Comparison between SAP System and Microsoft Dynamics Project Description - Report Example

?COMPARISON BETWEEN SAP SYSTEM AND MICROSOFT DYNAMICS PROJECT Comparison between SAP system and Microsoft Dynamics Project Author Author’s Affiliation Date Table of Contents Table of Contents 2 Software Platforms 4 SAP’s ERP System 4 Cash flow Management in SAP ECC 6 Issues 7 Microsoft Dynamics 7 Cash flow Management in Microsoft Dynamics GP 9 Conclusion 9 References 10 Introduction In the past few years, there have emerged a wide variety of information technologies and tools which provide wonderful support for the management of business operations. Additionally, a large number of business organizations have attempted to adopt the commercial Enterprise Resource Planning (ERP) systems for the management of their business processes. Basically, an enterprise resource planning system allows a business organization to put together all business departments and functions across all the way through the business environment into a single computer system that can support all those different departments’ specific needs (Wailgum, 2008). Additionally, the majority of business organizations adopts ERP solutions offered by SAP Corporation. In view of the fact these systems are costly and are designed to be used for large size business organizations therefore it is assumed that they are not suitable for small and medium-size business organizations (Park & Lee, 2006; Khaleel & Sulaiman, 2013). In this scenario, Microsoft a giant organization of IT industry has introduced some enterprise resource planning systems known as Microsoft Dynamics enterprise resource planning business solution software which provides an excellent support and wonderful capabilities to business organizations by allowing them to be more creative and allows them to acclimatize as they develop, at the same time as providing the insight they need to act in response rapidly in an ever-changing business environment (Microsoft1, 2013). This report presents a comparative study of two well-known enterprise resource planning systems: SAP system and Microsoft Dynamics. This study will present a comparative analysis of enterprise systems offered by SAP System and Microsoft Dynamics with respect to cash flow management. Software Platforms In this report I will present a comparative analysis of two well-known enterprise resource planning systems: SAP ECC ERP platform with a second ERP and Microsoft GP 10 platform. This comparison will be on the basis of cash flow management function. SAP’s ERP System SAP ERP Central Component (or simply ECC) is one of the well-known assets of SAP Corporation. Basically, it is an ERP application (enterprise resource planning software) that is composed of a large number of modules that provide the business organizations with a great deal of control over their major business procedures. In this scenario, these modules are designed in a way that they are able to communicate with each other with the purpose of creating and maintaining a completely integrated system that offers superior performance to almost every client inside a broad range of industry areas. However, the management of business operations using SAP ECC applications can be challenging because of the risk that appears due to transformation of direct fundamental information and procedures, however the significance of counting through these types of systems and the advantages of a flourishing/integrated ERP application are too important. In view of the fact that it integrates a large number of modules for a variety of purposes such as financials (FI), sales and distribution (SD), material management (MM), human capital management (HCM), and a number of others, that’s why SAP ECC is one of the most attractive choices for the majority of business organizations (CIPHER Business Solutions, 2013; SAP1, 2013; F5 Networks, Inc., 2013). In addition, SAP ECC business system solutions can be an excellent option for those business organizations that are in search of a complete, integrated industry application to have full control over their company’s end-to-end working. As compared to other ERP solutions available in the market, SAP ECC integrates all the important business solutions in a single configurable application to let the business organizations effectively handle everything from human resources, inventory, procurement, financials, logistics, manufacturing, corporate services and product development to sales, customer service and marketing and promotions (CIPHER Business Solutions, 2013; SAP1, 2013; F5 Networks, Inc., 2013). Moreover, SAP ECC is a well-developed, robust ERP technology based system that offers an excellent support for a variety of business procedures varying from financial and purchasing to production, inventory and human resource management. In addition, incorporated marketing, sales and service capabilities enhance organization’s capabilities toward client relationship management. Some of the important advantages offered by SAP ECC are outlined below (F5 Networks, Inc., 2013; B4-Consulting, 2013): SAP ECC solution enhances the financial management by speeding up financial closes, growing accuracy of economic reporting, maintaining cash management effectively. Maintains operational fineness in the course of enhancing competence and efficiency of business procedures at the service levels, and cost-cutting measures Improves agility through responding faster to marketplace improving customer experiences, enhancing and distinguishing our business Combine and make straightforward our company with incorporated ERP and CRM Improves business productivity with a spontaneous, single desktop environment supported by integrated functionality Produces a seamless network with auxiliary and business partners to improve customers service as well as operational competence Cash flow Management in SAP ECC SAP ERP Central Component (SAP ECC) is able to offer information that is necessary for SAP Business Objects consolidation and planning in an attempt to generate the cash flow report intended for each period, for that reason leading to improving the closing process as well as the accessibility of information on a monthly basis. Without a doubt, this procedure seems straightforward and extremely flexible, however the challenge is present in being able to track all the transformations connected with one specific business account that is associated to the cash flow report, and how cash flow transformations all through the month from the starting balance until the closing balance at phase end. In addition, the use of SAP ERP Central Component Cash flow Management module allows the business organizations to make a monthly cash flow report with an arrangement of out-of-the-box facility in SAP ECC as well as innovative potentials in SAP feature of Business Objects Consolidation and Planning. Though, an organization is using systems in the environment of SAP ECC and legacy settings, the creation of a cash flow report might as well be a more challenging job for the reason that changes and monthly account movements are tackled in two diverse scenarios in a diverse way (Sisfontes-Monge, 2011; CIPHER Business Solutions, 2013; SAP2, 2013). Issues One of the biggest drawbacks of these systems are they are not affordable for small size business organization. They are designed to be used for large size business organizations. They are costly to implement and manage. Then the investment cost similar to license (license price and modeling) is huge. Also the software and hardware requirement are really superior for this application those are not affordable for small business. In the same way, the effective usage and execution of these systems require extensive training, which is costly and time-consuming (IBM, 2013; Nehal, 2010; McIntosh, 2013). Microsoft Dynamics Microsoft Dynamics is a series of Enterprise Resource Planning and Customer Relationship Management systems developed by Microsoft Business Management Applications Solutions group that is the part of Microsoft. As compared to SAP’s ECC ERP solutions, Microsoft Dynamics ERP is a designed for dealing with the needs of small and midsize businesses and additionally and divisions of bigger organizations. In this scenario, Microsoft Dynamics ERP encompasses a variety of applications which are outlined below (Karrox, 2013): Microsoft Dynamics GP (formerly Great Plains Software) Microsoft Dynamics AX (formerly Axapta) Microsoft Dynamics SL (formerly Solomon IV) Microsoft Dynamics NAV (formerly Navision) Microsoft Dynamics POS 2009 Microsoft Dynamics RMS In addition, Microsoft Dynamics GP integrates a wide variety of modules such as marketing, sales and customer service applications, which provide the business organizations with a distinct operating platform for all kinds of customer relationships, such as purchase and post sales. Additionally, with the recognizable Microsoft Outlook interface and tight incorporation with Microsoft Office tools, the new Microsoft Dynamics GP allows the business workers 'work the way they want; offering a speedy, elastic and logical system that will facilitate them to rationalize their business procedures, develop competence and stay competitive in the ever-increasing competitive business world (Excitation Ltd., 2013; Microsoft1, 2013; Microsoft2, 2013). Moreover, Microsoft Dynamics GP integrates useful modules such as CRM and ERP systems that work similar to other well-known Microsoft products we already use, thus reducing the time that is required to learn. On the other hand, SAP’s ECC ERP systems require a lot of training and expertise so they increase the expenditures of a business organization. Hence, they are not suitable for small and medium size firms (Excitation Ltd., 2013; Microsoft1, 2013; Microsoft2, 2013). Furthermore, Microsoft Dynamics GP is a complete set of business management tasks and management aspects that facilitate business organizations in acclimatizing new prospects. Additionally, Microsoft Dynamics GP allows business people to keep pace with the handle changing markets, competition, facilitate exclusive business needs, and link complete variety of business procedures across a business organization. In addition, whether a company’s objectives are to attain improved financial management, better supply chain performance, reorganize developed performance or achieve superior control over their human resources and payroll procedures, Microsoft Dynamics GP is a confirmed, cost-effective technology based solution that is able to facilitate business organizations in attaining their varied objectives (Excitation Ltd., 2013; Microsoft1, 2013; Microsoft2, 2013; Microsoft3, 2013). Cash flow Management in Microsoft Dynamics GP We can use the Microsoft Dynamics GP Cash Flow Management to predefine a stating balance for a business estimate, foundational upon on a single cash management operation or a precise general ledger based account balance. Additionally, this system allows the users to base a forecast on one or extra checkbook balances with or without work/correct transactions, for example payments, deposits and reconciliation modifications that are not fraction of the checkbook balance. Though, cash flow management is not a separate application and it comes inside the package of Microsoft Dynamics GP system. We have the suitable registration keys to make use of it. In addition, users can make use of cash flow management for a variety of tasks such as developing an unlimited amount of cash flow forecast definitions. Additionally, this system is useful in predicting cash flows in diverse ways. This system also allows its users to produce states without really recording transactions. Microsoft Dynamics GP Cash Flow Management module is able to review daily inflows as well as business outflows of currency in the company calendar window. We are also able to outlook the review of any known day’s cash inflow as well as outflow. Through these all supports and facilities we are able to get weekly comprehensive or review plus monthly calendar reports (Microsoft Corporation., 2007). Conclusion An ERP system is believed to be a most important information system that integrates almost all the departments of an organization. At the present, the majority of business organizations implement ERP systems to manage their business operations. In this scenario, SAP is one of the most popular ERP solutions providers. However, the solutions provided by SAP are costly are designed for large size business organizations. This report has presented the comparative analysis of two ERP systems, one is developed by SAP and other is offered by Microsoft. Both these systems aim to support business organizations however SAP is suitable for large size business organization and Microsoft Dynamics are suitable for small and medium size firms. \ References B4-Consulting. (2013). SAP Consulting. Retrieved April 20, 2013, from http://b4-consulting.com/sap-business-all-in-one/index.php CIPHER Business Solutions. (2013). SAP ERP Central Component (ECC). Retrieved April 22, 2013, from http://cipherbsc.com/solutions/sap-erp-central-component-erp-ecc Excitation Ltd. (2013). Microsoft Dynamics CRM Overview. Retrieved April 23, 2013, from http://www.excitation.co.uk/solutions/microsoft-dynamics-crm.html F5 Networks, Inc. (2013). Deploying the BIG-IP System v11 with SAP NetWeaver and Enterprise SOA: ECC. Retrieved April 22, 2013, from http://www.f5.com/pdf/deployment-guides/sap-ecc-iapp-dg.pdf IBM. (2013). 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