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Friday, March 11, 2022

ERP Advantage and Disadvantage

4:15 AM  AAA  1 comment

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ERPAdvantages and Disadvantages Top ERP vendors Top 3 Vendor ERp modules


ERP

ERP, which is an abbreviation for Enterprise Resource Planning. It refers to all the components that are required to establish the system, like ERP software, IT infrastructures, business process and so on. ERP software is a part of ERP system. It is about automatic data processing for easy way of countering the problems and data being used by the organizations. It helps to improve the way of doing business and making profits. It is a Single database, anyone can access to his required document whenever, wherever and anyhow he needs to know.


ERP definition :[1,2,12,4,3]

  • It is a company-wide computer software system to manage and co-ordinate all the information, resources and functions of a business from Shared Data Stores.
  • ERP relates to the integrated software system that supports the company’s entire business process.
The term of ERP is originated with Manufacturing Resource Planning and material requirements planning. ERP system typically handles company’s accounting, finance, logistics, distribution, manufacturing and sales orders.
ERP software can aid in with many business activities such as sales marketing, management, finance, inventory management, delivery, production, quality maintenance and management and so on.
Today the most ERP software provide business intelligence feature for leveraging ERP database into Decision Support System because the decision makers need to analyze company’s performance to prepare appropriate actions. In many cases, this feature prompts the executives, including your boss, to implement ERP system.
It is principally an integration of business management and information technology (IT) modern technology. Information technologies integrate with the core business processes of a corporate house and accomplish specific business objectives which a corporate house wants to achieve.


ERP is a Mixture of three most important components business management practices, information technology and specific business objectives which describes its complete meaning. In simpler words ERP is massive software architecture. It supports the streaming and distribution of geographically spread enterprise wide information across all the functional units working in a business.


ERP can run a variety of hardware and network configuration, typically employing database to store data. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.


Advantages :[3]
The Advantages of ERP are that it helps in saving time and expenses of business or companies. It increases the decision taking capabilities and makes the process quicker and faster and minimizes the possibility of errors that can occur. Most importantly, Data becomes visible across the organization in every working unit, which is the great benefit because any member can easily find his required data on a single click from all the units of organizations related to the data. Tasks that benefits from this includes,
  • Sales forecasting, which optimizes inventory.
  • Order tracking, from acceptance through fulfillment.
  • Revenue tracking, from invoice through cash receipts.
  • Matching purchase order, inventory receipts and costing.
ERP centralizes business data, its benefits include.
  • Eliminates and bring into line the changes between various systems--consolidation of finance, marketing and sales, human resource, and manufacturing applications.
  • Enables product naming/coding.
  • Provides comprehensive enterprise view, makes information available to management anytime and anywhere required to take quick decisions.
  • Protects complex data by merging multiple security systems into a single structure.

Disadvantages:[3]

  • Problems occur in customizing data.
  • Re-engineering business processes to fit the ERP system may damage competitiveness or divert focus from other critical activities.
  • ERP costs more than any integrated or comprehensive solutions, many organization can’t afford it.
  • High switching costs increase vendor negotiating power, maintenance and upgrade expenses.
  • To overcome conflict to share complex information among departments diverts the attention of management.
  • Integration of truly independent creates unnecessary dependencies.
  • Extensive training requirements take resources from daily operations.

Top 10 ERP vendors:[4,13]


The list of top 10 ERP vendors based on their revenue generation and it’s growth in market shares, And few are based on online voting. SAP is leading all followed by ORACLE and MICROSOFT.
These three are on top 3 places capturing approximately more than 70% of market share.
Top Vendors are listed below,
  1. SAP
  2. ORACLE
  3. MICROSOFT DYNAMICS
  4. SYSPRO
  5. CONSONA
  6. SAGE
  7. NETSUITE
  8. IFS
  9. INTAcCT
  10. VAI

Top 3 vendors company profiles:


SAP:[5,9]
SAP is multinational company which was founded in 1972. It is one of the leading international providers of business soft wares and based on market capitalization, SAP is the third larger software oriented company having approx. 1,09,000 customers round the globe having setups in 120 countries. Its headquarter is in Walldroff, Germany. Bill McDermott and Jim Hagemann Snabe are the CEO’s of the company. It has more than 53,000 employees working round the globe.
Now talking about its company profile for the year 2010 from Business and Corporate Overview (FY2010, IFRS)
It earned the total revenue of €12,464 million and software-related service revenue of €9,794 million. Its operating profit for the year is €2,589 million. At the end of the Year its number of employees is 53,000 full-time equivalent. Having 1,09,000 customers from over 120 countries. Its number of partners are 2,400 certified partners. R&D investment of €1,724 million / representing 14% of total revenue.
SAP MODULES :[9]
Sap Businessobjects Access Controls the applications which enables all compliances and stakeholders to collaboratively and confidently control access and prevent fraud throughout the enterprise.
Sap BusinessObjects can help you in illuminating with holistic view of key metrics and information.
Designed for financial business analysts, advanced analytic tools creates real world value from your information assets.
Sap BusinessObjects OnDemand offerings can helps you deploy a business intelligence solution over the web without needing to buy servers or install softwares.
Without business intelligence you might be risking a critical decision on insufficient and inaccurate information or you might be basing the decision on “guts feeling”. And to understand the value of business intelligence we use this SAP module.
Sap BusinessObjects OnDemand offerings can helps you deploy a business intelligence solution over the web without needing to buy servers or install softwares.
SAP BusinessObjects Planning and Consolidation unifies and streamlines planning, budgeting and forecasting process and can enables a faster close and reduces business risk.
Sap Crystal Solutions deliver powerful capabilities for ad hoc query, reporting and analysis. So you can gain secure reliable access to the data you need to access to make quicker and correct decisions.
Sap Crystal Solutions deliver powerful capabilities for ad hoc query, reporting and analysis. So you can gain secure reliable access to the data you need to access to make quicker and correct decisions.
Sap Crystal Solutions deliver powerful capabilities for ad hoc query, reporting and analysis. So you can gain secure reliable access to the data you need to access to make quicker and correct decisions.
Sap Crystal solution is an integrated, affordable and intuitive family of offerings for reporting, dashboarding, and ad hoc analysis and can empower individuals in organizations of any size to discover and share insight of optimal decision making.
SAP BusinessObjects Dashboard Builder software provides visibility across your organization to drive better decision making.


Sap BusinessObjects can help you in illuminating with holistic view of key metrics and information.


SAP BusinessObjects Data Federator software can enable you to leverage your current infrastructure and available data sources.
SAP BusinessObjects Data Integrator software allows your organization to profile, extract, transform, and deliver any type of data anywhere across the enterprise.
SAP BusinessObjects Data Insight software lets you monitor, analyze, and report on the quality of your organization's information.
SAP BusinessObjects Data Quality Management delivers a solution to help analyzing, cleansing and matching customers, suppliers, product or material data to ensure highly accurate and complete information anywhere in the enterprise.

The SAP BusinessObjects Data Services application can help by delivering a single enterprise-class solution for data integration, data quality, data profiling, and text analysis.
SAP BusinessObjects Edge Business Intelligence (BI) is a powerful business intelligence choice for midsize companies that want to improve business processes, discover new opportunities, and gain a competitive advantage.
SAP BusinessObjects Enterprise software is a flexible and scalable information infrastructure that makes it easy for you to discover and share insight for optimal decision making.
SAP BusinessObjects Explorer offers your users an intuitive path to quickly search and explore data for instant insight into your business.
SAP BusinessObjects Explorer software, accelerated version, combines intuitive information search and exploration functionality with the high performance and scalability of in-memory analytics, so you can empower your organization and extend the reach of BI to all of your business users.
SAP BusinessObjects enterprise performance management solutions can help your company capitalize on the value of your existing data assets.
These applications manage risks and comply with EHS regulations. It Increases the importance of corporate responsibility and sustainability. It Reduces costs of managing environment, health, and safety risks.
The SAP BusinessObjects Financial Consolidation application provides CFOs at the world's largest organizations with the speed, processing power, agility, and breadth of analysis needed to complete financial consolidation and reporting cycles faster.
With the SAP BusinessObjects Financial Information Management application, finance professionals can manage the process of accessing, mapping, and loading information from source systems to SAP BusinessObjects enterprise performance management (EPM) solutions.
The SAP BusinessObjects Global Trade Services application can help you reduce the cost and risk of international trade by ensuring compliance with global regulations, accelerating trade activity, and minimizing duties and landed cost.
Sap BusinessObjects OnDemand offerings can helps you deploy a business intelligence solution over the web without needing to buy servers or install softwares.
Meet all of your strategic business intelligence (BI) requirements on a single information infrastructure while ensuring delivery of the right information to the right users at the right time.
SAP BusinessObjects Integration software provides direct connectivity to enterprise applications.
The SAP BusinessObjects Intercompany application can enable business units to reconcile intercompany balances in real time via the Web and allows corporations to close their books faster.
The SAP BusinessObjects Live Office application integrates with Microsoft Office, embedding up-to-the-minute corporate data in Microsoft PowerPoint, Excel, and Word documents.
Sap BusinessObjects Metadata Management consolidate and edit metadata from various data sources into a single repository to provide a semantic view of data to analyze usage, change, and data lineage.
With SAP BusinessObjects Mobile, management and information workers can stay up-to-date and make decisions using the latest information.
SAP BusinessObjects OnDemand offerings can help you deploy a business intelligence (BI) solution over the Web without buying servers or installing software.
The SAP BusinessObjects Postalsoft application can help by providing a solution for address correction and encoding, data and list management, merge/purge, mail preparation, and support for additional postage discounts through drop shipping.
SAP BusinessObjects Predictive Workbench uncovers the trends and patterns to solve business problems, anticipate business changes, and gain insight using this powerful predictive analytics solution.
The SAP BusinessObjects Process Control application provides continuous control monitoring across policies and regulatory requirements. The application delivers unified, cross-system visibility for efficient management of multiple initiatives and increased confidence in decision making.


The SAP BusinessObjects Profitability and Cost Management application is scalable software owned and managed by the business users and can allow you to accurately and effectively measure product, customer, and channel profitability and develop and dynamically test ways to improve each.
SAP BusinessObjects Rapid Marts packages provide prebuilt data mart solutions for enterprise applications, The powerful packages combine domain knowledge and data integration of best practices in prebuilt data models, transformation logic and data extraction.
The SAP BusinessObjects Risk Management application provides risk-adjusted management of enterprise performance that can empower you to optimize efficiency, increase effectiveness, and maximize visibility across risk initiatives.
The SAP BusinessObjects Strategy Management application empowers business users at all levels to rapidly align resources to execute on strategies, understand risk, and drive effectiveness.
The SAP BusinessObjects Text Analysis application can help you unlock insights hidden in unstructured text sources such as blogs, Web sites, e-mails, support logs, researches, and surveys - so you can gain an analytic view of people's thoughts and feelings on your business, products, and services.
With SAP BusinessObjects Voyager, your business analysts can explore online analytical processing (OLAP) data using a tool designed specifically for them. One that delivers a full range of functions for the analysis of multidimensional data sets.
With SAP BusinessObjects Web Intelligence, both self-service access to data and intuitive information analysis are available in one product, helping your users turn business insights into effective decisions.
The SAP BusinessObjects portfolio provides comprehensive solutions that can empower you to optimize your business performance. These solutions can help you define your business strategy, close the gap between strategy and execution, and balance risk and profitability.




ORACLE:[6,10]

More than 3 decades ago Larry Ellison found the opportunity which other companies missed to design a working prototypes for relational database. No company had commercialized this technology but Ellison and his partners Bob Miner and Ed Oats realized the tremendous potential of Database model in business. Throughout its history oracle has proved its innovations and intimate knowledge customer challenges and successes analyzed by best technical and business minds in the world. Today ORACLE is known for its gold standard for database technology and applications in enterprise all around the globe.
The company is the leading suppliers of information management software and second largest independent software company. Now in almost every industry oracles technology is found. Oracle provides the world’s most open, complete and integrated business soft wares. It has more than 3,70,000 customers all over the world. Lawrence J. Ellison is the chief executive officer, Director and CEO of Oracle, Jeffrey O. Henley is the chairman of Oracle, Mark V. Hood and Safra A. Catz are the recent presidents of the company.
Its revenue generated for the year 2010 is 26820.00 M. Its revenue growth for the year is 15.30%. It has 3,70,000 customers from all over the world. Its number of employees is 1,05,000. Employee Growth for the year is 22.10%.

ORACLE MODULES:[10]

PRODUCTS AND SERVICES..
  1. Oracle Enterprise Edition
It Delivers a company its leading performance, scalability, security and reliability. It is the most demanding transaction processing, business intelligence, and content management applications.
  1. Standard Edition
Oracle Standard Edition is an affordable, full featured database for servers with up to 4 sockets. It includes Oracle Real Application Clusters for higher availability, provides enterprise-class performance and security, is simple to manage, and can easily scale as demand increases.
  1. Express Edition
Oracle Express Edition is an entry-level, small-footprint database based on the Oracle Database 10g that's free to develop, deploy, and distribute; fast to download and simple to administer.
  1. Audit Vault
Oracle Audit Vault reduces the cost and complexity of compliance and the risk of insider threats by automating the collection and consolidation of audit data.
  1. Secure Backup
Oracle Secure Backup provides an integrated, easy-to-use backup solution that encrypts data to tape to safeguard against the misuse of sensitive data in the event that backup tapes are lost or stolen.
  1. Berkeley DB
Oracle Berkeley DB provides the best open source embeddable databases. At its core is a fast, scalable, transactional database engine with proven reliability and availability and over a decade of production use.
  1. Secure Enterprise Search
Oracle Secure Enterprise Search provides better access to enterprise information, while protecting sensitive data from unauthorized users.
  1. Database Security
Oracle provides a comprehensive portfolio of security solutions to ensure data privacy, protect against insider threats, and enable regulatory compliance. Oracle has delivered the industry's most advanced technology to safeguard data where it is in the database.
  1. Oracle Exadata Database Machine
Oracle Exadata Database Machine are Oracle Exadata Storage Servers, which combine smart storage software and industry-standard hardware to deliver the industry's highest database storage performance.
  1. Application Grid
The application grid approach to middleware infrastructure allows a set of applications to meet peak demand and improve overall performance by sharing resources.
  1. Application server
The Oracle application server product line is the industry's most comprehensive Java platform for developing, deploying, and integrating enterprise applications.
  1. Beehive
Oracle Beehive is the only unified communication and collaboration solution built on a modern, service-oriented architecture. Only Oracle Beehive provides a complete range of integrated collaboration services including conferencing, instant messaging, email, calendar, and team workspaces that can be deployed either on premise or through Oracle On Demand.
  1. Business Intelligence
Oracle is the leader in Enterprise Performance Management (EPM), unifying Performance Management and Business Intelligence (BI), supporting a broad range of strategic, financial and operational management processes. Oracle provides a complete and integrated system for managing and optimizing enterprise-wide performance.
  1. Business Process Management
Oracle helps your enterprise achieve higher efficiency, visibility, and agility by delivering industry-leading products for business process management (BPM) and business process automation (BPA).
  1. Content Management
Oracle Content Management reduces costs by delivering by providing streamlined processes, increase productivity and unifies infrastructure.
  1. Data Integration
Oracle Data Integration provides a complete, open and integrated solution for operational and analytical environments.
  1. Developer Tools
Oracle offers the industry's most complete and integrated set of tools for application development, database development, and business intelligence to support any development approach, technology platform, or operating system.
  1. Event-Driven Architecture
Oracle Event-Driven Architecture is comprised of best-in-class technologies for event-enabling your business.
  1. Oracle Exalogic Elastic cloud
Oracle Exalogic Elastic Cloud is the world's first and only integrated cloud machine—hardware and software engineered together to provide a "cloud in a box". Exalogic is designed to revolutionize data center consolidation, enabling enterprises to bring together tens, hundreds, or even thousands of disparate, mission-critical, performance-sensitive workloads with maximum reliability, availability, and security.
  1. Identity Management
Oracle Identity Management enables customers to efficiently comply with regulatory requirements, secure critical applications and sensitive data, and lower operational costs.
  1. In-Memory Data Grid
  2. Middleware for Fast-Growing Companies
  3. Oracle Communication Service Delivery
  4. Oracle Fusion Middleware for Applications

MICROSOFT DYNAMICS:[7,14,15]

Microsoft Dynamics is a line of ERP applications developed within Microsoft for business solutions. Microsoft provides its soft wares through network of reselling partners, which provides the best services as any other company cannot and specialized these services. There are more than 3,00,000 businesses which uses the applications and services of Microsoft Dynamics. Microsoft business solution group was formed in April 2001 and Microsoft Dynamics Navision was acquired in July 2002.
Kirill Tatarinov is leading Microsoft Business Solutions, Micheal Park and Hal Howard are the Vice Presidents of the company, Craig Unger is the General Manager of Microsoft Dynamics CRM. Its is the part of Microsoft business.
The revenue generated by the company is 62484.00 M. The growth of revenue of the company is 6.90%. Number of employees working in the company 89,000.

MICROSOFT DYNAMICS MODULE:[15,14]

The list of modules of Microsoft Dynamics is given below,
Microsoft Dynamics AX is a comprehensive enterprise resource planning (ERP) solution for midsize and larger organizations that empowers people to work effectively, manage change, and compete globally.
  1. Microsoft Dynamics NAV
Microsoft Dynamics NAV can provide your organization with value that extends across your operations and simplifies your business with a single solution, it improves your productivity, helps you in taking smart decisions and implementing it quickly.
  1. Microsoft Dynamics GP
Microsoft Dynamics GP delivers built-in, flexible functionality that provides business value now and into the future, it simplifies your business with a single solution, improve your productivity, It goes beyond the basic reporting and extend insight across your entire organization, it Choose from flexible deployment options and implement as well as adapt the decision quickly.
Microsoft Dynamics SL can provide your organization with value that extends across your project-driven operations so you can people to be more productive, it manage projects easily across company divisions and locations, it helps in Gaining insight with improved business analysis and it Meets the demands of your specific industry.
The product is part of the Microsoft Dynamics family, and intended to assist with finance, manufacturing, supply chains, analytics and electronic commerce for small and medium-sized enterprises.
  1. Microsoft Dynamics POS
Microsoft Dynamics POS provides better insight into your business, helping you to improve customer satisfaction, empower your employees to make better decisions, respond to changing business situations, and lower your IT costs.
  1. Microsoft Dynamics Retail Management System
Microsoft Dynamics Retail Management System (RMS) offers small and mid-market retailers a complete point of sale (POS) solution that can be adapted to meet unique retail requirements. This powerful software package automates POS processes and store operations, provides centralized control for multi-store retailers, and integrates with Microsoft Office system programs, Microsoft Dynamics GP, and other popular applications.
  1. Microsoft Dynamics CRM
CRM implementation reduce your IT burden with a CRM solution that is hosted, updated and maintained by Microsoft, it increases productivity with fast user adoption. It quickly centralize customer information and streamline business processes. Microsoft dynamic CRM is a multi-lingual customer relationship management.

Top 3 ERP Modules:[8]

The list of top 3 ERP modules is,
  • Human Resource Module
Human Resources module, It was this module that enabled PeopleSoft to get their start.  This was their biggie that sends them to the top of the ERP world.  The Human Resources (HR) module does various tasks depending on the functionality the ERP vendor chooses to provide.
  • Finance ERP module
The Finance module was Oracle’s flagship module.  Oracle’s Finance module probably has the most extensive functionality when compared to any other Finance module in the ERP industry.  The Finance module is very important as it keeps track of your accounts payables, accounts receivables, general ledger postings, asset management, depreciation management, budgets, and more.  Finances are the core of organizations.
  • Supply Chain Management Module
Supply Chain Management (SCM) ERP module is to enable organizations to reduce inventory while increasing the production time and more efficiently meeting customer needs.  This module is popular among manufacturing companies.
REFRENCES:
  15. http://www.microsoft.com/en-us/dynamics/service-plans.aspx

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1 comments:

Hello Friends.........

Great information.Thanks for sharing this useful information with all of us.Keep sharing more in the future.

Have a nice time ahead.

Thanks

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