brief on erp

8/8/2019 Brief on Erp

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BRIEF ON ERP-SAP

ERP-SAP

SAP R/3 is the former name of the main ENTERPRISE RESOURCE PLANNING software produced by SAP AG. It is an enterprise-wide information system designed to coordinate all theresources, information, and activities needed to complete business processes such asorder fulfillment or billing.

Implementing enterprise resource-planning systems can be extremely painful, and once you havethem up and running they may seem to interfere with the speed and agility needed for electronic

business. Are they a waste? No, but the real advantages aren't always noticeable.

Throughout the 1990s, the majority of large industrial companies installed enterprise resource- planning (ERP) systems--that is, enormous computer applications allowing a business to handle

all of its operations (finance, requirements planning, human resources, and order fulfillment) onthe basis of a single, integrated set of corporate data. Enterprise resource-planning systemsassures massive improvements in efficiency--for example, shorter interval between orders and

payments, lower back-office staff necessities, cheap inventory, and enhanced customer service.Encouraged by ERP's potential, businesses around the world invested some $ 300 billion in itduring the decade.

SAP, one of the leading providers of ERP solutions, has thrown its hat into the ERP applicationrental ring. SAP ERP applications are available on an outsourced, hosted basis. For a fixed

monthly rental fee, small to midsize companies can now reap the benefits of a top ERP packagewithout the capital investment and infrastructure needed to implement such a setup in-house.

With the emergence of application rentals, however, any size company can have a top-notch ERPsystem even though they don't have the IT resources or capital traditionally needed. This is

because the hardware and software is maintained at the vendor's site and you merely access thesystem via the Internet or other connection.

Survey.com reports that recent surveys of the enterprise resource planning (ERP) market haverevealed poor market knowledge or acceptance of the business-to-business e-commerce portaloffered by SAP.

Of respondents at companies currently using or planning to use an SAP ERP system, 31.5 percent have "no knowledge", less than 14 percent are currently evaluating it, and only less than2 percent are in fact using it.

These results clearly give us an idea about the damage done to SAP ERP's market position by itsreluctance to identify the Internet as an inflection point in the ERP market. SAP ERP is tryinghard to catch up, but these surveys shows that the delay in delivering and uncertainty caused by


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changes in the marketing message, may have pushed many customers to choose instead for third- party solutions to access and make data from SAP ERP transactional databases more extensivelyaccessible.

Typically, an ERP vendor has established a fixed software rental fee and partners with other

firms that provide processing and implementation service. The ERP vendors also offer a choiceof implementation and customer services options. This means that a single public agency canacquire the same ERP software from a variety of providers with multiple pricing formats.

Implementation of SAP Oracle ERP Systems is often approached in a Big Bang, let's-do-it-all-at-once style of approach. Another approach to SAP Oracle ERP system implementation hostinghas agencies replacing existing modules one at a time until the full ERP system is in place. Theunderlying theme is to plan long term and select an ERP vendor for a number of years. At thesame time, act short term by implementing financials, or HR/payroll, or maintenancemanagement, or utility billing one module at a time, as the older systems become obsolete.Implementations are now being completed in nine months and often can take less time. Four-

month implementations are even possible in smaller agencies.Implementing erp v endor s election one module at a time has the disadvantage of having to

build interfaces to the remaining legacy systems that will eventually be discarded. On the other hand, the potential of having to maintain a single technology and work with a single vendor toobtain a truly integrated system is considered worth the cost in the long run.

The major advantage to SAP Oracle ERP Systems application hosting is that medium andsmaller public entities can obtain the functionality and power of comprehensive administrativeand financial systems at a fraction of the costs of installing and maintaining these systems ontheir own.

The most important of these advantages are the following: the opportunity costs associated withsoftware ownership, its zero residual value, and reduced useful life expectancy. In addition, withthe difficulty that local governments have in attracting and retaining IT staff, application hosting

becomes an even more attractive alternative and one that local government financial managersshould seriously consider.

SAP ERP OPERATIONS

To best serve customers, organizations are focusing more on the agility and speed of delivering products and services. The efficiency of the entire operational process chain impacts anorganization's ability to serve its customers well. Operational excellence is the ability of anorganization to achieve a high level of customer service, while reducing operating costs. Anorganization can then run its business at the speed of change with more agility, from its suppliersto its customers, no matter which changes occur in the market and in demand.

For many organizations, the SAP ERP Operations solution has become the software backbonethat contributes to excellent performance supporting end-to-end operational processes in all keyareas: procurement and logistics execution, p roduct develo pm ent and manufacturing, and sales


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and service. This excellence is a culmination of SAP's experience over more than 30 years, withthousands of successful customers in more than 25 industries.

With SAP ERP Operations, your organization can realize its full efficiency and cost-effectiveness potential. With smoother day-to-day operations, you can maximize your

profitability, free up resources and budget so that you can invest more in innovation. Gainingcompetitive advantage, you can look toward the future, and operate as a best-run business over the long term.

S ome of the issu es de ser v ing a ttention in SAP ERP Ma rket a re as follow s:

C orpor a te mo v e a nd re a ction s to SAP ERP

SAP has been constantly improving its products and flushing them in the market. Any advancedversion from the company will witness a vast improvement from the predecessor. This practicehas been constantly encouraged in the company. However the users are adopting another plan of

action. They choose to integrate the applications by purchasing software programs from someother company .Such a software will meet the requirements of the particular function in the latestversion of SAP) in the place of the advanced SAP version. This saves them money withouthaving to make any compromise on the functions covered.

A wa rene ss

While the earlier paragraph presents the steps executed by companies in reaction to SAP andERP in response to the latest version it ought to be understood that the awareness amongcompanies regarding the same are not upto the mark. The decision of the companies to go for third party software programs cannot always be justified. There are instances wherein the

companies won't be able to capitalize on the added features if they don't move to SAP ERP for the selected functions. This factor is not understood by a vast majority of companies. They selectto stick to their own practices. Even in that case they fail to understand that the troubles (if any)are the consequences of not implementing SAP ERP. It is not the question of who is to be

blamed for not creating the required awareness but the question of when is it going to be createdand how. The sooner they are created greater are the chances for better results. This calls for lotsof efforts from everyone in realizing the dreams of sap erp enterprise.

SAP becomes the savior of computer associates International

Computer associates International a victim of a scam involving huge amounts of money has

chosen to implement SAP in order to put the systems in proper place and establish practices toensure accountability. Their choice of SAP in replacing the enterprise operations is backed bythe fact that SAP has provided exemplary services and that there is not a single enterpriseoperation that has remains untouched by the company. The special features of SAP ERPenterprise are believed to help the companies in tracking down valuable information and as wellmonitor the performance in a concise manner.


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Strategic alliance with Microsoft Corporation

M endocino is ERP software developed by SAP in collaboration with M icrosoft. This productaims to make use of M icrosoft's presence in co mp uters viz through non ERP applications likeWindows and others. Needless to mention the special features of SAP has been given due

coverage and duly compiled. Another advantage of this common software is that it bringstogether some applications which would not have otherwise been possible. This is believed toease SAP ERP enterprise operations.

SAP continues to be the leader in Indian Market

SAP and ERP remains the favorite choice of Enterprises in India a nation with full promises for IT education, skills and manpower. This remains true irrespective of the fact whether ITexperiences an upward or downward trend in the country. They are poised to penetrate manysegments and attract more customers given the increasing awareness and demands andcompetition to thrive at par with the market standards. SAP ERP market is also competitive.

SAP unearths flaws in accounting

SAP and ERP also hit the headlines when it was implemented in a shipping company. SAP notonly helped the company in rectifying the accounting practices but also helped to do away with

procedural delays and other inherent errors that remained unnoticed for a considerable period of time. The software initially pointed out the discrepancies in data transfer from departmentswhich affected one another and the final accounting figure.

SAP chosen for back office operations

SAP ERP integration is not solely restricted to process mechanizations and error rectifications. Itcan as well handle many or little small process/processes in a routine manner. This has becomeevident on its implementation in the systems of Jet Blue Airlines for the sake of managing the

back office operations. The depth of operations undertaken by SAP ERP and its strength becomethe judging factors when it comes to the question of performing functions like this.

On Southcorp's choice from SAP to Oracle

This company suddenly moved to the software provided by oracle and JDEdwards from SAP.However sources reveal that the decision had nothing wrong to point on SAP. They had torestructure and hence they accepted the offer to move to a new solution. M oreover their

functions did not require to be dealt only by particular software.

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