ERP is a term applied to integrated software systems used to manage the internal and external resources of an organization. Benefits include Integration across all business processes 2. Automation enhances productivity 3. Increase overall performance 4. Quality Reports and Performance Analysis 5. Eliminate data silos by creating a single, centralized repository of timely, accurate business data.
ERP is a term applied to integrated software systems used to manage the internal and external resources of an organization. Benefits include Integration across all business processes 2. Automation enhances productivity 3. Increase overall performance 4. Quality Reports and Performance Analysis 5. Eliminate data silos by creating a single, centralized repository of timely, accurate business data.
ERP is a term applied to integrated software systems used to manage the internal and external resources of an organization. Benefits include Integration across all business processes 2. Automation enhances productivity 3. Increase overall performance 4. Quality Reports and Performance Analysis 5. Eliminate data silos by creating a single, centralized repository of timely, accurate business data.
What is ERP? Enterprise Resource Planning (ERP) is a term applied to integrated software systems used to manage the internal and external resources of an organization. These include the physical assets, financial resources, materials and human resources (or staff). The key objective of implementing an ERP system is to bring together the disparate functions of the organization into a single system environment and therefore make the operations run more efficiently. Benefits of ERP for your Business: 1. Integration across all business processes 2. Automation enhances productivity 3. Increase overall performance 4. Quality Reports and Performance Analysis 5. Eliminate data silos by creating a single, centralized repository of timely, accurate business data 6. Enable more effective resource allocation and management 7. Reduce overhead costs Drawbacks with ERP: Buying and implementing ERP can be expensive and time consuming, with many high profile examples of issues with projects going significantly over time or budget, or both. Fundamental Components of ERP: Module Description Functions 1 SCM (supply chain management) Concerned with ensuring timely supplies of acceptable quality materials by improving inventory control and purchasing functions, supplier performance monitoring, etc. Supply Chain Planning Supplier Scheduling Product Configurator Order to Cash Purchasing Inventory Claim Processing Warehousing 2 HR (human resource) Streamlines the management of human resources and human capitals. It routinely maintains a complete employee. It provides support for variety of HR tasks including benefits, training, recruiting and Recruiting Training Rostering Payroll Page 2 of 5
compliance. Benefits Diversity Management Retirement Separation 3 Project Provides an effective solution for project managers in construction, job service, and other professional industries who require a time-and-material system. It delivers the tools necessary to manage the simplest to most complex contract or job. It makes the estimating, tracking, costing and billing of projects easy and manageable-simplifying cost control and planning. Project Planning Resource Planning Project Costing Work Breakdown Structure Billing Time and Expense Performance Units Activity Management 4 Finance The core of many ERP systems. It can gather financial data from various functional departments, and generates valuable financial reports such as balance sheet, general ledger, trail balance, and quarterly financial statement. General Ledger Account Payables Account Receivables Fixed Asset Cash Management Financial Consolidation 5 Payroll Manages all aspects of payroll processing. Users can run weekly, quarterly, or annual reports directly from this module. In addition, you can manage vacation time and direct deposits from the Payroll module, as well. Salary Payment Tax Withholdings Deductions from a paycheck
Figure 1: Relationship between ERP Modules ERP Tiers: 1. Tier 1 The Tier 1 ERP solutions are basically SAP and Oracle. They are designed to service the most part are complex, large businesses that have many departments and global locations. Finance Project Payroll SCM HR Page 3 of 5
Tier 1 ERP solutions generally take a long time to implement and are equipped with a wealth of features at a pretty high price.
2. Tier 2 Steps down in complexity and cost from Tier 1, Tier 2 ERP products are on offer from several vendors. Epicor, Infor, Microsoft, Sage and many players fall into this group. Tier 2 ERP systems fit well with mid-size companies. 3. Tier 3 At the lowest cost level, youve got Quickbooks and Sage 50, formerly known as Peachtree. These products do not offer the functionality of Tier 1 and 2 solutions, and may not even qualify as ERP systems. Youre getting basic accounting abilities with these small business tools. Top Three ERP Solutions: There are many different enterprise resource planning systems available. Finding what system that best fits your business can be difficult but with a little research you can find the system that best benefits your unique business. Some of the top systems available include Microsoft Dynamics AX, Oracle, and SAP. 1. Microsoft Dynamics AX User friendly. If you have other Microsoft programs on your computer, such as Word, Excel and Outlook, it works seamlessly with them allowing for an easy transfer of information. Collaboration both external and internal is quite easy with this system as companies can share information with each part of the business quite simply. For large, international businesses the system works very well due to multi- language and multi-currency capabilities. It also works equally well with companies that have only one location. It has a shorter implementation The system also allows users to make changes more rapidly. 2. Oracle It integrates many different modules very seamlessly into one system allowing for easy use. Allows for customization. The automation of many processes, so that manual data entry by employees is no longer required from other systems. Rather, employees can focus on other areas to spend their time on, making the company much stronger. Less user-friendly. 3. SAP Have very integrated and user friendly system which includes dashboards, report writing, and data warehousing. Page 4 of 5
The implementation process tends to take longer than other alternatives. More expensive than other systems. Advantages and disadvantages of SAP and Oracle: Table 1: Advantages and Disadvantages of SAP and Oracle SAP Oracle Advantages Integration with different modules is the main advantage over oracle Suitable for all type of business Compatible with other non-SAP systems for data transfer It had faster growth Allow for customized solutions to suit your business Largest Market Share Highest short listing rate Medium Project Duration Shortest Delay Medium market share Medium short listing rate More Frequently chosen Disadvantages Perceived as more expensive and complicated to implement. Lowest selection rate from a short list For mobile systems, it works with IOS only Longest Project Duration Longest Delay Cannot work with MAC OS References: [1] Business-Software.com. What Is ERP?. [ONLINE] Available at: http://www.business- software.com. [Accessed 14 June 14]. [2] CompuData Blog. 2013. The difference between Tier I, Tier II, and Tier III ERP. [ONLINE] Available at: http://blog.compudata.com. [Accessed 11 June 14]. [3] ERP Software Blog. 2013. A Look At Microsoft Dynamics AX, Oracle, and SAP. [ONLINE] Available at: http://www.erpsoftwareblog.com. [Accessed 11 June 14]. [4] FindTheBest. Oracle E-Business Suite vs. SAP. [ONLINE] Available at: http://erp- software.findthebest.com. [Accessed 14 June 14]. [5] RKV IT Solutions. Enterprise Resource Planning. [ONLINE] Available at: http://www.rkvitsolutions.com. [Accessed 11 June 14]. [6] SAB Community Network. 2007. Advantage of SAP over other ERP's. [ONLINE] Available at: http://scn.sap.com. [Accessed 12 June 14]. [7] Slideshare. 2012. Erp--functional-modules. [ONLINE] Available at: http://www.slideshare.net. [Accessed 11 June 14]. [8] Syspro. What is ERP - Enterprise Resource Planning?. [ONLINE] Available at: http://www.syspro.com. [Accessed 10 June 14]. [9] TechAdvisory.org. 2012. Four Fundamental Components of ERP. [ONLINE] Available at: http://www.techadvisory.org. [Accessed 11 June 14]. Page 5 of 5
[10] Unit4. What is ERP software and how can it benefit your business?. [ONLINE] Available at: http://www.unit4.com. [Accessed 10 June 14]. [11] Webopedia. ERP-enterprise resource planning. [ONLINE] Available at: http://www.webopedia.com. [Accessed 11 June 14]. [12] Wikipedia. Enterprise resource planning. [ONLINE] Available at: http://en.wikipedia.org. [Accessed 16 June 14]. [13] YouTube. (2012). SAP vs Oracle vs Microsoft. [Online Video]. 14 December. Available from: http://www.youtube.com. [Accessed: 14 June 2014].