• erpandmore.com

A Closer Look at the ERP Software Solution

Here is a basic overview of ERP. For people just starting it is a beginning primer on ERP software.

—

A Closer Look at the ERP Software Solution
Mike Piotrowski

ERP Solution

Information technology has not only transformed the way we live in modern society, but also the way in which we do business. Enterprise Resource Planning, often referred to as ERP, is becoming one of the most commonly used software systems in several industries and organizations. The object of this article is to provide pertinent highlights about exactly what ERP is.

The definition of Enterprise Resource Planning refers to not only software but also the business strategies employed as part of the implementation of ERP systems. This implementation makes use of various software applications in order to improve the performances of organizations in resource planning, control of operations, and control of management.

ERP software contains several software modules that work to integrate vital activities across operating departments. An ERP System not only includes the ERP Software but also the business processes and hardware that make this system work. These systems are more than the sums of their parts as the many components work together in order to achieve one common objective-to provide an organization with a greatly improved and streamlined business process.

History of ERP

ERP has been well over 20 years in the making. This system is the result of the trial, error, and growth of Manufacturing Requirements Planning (MRP) during the 80s. MRP was the evolution of Inventory Management and Control, which was conceived during the 1960s. ERP has grown beyond the coordination of manufacturing processes into the integration of back end processing on very large scales. From its origins as a legacy implementation ERP has morphed into a new and improved client-server architecture.

Benefits of ERP

This software attempts to bring all aspects of the business into one single enterprise-wide database or information system. This allows instantaneous information and communications to be shared between multiple departments. The primary benefit of this is a greatly improved efficiency in business operations. Implementing this system will not only help communications between departments but in day-to-day management functions as well. ERP is an ambitious design that also supports the resource planning part of corporate planning as this is often the weakest link in strategic planning as the result of the inadequate integration of ERP software with Decision Support Systems.

ERP Failures

It would be quite rude to conclude without at least mentioning the fact that failures in this system are occasionally reported in one of the four components of an ERP System. These systems are: ERP software, Business processes supported by the ERP System, Users of the ERP Systems, and the hardware and/or operating systems upon which the ERP applications are actually run. The failure of one or more of these components has the potential to cause the entire ERP project to fail.

Ontech Systems of Milwaukee Wisconsin, is committed to making a difference in your business through the productive use of computers, networks, software and the vast array of products and services we offer. Contact Michael Piotrowski, President of Ontech Systems to discuss a new ERP business solution for your company today.

ERP Software

by Chris Shaul

ERP Software (Enterprise Resource Planning) often leads people to a lot of confusion. Which software is best and which ERP software will be the easiest to implement. The key to selecting ERP software systems is to understand your own requirements first. Document your specific requirements of what the ERP software should do for you. Do not only make a wish list, but include the things your current software does right. Many times people make the mistakes of selecting systems on what their system doesn’t do currently, but then come to find out, all the things that the old system did well, the new ERP software does not do. Be comprehensive.Next look at your business and determine the broader category of what you do. Are you a discrete manufacturer, a process manufacturer (using formulas or recipes), or are you a service based company? Is your company heavily retail with Point of Sale needs? ERP software is segmented by the various niches that a company can fall into. This makes it easier to narrow down the field of software to look at.Next look at the size in sales and see what Tier of ERP software you might fit into. Tier 1 is for larger multinationals or companies with many diverse business units. Tier 2 is for the companies with one to many branches doing similar things. Tier 3 looks at smaller single site companies that do not have very complex processes.

For example. If you are work for a company with four manufacturing facilities, all making roughly the same sort of products, and your revenues are are under $250 million dollars, then you are a good candidate for a Tier 2 ERP software. The following is a sample list of some main ERP software vendors:

Tier 1 ERP Software

SAP
Oracle
JD Edwards

Tier 2 ERP Software

SSA ERP LN
Epicor Vantage
QAD
IFS
IBS
Microsoft Dynamics AX (or NV)

Tier 3 ERP Software

Made-2-Manage
Microsoft Dynamics GP
Intuitive Software
Global Shop
DBA Software
Epicor Vista

Once you have narrowed down your criteria to which tier you fit into and then you can start investigating the focus niches of each of these systems. From that you can then compare your specific requirements to the functionality of each of the targeted the ERP systems. The selection process should be deliberate and there are many pitfalls.

Once you have a few ERP vendors that you are working with, you can then narrow it down to the 2 or 3 based on requirements to have them show you the system in detail. This detailed system review should be done completely based on the requirements and should show the daily processing of your business processes. Don’t forget too that you are also looking at a vendor with whom you can work for the next few years. It is like a marriage and so you want to make sure that the partner you are selecting is one you can live with.

When you finally select the system, ensure that you do reference checks. The ERP software vendors will always give you favorable clients to contact. But remember that often what is unsaid is more important than what is said. If you visit the references, be sure to watch transactions being entered. Try to see how the people are using the system. Learn from their mistakes too! Find out what went right and wrong during their implementations. Often these lessons learned will help you in your implementation.

In summary, ERP Software is very complex and requires more time and diligence than people realize. When selecting, it can be overwhelming. As such, a third party may be able to assist you. Take a look at consultants who are unbiased and specialize in helping companies select systems. But if you choose to do it on your own, make sure that you have your baseline of requirements to lead you through. Focus on the business process and the business needs, not only on the look and feel of the software. If you keep coming back to the requirements, you will ultimately see which ERP Software works for you.

—

Chris Shaul is a Senior IT Consultant and contributor to ERPandMore.com

Enterprise Resource Planning Software Will Grow to $29 Billion in 2006

BOSTON, Oct. 10 /PRNewswire/ — Today, AMR Research released a report that stated the enterprise resource planning (ERP) applications market grew to $25.4B in 2005, and will reach $29B in 2006. Over the next five years, the market will grow at an average of 10%. The ERP market continues to benefit from a widespread acceptance of the idea that businesses must have integrated information systems to be competitive. Management and IT organizations are realizing that the most effective way to satisfy this need is to purchase an ERP package that features broad functionality and pre-built integration.”The integrated versus best-of-breed debate still goes on in some organizations, but the suite advocates are clearly winning,” said Jim Shepherd, senior vice president of research at AMR Research. “In addition, we now see many of the remaining ERP vendors compete effectively with companies of all sizes.”Continuing the trend of fewer vendors owning a larger share of the market, SAP and Oracle now represent 65% of new license sales.

Growth

Revenue Growth Rate

2005 Revenue Revenue Share Rate, Forecast,

Revenue Share, Share, Forecast, 2004- 2005-

Rank Company Name 2004 2005 2006 2005 2006

1 SAP 40% 42% 43% 12% 17%

2 Oracle 10% 20% 23% 110% 29%

3 Sage Group 5% 6% 5% 16% 10%

4 Microsoft 3% 4% 4% 15% 18%

5 SSA Global 3% 3% 3% 7% 3%

AMR Research’s depth and breadth of quantitative research is augmented with industry expertise by the firm’s research analysts. The Market Analytix Report Series provides technology vendors with targeted marketing and competitive information on key application markets of ERP, SCM, CRM, procurement, PLM, and HCM. For more information or a copy of the formal ERP report, please contact AMR Research at (617) 542-6600. Additional information can also be found on the company’s website .About AMR Research:Research and Advice that Matters: AMR Research is the No. 1 advisory firm focused on supply chain, enterprise applications, and infrastructure. Founded in 1986, AMR Research provides advisory services and peer networking opportunities to supply chain and technology professionals in the manufacturing and retail sectors. To learn more about our research and services, visit http://www.amrresearch.com .

Get More From Your ERP Investment

Most companies want to know what they will get out of an ERP system. What is the ROI on the ERP investment. This article deals with some of these issues…

Get More From Your ERP Investment
Robert D. Kugel

Ventana Research recently completed a research study titled ‘ERP Innovation’. When we speak of innovation in using enterprise resource planning (ERP) software, we mean to suggest going beyond the first-generation objective of increasing efficiency through automation. We believe companies can achieve more today with this software than ever before. They can attain a higher return on their substantial investment in this critical enterprise software. Our study was designed to determine to what extent companies have taken advantage of these enhanced capabilities. Overall, we find that innovative companies have taken the lead in more completely utilizing their ERP systems. Our research indicates that these achievements are the result of using capabilities that already exist and that others can implement. … Read More…

ETO ERP: Making the Wrong Choice

ETO ERP: Making the Wrong Choice
Roger Meloy

Enterprise Resource Planning (ERP) systems offer great benefits to engineer-to-order (ETO) companies looking to increase productivity and decrease cost. According to TR Cutler, spokesperson for the ETO Institute, ‘These benefits come as a result of a successful implementation, but not every implementation is successful.’ Cutler asserts that, ‘One reason some implementations are not successful is the selection of the wrong system.’

The ETO Institute has just published a white paper, ‘Why Do Companies Choose the Wrong System?’ This document is written with engineer-to-order companies in mind. It highlights the problems facing ETO companies trying to find and evaluate a new ERP system. The while paper provides some time and simple steps companies can take to reduce the chances of making a critical mistake. (www.etoinstitute.org)

Cutler, who authors regular columns for Industrial Connection magazine (www.industrialconnection.net) and InMFG magazine (www.inmfg.com) is looking for case study profiles of ETO manufacturing companies and their ERP experiences. ‘The good, the bad, the ugly. I want to know what ETO manufacturers think about the ERP selection process, what companies have served them well and which have not. This will provide an interesting profile for the members of the ETO Institute.’

The ETO Institute specifically highlights some of the problems ETO manufacturers face when searching for an ERP system. Go to www.etoinsititute.org and learn more. Registration is free of charge and more than a thousand ETO manufacturers are expected to join in 2005.

Thomas R. Cutler ETO Institute 954-486-7562 www.etoinstitute.org e-mail protected from spam bots

Improving governance with information systems

One of the key things that ERP Systems provide are process controls. This article examines the issues around IS governance.

Improving governance with information systems
CHRISTOPHER CHAMBERLAIN

Why do we need information systems (IS) governance? Technology specialists tell us that there isn’t a great deal more functionality we can get out of our computer equipment. The next five years will not bring another Internet … revolution or significant changes in equipment size. We should concentrate on getting more out of our existing equipment by using it in a better fashion. IS governance is a framework for better controls.

Controls in the last couple of years have gained an image in the commercial world of excessive overheads and reduced efficiency. That does not have to be the case but it needs an approach different from the existing Sarbanes-Oxley process. Perhaps the future methodology could include more business controls designed to achieve greater productivity and asset control. Logistic controls to help an entity maximise its investment return on inventory usage could be an example.

The modern corporation needs financial controls because

The Next Revolution in the Accounting Industriy

This article is not directly about ERP, but it illustrates where an ERP system can take the accountants. Now most ERP systems have the ability to store documents online. E-docs is going to be more and more common. Will the accounting industry keep up?

—————–

Every industry goes through its natural phases of transformation. As time goes, new technology becomes available, and new processes are developed. Internal and external factors contribute to the transformation process of all industries. Accounting industry is not an exception.

Only a few years ago very few accountants used software to prepare tax returns for their clients. Some even considered it a pride that they were smart enough to prepare tax returns without using software. Within a few short years, almost every accountant in the country uses some kind of tax preparation software to prepare tax returns. Now it is not a question of whether an accountant uses software to prepare tax returns, but of which software the accountant is using. Times have changed significantly in the accounting industry. Observant accountants may notice how fast things changed in their industry.

Unlike only a few years ago, it is almost unimaginable how any accounting practice could function and survive without computers and accounting software. There is probably not a single accounting practice in the country that operates without computers and software for tax and accounting. Only a few years ago, a large number of accountants did not consider Continue reading The Next Revolution in the Accounting Industriy

5 Minute Guide to ERP

Natalie Aranda

Information technology has transformed the way we live and the way we do business. ERP, or Enterprise Resource Planning, is one of most widely implemented business software systems in a wide variety of industries and organizations. In this short article, well try to concisely explain the basic yet important concepts relevant to ERP.

What is ERP – ERP is the acronym of Enterprise Resource Planning. ERP definition refers to both ERP software and business strategies that implement ERP systems. ERP implementation utilizes various ERP software applications to improve the performance of organizations for 1) resource planning, 2) management control and 3) operational control. ERP software consists of multiple software modules that integrates activities across functional departments – from product planning, parts purchasing, inventory control, product distribution, to order tracking. Most ERP software systems include application modules to support common business activities – finance, accounting and human resources.
ERP Systems – ERP is much more than a piece of computer software. A ERP System includes ERP Software, Business Processes, Users and Hardware that run the ERP software. An ERP system is more than the sum of its parts or components. Those components interact together to achieve a common goal – streamline and improve organizations business processes.
History of ERP – The history of ERP has been more than 20 years. Enterprise Resource Planning (ERP) is the evolution of Manufacturing Requirements Planning (MRP) II in 1980s, while MRP is the evolution of Inventory Management & Control conceived in 1960s. ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes. In terms of technology, ERP has evolved from legacy implementation to more flexible tiered client-server architecture.
Benefits of ERP – ERP software attempts to integrate business processes across departments onto a single enterprise-wide information system. The major ERP benefits are improved coordination across functional departments and increased efficiencies of doing business. The implementation of ERP systems help facilitate day-to-day management as well. ERP software systems is originally and ambitiously designed to support resource planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration of ERP with Decision Support Systems (DSS).
ERP Failures – We couldnt conclude our brief guide to ERP without mentioning ERP failures. The failure of multi-million dollar ERP projects are reported once in a while even after 20 years of ERP implementation. We have identified the four components of an ERP System – 1) ERP software, 2) Business Processes that ERP software supports, 3) Users of ERP systems, and 4) Hardware and Operating Systems that run ERP applications. The failures in one or more of those four components could cause the failure of an ERP project.
Natalie Aranda writes about business and information technology.