Through the Lens of Practice: Exploring Cloud ERP Hurdles in Sri Lanka’s Manufacturing Sector.

Abstract

This research investigates the difficulties experienced in implementing Cloud- Based Enterprise Resource Planning (ERP) in the manufacturing industry of Sri Lanka. While more businesses are embracing the future-proof benefits of cloud ERPs that are scalable and flexible for SaaS, as well as cost-efficient with greater data accessibility, many organizations find migrating away from traditional onpremises ERP systems daunting. The research is qualitative, and the primary data is collected from semi-structured interviews with four informants - IT managers, project managers, ERP consultants and business analysts of large organizations in the manufacturing sector. Interview data were subjected to thematic analyses, identifying four key themes: challenges concerning transition, implementation effects, differences in adoption practices, and performance effects. Technical issues, including the integration with legacy systems, data migration and security, were commonly mentioned. Other primary barriers were organizational resistance, inadequate training, and disruption in operations. Finally, the study demonstrates that firm size and resource availability significantly impact adoption strategies, as larger companies tend to have more formal and staged approaches to adoption. The results suggest that the decision-making processes within the organization have changed for the better, along with data visibility and operational effectiveness improvements. This study analyzes the previously researched information and tries to fill the gap by focusing on the specific socio-economic context of a developing country. It also puts forth suggestions for ERP system insiders that include the involvement of stakeholders as early as possible during the project's life cycle, proper project planning in terms of scope, and adequate funding for changing management tasks. This research will be helpful for professionals and policymakers working to improve the effectiveness of ERP systems in developing countries.