ERP as a Service

Software as a Service (SAAS) is growing significantly in the CRM space, but it has yet to take off in the ERP market. 

Gartner predicts that at least one-third of business application software spending will be on service subscriptions rather than on product licenses by 2012. The analyst firm also predicts that by 2010, 30% of new software purchases in the Asia-Pacific will be delivered via an application utility or Software as a Service (SaaS) model.

The following article looks at ERP as a Service (SaaS applied to ERP) and weighs the two sides of the coin.  (Note: the article is from India, so it has a South Asia slant to it, but it is still very informative)

http://www.expresscomputeronline.com/20080721/market02.shtml

Tags: ERP, ERP as a Service, SAAS

What To Look For In An ERP Solution

Browsing the web we ran across this article that is a good guide in helping in your ERP Selection process. Normally we are careful about vendor provided articles, but this one seemed to be on track. It clearly points out the issues that you need to be aware of when looking at an ERP solution. This is important today as even small companies are looking at larger tier vendors. Keeping an eye on the specific points made in this article will help you avoid choosing a software that just doesn’t fit.

What To Look For In An ERP Solution
Michael Panosh, Marketing Manager

Enterprise Resource Planning ERP describes software that integrates departments and functions across your business onto a single computer system. The intended outcome is a system that improves operational visibility, streamlines decision making, reduces costs and generally allows you to manage your business to better profitability.

Whilst there has been considerable hype – and horror stories – about ERP systems, up until recently only large corporations have implemented comprehensive ERP solutions, mainly because they have been perceived as cost prohibitive for smaller companies.

In recent years however, many small and medium sized enterprises SMEs have begun to see the value of ERP solutions as a way to respond to both legislative compliance and industry mandates for electronic trading. The reality now is that companies with a turnover of more than $10 million should be considering implementing an ERP solution, if not actively planning for one.

Read more at:What To Look For In An ERP Solution

ERP Manufacturing Software

ERP Manufacturing Software is a specific category of ERP Software and one that can be confusing. There a multitude of ERP Manufacturing Software vendors in the market, but which one is the best one for you? The simple answer is that there may be several. There are at least four key factors that need to be examined when selecting ERP manufacturing software.

The first is the industry you are working in. Are you a process manufacturer, such as paint or chemicals? Or, are you a discrete manufacturer making specific parts? More specifically, do you make repetitive parts, or are the parts make to order? Are you a job shop environment, estimating and making parts to order? Or are you a project based manufacturer, that similar to a job shop estimates and makes parts to order, but because of a complex process or a lengthy time for manufacturing makes parts as part of an overall project? There are specific software types for each of these manufacturing industries. The key to honing in on the specific manufacturing ERP solution is to know your industry type and then examine software that serves that industry.

Which leads us to the second point, the ERP manufacturing software’s legacy. Where did this software evolve from? What industry did it originally serve and what industries were added. A software that was built around a particular industry usually has that industries best practices built into the software functionality. When the software expands to other industries, it doesn’t always fit the best practices of that secondary industry as well. And many softwares become “jack of all trades, but master of none.” Look into where the ERP software evolved from.

Once you understand the legacy of the ERP manufacturing software, you need to look at its process functionality. This means that you should have some specific case examples of your process and have the vendor demonstrate that there ERP software can handle your process flow. You do not need to do some extensive flowcharting and spend months on the design. Simply understand the flow of orders in your plant and have the system replicate that flow for you, using your data. The vendor should be able to show you this in a “scripted demonstration”. Have them prove to you that it can handle the task at hand.

Lastly, make sure that your ERP manufacturing software vendor has a good fit to your requirements. There are a lot of requirements that a manufacturing software must address, but drill down on the specific requirements that make your organization unique. Is it the way that you account for your inventory? Is it the uniqueness of the bill-of-material structures? Is it a certain process that you employee to produce parts? Give the vendor a listing of your key requirements and using the process demonstration approach have them show you that they can handle these requirements.

There are a lot of factors that you need to consider when selecting an ERP Manufacturing software system. Keep in mind that every software is unique in its approach. They say that they conform to APICS standards, but exactly how they get there is often different. Ensure that you apply enough planning and due diligence to your selection process to extract the deep and sometimes difficult answers to your questions from the ERP vendors. Most of all, keep in mind that there is a lot of smoke and mirrors around the demonstration of ERP software and you need to watch the details for the truth.

What is your ERP’s Legacy?

Enterprise Resource Planning (ERP) software is key to integrating all areas of a business. It controls the financials, the inventory, the purchasing and the ordering. There are a lot of ERP software vendors. The market though has consolidated in the past few years since the Y2K upgrade fever and the downturn of the software market.

Now ERP is undergoing a resurgence and many companies are looking to either purchase new systems to replace a collection of disintegrated systems or to upgrade an older ERP system that just doesn’t cut it anymore. With the market consolidation, there have been a lot of mergers and acquisitions of software companies. These acquisitions often result in the name of the company being revised and the software being renamed to something “more modern” or catchier to the ear.

One such software is Infor’s Syteline. At one point it was Symix Software’s Syteline. Then it became Frontstep. Then it was acquired by Mapics. Then Mapics was purchased by Infor. Thus Syteline the product has had a lot of masters. The core functionailty has remained relatively unchanged through the transitions. It has gone through some serious upgrades though along the path, including a switch to the .NET programming platform.

Baan is another software solution that has been through the wringers. But where Syteline continued to upgrade, Baan laid dormant for a couple of years. Baan had some financial difficulties and then it was purchased by a British company Invensys. Invensys held on to it for a while and then Baan the software was ultimately purchased by Infor. Under the hood, it is still relatively the same code base, although a lot of new functionality has been added.

On other fronts, older legacy software is becoming upgraded. Take JD Edwards World Software. It has a lot of clients who were running on the old green screen software for a long time with minimal upgrades. A few patches. Then in the past few months, Oracle, the new parent to JD Edwards finally released a comprehensive upgrade.

A key point to understand is that while many systems seem to be modern, you need to look at the history behind the software, especially if you are about to purchase a new ERP system. Key answers to find out are the history of the package, the customer base of the software, and the industries it typically serves. Often people will buy software and find out it was meant for a different market. Find out too if the software has remained on a consistent upgrade path. Some software systems have been completely rewritten in modern languages while other systems have had a window dressing interface applied, while the underlying engine is still antique code. Dig deep and hopefully you will be sure that you are not buying the proverbial pig with lipstick.

My ERP supplier has been acquired – now what?

With all the ERP consolidations going on (look at Infor, Sage, Oracle, etc.) it is hard to know what to do. This interesting article points out the issues surrounding the client of an acquired software.

My ERP supplier has been acquired – now what?
By Quocirca

Published: Monday 5 February 2007

If your ERP vendor is acquired, don’t panic. Quocirca’s Sharon Crawford explains how to decide whether to jump ship to a new vendor or stay the course with your newly merged supplier.

Given the recent abundance of mergers and acquisitions amongst the mid-market ERP vendors, IT directors managing an ERP system may feel uncertain about the future of their incumbent system. Yet it is critical to be able to assure the board the product wont disappear – or at least warn them if its time to switch vendors. Read more…

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…

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

ERP Software as GDP Indicator for China

ERP Software as GDP Indicator for China
By Frank Mulligan, Talent Software
The rollout of international level enterprise software in China has, over the
past 10 years, tended to follow a definite pattern.

The first phase began
in the early 90’s and only saw large scale systems such as SAP and Oracle. These systems
were rolled out in the US first. Closely after the US came Europe followed by
the first world markets such as Singapore, Hong Kong and Japan. Finally, China
was rolled out based on business models developed in the other countries. And
often there was no rollout at all, at least not for a few years
more. Before the 90’s, of course, international companies in China were
unlikely to get any of the kind of software and had to rely on manual systems.
Aaah, the good old days….. By the end of the 90’s China was on a par
with small first world countries like Singapore. The volume of software was
increasingly higher than these small markets but with its huge distances China
still posed a challenge. Now you began to see the emergence of software
specifically for HR and local systems like Platinum emerging. Another
five years on and things have changed again. I note with interest the
recent announcement by Adidas Group that they will roll out an e-recruitment
solution from a company called Jobpartners. This company is not at all known to me but
obviously they have something if Adidas is rolling them out
worldwide. What got my attention was that the rollout would be
simultaneously in Germany, the US, Hong Kong and Greater China. So now we are on
a par with a multinational’s HQ country and the US. Other countries will have to
wait and they don’t even get a mention in the press release. China has really
arrived. As if to emphasize this point, a report by Kevin Wheeler Global Recruiting
Trend 2006, informs us that Chinese is now the number one language, besides
English, for Applicant Tracking Systems(ATS). It ranks alongside German as the
second language of choice for ATS’s that are installed on a world-wide basis.
This tells you a lot about the installed base of ATS’s globally. Sometime
you find alternatives to GDP figures in surprising places.

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