Alternative means to implement ERP : Internal and ASP

Purpose – To discuss relative advantages and disadvantages of internally operated ERP‐ and ASP‐delivered ERP functionality, and present the possible future of these alternatives. Design/methodology/approach – A thorough review of recent published papers dealing with advantages and disadvantages of ERP and ASP is presented. A good balance of theoretical analysis and real‐world application examples of ERP and ASP is maintained. Some of the disadvantages were discussed from the managerial perspective. Based on these approaches, the possible future direction of ERP and ASP is explored. Findings – Today, organizations need ERP functionality to cope with the increasing complexity and competitive forces in the environment. Thus, ERP‐ and ASP‐delivered ERP systems are widely applied, often with disappointing consequences. The choice that organizations must make should be based on a thorough review of the advantages and disadvantages of each alternative vis‐à‐vis corporate strategies and resources. Research limitations/implications – A good managerial overview of ERP and ASP for enterprise solutions. Discussion is based on the managerial perspective of the roles of ERP in organizations. Originality/value – This paper focuses on the weaknesses of ERP and ASP rather than glorifying their functions.