Adoption Of Cloud Computing In Manufacturing Industry Supply Chains, A Hype or a Myth

Cloud computing technology which is next-generation architecture has created hype in IT and business world promising to deliver wide range of benefits. Gartner estimated that cloud market will surpass $148.8 billion by 2014. Despite the fact cloud computing technology remains for many an unfamiliar concept. Therefore, if cloud computing technology is to achieve its potential then there is need to have a clear understanding of various factors associated with its adoption by business. Cloud computing technology has already started impacting businesses and penetrated many areas from banks, automobile sector, education, logistics, wholesale, retail and health care. It is also emerging as a major enablers for the manufacturing industry that can transform the traditional business model, help it with product innovation with business strategy and create effective factory networks with collaboration. Adoption of cloud computing technology in supply chains of manufacturing industry will also improve performance in the form of better information visibility, cost reduction, and improved agility. For IS researchers, this study will outline factors associated with adaption of cloud computing technology in supply chains of manufacturing industry so that they will be in a position to advise the industry in the years to come. The paper will start by general introduction with an overview about cloud computing. Then, it will summarize the literature work that has been done so far with advantages of cloud computing technology. In next section, the theoretical framework will be described. Finally, the paper will close with a conclusion.