School of Information Systems

Ethical factors to use Cloud Technology in ERP Adoption

One manifestation of very rapid technological development is many companies that use the ERP system. The ERP system is considered to provide many benefits for the company, one of which is to regulate and make the company’s business processes better and supportive for decision making, but the high cost of ERP implementation is an obstacle to ERP adoption. Cloud technology that is growing rapidly since the existence of commercial services by Google starting around 2009 encouraged the use of this technology by the company. With this cloud technology, the cost of ERP adoption can also be cheap.

Apart from cost factors, another advantage of using cloud technology in ERP adoption is the technical convenience (hardware and software that is ready for use) and can be accessed anywhere and anytime. In addition to the technical side, there are several things that must be considered such as ethical factors, readiness and willingness of the company to remember that company data will be placed in the cloud, related to data security factors.

Ethical is something that is related to right or wrong in doing something within the company. Ethical factors must be considered when we want to use cloud technology, because data is stored in the cloud, so that many people can only access it by using an internet connection and maybe the data can be hacked by hackers

In cloud technology, users store large amounts of data such as customer data, transactions and other data related to the company’s business processes. If you store data in the cloud, maybe there is data damage or data theft, it will be difficult to be held accountable because it is difficult to prove. This arises because of system and organizational constraints on the scope of cloud services. In addition, services in the cloud generally use SOA (Service Oriented Architecture) that allows service functions and service applications to be integrated for end users. This causes many parties to be involved so that it will be difficult to trace the parties who should be responsible for service failure

The use of cloud technology in ERP adoption does provide some benefits, but it can also provide a loss if we ignore the ethical factors. Company data is very crucial data and privacy, the data can’t be access by people who have no right. For this reason, in using cloud technology, we should pay attention to its use, such as the responsibility for failure of cloud services, limiting the system to employees in accessing company data. So that cloud technology can answer the company’s problems in adopting ERP


Fattiya Calista