibility that comes from having a lower number of orders, customers, employees, etc. when changing processes and practices. It is therefore important that this flexibility is retained when new IT systems are im-plemented. Scheruhn et al developed an agile Information Reference Model Framework for large and small enterprises exemplified by comparing case studies of different demo companies using SAP ERP and SAP Business byDesign.

The use of commodity software, such as ERP systems, may force a more rigid structure on a SME and thus weaken their competitive advantage. It is critical to launch an investigation about the firm performance after SMEs adopted ERP systems.

In recent years, after many SMEs adopted various ERP packages from different ERP vendors, there is a new technology/concepts available in ERP adoption for SMEs called Cloud Computing. Cloud computing is an emerging business and technology concept to support an on-demand delivery of computing, storage and applications for executing business processes over the Internet.

A recent IDC report shows global revenue in cloud software market reached to $22.9 billion and it will grow to $67.3 billion in 2016. This projection includes revenue generated by the shift from on-premise to on-demand providers as well as by the planning and architecture behind the shift. Comparing to ERP, cloud computing seems like intangiable because both hardware and software are not under control by the business who adopted this technology. Therefore, what are the key factors that may impact the acceptance of this technology by business will be a good research question.

'''Document:''' [[Media:The Impact of culture differences on cloud computing adoption final.pdf|Download the 'The Impact of Culture Differences on Cloud Computing Adoption' document.]]

[[Category: Cloud]]
[[Category: Culture]]

LEAD Reference Content:Cloud Computing Adoption - Introduction - Revision history

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