ERP, Enterprise Resource Planning has gained popularity all around the world and ERP systems are the backbone of any modern organization. But ERP systems aren’t solely restricted to large organizations and they are also used within the small industries. Small scale industries, in accordance with the definition, have less than ten million employees and they require ERP systems that can deal with the small volume of business. In other words ERP does not have to be confined to big and reputed organizations only.
In Malaysia, too, many small scale industries have ERP systems. They have developed their own ERP system and although there are many similarities and differences between both of these systems, there are also some significant differences. The government of Malaysia has taken a lot of time in determining the future course of organization charting and it is because of this exact same reason that the government is trying to develop its own ERP system. There are two types of ERP system – ERP based on Microsoft Windows platform and ERP based on the Java platform. But the choice between these two systems depends on the local scenario of the organization or the requirement of the company.
An ERP or Enterprise Resource Planning software is comprised of several different enterprise resource planning software applications that communicate with each other and subsequently share a common database. Each application (ERP module) usually focuses on a specific business field. In most ERP systems, there are four components: ERP software, Information Technology Architecture (ITA), Problem Management and Analysis Software, and Business Process Management (BPM). These four components work together to help provide users with the information they want, when they want it. You can usually combine these elements into a single ERP solution.
The major features of an ERP are very broad and include Customer Management, Supply Chain Management, Finance, Human Resources, and Internal Business Processes. When looking at the significant features of an ERP system, it’s easy to understand how the different modules would socialize and subsequently alter the functionality of the entire ERP system. However, these attributes are just part of what makes an ERP a comprehensive solution for any type of business. The cost of ERP software packages vary greatly, depending on the vendor you choose to purchase your ERP software from. The Kinds of ERP systems include:
If you are looking to integrate your existing ERP system with a new ERP, the first step is to initiate the integration procedure. Prior to starting any ERP customization, make sure you have a fantastic understanding of the significant ERP modules and what they do. Without knowledge of the inner workings of ERP systems, you may find it difficult to incorporate new modules with your current ERP. There are numerous ways to start ERP customization, and a few of the more popular methods include migration, roll-out, customization, and converting ERP applications. For migration, it is important to understand the present state of your ERP and what migration tools and processes could be involved, as well as the current design of your enterprise resource planning system.
Roll out or”purge” is the practice of eliminating existing attributes from an ERP system, especially those who don’t have a value proposition that is readily implemented by your present team. Some of the typical features that are eliminated during roll-outs include Customer Management, Inventory Management, Supply Chain Management, Finance, SCM, and much more. Most companies who offer ERP systems also offer their own cloud erp solution, which is another way to gain access to your organization’s ERP data in the cloud. While this may sound like a good thing, there are some advantages and disadvantages to using a cloud ERP solution and some of the deciding factors include:
ERP implementation is not a one-time project. ERP implementation typically involves some form of testing or tweaking involved, most often involving changes to business processes. As your ERP implementation moves through its life cycle, the testing phase is the most critical phase, as it’s the stage at which you will learn whether the ERP is able to satisfy the goals you have for your organization. This is why many large corporations decide to implement ERP in their own (integrated software), which saves them time and money while giving them more control and flexibility for future business processes and decisions.
Businesses that lack a solid plan will waste money and time. Implementing an ERP system needs an extensive summary of the enterprise, such as a definition of the problem areas within the organization, target customers, expected sales and earnings, and other relevant metrics. The system must offer a high degree of reliability and accuracy, and the information fed ought to be consistent and complete. ERP solutions usually include a new management control package, which increases the number of applications and business processes which can be run via the ERP. Most small business companies face scalability issues at some stage due to their very specific needs; therefore, a complete ERP solution is usually required in the future.
Small businesses which are planning to upgrade their ERP systems should define their requirements, and develop a complete strategy for fulfilling those needs. Small firms should first consider whether they want an entire ERP solution, or a modular approach that would allow them to update when needed, migrate to a new ERP system, or utilize the existing modules together with other ERP systems. Additionally, enterprises should determine how to implement ERP systems-by incorporating them into their current supply chain management, creating an ERP architecture, integrating them into the present business process, using legacy applications, integrating them into existing CHM, or building a customized ERP. All these approaches take time and extra funds, but have the potential to save both time and money over the medium term. Small business firms that lack the expertise to design and implement ERP solutions in-house should consider outsourcing their ERP needs to an ERP software supplier that specializes in ERP solutions for small businesses. Outsourcing can potentially lower development costs and permit firms to invest funds in building out their skills rather than in software programs.
ERP vendors typically provide two strategies to help organizations transition from present vendor-based systems to an ERP system. These include on-going support and post-sales recovery service. When coming to a vendor for support, it’s important to consider whether the seller will provide long-term maintenance beyond the initial installation of the ERP modules, and whether any modifications to the ERP components need outside collaboration and acceptance. Implementing ERP-based procedures will reduce overall inventory costs and improve overall business performance, but making sure the vendor will correctly support those efforts will ensure the fastest implementation and achievement.
Microsoft Windows ERP applications has been widely acclaimed and is used by almost all big and medium scale companies across the world. Though many companies have switched to Windows since it provides better compatibility with many third party applications and so forth. Many experts feel that if ERP software is to be used by the small businesses, then it would be better to use open source ERP software that has many benefits such as multi-tenancy, open development environment, high scalability, minimal cost, availability of new extensions and so forth. However, the consumers of such open source ERP applications has to be certain about the licensing arrangement, they can’t just run the system without any approval or other legal obligation. Despite the fact that there are lots of advantages of using such open source ERP applications, it’s expensive in comparison to Microsoft Windows ERP program.
The second option is to use either Blackberry software or Apple iPhone based smartphones for accessing the ERP system from a remote location. This can easily be achieved by hiring a telecommuting staff who will act as an intermediary between the organization and the ERP software. In this manner, many advantages are obtained by the company concerning cost saving, decrease in time and travel, productivity improvement, availability of latest software updates etc.. However, you cannot afford to employ such personnel whose charges will be three times greater than the cost of a Windows ERP software.
Another alternative available for many companies is to use web enabled ERP software that is not installed in the computer system on the local level. A number of companies have made their web portals in a bid to improve the online image of the corporation. In this case, the system needs to be obtained from remote locations and may be operated from either a laptop or mobile device. Such systems need a whole lot of customization and so the cost will be little higher. However, it is going to provide you with the basic features of a traditional ERP system without the high costs and without compromising on the required functionality. All the contemporary ERP packages come with several other features which make them attractive to a lot of companies.
There is another choice available to organizations if they want to save money and yet can get all the required features of ERP software. In this case, they can decide to use Windows servers for ERP system or hosted applications from third party vendors. This will enable them to use their existing network infrastructure for accessing the ERP software without any excess expenditure.ERP, Enterprise Resource Planning has gained popularity all around the world and ERP systems are the backbone of any modern organisation. But ERP systems aren’t solely restricted to large organizations and they are also used within the small industries. Small scale industries, in accordance with the definition, have less than ten million employees and they require ERP systems that can deal with the small volume of business. In other words ERP does not have to be confined to big and reputed organisations only.
In Malaysia, too, many small scale industries have ERP systems. They have developed their own ERP system and although there are many similarities and differences between both of these systems, there are also some significant differences. The government of Malaysia has taken a lot of time in determining the future course of organisation charting and it is because of this exact same reason that the government is trying to develop its own ERP system. There are two types of ERP system – ERP based on Microsoft Windows platform and ERP based on the Java platform. But the choice between these two systems depends on the local scenario of the organization or the requirement of the company.
Microsoft Windows ERP applications has been widely acclaimed and is used by almost all big and medium scale companies across the world. Though many companies have switched to Windows since it provides better compatibility with many third party applications and so forth. Many experts feel that if ERP software is to be used by the small businesses, then it would be better to use open source ERP software that has many benefits such as multi-tenancy, open development environment, high scalability, minimal cost, availability of new extensions and so forth. However, the consumers of such open source ERP applications has to be certain about the licensing arrangement, they can’t just run the system without any approval or other legal obligation. Despite the fact that there are lots of advantages of using such open source ERP applications, it’s expensive in comparison to Microsoft Windows ERP program.
The second option is to use either Blackberry software or Apple iPhone based smartphones for accessing the ERP system from a remote location. This can easily be achieved by hiring a telecommuting staff who will act as an intermediary between the organization and the ERP software. In this manner, many advantages are obtained by the company concerning cost saving, decrease in time and travel, productivity improvement, availability of latest software updates etc.. However, you cannot afford to employ such personnel whose charges will be three times greater than the cost of a Windows ERP software.
Another alternative available for many companies is to use web enabled ERP software that is not installed in the computer system on the local level. A number of companies have made their web portals in a bid to improve the online image of the corporation. In this case, the system needs to be obtained from remote locations and may be operated from either a laptop or mobile device. Such systems need a whole lot of customization and so the cost will be little higher. However, it is going to provide you with the basic features of a traditional ERP system without the high costs and without compromising on the required functionality. All the contemporary ERP packages come with several other features which make them attractive to a lot of companies.
There is another choice available to organizations if they want to save money and yet can get all the required features of ERP software. In this case, they can decide to use Windows servers for ERP system or hosted applications from third party vendors. This will enable them to use their existing network infrastructure for accessing the ERP software without any excess expenditure.
Even if you’re planning to buy ERP software from third party vendors, you should ensure that the expense of implementation is minimal. This is one aspect where many companies get into trouble. When they purchase the software, they think that it will be installed in their whole infrastructure without any additional costs. In fact, many businesses find out to their cost disadvantage later when they need to spend a lot on ERP hardware, software and other maintenance costs. So, before buying any software from vendors, make certain that you do not fall into this trap.
Enterprise resource planning software is an integral part of any business today. If your organization is still running without one, now’s the ideal time to equip yourself with one. As a business person, you want to weigh the advantages that have an ERP system against the cost of implementation. If you think that the complete cost of implementing an ERP is lower than the cost of buying the software, you should definitely buy one for your company.
Even if you’re planning to buy ERP software from third party vendors, you should ensure that the expense of implementation is minimal. This is one aspect where many companies get into trouble. When they purchase the software, they think that it will be installed in their whole infrastructure without any additional costs. In fact, many businesses find out to their cost disadvantage later when they need to spend a lot on ERP hardware, software and other maintenance costs. So, before buying any software from vendors, make certain that you do not fall into this trap.
Enterprise resource planning software is an integral part of any business today. If your organization is still running without one, now’s the ideal time to equip yourself with one. As a business person, you want to weigh the advantages that have an ERP system against the cost of implementation. If you think that the complete cost of implementing an ERP is lower than the cost of buying the software, you should definitely buy one for your company.