Using ERP to get everyone on the same page

There is an excellent article on ERP from IBM that discusses the issues of the value of ERP. Getting everyone communicating together is one of the largest benefits of implementing an ERP system.

Using ERP to get everyone on the same page
By Julie Fraser

How many different applications are in use across your organization? Most small and medium businesses have dozens if not hundreds of different systems. The result: critical information is not being shared among departments, and employees struggle to get visibility to what is correct or what has happened. The cost of manually tracking down information is considerable. When you consider that it also leads to missed opportunities, poor decisions, poor execution, and disjointed customer service, the cost is far higher than many companies realize.

Read entire article…

Vista hits the street – How will it affect ERP?

Vista hits the street today, so how will it affect ERP? Vista ultimately will pervade the corporate environment. For now though it is the home user that will be scooping it off the shelves.

For the server side, vendors are either already there with Windows Server 2003r2 or are coding to make it ready. There is a good link here where Microsoft lays out its promises to how the server operating system will work.

We want to know what you think. Please comment on this post and let us know what you feel will happen in the ERP space now that Microsoft has launched their new flagship.

In the meanwhile, here is an entertaining video of Bill Gates on The Daily Show.

What the ERP Salesperson doesn’t tell you

An interesting article from ITToolbox on ERP:

What the ERP Salesperson doesn’t tell you

“Let me show you how easy our software is to use”
Salespeople or professional demonstrators are trained to present their software to look as easy as possible. The truth is it is impossible to know how easy the software is until you have been using it for over 12 mos.
Ask the Customer references you speak to if the system is as easy to use and implement as they originally anticipated.

“I will give you three references for you to call …”
Software Vendors commonly offer three, carefully selected customer references for you to speak to. What do you learn from speaking to three ecstatic customers? Absolutely nothing!
A Suggestion: Ask for a list of customers in your area that have been using the system for 12 mos, preferably with similar requirements and a similar size. Then from that list you can choose which to speak to, and maybe visit one (you might even know one). If they do not have customers in your area that meet all the criteria, ask to visit a local customer that is a similar size, and to speak over the phone to a customer in a similar industry (confirming the system has had success in your industry).

Read more on: What the ERP Salesperson doesn’t tell you

Fully Integrated Midrange ERP Accounting Software is Rare

Here is an interesting article on how the mid market ERP financials do not often serve their clients well:

Fully Integrated Midrange ERP Accounting Software is Rare

By Thomas R. Cutler

Few ERP (enterprise resource planning) systems offer a product which is simple enough for small companies, yet complex enough to manage multinational corporations with numerous companies and divisions. The accounting modules must offer a complete financial package which is fully integrated with the other enterprise modules.

Some of the functionality often missing includes:

• Consolidation of selected companies or divisions.
• Multi-currency conversion functionality.
• A “wild card” inquiry function is available for quick report generation.
• Online review of transaction detail.
• Reports that allow for functional and easily modifiable documents.

Read the whole article here…

Oracle Apps Unlimited

The latest word out of Oracle is that on January 31 and February 1st and in cities around the world, Oracle will host launch events for an unprecedented five new releases:

Oracle’s Siebel 8 – the global leader in CRM software
Oracle’s PeopleSoft Enterprise 9 – the extended value release for HCM
Oracle’s JD Edwards EnterpriseOne 8.12 – the industry release
Oracle’s JD Edwards World A9.1 – the future-ready release
Oracle E-Business Suite Release 12 – business applications for the enterprise

Essentially, there will be five New Releases of products on Six Continents in 24 Hours. This will be an unprecedented event.

All of these software have undergone significant upgrades, including better SOA middleware, horizontal and vertical functionality improvements, and improved user interfaces. Most significant is the upgrade of JD Edwards World product. This is the first major upgrade in many, many years.

These new versions are sure to create a stir in the competitive ERP environment.

Link to the Oracle Announcement

Discrete vs. Process ERP Software

Discrete vs. Process in ERP
by Chris Shaul

One of the saddest things is a manufacturer who chooses an ERP software system that does not a fit with what they do. For example, a chemical producer who selects and implements software designed for a type of company which manufactures solid objects such as furniture. There once was a company that provided consumer packaged goods to the convenience marketplace who selected fish disassembly software. These are obvious mismatches. But the specifics may not be clear.

There are two types of manufacturing. There is discrete manufacturing, or a company that assembles products from widgets. There is also process manufacturing, or companies that blend liquids. Process manufacturing companies process formulas or recipes. While the majority of manufacturing is discrete (automotive, aerospace, or anyone else who builds component parts), there are a select group of manufacturers who are process manufacturers. These include food processors, cosmetics, chemical producers, paints and coatings manufacturers, and anyone else who deal with liquid or batch produced products.

What makes process manufacturing different from discrete? Process manufacturing uses formulations or recipes. A discrete manufacturer uses Bills of Materials (BOMs). A discrete manufacturer assembles along a routing, whereas a process manufacturer blends in a batch.

There are companies who operate in both environments and are often called mixed mode manufacturers. These manufacturers need both a process and discrete manufacturing system.

So what sort of ERP system works with these types of manufacturing modes? This can only be answered by looking at the markets these software companies serve. There are certain products which are clearly process, such as Batchmaster Software or Ross Software. These software deal with formulations, batching, and the other specific issues around process manufacturing. There are other software systems that are clearly discrete such as DBA software, Intuitive, or Made2Manage. These handle Bills of Materials, Routings, and specific discrete requirements. These are all systems that serve their niche.

When you get into larger systems, there is not a clear cut solution as they operate in Mixed-Mode. For example QAD software can handle both discrete and process requirements. Others that can do the same are MS Dynamics AX, Deacom, Ramco, and of course the Tier 1 players SAP and Oracle.

So the real lesson is to understand what you do first before looking at software. Are you a processor of liquids, or do you assemble individual items to create an assembled product? Knowing this will go a long way to help you properly choose software that fits you like a glove.

Related Article: the-top-10-process-manufacturing-erp-software

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Chris Shaul is an ERP Consultant and a regular contributor to ERPandMore.com

ERPandMore site update

We would like to announce a few new features that have been added to the site:

1. ERP and CRM News – Now you can get ERP and CRM news. Visit the links to these two topics!
2. ERP Benefits page – A new page listing ERP benefits and why people choose ERP.
3. ERP ROI page – This page will help you to determine areas for ROI justification

The benefits page and the ROI page are both a work in process. We will continue to build these pages to provide assistance to your next ERP project.

Gartner’s Magic Square to vanish?

According to Frank Scavo, a technology blogger, a source has informed him that Gartner’s Magic Square will no longer be prepared by the pundit group. For years this has been a source of analysis and vendor promotion. Who is a leader and who is a follower in the mid-market space is always the contested debate.

You can read more at http://fscavo.blogspot.com/2007/01/gartner-retires-mid-market-erp-magic.html