Enterprise Resource Planning Solutions and Management - Report Example

April 22, Introduction Enterprise resource planning (ERP) system helps create an integrated product or result that is used in the management of companies in their operations. They are important in the sense that they create and integrate systems that are one or unified and not singular in nature. ERP is a term often used to mean Enterprise Resource Planning and enables companies to have a clear structure in the organization In terms of the process and technology. These includes in the field of finance, distribution, human resources and manufacturing, ERP systems are used by business enterprises for the conduct of accounting and financial planning (Gelinas et al 35). Open source enterprise resource planning (ERP) software systems are important for small and medium enterprises in that it allows the business enterprise to an access the code hosted by the system and make it conform by the enterprise’s own information technology instead of making them pay extra costs to vendors for the customization and licensing. In the selection of ERP systems, it is important for the business enterprise to measure its success in terms of the savings made through the streamlining of the operations of a company through the increase in revenues and the increase of the share of the market. Small and medium enterprises have several possibilities in the implementation of electronic planning packages as they wish. They have an option of either selecting an ERP package that it desires and compare its capabilities with others. They can also develop the ERP system individually or integrate the best choices offered by the particular software provider that the business enterprise is dealing with. The selection of a viable ERP system involves several stages in the operation of a company or a business enterprise. This includes the concise analysis in the processes that pertain to the processes of the company and analysis of the concepts contained in the ERP packages. The pre-selection process involves selecting only companies that are in support of the company process, and thereafter the selection of the ERP package that will involve the use of workshops and evaluation of factors that affect the ERP selection process. This is followed by re-engineering and customization of the process that means the avoidance of resistance by staff of any changes in the ERP selection process and adapting the ERP process to the unique nature of a particular business process (Nah 221). The selection of a viable ERP system involves the involvement of employees in the organizational structure of the company. It is important for the company to recognize the knowledge the employees possess in the running of the company and their input is important in the achievement of this, the company should assign an integral person in the running of its financial system known as the internal champion. This person is allocated the most difficult projects in the company who gets the job done irrespective of the difficulty of the task. This should be done at the beginning of the selection of the system so that the company knows whether the person is fully committed and agreeable to the project. It is important for the business enterprises to evaluate the risks that are likely to be met and if they may reoccur. This can be used by all interested parties to mitigate risks. Persons who are likely to make the company suffer many risks are also included in the risk management process thus avoiding the loss that could be suffered by the company in question. There is need to ensure management buy-in in the selection of an ERP system by communicating the scope of the project and be updated of sign-offs at every step along the way in the financial management. It is also important for companies to select vendors who have sold more ERP systems as such vendors usually have more customers thus easier access to support and have the best practices for a specific industry and its practices. They also have the ability to come up with products according to the specifications of the company; therefore, in order to have a good ERP system, the company should have a good reseller or Value Added Reseller (VAR). This enables companies to have the best ERP systems in the management of businesses or organizations. Companies are also bound to issue Request for Proposals (RFP) that enables the persons concerned or the organization to have a list of the vendors of an ERP system and eventually come up with the best. The proposal will include questions on matters of technology, costs, the base of customers and qualifications of implementers and customers with similar ERP systems (Harwood 74). Organizations are also required to attend demonstrations for similar ERP systems employed in other companies. This enables the company to evaluate its strengths and weaknesses in the financial system of the company. Companies should also call references to know how viable a specified ERP system is functioning or not. This will involve having a checklist of questions to ask in the choice of the system. Companies must also prove that the systems chosen will work for them in its employment. This will enable the company have a proof of the concept in the financial system to enable eventual success in the running of the business enterprise. Business enterprises must have information relating to the total cost of ownership of the ERP system selected. These will include the fees incurred in licensing, implementation of the ERP system, the support required it to operate and the hardware involved. This involves the making of good decisions in the procuring of an effective ERP system. Business enterprises must conduct boardroom pilots for the system in order for them to understand how they work. The enterprise can make use of these boardrooms to understand the system as presented by the company before the signing of contracts and the eventual purchase of the ERP system. It is at this point that the business enterprise gets the most favourable price. Service Oriented Service (SOA) The Service Oriented Architecture or what is popularly known as SOA explains about services, which are in the form of software, live components and technical things. It focuses on the technology involved as opposed to the expected outcome or result by providing an interface between the business and its requirements in terms of information technology. SOA requires services to be visible or look to be seen by the providers of services and the consumers of the service meaning the interaction between the two must be defined. Small and medium enterprises own the SMEs that they use and include the location of the business, the security of the service provider and other factors relevant to the hosting of such network. SOAs in these organizations are dynamic or highly flexible and the ingredients or services are communicated loosely through protocols that follow certain standards and the specifications of specific interfaces are exchanged at run-times making clients have the ability of changing run-times at will. The ease of exchange of run-time is convenient for business enterprises if a new service provider comes into play and it offers better alternatives in terms of the function and the quality of service. Alternatively, this is important when the service procured is unreachable due to network problems (Sweeney 262). SOAs should be made of services, which are capable of handling individual business tasks, and the individual services must not be closely related to the others in order to minimize other services depending on the other. The use of open-end communication standards that are well known is important in SOAs as well as the protocols in communication. SOAs must clearly demonstrate the details of implementing them and be separated from service contracts. Software as a Service (SaaS) Software as a Service (SaaS) is often made use in the sense that a central system provides data across all networks, a fee is charged on a recurring basis, and users are made to rent the application or the services from the central service provider (Ali 234). Software as a Service (SaaS) is utilized by small and medium enterprises (SMEs) that have an objective of growing fast in technology due to the benefits that accrue to it due to the ability to scale it, the low levels of costs in its acquisition and the access to innovations in the global software market. The relationship between this and SMEs development is the fact that the application of SaaS require business enterprises to exercise leadership and the development of vendors in the change of the asset management. SaaS service delivery systems are based on pricing based on subscriptions and they are established through procedures that are standard in nature through procedure offered by the service providers. A more theoretical and fundamental understanding of SaaS is important in the sense that it helps in the identification of the best provider and enable the SMEs to consider long term the addition of value for business in the sense that business enterprises benefit in equal measure as the internet service providers. Small and medium enterprises sourcing SaaS must possess the leadership, system of business thinking and the ability to make technology work. The importance of the development of vendors and the capabilities of internet service providers to acquire the SaaS system should be closely looked at. Microsoft Dynamics GP This software was originally developed by Great Plains Corporation before eventually being acquired by Microsoft Corporation and it is one of the most preferred enterprise resource planning packages for small and medium enterprises. The Microsoft Dynamics GP is preferable for the numerous advantages that arise from its already wide share of the market in the small and medium enterprises. Its advantage rises from the fact that the package is organized in a horizontal manner that makes use of other partners who have developed add-on modules that provide functionality of the software in a vertical manner (“Microsoft Dynamics GP”). There is also the advantage of variety in the choice of products as the Microsoft Dynamics GP is a widely accepted software product with a long and reputable history. It also provides a wide variety of application program interface or API products that enables the persons developing it to share the uptake of the product through importation and exportation of data. This also entails web service application program interface and the traditional import/export. The Microsoft Dynamics GP has the disadvantage of being difficult for SMEs to develop in because it is considered to have little support in the market place. The language of its development known as Dexterity makes it understood only by its followers. The ability to customize the Microsoft Dynamics GP product is limited as the developers, Microsoft made it look as if the product was developed for the role tailored client. Sage ERP X3 Sage ERP X3 used as an ERP has numerous advantages that are based on its easier way to control, speed, simplicity and flexibility. It is simple and faster in integration, irrespective of how the organization can be configured in relation to the information system in place. Is user-friendly ergonomics enables it to be easily adopted or taken up by start-ups (“Sage ERP...”). The Sage ERP X3 is simple in its adaptation and personalization in line with the specific processes and wants of SMEs. It is also flexible and has the ability to evolve as the company progresses or develops. The Sage ERP X3 is also easy to administer in terms of the IT infrastructure involved. A practical implementation strategy for the Sage ERP X3 it is important to integrate all the company management. As Sage ERP X3 shares all the information required in the management of the company in a single database, it is easier to conduct accounting and other duties in one coherent unit. This is achieved because once information is put into the system; it is distributed or shared throughout the enterprise. To get the full benefits of the Sage ERP X3, the business enterprises can adapt each function of the preferences of the users and the practice at work through the provision of appropriate tools for staff that are adaptable to their specific requirements. In the control of workflow in the enterprise, Sage ERP X3 can be employed to manage the procedures of the company electronically that makes it easier to handle events as they occur within the organization. An illustration of this is for example when the enterprise enters a purchase order into the system, Sage ERP X3 can at that instance inform a particular buyer in line with the purchase order already entered in the system. Moreover, it can adequately inform persons in management position any term contrary with the purchase order and thus the enterprise can stop the validation process. This ensures simplicity and security in the activities of the enterprise. Works Cited Ali, Babar M, Matias Vierimaa, and Markku Oivo. Product-focused Software Process Improvement: 11th International Conference, Profes 2010, Limerick, Ireland, June 21-23, 2010; Proceedings. Berlin: Springer, 2010. Print. Gelinas, Ulric J, Steve G. Sutton, and Allan E. Oram. Accounting Information Systems. Cincinnati, Ohio: South-Western College Pub, 1999. Print. Harwood, Stephen. Erp: The Implementation Cycle. Oxford: Butterworth-Heinemann, 2003. Print. “Microsoft Dynamics GP”. Microsoft Dynamics. n.d. Web. 21 April 2013. Nah, Fiona F.-H. Enterprise Resource Planning Solutions and Management. Hershey, PA: IRM Press, 2002. Print. “Sage ERP X3 Why Sage ERP X3.” Sage. n.d. Web. 21 April 2013. Sweeney, Rick. Achieving Service-Oriented Architecture: Applying an Enterprise Architecture Approach. Hoboken, NJ: Wiley, 2010. Print. Read More