Saturday, December 18, 2010

ERP for SME - Small and Medium Enterprises

In the beginning ERP was considered out of reach by almost all the companies of SME sector and as a tool of fortune 500 companies who could spend huge sums of money on purchasing the software, installing robust IT infrastructure and could dedicate manpower, time and money for its implementation. But with the change in time and with rise of more and more ERP solution providing companies the upper market got very competitive, now to grow and bear the growing expenditures the software companies have developed marketing strategies to target mid and small size market. This has initiated change in the design and structure of present day ERP to suit to the needs of SME market.

As it is easily understandable that the benefits of ERP are more realistic and practical to SME than large companies, as large companies can invest money and manpower to find out an alternative way of doing tasks, such cushion is not with SME, the biggest disclaimer is the amount of money a mid size company have to invest to get the benefits of ERP. So the ERP solutions for SME need to be cost effective and easy to implement. The professional services which a large organization can avail a small or mid size company may not be able to. More cost effective ERP software with less complex implementation process is the most suitable option for SME.

Low cost of implementation alone cannot get ERP solution down the throat of SME market. Some of the mid size companies might be small in size and business, but they might be working in the market for quite some time. And it has been noted, in most of the cases, that such companies have number of different types of systems working simultaneously in one organization. When ERP is implemented all of those systems either need to be integrated with the ERP or the old data has to be converted according to the format and design required by the ERP to understand, for smooth and trouble free transition and working. This calls for a flexible architecture of ERP software which should be able to integrate with different software, platforms and operating systems.

Most of the SME would like to deploy ERP in a step by step process where they will switch over one module after another, this makes the process easier and less cumbersome. To target SME market companies have started offering ERP software in suite, which allows the buyer to purchase one application with complete functionality of a particular department of organization like SCM, CRM, Financial management etc and with smooth and easy integration facilities with other applications. Instead of buying whole ERP for the organization switching over in steps is more attractive for SME units.

Hosted ERP, cloud computing, SaaS models have been promoted by almost every ERP company and with a primary aim of attracting more clients from SME sector. These models take away most of the worries and deterrents of companies from SME market regarding ERP implementation and cost. The availability of top ERP solutions in such models has been the major factor that has played its role in making ERP popular in SME market.

Read about ERP Selection for SME. Also know the ERP Software Benefits.

ERP Software Companies - SAP, Oracle, Infor and Microsoft

With growth in the popularity of ERP software more and more companies have come up with the plans of owning ERP for their organization, this led to more software companies jumping in the market to fill in the demand with industry specific, solution based and economical ERP solutions.

SAP was established in 1972 in Germany and is largest software service provider in the world today, initially SAP’s ERP solutions were robust and costly and were stamped as solutions for fortune 500 companies only. Today latest version of SAP ERP is SAP ECC 6.0 which was previously named as SAP R/3, other products for mid size and small companies are SAP business one and SAP all in one. These all are part of SAP business suite, SAP business by design is in software as service model for providing hosted ERP solution to its clients.

Oracle Corporation famous for its database and hardware solutions today provides suite of business applications which can perform tasks like CRM, SCM ERP and financial management. Oracle comes with few solutions like Oracle E-business suite, Peoplesoft, JD Edwards enterprise one, JD Edwards world and Siebel. Oracle has made number of famous acquisitions which has improved the versatility in its solution list. The company gained third biggest revenue after Microsoft and IBM and provides services like consulting, training, SaaS and support.

Infor Global Solution is another big player of ERP market established in 2002 with the name of Agilisys in USA, later after acquisition of Infor Global Solutions the company changed its name to its present name. Infor apart from ERP solutions provide number of specific solutions for SCM, CRM, Enterprise asset management, Work force management, Product management, PLM, HCM and Financial management. Industry specific solutions like for Public sector and Hospitality industry also gives Infor a unique identity in the market. Infor ERP solutions have been very popular in manufacturing industry because of its support for all types of manufacturing methods lean, discrete and process.

Microsoft Corporation has four ERP products which have been enhanced and developed after acquisitions which Microsoft made. Microsoft GP, NAV, SL and AX are four ERP solutions along with CRM, all the ERP solutions have almost similar modules and effort was made by Microsoft to merge them to form a single ERP solution which failed.

Companies like Epicor have also worked out a place for themselves amongst the big players of the ERP market by providing economical and solutions focused for particular business areas. Epicor comes with number of enterprise solutions for mid size and small companies like supply chain management which includes support to other areas like customer relationship, supplier relationship and supply chain execution. Other offerings from the company cover areas like human capital, retail, service and IT services management. Epicor tried to unify all the solutions in Epicor 9 to provide one single solution but this product needs some more enhancements for proper functioning.

Netsuite is world's leading hosted ERP service provider, though company mainly focuses on mid size market and has chunk of its clientele from this sector but has launched Netsuite Global one which supports divisions of large organizations and companies with many subsidiaries and divisions by features like consolidation, multi-currency, and languages.

There are numerous other small and big ERP solution providers like Sage, Syspro, Ramco, Intacct, Lawson Software, Baan etc playing an important role in developing the ERP market.

Read about Selection of ERP Software. Also know about Selection of ERP Vendors.

What Is ERP - Difference Between ERP and Other Simple Software

Enterprise resource planning technically is a type of software, the only difference between ERP and other simple software is that ERP is not for one module or section of organization but for whole, it integrates the entire functioning of the organization to make it work as a unit. ERP software integrates all the aspects of business by one single application with single data repository and allows communication and transfer of information from one module to another in real time. This software also comes equipped with latest analytical tools to workout the meaning hidden in the data. It cuts down the need of manual interference in most of the repetitive tasks to bring down cost of working and speed up the processes, eliminating chances of mistakes to a large extent.

It has inbuilt functionality for core business processes with all the features and facilities required, but can be customized to exactly suit to the requirements of the user. Basically ERP software’s job is to facilitate the flow of information from one process to another within the boundaries of the organization and establish close connection with other business partners like suppliers and customers.

Present ERP has evolved itself from MRP, material requirement planning. MRP and MRP II were developed for resolving the problems of material requirement and production and planning of manufacturing units. Later when need for integration of other departments for better functioning and requirement of capacity planning of the organizations became a part of software activity, it gave rise to enterprise resource planning. The software capable of handling basic activities of five main aspects of businesses like financial management, supply chain management, manufacturing, customer relationship management and sales and marketing through a single application or set of applications integrated together to transfer information in real time and using single database for data retrieval and storage, providing flexible reporting tools and analytical tools with facilities to view data in consolidated form, qualifies as ERP software.

Enterprise resource planning software is a robust application as it has facilities to support many industries, different processes in those industries and provide industry specific solutions. It standardize processes to match international and industry standards but since no two organizations work exactly in the same way even if they are in same industry hence no ERP software can fit in every company’s requirements as it is. This calls for some changes in the present system of working of the organization and customization of ERP to meet at a point where they can compliment each other perfectly. This process is done during the implementation of the ERP and because of this implementation of ERP becomes very important and time and money consuming.

Just managing the requirements through ERP is not the only step that is taken in its implementation, training of staff to make them able to use the software and carry out their daily tasks independently and making the top management aware about all the features of the software for better working is also an important step of the implementation process of ERP. ERP software integrates the whole system in other words it brings all the departments under one roof, it redefines boundaries within the organization of all the departments and allows transparent working throughout the organization. Provide real time updates of the inputs from every point of entry to help in smooth and easy management.

Know What Is ERP and its fundamental concept. Also know about Web Based ERP.

Difference Between ERP Software and CRM

Enterprise resource planning is fully integrated software that has functionality for all the core aspects of business and integrates all the departments of the organization while customer relationship management application or software focuses on the activities related to customers like, quotes, contracts, service, reminders, service reminders etc. ERP ensures better and real time integration and communication between all the departments of the organization for increasing profitability while CRM enhances customer relationship management, acts as a front desk of the organization and an information center for sales people. Some critical information which can be very useful for the sales people but may not be available at the right time due to slow processing of the data is avoided with the use of CRM software.

CRM software alone may not be the solution for all the problems necessary to be resolved for better business. That is where ERP comes in, its capability to bring the other modules of the organization like manufacturing, product development, marketing, warehouse, inventory etc under one umbrella provides the link to CRM application to look into the organization for updated information to provide it to its user. If an organization uses CRM with ERP, for every new order the CRM application can communicate with the warehouse for the availability of the required stocks and if ready stocks are not available then with the production module to check its availability at the earliest and can provide its customer the exact shipping date of the product at one instance. Whole of this activity can be done without any manual interference which not only saves valuable man hours but organizations can be assured of 24 hours working and support to their valuable customers.

ERP and CRM software can work independently too but together they provide the edge which an organization needs to increase its business. The enhanced and proper working within the organization and real time complete information to the sales people can help them in generating the new business. Not only for new business these two software together also help in better customer retention for regular business. CRM can help in making customer aware about new products, its qualities and comparisons which can make the task of sales people easier. For service based industries CRM can be more than simple software as it can ensure prompt and timely services with regular reminders and can provide to staff the necessary details of previous calls and support given to a particular customer.

Customer feedbacks, inquiries and complaints are always in the form of unstructured data but it can be an extremely valuable source of information and basis of the organization’s new strategy and planning to have more and more satisfied customers. CRM software can transform this data into valuable information without any manual interference and time wastage. This information supplied to the management can be used to make changes in the organizations working and can be easily implemented with the help of ERP software.

CRM and ERP software are complimentary to each other and can work together for better business management of the organization in any industry. Some ERP software come with inbuilt CRM module in the main application while most of the ERP software provide this software as separate module which can communicate with different ERP software. Read about CRM Trends In India. Also read CRM Best Practices.

SAP R/3 Architecture - Benefits of This Architecture

As the client-server technology became popular amongst ERP developers SAP launched its SAP R/3, in this, R stands for real time data processing and 3 stands for three tier architecture. Due to use of this technology this version of SAP ERP was compatible with multiple platforms and operating systems. The latest version of SAP ERP is SAP ECC 6.0 which is successor of R/3 architecture.

Previously ERP software use to run on 2 tier architecture comprising database or server and client. This not only slowed the processing but limited the number of users. In big organizations which are working at different locations and with large number of employees such an application was very problematic. The three tier architecture provided a layer in between client and server to streamline the queries fired from client to database and the output send from database server to the client. The SAP R/3 was based on this technology which made it usable by any number of users without any negative effect on its processing speed and response time.

SAP R/3 architecture is based on application server, database server and presentation server, the application server is the third layer which was added to the previous two-tier architecture to make it three-tier architecture. The presentation server of SAP R/3 works as GUI and is an application called as sapgui.exe. This application is installed at the client system which takes the input and sends it to the application server which processes the requests and revert back the results or the output of the input.

The application server consists of executable applications developed in ABAP. Services are distributed on many application servers and a message server helps in maintaining communication between many application servers. This design helps in distributing the workload according to the availability of the server with every new user. All the requests made by the client after getting processed by the application server are transferred to database server which then carries out the tasks like data storage, retrieval and modifications. The output is then sent back to application server which is processed and passed to the presentation server in SAP R/3 architecture.

The benefit of this architecture, apart from number of users and speed, was the integration of other modules with key and frequently used modules. The key modules of the company were at the one place while all the activities within those modules could be reflected in other related modules in real time. This also immensely improved the performance of reporting and analytical tools and management of different divisions working at different locations. Large organizations could install this ERP which would work as an independent application for the division and could also provide consolidated view of the whole organization at the highest level in real time.

The cross application functionality and enterprise-critical distributed IT system helps in managing business workflows even at the divisional level which makes application extremely user friendly. It provides easy and perfect integration with other popular non-SAP products. It can comply with different levels of IT infrastructure in contrast with SAP R/2 architecture which used to run on mainframe systems.

Read more about SAP R/3 Architecture. Also read about SAP Business One In India.

Future of Enterprise Resource Planning Software - ERP

ERP software, in the beginning were intended to provide enterprise wide solution for all business activities with single application and single data repository, but today ERP is headed towards another direction and may start appearing quite different in near future. SAP and Oracle have been the giants of ERP industry and even these companies have shown clear signals of changing their strategy and planning to provide more practical solutions to their customers rather than sticking to the old theory of ERP software.

The change which ERP software seems to adopt in near future is to have more modular approach than striving to resolve the problems of businesses with one single application. In the effort of providing one single application with all the functionality for all core business aspects ERP software have become more robust and thereby more and more complex and costly to implement. Today many companies use big ERP software at their head offices and small, easy to implement 2 tier software at work locations, these software are from different companies so sometimes problems with integration and communications arise, but companies manage such issues because they are manageable and inflict much lesser expenses and time wastage than implementing a big ERP at each location.

Fabricated ERP solutions with set of applications where each application having deep functionality for a single business aspect like HCM, CRM, SCM, Financial management etc with complete and easy integration facilities with other applications is the future form of ERP. This gives user the leverage to switch onto ERP with step by step approach and also does not require dedication of all the human and financial resources for ERP implementation. Such a suite will have more solution oriented applications and since all the applications will interact with one data repository and will also be able to communicate with each other in real time so all the benefits of ERP software which were perceived at the beginning will remain intact.

ERP solutions inclined and equipped with more and more e-commerce facilities and tools shall come up in near future. The availability of this feature in ERP software has opened up gates for midsize companies to make their presence felt in the global markets and in order to attract more and more users from this sector, e-commerce facilities shall hold the prime place in all the ERP company’s marketing and designing strategies in future.

Hosted ERP, cloud computing, on demand and SaaS were all introduced in order to capture mid size and small sector companies by providing economical and easy to use solutions. The time and money involved with on-premise ERP software scared SME for opting for ERP solutions despite of its huge benefits, with these solutions minimum IT infrastructure is required and very less time is needed for implementation, this gives SME companies an ideal solution to utilize ERP benefits for growing and expanding their business. Such offers with more eased out licensing models and facilities are expected in future to attract more and more small and midsize buyers. Strong data security features and advanced ways of keeping backup of the user’s data will also come up to increase trust and credibility of such solutions even in the eyes of large organizations.

Read more about Future of ERP Software. Also know the Future Trends for ERP.

ERP Navision - Microsoft Dynamics NAV ERP Software Review

In 2000 Navision software merged with Damgaard to form Navision Damgaard A/S which was later named as Navision A/S, this company was taken over by Microsoft and released ERP solution branded as Microsoft Dynamics NAV in 2005. Apart from Dynamics NAV, Microsoft has three other ERP solutions GP, SL and AX and a CRM solution. Microsoft took up an ambitious project to unify all the four ERP solutions to give one compact single solution which has been called off recently due to disappointing results, now Microsoft is supporting and enhancing all the four solutions.

Microsoft Dynamics NAV ERP is more suitable to distribution and wholesale industry which needs industry specific solutions for efficient working. For distribution industry it comes loaded with latest features like item tracking and automated data capture system. It is also suitable for companies in cross-border business with facilities to handle multi-currency transactions, multi-language support and features in financial management for consolidation of data of different divisions and subsidiaries.

Business analytics for Navision ERP supports online analytical processing services with interactive graphical representation of key performance indicators and trends and patterns of the market. Navision ERP software's system management application provides facility to design forms, customize access to menus and other functionalities according to the roles and responsibility, it also allows the administrator to specify rights to access for subsidiaries and employees for smooth functioning and data security. Even internet access can be monitored by the administrator.

It uses SQL server as a database but can also work with a native database server called as classic, however SQL is more capable in handling large data and comes with advanced facilities for writing procedures. ERP Navision comes with a solution set which is for enhancing its capabilities and applications can be written in Pascal like language, this makes Navision ERP easily customizable software. There is no need for separate procedures for handling the database, the application itself can handle the interface and the database which reduces the time in customization compared to other ERP solutions.

Apart from distribution and wholesale this ERP product of Microsoft family has features for Financial management, Human capital management, supply chain management, supply chain analytics, customer relationship management, E-commerce, manufacturing and flexible reporting and analysis tools. These features make it a complete ERP solution and suitable one for mid sized companies. Navision ERP comes with more economical licensing offers as compared to other ERP software's with similar features and facilities. Its scalability has been appreciated by its users too and can grow according to the growing needs of the organization, upgrades are well supported by Microsoft.

Like other Microsoft ERP solutions Navision too is tightly integrated with other Microsoft products like MS-office and Excel which makes it easier to use. As well as Navision ERP integrates easily with other non-Microsoft products and popular software which are commonly used by the companies for specific solutions. Microsoft provides vertical solutions to many industries by means of its other products, easy and smooth connectivity of Navision ERP with such products now and in future also makes it more useful ERP than others.

Read more about Microsoft Dynamics NAV Review. Also read the Definition of ERP.

Wednesday, November 3, 2010

Failures of ERP Software Project and How to Avoid It

There have been many instances of failure of ERP projects associated even with big vendors and professionally run companies. It is easy to understand that project of this magnitude involves lot of complexities and makes it prone to mistakes which leads to its failure. Apart from this even established and reputed vendors and ERP companies hesitate to discuss about the reasons and chances of ERP failures which does not work well for the success of the project as a whole because the purchasing company does not have sufficient information about the implications of ERP.

Generally selling and buying companies most of the times are involved in the discussions which include the details of benefits of the new system. Sometimes benefits are blown out of proportion which suppresses the discussion about the pitfalls in the ERP implementation. To avoid this and have a realistic picture of the whole project the top management of the company needs to work upon the project and gain necessary details about the best practices of ERP implementation, past experiences and performances of the vendor as well as the companies who were able to install ERP successfully. This also saves the company from getting too much dependant on the consultants for executing the project. The best teams for ERP execution can be build by including most of the team members from the organization, as these people understand the company better than anyone else, too much reliance on external support and guidance increases chances of ERP failure.

Companies also fail to select the proper time for ERP implementation or they take up huge projects between implementation, such decisions distract and over burden the staff to cause ERP failures. Improper change management also accounts to number of ERP failures, most of the time in a hurry companies overlook or ignore the psyche of their own employees and try to follow the popular way of implementing ERP rather than following the most suitable way according to the culture of their own company. Such a situation creates confusion and leads to lack of trust on the new system to cause its failure. The demonstration of the proposed system shall be done according to the ‘to be’ document of the project and on the real data, this helps in knowing that how well vendor has been able to understand the company’s business and working style. If vendor is not having complete knowledge of present system it may not be able to provide a successful solution.

Choosing right approach is also very important, in order to make changes in the present business processes easily acceptable to the employees, companies employ bottom up approach, which has never succeeded so far, the whole project and each and every process shall be viewed as a top management priority. Selection of proper ERP software and implementation strategy remains important for every ERP project, ERP requiring too much customization to fit in or company adopting unsuitable strategy for implementation, can cause ERP failures. Training and knowledge transfer are also important steps those play an important role in the success of ERP implementation and ignorance or lack of sufficient concentration on these activities can cause ERP failure.

Read about Causes of ERP Failure. Also read about ERP Project Management.

Netsuite ERP Software - Largest Service Provider for SaaS Model

Netsuite is the biggest ERP software provider in software as a service model. The company initially was named as Netledger but now it provides hosted ERP solutions for mid size and divisions of large companies mainly. The cost of ERP solutions is quite low as compared to other solutions in the market which gets it in easy reach of mid size companies. It has rich functionality in terms of accounting as company initially was providing accounting solutions and can support functioning of large organizations too.

Netsuite provides ERP solution by one integrated software suite, it covers business activities like Financial management, ERP, CRM, Order management, Inventory/Shipping/fulfillment, Material requirement planning and E-commerce. Largely Netsuite ERP solutions are more suitable to fulfill the requirements of mid-size companies but with the latest launch of Netsuite Oneworld solution it has provided solutions for the companies running many divisions and subsidiaries and provides consolidation facilities for financial data. This web based solution works seamlessly to handle multiple business units from one single Netsuite account with different sets of taxation rules, languages and currencies.

Accounting features of Netsuite ERP are very strong and versatile as company leverages its vast past experience of developing accounting systems. Accounts receivables in particular have variety of features which can handle all the activities from availability to shipping and raising invoices easily.

It also provides easy navigation and shifting between roles and number of reports to provide deep analysis of the functioning. The web based solution saves large investment made for IT infrastructure in other on-premise models of ERP solutions, the applications are integrated seamlessly to provide real time transfer of information across the whole organization and saves the data in one single repository. It also supports E-commerce activities which gives users web presence to extend their reach and provide more prompt and dependable services to the existing clients. The CRM solution has all the features to cover customer relationship activities, sales force automation and role based dashboards to executives and management.

Mid size organization leverage facilities provided in the Netsuite ERP at minimum possible cost and without investing in IT infrastructure and going through rigorous implementation process, this feature has given it a clientele of more than half a million. Netsuite ERP is supported by range of partners or vendors with suitable training and tools to customize ERP according to user needs. Netsuite has recently announced some new features to be incorporated in the on-demand ERP these are like advanced billing, advanced budgeting, revenue recognition, allocation, inventory re-ordering, lot tracking and advanced inventory commitment. Time to time additions of new features not only makes it a versatile ERP but also improves its credibility in the market.

Scalability and navigation has been in question since the beginning though financial module provides excellent navigation but other modules lack in similar convenience. The backup facilities of the application are also less dependable as it is supported by the third party. Licensing norms need to be more economical as any user opting for other application does not get any extra benefit and miscellaneous charges charged every month also increase burden on the user.

Read information on the different Types of ERP Software. Read review on Netsuite ERP Software, advantages and disadvantages.

Microsoft Dynamics CRM - Customer Relationship Management Software

Microsoft dynamics customer relationship management software is primarily an IIS based web application with client server architecture and which can be accessed by Internet explorer 6 and above versions. It supports activities of sales, marketing and help desk however Microsoft claims that by using its proprietary technologies based on.Net framework can enhance this product to support other related activities too. Microsoft intends its CRM software to be used as XRM platform by its business partners for making it versatile to handle activities those are beyond generally perceived customer centric activities. This CRM software is available in four versions for clients and partners and has upward compatibility which allows its clients to easily switch on the higher version as their requirements grow.

Microsoft dynamics CRM is available in few languages and is very well integrated with Microsoft products like MS office and Microsoft windows small business server. This CRM application is easily customizable to adjust according to the requirements of the user and third party tools can be integrated for additional features. The internal customization of Dynamics CRM is easy too, forms can be customized for providing familiar or easily understandable looks, business work flow can also be customized, custom objects can be added to support extra activities, and this application can send E-mails and raise alert alarms for next step in the activity or pending work. E-mail campaigns can be managed easily and responses tracking can be done too, service scheduling provides support to all the activities from logging, dispatching to tracking and follow-up.

Microsoft dynamics CRM software's major components are MSSQL database, web services layer, system services layer, query processor, processor for secured ad-hoc queries using XML, plug-ins and reporting services. The SDK provided with the application builds on the platform for customization or integration. The web services layer manages the communication of applications, with other components and the database, developed for enhancing functioning, the server platform is responsible for creating domain specific objects and provide building blocks of the application. The incoming and outgoing E-mails are processed by the Microsoft exchange server.

Some features of Microsoft dynamics CRM makes it an effective tool for fruitful and productive customer relationship management. It provides very tight integration with Microsoft products and MS office, this gives it ease of use, familiar navigation and user experience. It provides advanced business intelligence tools such as advanced real time dashboards which can be used in individual and shared mode for more insights. Its flexibility allows the users to create personalized work place by setting up default pane and tab which opens whenever CRM is opened online. Creation of role based forms enhances security features and helps the employees in accessing the relevant information quickly rather then searching their required data from number of records and fields. Customization and integration was always easy in Microsoft dynamics CRM which has been enhanced by providing facilities of importing customized solutions already developed by other users or vendors.

Microsoft dynamics CRM provides complete solution and upcoming versions of the software may have even better and helpful enhancements like integration with Microsoft NAV and SharePoint which will boost up the productivity of the solution even further.

Read more about Microsoft Dynamics NAV. Read about Benefits of ERP.

ERP Software Cost - Direct And Indirect Costs

ERP software cost includes all the direct and indirect costs incurred, from purchasing the software till implementation process is completely over. Some costs are clearly evident in this process while some are silent or hidden. Generally an incomplete analysis of ERP cost would just include the expenses to be made in purchasing of software and hardware whereas total cost of ownership of ERP goes far beyond than just these.

By a survey conducted way back in 2002 it was estimated that an implementation of ERP on an average cost $15 Million ranging from $0.5 Million to $300 Million, but it is quite an old estimate, times have changed a lot since then and there surely would be major change in the average cost of implementation. However, the factors affecting the cost have not changed and more or less remains same as they were right at the beginning. The cost of purchasing the software and cost of installing the hardware necessary for running the ERP are two basic cost centers involved with ERP ownership. Apart from the purchasing cost the cost involved in making the system run in the form of manpower, system software, purchase of software for security features and checking third party intrusion, license renewal fees etc should also be taken into account.

Implementation process involves lots of activities and these days most of them are preferred to be done by taking help of external consultants like functional analysis of the company to prepare 'as is' document. Similarly, for technical analysis and GAP analysis services of experts or agencies are availed to get the best output and independent opinion. These services incur costs and increase total cost of ownership of the ERP. Indirect cost in these activities are those man hours which have been invested by the in-house staff for getting these activities done, these costs are ignored most of the times, but have crucial impact on total cost of ERP implementation.

To provide sufficient training, companies need to invest decent amount of money firstly in hiring trainers or paying the consultants imparting training to handle the ERP, hiring technical staff to support the ERP and training them according to the software and hiring or developing existing managers as ERP consultants for future needs. All of these add up to the total cost of ERP software.

Cost of tools and software required for integration with external entities, for optimum utilization of the ERP and for integration with present system also cost and these costs vary according to the scope of implementation and ERP software itself. Some ERP software may need lot of these tools and software and some may not.

Data conversion is another activity that involves cost depending upon the nature of the ERP and the format and media on which old data has been stored. Actual cost of data conversion can be accessed only by putting together all of these factors and sometimes it can be quite high. Testing of ERP its components, performance and user acceptance is a compulsory process which has to be conducted before going live and this activity also incurs cost on the company to increase total ownership cost of the ERP. Some companies may spend more money on one process and another may spend less but for calculating actual and realistic cost of ownership of ERP all of these cost centers are needed to be included.

Read more information on Low Cost ERP Software. Find information about ERP Implementation Cost and Timeframe for SME.

ERP Training - Important Step In Implementation Cycle

ERP training is the most important step in implementation cycle which most of the time is underestimated and under budgeted, but it is a proven fact that proper training can not only save money but also raises the chances of successful implementation and utilization of ERP. There are many theories about how much money shall be invested or budgeted for training purpose which may be correct for few companies but cannot be for each one. Organization has to identify and decide the amount of money, time and resources it needs to put in for completing this step successfully and satisfactorily.

Training of project team before beginning the implementation process can be of immense help. In the project team representation of all the departments of the organization is given priority over hands on ERP experience, which is correct, but proper configuration level training on all the core modules shall be imparted to all the team members so that they are able to get ERP implemented to utilize it for end to end business processes. Technical training shall be given to handle issues like system administration, report writing, customizing forms and work place and application development. Training sessions for the project team shall be designed in such a way that consultants of the vendor are able to impart knowledge of use to them. Apart from configuring the modules and customizing them, training shall focus on the integration of different modules with other business processes too.

Top layer and bottom layer of the organization is comprised of most important people with a crucial role to play in the success of ERP implementation. The top management training gives them a complete picture about ERP itself as well as sort of changes it will bring in the organization, volume of effort required for implementation and necessary steps to be taken for smooth functioning in post implementation phase and the how the organization in terms of working will look after the deployment of new system. The lowest layer has employees who will make the ERP successful if they understand the qualities, the need and necessity for the changes in the working system and the shortcomings of the system. They shall be made aware about the information they will be able to get in seconds and how they can utilize the system when they are in field or what sort of knowledge or technical support are at their disposal now with the new system.

The people who will be actually using the ERP to carry out day to day functioning of the company needs a well designed training syllabi. Too much training and information about the ERP can be counterproductive hence they shall be trained in two cycles. In the first one specific training shall be imparted for carrying out their day to day works efficiently by utilizing all the features of the latest system without making mistakes. Training shall also describe to each and every user about the ways of cross-checking and identifying mistakes and proper channels to correct them. At later stage, when ERP has been live for few months another session can be started for imparting knowledge about alternative methods of doing the regular job and about advanced features.

Training as a whole needs specific attention and devotion to make ERP work efficiently and it is a no secret, without proper training companies have suffered a failed ERP implementation process or the process continues even after 20 years of deployment.

Read more information on ERP Training Institute. Know about Institution for ERP Courses.

Wednesday, May 19, 2010

How to Avoid ERP Implementation Failure in Your Organization

ERP applications are well equipped of delivering industry specific solutions but still large number of entrepreneurs fails to implement them. There are some simple and basic rules to follow, to avoid failures.

The most common reason of entrepreneurs failing to utilize ERP for benefits is the wrong selection of ERP software. Basically every organization has its typical work process and business flow and one has to first identify the process and the business flow and they need to choose their ERP, but in most cases the functional requirements are not being checked properly. Also there is a need of detailed study of the product and its characteristics else lack of the study will lead to a bad selection of the ERP system and which in turn makes most of the entrepreneurs fail in implementing ERP. There is one simple way of avoid this, before implementing any ERP system every one from top management to the end users of the company should be involved in detailed research of the product. If needed always take expert advices and services to plan the functional requirements of the company and an exclusive cross checking of the product need be done with the requirements, for an appropriate selection of the ERP.

Another reason of failing is the shortage of time and manpower required for implementation. Most of the time the employees are over burden with their regular work and when they give an additional responsibilities of implementation, they could not do it properly as they are already exhausted with their regular work. This leads to the failure of the implementation of the ERP. In order to get maximum out put from the existing staffs, proper time schedule shall be worked out for the implementation process and working hours of the employees.

One most important factor for the failure of the ERP systems is the misleading information given by the ERP vendors about the system. Some times budgeting becomes a factor of failure when ERP vendors could not give proper information about the installation charges and also investing on other third party tools. Lack of training to the employees leads to confusions and slow working which also causes failures.

In short one has to have proper knowledge about the product, should have a proper budget planning and appropriate training to the staffs to avoid the failure of implementation of the ERP for each and every entrepreneurs.

Read more information on the Causes of ERP Failure. Find a list of reputed ERP Vendors in India.

Sap ERP Upgrade Preparation for Your Organization

All organizations these days installed hi-tech system to process their business. SAP is known to be the best among ERP systems which can handle even tough business process and it has become an inevitable part of any good organization. SAP is one of the best ERP systems which can be used by hundreds of people at the same time.

But even the best of the system need up gradation. No exception is SAP.

It's not only about changing the old system but also to upgrade a system in such a manner that its working capability becomes more and better than the previous one. Entrepreneurs wisely choose to up grade their previous SAP ERP with the new version of SAP ERP. As they have understood the performance of SAP ERP is beyond doubts.

The basic advantage of implementing new SAP ERP is that the performance of the system becomes much speedier and information transaction becomes much smoother. In short the efficiency of the new SAP ERP has been enhanced.

While preparing for your SAP ERP up gradation, the main motto should be to earn more profit and hassle free data analysis. The new system should give you the much needed information about your business so that you can stay ahead of the rest. With so many companies growing up every day, every one is pushing themselves to be the best in the market, you cannot choose to be the second, so you have to rely on the best business solution which is off course the SAP ERP and when you find the old version is keep you little below than others you should think that time has come for the up gradation of your old SAP ERP.

While up grading the old SAP ERP you should always focus on some vital aspect in terms of technicalities. You must choose the New version of SAP ERP which will be compatible with the old version, because here you are not replacing the old one with the new system but keep the old system intact you are only up grading the system.

So choosing the best up grade version of SAP ERP is very important. Also along with the version of ERP, you have to keep a watch on what additional hardware or other technicalities needs to be installed to make the up gradation successful. Once you have a clear concept of these two factors you are in the league of success.

There will be a little more problem after installing and up grading the old SAP ERP, in terms of adaptability by the people of the organization. It may take some time to get trained in the new version, but once it's done, then there is no stopping from the profit sharing league and your organization will curve a niche in the business world.

Find information on the benefits of Web Based ERP system. Read information on SAP R/3 Architecture and system management.

ERP Software and Vendor Shootout for Successful Implementation

When you are going to choose your ERP, you have to choose it according to your business volume. If you are small to medium size business organization then you should always look for the solution which suits your business properly. And if your organization is big then you have to choose something which can manage the big business process and can give maximum productivity.

If you are a small and medium size organization, several things you have to keep in mind like what kind of system will be best for you open source, or on premise, on demand system. You have to take care while implementing and manage the system, either by hiring consultants from out side or you have to depend completely on your people.

One always has to remember that shootout means to deliver the better solution. If one is expecting Orange then the solution should be able to produce orange and not apple.

So while choosing the right vendor, emphasis has to on the type of the business, the actual business process like whether it's manufacturing business, or CRM process or any kind of supply chain or retail process.

After identifying the actual process, you need to think about number of users going to use it. Also you need to monitor what kind of geographical location it has to cross and what should be the projection of the system in a whole. After deciding all the factors then you should concentrate on the budget you can bear for the implementation of the system. Most of the time along with the ERP system many hardware extensions and some times some third party software need to be buy, so while budgeting these components should be taken into consideration, you should give a call to vendors.

You need to be very wise while choosing the proper vendor, because most of the time all vendors promises that their product is the best available in the market, and it has some bright record of success, never believe them blindfolded and trust your experts and take proper advice from them. Read the brochure given by them about the product very carefully. Always compare rates of your product from many vendors. And then come to the conclusion of which product you should buy.

Once you decide to go for the specific vendor always ask for demo to test the product for at least 15 to 20 days, and once you are satisfied then buy the product from your suitable vendor.

Read about ERP Definition and other related business terms. Find the list of top ERP Vendors and choose the right ERP vendor.

How to Manage ERP Project Effectively

ERP managers these days are very concerned for one thing; how to manage the ERP.

How to control the risk of the ERP so that one can get maximum output of the system? There are few activities one can do for controlling the risk and to get the maximum output.

They are as follows -

1. Identifying the goal and objectives - First of all one has to understand the purpose of the ERP, or exactly the goal of the ERP or what will be the payout of the project. Senior management must take care of these issues and when there is any lack of direction they should guide the juniors so that they never loose the direction in the way of developing the ERP project. In order to maintain a proper goal and objective management should maintain a project charter before the project begins. This project charter can help in keeping goal and the objective well in mind.

2. Defining the requirements - Proper definition of every requirement should be taken into account. It should consists of the overview about the functionality of the product, the number of processes need to be followed, what sort of business process the project should project, every detailed documentation should de defined and based on that a high end design should be prepared.

3. Review/Created to be - After designing and defining the requirement when the actual process of development starts one has to always monitor the business process which is actually running and what else or new modifications can be done for the betterment of the project. There can be always something missing in the existing process, so there should be always a scope of modify that with a new system.

4. Education of the Project - It means testing of the product with real time data available. It has a benefit, with this kind of testing the user get a feel of how the product is going to run and it becomes a kind of training for the user.

5. System Testing - After training comes the demo period, the product should run as demo for 10 to 15 days to understand the inflow and outflow of the business process.

6. Data Conversion - After being satisfied with the demo, now time for real data mapping into every point of the ERP. It's very stressful and one has to be very careful while mapping the data.

7. Go Live - Now the time has come for the newly designed ERP to work live and giving maximum benefits to the organization. It should completely serve the purpose for which the ERP has been developed.

Read more information on the Causes of ERP Failure. Find a list of reputed ERP Vendors in India.

ERP Popularity and Need in Heath Care Industry

The scope of implementing ERP in healthcare industry has been increased fairly as more and more hospitals are coming up with the growing population and critical diseases causing to the mankind. Nowadays treating patient is no more just a service, the whole hospital sector has become hospital industry.

As number of hospitals are coming up, so every one is looking for better professionalism and better service from the concerned department.

These days patients are more demanding. With so many medical facilities they get and they invest money just to ensure they get the best of treatment so naturally they want the best return of their hard earned money. So this health care industry is developing at a great speed with the two major factors namely business and service.

So now the situation has come that hospitals can't continue with their old practices and technologies where service are not up to the mark and yet charge huge bill to the patients. Therefore it is mandatory for hospitals to go for the latest trends of technology and ensure the best service to the customer or patients.

So there is a need of implement an ERP solution which has been specially designed and developed for the health care industry. Every hospital has their basic set up in terms of equipments and necessary instruments, devices to give treatment to the patients. Also they hire best doctors, nurses and other clinical and surgical staffs in order to maintain the reputation of the hospital. So the focus here is to manage the whole operation smoothly and in more professional way, so that the patients can be really satisfied by the service of the hospital.

The main focus of the ERP in health care Industry is from the point of view of patients' satisfaction. The key factors which one has to keep in mind while implementing the software are as follows -

1. Patients should not wait in queue for long to visit a doctor of their choice.
2. There should be option for booking in advance for the specific doctor.
3. All the bills can be paid online by the patient party in case of emergency.
4. Availability of choice of beds should be there in case of admission.
5. Discharge procedure should not be long.
6. Medi claim facilities and procedure should be fast and should be directly with the insurance company.

The hospital authority should also focus on that type of software which can give a proper track of the following.

1. Doctors' schedule with date and time.
2. Proper intimation to the dashboard when specific doctors are not available on some said days.
3. Daily entry of patients list.
4. Proper billing methods for surgical treatments, and medical treatments along with diagnosis reports.
5. Regular update for the stock of medicines.
6. Regular attendance of the staffs of the hospital.
7. Stock updates of laundry and kitchen materials.

These should be the basic features of the ERP in health care industry. It can reduce hospital overheads as it helps to integrate all functions namely accounts, finance, human resources and bring them under one roof or one common database.

In hospitals connectivity is most important, because every time the information has to be circulated ion various departments in order to maintain a chain of events. Like a chain of events happen when a patient got admitted for certain operation. So keeping a track from admission to discharge is very important.

So for hospital industry there is a need of developing specialized ERP software that can take care of every aspect that has been mentioned above.

Read review on Aplicor ERP Software. Also find information about Small Scale Industries in India.

Monday, May 17, 2010

ERP Systems Rising Need of Enterprises

Enterprise Resource Planning or ERP in short is the business solution provider which helps an organization to run its business smoothly and to promote growth in business. ERP has been designed and developed in such a way that it can integrate all the key business operations, synchronizing all those, gives new planning and optimizing the resources available for the business.

The main difficulties that an organization feels in order to run a business are the need of quick information. For making any crucial decision for running business one has to have all information with them and also the information which they require at any point of time should reach to them immediately. ERP improves coordination between all operations; it can simultaneously streamline the workflows and processes them according to the priority level, and hence giving benefits to the user. Also satisfying customers is another key feature of any ERP which not only deliver their orders in time but also keeps track of their all transaction, credit limits, bonus, surprise gifts and also remembers their personal details just to make them feel good. To know the order in wait for the customers are now absolutely hassle free. After installation of a proper ERP system the organization becomes more active in terms of time management. Another vital importance of ERP is of better marketing opportunities. ERP investigate every segment properly and thus gives solution to many debacles existing in an enterprise.

Various ERP systems are available in the market which helps organizations in business planning. Leading companies those are dominating in the ERP industry are Oracle, PeopleSoft, Microsoft and JD Edwards, SAP AG etc. These systems undertake all business components like inventory, manufacturing, orders, sales, purchase, supply chain, warehouse and most importantly customer management modules under one common database and thus help for generating accurate information much faster and in better way. Also ERP ensure that all the users of the system should avail all information those are required to run a business. No one in the organization should be dependent on any other person to get the data they require.

ERP system also helps the management to take the right decision by making future projections about sales for a certain period for a certain product. Some crucial management decisions like, whether to increase or decrease the production of a particular product, which in turn can help to save resources from being waste can be taken just by the report taken from the ERP system. They also help managers to take decisions about introducing some new product in the market or to make a better salable option for the product which is already in high demand in market. Also new schemes and other promo offers etc can be conceived to enhance the sales can be derived by the system. Production cost cutting is of great importance in every organization. ERP helps cutting in production costs by better planning and forecasting of requirements. ERP system aims at giving higher return on investments (ROI) in a fast manner to every organization who implemented it.

Though there is always a threat of security, piracy, hacking of sensitive data. So taking proper security measure ERP systems can be a boon to every organization that is in need to survive in this competitive world and want to be the best in the business.

Find information on the Disadvantages of ERP. Read review on Oracle ERP Software and know advantages and disadvantages.

ERP Data Migration Strategies for Successful Implementation

To make an ERP implementation successful data migration is the key factor. When a data can migrate effectively that proves that the ERP system is just appropriate for them. And this projection builds their confidence in the system and which in n turn becomes the key factor of the success of ERP implementation.

Though while implementing an ERP the main focus is on the modules attached with it and how popular it is, but what they lack is the focus in the operation of the system, that is real time data migration, which cannot be determined till the ERP is started working full fledged with all real time data, and when some one find out that the data is not migrating efficiently and effectively then the ERP implementation is becomes a failure.

The real problem lies in the fact that data migration is the last activity we do, because real time data can only migrate when the system is about to working live, so the real problem area starts after that.

Strategy of Data migration

There are few strategies that need to be followed while migration of data -

1. Data identification for migration.
2. Determine the time for data migration.
3. Generation of the data templates.
4. Data migration tools need to free zed.

The data Identification for migration

The Identification of the need to be migrated to any applications consists of four groups of data. A particular order need to be followed while entering the data as, all data is interdependent.

The order is like

A. Configuration Data - These data are for one time feeding into system that's required for set up.
B. Sub master Data - These data are mainly related to any transaction procedures.
C. Master Data - These are the data which are being regular updated. It relates from sales module to purchase modules to stocks and inventory.
D: Transaction Data - These are the data which are entered at the end of all these above data entry order. It consists of balance sheets, reports, and other end results.

Data load timing

1. As we discussed above the timing should starts from set up data and it will end at transaction data. But as set up data can be entered just one time so exception caution should be taken while entering it.
2. And same rule goes for the case of sub master's data entry.
3. And for Master data and transaction data, both are continuous process so loads on tools need to be taken care.

Templates

These are sharable components mostly for various users, between different countries or continents so it should be created and modified keeping the exact purpose of sharing.

Tools to be used

There are four different tools can be used to load data into the database.

1. Desktop Integration - This tool is used for one window based process.
2. SQL Loader - These tools accept data from databases.
3. Oracle Standard APIs - This tool is meant for oracle database.
4. Custom Built Interfaces - These are custom's verified data for loading into database.

Conclusion

Data migration is very important activity in establishing the success of an ERP implementation. An accurately migrated data is a reflection to the stakeholders that the ERP system is perfect and gives clear indication of their current organization. This increases their level of confidence in the system and in turn is a key factor in the ultimate success of ERP implementation.

Read information about ERP Implementation Strategies. Read information about Infor SyteLine ERP.

Wireless Technology Advancement in ERP Software

Enterprising Resource Planning or ERP is going places these days. It has become an integral part of almost all business. So like the Wireless Technology, its effectiveness has been proved beyond doubt. Advancement of Wireless Technology in ERP has given a double advantage to the companies which are using ERP for a long time. As Wireless technology has its reach beyond any geographic location and also its communication and data transfer process is much faster. So it has become the eye candy of every organization.

Today every offices use WIFI connections which are free from the hassles of wired connections, has been proved as the boon to the ERP users. Like in any manufacturing company where head office is in different location whereas warehouse, sales office, manufacturing unit are in different location. They are now always connected through WIFI and can keep all updated information about stocks, product delivery sales process, workers time schedules and also the profit margin. Previously they all had to maintain piles of files and also engage more people for the maintenance of those files. But now they are saved from those tortures. Now only a laptop is all they require with super fast data communication process and they are sorted from every problem.

With the advancement of wireless technology in ERP, the company policies and sales volume has increased. Now the sales team can gather any data, any information about their target, all figures and numbers are now with them always due to super fast data transfer and they can just take any crucial decision at any point of time just by getting right facts and figures in order. The increase of sales target, or widening the profit margin can be easily calculated and therefore can make a difference to the sales force. Also any distribution companies can maintain E-commerce feature with wireless technology and that too for 24X7.

Maintenance of customers who are the key aspect of any business has now become much easier than before. It's just a matter of clicking of mouse. When there is a need to contact any customer for better business, how far he is, but he is always within reach through emails, chats, and video conferencing. And from the point of view of the customers, the self service systems make them more comfortable for any service or complain or suggestions, without wasting time in front office for the same. It can save a day for the better work in a productive way.

All large companies these days do have global headquarter, and business locations are in different place.

So whenever there is a major decision making issue like revenue generation, or may be product supply or manufacturing problems or machinery issues, they can take it with all the relevant data available to them with all updated information, no matter where they are located. Wireless technology has crossed all geographical barriers.

But there is a flip side to the story. Like all other technologies wireless technology has also come under threat of piracy. As this is a very high competitive world so it has become almost impossible to avoid piracy when the real data has been published.

But reaserches are going on to make the system more secure and private, alternative measures of transferring data and communication should be approached. But in spite of these threats the advancement of wireless technology in ERP has taken a huge leap in the way of business process.

Find information on the benefits of Web Based ERP system. Read information on SAP R/3 Architecture and system management.

Selecting the Right ERP Platform for Your Organization

Selecting the right ERP software is always a big question for decision makers. This is because of so many implementation failures due to wrong selection of ERP software.

Implementation of the ERP - Once the decision has been taken on which ERP software you are going to buy, make a proper plan of implementation of the same. Whenever there is a new addition in any company, the first obstacle comes from the workers of the company, as they are mostly layman and used to the old software which they are using for long. So you have to take them in confidence and should train them properly to use the new ERP software. Next is, whatever promise your vendor does to you, don't take them seriously; always ask for a demo version for a limited time so that you personally can understand the functionality of the ERP software. You must test the software from all possible angles, to see its working; also you should keep a tab that all the modules and the functionalities should work well.

Evaluate the benefits of the new system - You have to make sure that the new ERP software which you have chooses is giving what exactly you are looking for. Like if your motto is to reduce costs and increase revenue then you must ensure that your ERP software is giving just that to you.

Focus on more option - Though there are few ERP vendors are known for their best selling products but when you are choosing the right ERP Software platform, you can always look for option, because these days, more and more new customized ERP solutions are available by lesser known vendors but they generally give best price along with best service in order to curve a niche in the market. Some times Its better to go for the quality of the software than the brand of the company.

In Nutshell - Try to find the ERP which are high on speed, less on errors, the communicative part of the software in high. The portability and the integrity are very satisfactory, while internet support is available and E commerce facility has been taken care off. Easy to use, easy to maintain and fits in the budget of the company are the key factor while choosing the right ERP software platform.

Read information on Microsoft Dynamics AX Review – advantages and disadvantages. Also read about NetSuite ERP Software Review.

Choosing the Right ERP Platform for Your Organization

With growing number of industries there is a lot of ERP software available nowadays in the market. But companies should be very careful about choosing the right ERP software platform which will help in the growth of their business. When there is a need of real fast car we should not buy a car whose maximum speed is 40 km per hour. Performance of ERP software is the key factor, which can never be ignored while choosing the right solution for your organization.

There is little process through which a company can choose the best ERP solution available for it.

Analyze the need - First of all the company should review and analyze their business process. How they work, what are the modules they should look into. What are their main focuses of business, their strength and short comings? Also the document should include the future planning of the business, target planning and sales force measures. After the document is ready now start review about all the ERP software that are available in the market and try to tally with your need.

Technical Details of ERP software - Although the main focus of ERP is the business solution but one should not forget to judge the technical details of the software, because at the end of the day the people who will be using it may not be technically sound and they can find difficulties in using the software if its not easy to use and technically stable. Some simple measures can give best result for buying ERP software. You can choose .Net, oracle or some other platform convenient to you.

Make a cost benefit analysis - While choosing the right ERP software platform, you should think at least 100 times, what will be the right amount for you to invest in buying the software? You have to keep this in mind always that this ERP software has a recurring cost, as well as you have to hire an expert who knows the functionalities of ERP or you have train people from your own organization to use it. Also, maintenance, up gradation, hardware changes is important factors. Whatever is the case the cost will be huge so budgeting and planning is very important while buying an ERP is very essential. You should always remember this ERP software should give you growth in business and not create a hole in your company's pocket.

Read Microsoft Dynamics AX Review - advantages and disadvantages. Also read about Low Cost ERP Software.

Sunday, May 9, 2010

Microsoft Navision, Axapta or Great Plains - ERP selection for Large Corporation

ERP selection for large corporations is typical because of their presence in different countries with different laws, languages, business culture, market trends, customer taste and currency. Apart from these scalability and adaptability of the ERP is also of utmost importance for future requirements and problems.

Microsoft has been working on 'project green' which is to unify all four ERP into one to give a powerful solution to its users. The reason being that there are serious overlapping of features and functions in the four ERP of Microsoft which does not justify their separate presence in the market. As far as Microsoft dynamics SL is concerned, it is more suitable for project based companies rather than manufacturing or large distribution enterprises. To identify the most suitable option for any large enterprise out of the other three ERP solutions of Microsoft, it is important to consider the criteria companies follow to choose an ERP solution.

Customization of the available ERP is important to fit in the exact requirements of the user, Microsoft Navision, Axapta or Great plains can be customized with ease but customization of GP is the easiest of them. Great plains is considered as easiest to setup and launch in comparison to Navision and Axapta. Navision requires mid-size customization while Axapta has longer implementation cycle. With the MS SQL server at back end both Navision and GP, are capable of giving more integration and reporting options with crystal reports. Being an SQL based ERP both of these can be integrated with Unix, Linux or Oracle comfortably.

While doing ERP selection for large corporation one of the primary requirements is the capability of the ERP to work in multi-company, multi-division and multi-currency environment. These procedures shall be added on, as and when required, and with out any restrictions, Navision, Axapta and Great plains provide such working environment. In terms of flexibility all the three ERP solutions of Microsoft are at par, though Great plains has more options as add on, which gives it more flexibility to adjust according to the user requirements and also makes it cost effective.

User friendliness and internet integration are other criteria used by the large enterprises for ERP selection. Today almost every ERP provide internet integration for e-commerce, web portals and e-business facilities including Axapta, Navision and Great plains. All the Microsoft ERP solutions are user friendly and can be handled easily even by the staff of the company having minimum IT skills. Role tailored of role center screens of Axapta has been its highlight which gives a customized screen for better and quick understanding and feeding of data by removing irrelevant grids and information.

Over all out of the three Microsoft dynamics ERP solutions, Great Plains with its 10 years of presence, its flexible features, quick implementation, cost effectiveness, internet integration and integration with MS office and other Microsoft products, appears to be the most suitable ERP solution for large enterprises. Though recently there has been a surge in the installations of Axapta but it is still a relatively new ERP compared to Navision and Great plains.

Read Microsoft Dynamics NAV Review - advantages and disadvantages. Also read about NetSuite ERP Software Review.

Reasons Why Entrepreneurs Fail to Implement ERP and How to Avoid Them

Today ERP applications are capable of providing industry specific solutions but still large number of entrepreneurs fails to implement them. Though there are simple and basic rules to follow, to avoid failures. These days entrepreneurs seek ERP that can synchronize with the working of the company and can improve the processes and resolve the issues for better business but sometimes due to minor flaws at the time of implementation makes the whole effort worthless.

The most common and biggest reason of entrepreneurs failing to utilize ERP for benefits is poor selection of ERP software. There can be many reasons for a poor selection but inability to define functional requirements is very common. Proper cross checking of the product is not done with properly designed and derived functional requirements, which leads to poor selection. Lack of detailed study of the product and its characteristics also lead to a bad selection which makes most of the entrepreneurs fail in implementing ERP. To avoid this, from top management to the end users of the company, everyone shall be involved in testing and study of the product. Expert advices and services shall be taken to work out functional requirements of the company on paper and an exhaustive cross checking of the product shall be done with the requirements, for a proper and correct selection. ERP with successful implementations in the same industry shall be preferred rather than most popular ERP.

Entrepreneurs also fail due to lack of time and manpower required for implementation. Many a times companies over burden their employees with their regular work and implementation responsibility. This works against the company itself and forces the staff to overlook some important details and requirements which causes serious issues later to let the effort go in vain. To avoid such reasons of failure, proper time schedule shall be worked out for the implementation process and working hours of the employees, directly involved at all the levels, shall be redesigned so that they may contribute as per their ability in the process.

Not giving due importance to dry runs and testing of processes suggested by the ERP vendors also let entrepreneurs fail in implementing ERP. Lack of training to the staff leads to confusions and slow working which also causes failures. Sometimes misleading information by software vendors in calculating the cost of implementation and ROI also let entrepreneurs fail in ERP implementation. Exhaustive study before selection and expert guidance from the third party may help a lot in avoiding failures due to these reasons. Proper training of staff along with a complete understanding of the product shall be ensured as they are the ones to use the new product and will be most affected.

Wayward approach in following the changes suggested or implemented by the ERP programmers and analyst also leads to the failure of the project even though everything else is done in perfect way. Sometimes habit of taking short cuts or mistrust on the capability of the ERP, leads to lack of adherence to the changes, this shall be kept under constant check by the top management to avoid failures even after successful implementation.

Read more information on the Causes of ERP Failure. Read Microsoft Dynamics NAV Review - advantages and disadvantages.

Sage ERP X3 vs Microsoft Dynamics AX

Sage ERP X3 and Dynamics AX are both capable ERP software, inclined towards manufacturing units, but to choose one of them one has to go in details for analyzing the options and features these software provide. Sage ERP X3 and Dynamics AX both have different features in their different editions and come with facility of add on tools for more advanced features and working.

Sage ERP X3 and Dynamics both have features like quoting, CRM, sales analysis, order processing, ordering, purchasing, scheduling/capacity planning, receiving, accounts payable, accounts receivable, BOM, material resource planning and shop management. Sage ERP X3 provides advanced manufacturing features through discrete suite and process suite. Facility to manage warehouses in Sage X3 comes as a loose end utility which can be incorporated on demand whereas Dynamics AX contains option for maintaining multi tier warehouses.

The CRM module of Sage ERP X3 has couple of features which are not present in Dynamics AX or rather they are not featuring as dominantly as in Sage X3 like marketing campaigns and guarantee management. Sage ERP X3 claims to be the most economic ERP solutions but it depends on the requirement of the buyer purchasing it.

Dynamics AX encompasses all the aspects of manufacturing and wholesale distribution company with some advanced features like job monitoring. Dynamics AX has an advanced feature like collaboration, this option works by deploying an enterprise portal which builds connection between customers, employees, vendors and other business partners, this improves work efficiency and makes the business available to all. It also helps in designing work flows to ensure that employees follow the company’s best practices. This improves connectivity and is compatible with latest communication technologies like VoiP.

Sage ERP X3 also support e business by connecting the back office with website and updating the information in real time, this helps in maintaining the web store and removes the hassle of web store inventory management to large extent. This option gives highly secure and personalized e-business solution with freedom of designing and managing the website.

Environment sustainability is another feature of Dynamics AX which is unique and important, this feature enables the users of Dynamics AX to keep a track of their emissions and energy consumptions. The option to input the data of the energy consumed while manufacturing has been incorporated by extending accounts payable and inventory management options which reduces extra pain of data collection. This feature can be used by installing environment sustainability dashboard available in Dynamics AX latest edition.

Another highlight of Dynamics AX ERP software is its business intelligence and reporting. Dynamics AX with or without performance point server provide the insight to help individuals, teams and management in their decision making. Dynamics AX with Sql Server provide flexible, easy to use and capable to analyze, reporting tool and BI platform to get access to real time data through out the enterprise. This improves quality of accounting and financial reports and makes planning and budgeting easy.

Dynamics AX has more compatibility with other popularly used products like Microsoft excel and office and also it has greater scalability and over all functionality. Sage ERP X3 is cost effective, easy to use and deploy and more focused for mid sized businesses. Both the software provide efficient working and easy user interface.

Find information on the benefits of Web Based ERP system. Read information on SAP R/3 Architecture and system management.

Technical and Functional Consultant Requirements for ERP Implementation

Technical and functional consultants are required for ERP implementation to understand the present system and design processes with solutions to the existing problems, implement them and train the users.

ERP implementation is done in four phases first is the requirement phase where the functional consultant gathers the 'AS IS' information, which is, how the particular company is running its business. Second phase is where solutions to the problems and automation of the present system are done, in this phase technical consultant and functional consultant are major players. Third phase is of testing and debugging and also integrating the ERP application with already in use applications and their databases. Final phase is to train the users, issue rights to access and data security protocols.

Functional consultant shall be a good communicator with knowledge of key fields like information technology, programming, logistics, human resource and SCM. Functional consultant works as a coordinator between customer and the project and plays an important role in creating work flows, providing all the information and key problem areas to the technical team, suggesting and explaining changes to the client, imparting training and helping in integration of ERP with on going applications and testing. Functional consultant is also expected to do mapping and GAP analysis for ERP implementation. Creating test scripts by working closely with clients key team members and analyzing the results with the client team as well as technical team of the project is also a major role played by the functional consultant for ERP implementation. Making end user manual and configuration document which provides all the necessary details about the settings done to make the application run for the client is also a role of functional consultant.

Technical consultant takes care of all the technical details related to the ERP implementation for any client. Technical consultant is responsible to understand the 'AS IS' process and work out best solutions and provide with the complete details of technology involved in it. A Technical consultant is the executioner of the plan that has been suggested by the joint efforts of functional consultant and clients team members. Technical consultant shall posses knowledge of various technologies and well versed with different platforms, hands on experience of working with different databases, web development, data transformation, testing tools, system configuration and tools for the protection of data.

Technical consultant in ERP implementation works out the ways of filling in the gap between 'AS IS' and 'TO BE'. The automation of on going processes, solutions to the problem areas and enhancement of work process, suggested by the system analysis team, are studied, analyzed and plan of action is choked out by the technical consultant. After this, technical consultant works in close coordination with functional consultant and development team for testing and deployment of the project. Technical consultant also provide the details of best practices for the smooth running of the application along with steps taken for better data security and disaster recovery. Timely suggestions for upgradations are also expected from technical consultant either for better working or compatibility of the ERP application with latest technology.

Know How to Become an ERP Consultant? Also find information on CRM Software for FMCG.

What is the Best ERP System for Midsized and Project based Company

To find out the best ERP system for a midsized project based company first it is important to know that what is the difference between traditional ERP system and ERP for project based company. Most of the ERP systems popular today have evolved themselves from MRP i.e. manufacturing resource planning to ERP, they have tried to adopt the service based or project based system but lot of customization is required which makes the system onerous and very moderately effective.

There are few software which have used 'bolt on' technique and they contain a business process for project based companies which can be integrated with traditional ERP software to work as a solution for project based companies. But the business process in these PSA is from starting a new project and running up to invoice making, but financial part was missing. This solution too is a make shift arrangement rather than a complete ERP system for midsize and project based company.

The implementation of ERP systems available, provide with a vertical solution in services for project based company but they do not have end to end solutions for a project based company. The project based company need different ERP solution which can give it a complete solution for its projects which may include quote management, inventory management with demand based inventory, demand based replenishment of inventory, calculation of landing cost of inventory, consumer and volume pricing and matrix items. These features help a midsized and project based company to calculate and plan its inventory on project basis and avoid over accumulation and under supply of the material.

The vertical of project management is available in almost every capable ERP system but for a project based company it should contain enhanced and in depth insight in terms of project based accounting to provide complete solution. In ERP solutions for midsize project based company, project management shall provide features like resource planning and resource availability integrated with project accounting and quote management to give a complete picture to the management. Resources shall include human and material resources, necessary for the execution of the project.

The ERP system for a midsize and project based company shall have advanced features like time and billing, budgeting and order management and fulfillment along with other general features necessary for accounting. Though most of the ERP system may claim to have these types of features in their system but the customization required availing them and the cost of implementation may be such that it may not fit in the budget of most of the midsize and project based companies.

There are few ERP systems for midsize and project based companies available like ERP solution from Deltek and Agresso. These systems have been designed specially for project based companies and do not require any sort of customization before use. Netsuite is another ERP system for midsize and project based company which also comes as SaaS. This makes it a solution in the reach of every company planning to use technology for its growth and development. Netsuite has been used by many companies which come with very strong accounting features with inventory, quote and project management features.

Read information about ERP Implementation Strategies. Read information about Infor SyteLine ERP.

Microsoft Dynamics ERP Selection - GP, AX, NAV, SL and CRM

Microsoft Dynamics ERP has four products GP, NAV, AX and SL. It has separate solution for CRM known as Microsoft Dynamics CRM. In these Microsoft Dynamics products one may come across serious over lapping of solutions and it is really hard to find the realistic logic behind four products with almost similar solutions.

Microsoft AX was previously known as Axapta till Microsoft took over it and released the version with the name of Microsoft Dynamics AX. This ERP solution is focused towards companies having several divisions and doing business across locations where compliance of business processes and best practices is a must. Microsoft AX can be easily customized to adapt for business processes and is cost effective along with this it comes with features to automate and provide solutions for finance, human resource, sales, web stores, supply chain management, warehouses, distribution, balanced scorecards, knowledge management and business analytics. As it has been upgraded and designed to work at distant locations it supports multi lingual and multi currency functions.

Microsoft GP previously known as great plains, is an adaptable ERP solution for changing market and business requirements. It is primarily focused towards mid size companies and divisions of larger enterprises. It is capable of connecting business processes across the organization and supporting unique business processes. It also comes with strong and adaptable applications for finance, supply chain management, human resource, manufacturing, distribution and project accounting. Integration capabilities with in the application and other applications are immense in Microsoft Dynamics GP, it uses biztalk server, com. MSMQ and web services for high speed, flexible and safe data incorporation and integration from any source.

Microsoft Dynamics NAV comes with strong financial features and helps small and midsize companies to streamline specialized and industry specific business processes. It is easy to use and adapt, it comes with add on tools and NAV utilities which help programmers and database administrators to customize it with convenience and quickly according to the clients needs. Microsoft NAV comes with complete functionality for finance, SCM, CRM, service, distribution and e-commerce. It also provide the feature of role tailored or role center where screens are customized by removing irrelevant fields and information to make it easier to understand, work and comply with company policies and practices.

Microsoft Dynamics SL previously Solomon is mainly focused on project based and distribution centric enterprises. Its project accounting and project management feature help project based companies to manage their on premise projects separately and projects at different locations. Project management option of SL provides facilities of material planning, job cost, material management to lower cost, service call and handle complex jobs with out project delays to improve customer satisfaction. For distribution based companies it provides features to reduce over and under inventory, reduce distribution cost by transport management and streamlining of processes.

Microsoft Dynamics CRM comes with solutions for sales, customer service and marketing. Along with features like leads, opportunity, pipeline management it allows its data to be accessed by the sales team from any web enabled device in real time and analyze it, with in built reports for better decisions. It helps in designing work flows to avoid redundancy, plan and analyze customer data for better services and sales calls. Tracking and importing of data from other sources is easy. Over all this is complete CRM solution for any company.

Read information on Microsoft Dynamics AX Review – advantages and disadvantages. Also read about NetSuite ERP Software Review.