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.
