BRIEF ON ERP-SAP
BRIEF ON ERP-SAP
BRIEF ON ERP-SAP
Rana Basu, Utech
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 the resources, information, and activities needed to complete business processes such as order fulfillment or billing.
Implementing enterprise resource-planning systems can be extremely painful, and once you have them 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) on the basis of a single, integrated set of corporate data. Enterprise resource-planning systems assures 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 it during the decade.
SAP, one of the leading providers of ERP solutions, has thrown its hat into the ERP application rental 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 package without 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 ERP system 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 the system via the Internet or other connection.
Survey.com reports that recent surveys of the enterprise resource planning (ERP) market have revealed poor market knowledge or acceptance of the business-to-business e-commerce portal offered 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 than 2 percent are in fact using it.
These results clearly give us an idea about the damage done to SAP ERP’s market position by its reluctance to identify the Internet as an inflection point in the ERP market. SAP ERP is trying hard to catch up, but these surveys shows that the delay in delivering and uncertainty caused by 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 extensively accessible.
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 choice of implementation and customer services options. This means that a single public agency can acquire 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 hosting has agencies replacing existing modules one at a time until the full ERP system is in place. The underlying theme is to plan long term and select an ERP vendor for a number of years. At the same time, act short term by implementing financials, or HR/payroll, or maintenance management, 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 vendor selection 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 to obtain 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 and smaller public entities can obtain the functionality and power of comprehensive administrative and financial systems at a fraction of the costs of installing and maintaining these systems on their own.
The most important of these advantages are the following: the opportunity costs associated with software ownership, its zero residual value, and reduced useful life expectancy. In addition, with the 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 managers should 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 an organization’s ability to serve its customers well. Operational excellence is the ability of an organization to achieve a high level of customer service, while reducing operating costs. An organization can then run its business at the speed of change with more agility, from its suppliers to 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 backbone that contributes to excellent performance supporting end-to-end operational processes in all key areas: procurement and logistics execution, product development and manufacturing, and sales and service. This excellence is a culmination of SAP’s experience over more than 30 years, with thousands 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. Gaining competitive advantage, you can look toward the future, and operate as a best-run business over the long term.
Some of the issues deserving attention in SAP ERP Market are as follows:
Corporate move and reactions to SAP ERP
SAP has been constantly improving its products and flushing them in the market. Any advanced version from the company will witness a vast improvement from the predecessor. This practice has 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 some other company .Such a software will meet the requirements of the particular function in the latest version of SAP) in the place of the advanced SAP version. This saves them money without having to make any compromise on the functions covered.
Awareness
While the earlier paragraph presents the steps executed by companies in reaction to SAP and ERP in response to the latest version it ought to be understood that the awareness among companies 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 select to 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 created and how. The sooner they are created greater are the chances for better results. This calls for lots of 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 to ensure accountability. Their choice of SAP in replacing the enterprise operations is backed by the fact that SAP has provided exemplary services and that there is not a single enterprise operation that has remains untouched by the company. The special features of SAP ERP enterprise are believed to help the companies in tracking down valuable information and as well monitor the performance in a concise manner.
Strategic alliance with Microsoft Corporation
Mendocino is ERP software developed by SAP in collaboration with Microsoft. This product aims to make use of Microsoft’s presence in computers viz through non ERP applications like Windows 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 brings together some applications which would not have otherwise been possible. This is believed to ease 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 IT experiences an upward or downward trend in the country. They are poised to penetrate many segments and attract more customers given the increasing awareness and demands and competition 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 not only 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 departments which 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. It can as well handle many or little small process/processes in a routine manner. This has become evident 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 become the 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 to restructure and hence they accepted the offer to move to a new solution. Moreover their functions did not require to be dealt only by particular software.
