ERP Blog

ERP Benefits

In any discussion on implementing an ERP system, the question “What are the benefits of an ERP System?” appears early in most selection cycles. We have had to look up these benefits on more than one occasion, so we thought we would document them here for you.

A good reference on calculating the benefits and ROI for an ERP solution is the book: Show Me the Money: How to Determine ROI in People, Projects, and Programserp benefits

Benefits

  1. Real time information throughout all entire company
  2. Better visibility into the performance of operational areas
  3. Data standardization and accuracy across the enterprise. Single version of “The Truth!”
  4. Best-practices or proven methodologies are included in the applications
  5. Creates organizational efficiencies.
  6. Allows for analysis and reporting for long-term planning

Significant Features on an ERP System

  1. Information entered once into system
  2. Can allow for the use of the best practices
  3. Can be further developed
  4. Based on reliable file structure
  5. Provides functionality to interact with other elements in the process
  6. Provides report writers and other tools for data inquiries

ROI and Cost Savings
Here are some areas to look for possible ROI:

  1. Reduce Inventory through better visibility and efficiency
  2. Savings through the reduction in duplicated efforts
  3. More efficient operations allowing for increase in ability to process transactions (added capacity)
  4. Reduction in non-value added activities (lean processing)
  5. Higher utilization of employees (less transactional, more analytical)
  6. Improvement in decision making through more accurate and real-time data

We have more benefits listed on our ERP Benefits Page.

erp benefits

ERP Software Vendors

This is a more general article, but it has some interesting history on a few ERP packages. Trivia time… Do you know what QAD stands for?

ERP Software Vendors
Jennifer Bailey

Enterprise resource planning systems are management information systems that integrate and automate business practices associated with the operations, production and distribution aspects of a company engaged in manufacturing products or services.

Some of the well-known vendors of ERP systems are SAP AG, Oracle Applications, Microsoft Dynamics, SSA Global Technologies, QAD and Exact Software.

Founded in 1972, SAP AG is the largest European software enterprise, headquartered in Walldorf, Germany. SAP is an acronym for Systems, Applications And Products in Data Processing. It is the largest ERP solution software provider in terms of revenue. SAP products focus on ERP systems. Its main product is SAP R/3. R stands for real-time data processing, and the number 3 relates to the three-tier application architecture of its database, application server and client. There are over 91,500 SAP installations at more than 28,000 companies. Over 12 million people in more than 120 countries use SAP products.

Oracle Corporation was founded in 1977. It is one of the major companies involved in the development of database management systems, tools for database development, and enterprise resource planning software. The Oracle e-Business Suite includes software that perform financial, manufacturing and Human Resource Management Systems related functions. User access to these facilities is provided through a browser interface over the Internet or corporate intranet.

QAD produces Enterprise Resource Planning software for six main industries — Automotive, Consumer Products, Electronics, Food and Beverage, Industrial Products and Life Sciences. QAD product, MFG/PRO is an ERP software containing multiple optional modules and add on products like AIM Warehousing and Trade Management.

Exact Software was founded in 1984. It is involved in developing software for logistics, Human Resource Management, Customer Relationship Management, e-business and Enterprise Resource Planning.

Every company needs a core transactional system that records the information from its most important business processes. Prior to choosing a vendor for an enterprise, it is important to plan the budget since it is extremely difficult to upgrade already installed ERP software.

ERP Software provides detailed information on ERP Software, ERP Software Solutions, ERP Software Companies, Manufacturing ERP Software and more. ERP Software is affiliated with HR Software Solutions.

ERP Books

ERPandMore is pleased to announce the opening of our new ERP Bookstore. Containing the latest books on Enterprise Resource Planning, Customer Relationship Management (CRM), Product Lifecycle Management, and Process Improvement topics, this new bookstore is your resource to finding the information you need to successfully navigate a project.

You can find this new bookstore off of our home page by clicking “Books” or by going directly to:

http://www.erpandmore.com/books/

We hope you find this a valuable information resource!

The Future of ERP

The Future of ERP
November 15, 2006
By James Maguire

The dream of enterprise resource planning systems is that a single application can track and monitor all of a business’s functions. In a perfect world, a manager opens a single ERP app to find data about any aspect of the business, from financials to HR to distribution schedules.

Alas, we’re not there yet – or at least most companies aren’t.

Looking at the ERP landscape, “there still tends to be a lot of disparate components, that are either homegrown or older packages,” says Forrester analyst Paul Hamerman.

Moreover, there are still a lot of gaps in ERP systems, particularly in industries where ERP functionality has grown up from its historic origins in manufacturing. There are even gaps in core ERP areas, Hamerman tells Datamation, “where they just haven’t done a particularly good job, in areas like budgeting, and recruitment…where the vast majority of customer use something other than their ERP vendor.”

But despite the challenges, the movement toward a global ERP system is a key factor shaping the future of enterprise resource planning.

“It’s a trend that’s going on, and most companies are going in this direction: Read more about The Future of ERP

What is your ERP interface?

Being techno-enthusiasts, how ERP vendors are pushing the envelope to develop new and easier ways for people to process their business data has fascinated us. But we often forget the end-user, who simply has to work with an ERP Software tool day-in and day-out.

Recently we participated in a series of demonstrations that included SAP MySAP, Oracle EBusiness Suite, Microsoft Dynamics AX, IFS, and JD Edwards Enterprise One. The interesting outcome of this demonstration series was that the users gravitated towards the systems that had “old fashioned” grey data form. They were confused by the Web Based Portals and any other non-traditional form. MySAP even showed a great interface from Adobe Forms, but that confused the team even more.

Bottom line, the team was looking at the systems from the current frame of reference that they all possessed, which was a Windows-like form that was easy to understand. It was interesting in how little they grasped that was outside of what they were familiar with. Even with great explanations on how this could help them, if it didn’t make sense, it didn’t register.

Lesson learned: keep the discussion within the frame of reference within the users and introduce the new interface options in small easy to understand sessions. Do not give the latest and greatest to a group that cannot conceptualize it.

An ERP who owns who

If you have been around even a short time in the ERP software business as either a user or a provider, you are sure to know of the latest acquisitions. The big ones of course are all the companies Infor bought as well as the Oracle mega mergers of PeopleSoft/JDE. Here is a website dedicated to tracking these acquisitions, called fittingly enough The ERP Graveyard.

The ERP Graveyard has a spreadsheet of acquisitions going back to the 1990’s. So if you are interested in what happened to so-and-so software, you might find your answer to dead ERPs here.

The top 20 ERP implementation tips

Stumbling through various ERP websites, we came across this article that shows some of the key factors for doing an implementation correctly. You should probably read this one…

The top 20 ERP implementation tips
By Jan Stafford, Site Editor
22 Jun 2005 | SearchOpenSource.com

An enterprise resource planning ERP software project can be daunting for first-timers or veterans handling a migration. Get started on the right foot with the top 20 ERP implementation tips from Linux users, consultants and vendors.The top 20 ERP implementation tips

ERP Packages Feature Comparison

Challenge Of ERP Implementation Q & A

This is a good commentary on the challenges of an ERP Implementation. It can be summed up in that it is a technological, financial and human challenge that requires extensive change management.

Challenge Of ERP Implementation Q & A
Rick Maurer
Question: ERPs seem like a good idea, so why is return on investment so low?

Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this ‘improvement.’ ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren’t all that good, people understand them. When they are asked to give up what they know and what they can rely on, you often get resistance to using a new software system.

ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to
control the type of information that gets out – and control the way data gets disseminated. The new system destroys all of that and that can be threatening.
One manufacturing plant has spent millions on an ERP, and kept throwing money at the technical parts of project, with no success. What they failed to Read more…

About the Author:
Rick Maurer is an advisor to organizations on ways to lead Change without Migraines. He is author of many books on change including Beyond the Wall of Resistance. His web site offers over 100 free tips and tools for leading change successfully. www.beyondresistance.com