Realtech is currently facing several problems for not coping up with the fast changing technology. It has several departments but is currently using outdated supply chain management system. The objectives of this proposal are to make sure that these problems are faced away, that is, implement a system that integrates all the functions of the different departments into one system- Enterprise Resource Planning.
The system should include the functions of the following departments: Marketing and Sales, Accounting and Finance, Research and Development, Management, IT support, and Human Resource.
This report will discuss what Enterprise Resource Planning (ERP) is, the types, features of ERP, how well the proposed system will service Realtech functions and operations and its advantages and disadvantages.
Enterprise resource planning (ERP) is business process management system that allows a company to use a system of coordinated and integrated application module to manage the organizations’ functions and automate many back office activities related to services, technology, and human resources. Gunasekaran & Shea, (2010).
Types of ERP Application Software.
Systems Applications and Products (SAP)- SAP provides two solutions which include the R/3 suite and B1 suite, which sometimes is referred as business one. R/3 is a coordinated application system that can handle business processes from large corporations to very small companies. R/3 is customizable to address specific business objectives. It utilizes a client/server architecture that runs on several platforms, such as OS/400, Windows Server, and UNIX. It can be implemented using a variety of database applications, for instance, DB2, SQL Server, or Oracle. B1 is designed majorly for small and medium companies providing in-built subroutines for reporting, client relationship management, warehousing, purchasing, finance, and e-commerce. Ray, (2011).
LN/Baan- Baan Enterprise Resource Planning is an application package is designed for manufacturing companies dealing with complex supply chains on composite products that work on distinct approaches. It is designed exclusively for engineering and large made-to-order organizations. It is highly customizable and supports step-by-step documentation and flow chart based process.
Microsoft Dynamics NAV and AX 2009- Microsoft provides two ERP software applications. The first is the Microsoft NAV which targets the needs of small and medium firms. It supports modules for finance, e-commerce, CRM, analysis, and manufacturing. The second is the Microsoft AX 2009 which is structured to address the needs of medium and large businesses and contains functions essential to organizations conducting business in several nations. Its major goal focuses on improving individual productivity and best fits wholesalers, retail-oriented firms, manufacturing companies and service organizations. Jedlitschka, (2008).
Oracle Enterprise Business Suite Financials and PeopleSoft Enterprise are two Enterprise Resource Planning products that Oracle offers. E-Business Suite Financials is a user-friendly package developed for the financial services industry. It supports distributed organizations and provides modules for operational and financial information, budgeting, forecasting, dynamic planning and multidimensional profit analysis. PeopleSoft can be customized to meet the composite organizational needs. It facilitates customizable subroutines to a number of business groups and styles that run on several hardware architectures and database systems.
|
Comparison Feature |
Company Size |
Platform |
Industry |
Pricing |
|
SAP ERP |
Small, medium and large |
Windows and UNIX |
Warehousing, purchase, finance, and e-commerce |
Approximately $1400 per user/year |
|
Oracle ERP |
Distributed |
Windows and Linux |
Financial services |
Approximately $2,000 per user/year |
|
Microsoft ERP |
Small, medium and large |
Windows |
Finance, e-commerce, manufacturing |
Approximately $2,000 per user/year |
|
Baan ERP |
Engineering-to-order and large-made-to-order |
Linux, Unix, and Windows |
Manufacturing |
Approximately $4,000 per user/year |
Financial management- The financial module in ERP aims to enhance proper allocation of resources and simplify financial reporting.
Human Resource Management- Enterprise Resource Planning solution supports a variety of contrasting sub-systems under the Human Resource sub program. They include Personal Development, Organization, Time, Payroll and Personnel Management. Kurbel, (2012).
Manufacturing- It involves various functionalities mainly, master production schedule, engineering change note, bill of material, shop floor control, sales and distribution plan among others.
Supplier and Purchase Order Management- The purchase program is well coordinated with production planning, supply chain process, and inventory control modules.
Material and inventory management module- functions of inventory control module include, reporting inventory, monitoring item usage, providing replenishment techniques, reconciling the inventory balances, setting targets and identifying inventory requirements. status.
Customer Relationship Management (CRM)- The CRM component of ERP systems addresses the sales aspect of a company. This means that it tracks growth opportunities, manages leads, and handles customers. Some ERP systems can also deal with order management and invoice. Paech and Rolland, (2008).
Increased Productivity- It easier for the staff to manage and perform daily activities since all the data is centralized. Cuadrado-Gallego, (2008).
Easier Management of daily activities- Shifting to cloud minimizes the cost of maintaining and managing servers. It also reduces the overall costs like power, IT staff, bandwidth and data storage.
Improved decision making- Management can make crucial decisions since ERP gives easy access to quality and updated data and information.
Reduced Operation cost- With the implementation of ERP in RealTech, all the department’s system are integrated into one centralized system. Thus, the organization eliminates the issue of redundant data or information. It also minimizes the inventory cost and the production cost. Bourne, (2014).
Integration with Marketing and Sales
Sales module supports the following functionalities; invoicing, shipping, order placement, and scheduling. It is also closely integrated with e-commerce websites of an organization. The online store front is offered by several ERP vendors to customers. ERP marketing program supports direct mailing campaign, promotion schedules, lead generation and other marketing works. Lui and Chan, (2008).
With Supply Chain Management (SCM), in order to acquire resources and the raw materials required to take finished goods to market, companies have to interact with a good number of partners and suppliers. ERP plays a crucial duty in eliminating inefficiency; ensuring that employees are able to direct their efforts and reducing waste. The company should make sure that the staff fully understand the role of Enterprise Resource Planning within the SCM process to prevent posting challenges due to an integration of both systems.
Small and large scale business organizations benefit from the implementation of enterprise resource planning module for finance. The financial subroutine is an essential part of several ERP software application packages. It collects financial information from many functional divisions and produces important financial reports like quarterly financial statements, general ledger, trial balance and balance sheet. Stair and Reynolds, (2008).
Human Resources is another ERP module that is widely used. HR module organizes the human capitals and human resources management. It also routinely stores a complete staff database including performance evaluation, promotion of all employees, contact information, attendance and salary details. Sophisticated human resource module is integrated with knowledge base systems to efficiently and effectively utilize employees’ expertise.
Therefore, upon analyzing and understanding the different types of ERPs, I propose to the Realtech company to implement the SAP ERP which is web based. This is because it can be customized to suit the company, highly integrated with other modules, flexible and there is a continuous support to its users.
Conclusion
Enterprise Resource Planning provides a technique helps a business get the best out of business with proper management of manufacturing and service delivery, resources utilization, product planning, reduced operational cost, business activities.
If a company fails to implement an ERP, there will be no smooth flow of information between different departments and thus tend to leave a long trail of paper work. ERP solution focuses on the integration of different departments to provide relevant, accurate and up-to-date information at all times.
However, an ERP system is also experiencing various obstacles. These include a limited scope of customization in some situations, ERP system can be costly to implement; integration, training, and data analysis, the system also takes time to implement and is affected by security issues.
References
Bourne, K. C. (2014). Application administrators handbook: Installing, updating and troubleshooting software.
Gunasekaran, A., & Shea, T. (2010). Organizational advancements through enterprise information systems: Emerging applications and developments. Hershey, PA: Business Science Reference
Information Resources Management Association. (2016). Web-based services: Concepts, methodologies, tools, and applications
International Workshop on Software Measurement., & Cuadrado-Gallego, J. J. (2008). Software process and product measurement: International conference, IWSM–Mensura 2007, Palma De Mallorca, Spain, November 5-8, 2007, revised papers. Berlin: Springer
Jedlitschka, A., Salo, O., & International Conference on Product-Focused Software Process Improvement, PROFES. (2008). Product-focused software process improvement: 9th international conference, PROFES 2008, Monte Porzio Catone, Italy, June 23-25, 2008. Berlin [etc.: SpringerLink [host.
Kurbel, K. (2012). Enterprise Resource Planning and Supply Chain Management: Functions, Business Processes, and Software for Manufacturing Companies. Berlin: Springer Berlin.
Lui, K. M., & Chan, K. C. C. (2008). Software development rhythms: Harmonizing agile practices for synergy. Hoboken, N.J: Wiley-Interscience
Paech, B., Rolland, C., & International Working Conference on Requirements Engineering, REFSQ. (2008). Requirements engineering: the foundation for software quality: 14th international working conference, REFSQ 2008, Montpellier, France, June 16-17, 2008: proceedings. Berlin [etc.: SpringerLink
Ray, R. (2011). Enterprise resource planning. New Delhi: TATA McGraw Hill Education.
Stair, R. M., & Reynolds, G. W. (2008). Principles of information systems: A managerial approach. Boston, Mass: Thomson/Course Technology.
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