Wednesday, March 30, 2011

What Is The Difference Between ERP And Enterprise System

Enterprise system and Enterprise Resource Planning System terms are similar but there is difference between an enterprise system and an ERP system. An ES or enterprise system is a large scale system which includes packages like ERP and CRM. ERP is a subset of Enterprise System or it can be said that ES is a superset of ERP. It contains a variety of solutions. ES contains applications and packaged solutions which can be directly used in an enterprise. On the other hand ERP system is the automation of the business processes and the solutions are in the form of modules which are designed according to the client's requirements.

The functions are customized according to the client's business environment. Enterprise system does not include architecture of other solutions whereas an ERP implementation automates systems using technical aspects. ERP system includes architectures and databases and is client server architecture. The system is server based therefore the consultant needs to be aware of the technical aspect too.

Another difference between an ES and an ERP system is that the ERP is aimed at improving the functionalities of the organization whereas the ES helps to improve the overall maintenance and accuracy. It provides for better solutions and aids in decision making. ES is difficult to implement compared to Enterprise resource planning and even the timeframe needed for implementation maybe more. The overall impact is high but so are the risks involved. If the ES is not implemented in the right manner, it can cause business failure and if implemented properly it can increase the efficiency and profits of the business organization. It is normally required when there is a big drawback in the current procedures and methodologies in the organization and need to be corrected. The company going in for enterprise system needs to be careful while choosing the software and the vendors due to the risk of failure involved.

The difference between an enterprise system and an ERP system is that ERP is mostly used for medium scale companies to big companies and ES is restricted to the big companies. There are many complex functions involved in big companies which cannot be provided solutions for alone by ERP. The role of ERP is restricted when compared to enterprise system because it does not include customer relationship or vendor management.

These applications are needed when the business process is complex and on a big scale. Therefore bigger organizations need to go with ES instead of enterprise resource planning alone. ERP is also an important system to streamline the internal processes but it does not provide for taking care of the external processes. Enterprise system takes care of the end to end business process of organization since it involves other applications also like SCM and CRM. There is quite a lot of difference between an enterprise system and an ERP and it depends on the company whether it wants to go with an ES to streamline the entire process starting from supplying, production and customer or whether he wants to go with an ERP system to streamline the internal process.

Read about ERP Benefits. Also know about SAP ERP Review.

What Are Possibilities After Completing SAP ERP Courses

Enterprise Resource Planning aids in streamlining the business process and all organizations are looking at implementing the ERP system nowadays. The business process can be quite complicated and by the help of an ERP system, the process can be automated and improved using the latest technologies. There are many people and processes involved therefore there is a high demand for the ERP professionals. Thus many possibilities are after completing SAP ERP courses. SAP ERP courses aid the professionals to improve their skills to obtain a higher position or designation in a company. This course certification helps one get highly reputed jobs and works well for the career. To complete this course and obtain the certification, one has to pass the tests and answer the questions. Then one has to pass the application level certification, developmental level certification and technology certification.

After completing SAP ERP courses, the certification helps you to understand the process better. The application level certification imparts knowledge on the application functionalities. The other certifications are technology level certification and developmental level certifications. The content of the course aims at providing a detailed understanding and knowledge of the project system, production planning, billings, system management, shipping, customer order processing, payments, etc.

The course is based on the R/3 architecture and helps to learn the concepts tricks of installation of R/3. This course aids in better understanding of the system and therefore helps the individual. It provides information on the construction, development, testing, data and management of the data in the system. The possibilities are many after completing SAP ERP courses. One can obtain a better job opportunity or a promotion after completing the SAP ERP courses. The salary also increases with a better position and now ERP system implementations are used by many organizations worldwide. The modules like Finance, Sales, Accounting, Human Resource, Production, etc are covered in details. One can take training online, through books or with e books. Training provides a better understanding of the system.

The demand for SAP professionals is increasing and growing. The salaries offered to these professionals are inviting and SAP also is promoting many training courses. Experience in the implementation helps during the real implementation process as one has an in depth experience with the workload, deadlines, customers needs, budgeting, etc. Getting an insight of the business environment helps to work on the implementation better and meet the client's requirements.

Having knowledge of the latest technologies also helps with the job. Register yourself with a reputed institution for many possibilities after completing SAP ERP courses. The candidate will have a lot of growth prospect with proper knowledge and dedication. The course aims at helping the candidate to develop a clear understanding of the tasks and how the work fits into the environment. A SAP certification fits into the supply and demand of the market place and now there are more seasoned SAP professionals with SAP experience who are preferred. The SAP consulting market is competitive and healthy and so possibilities after completing SAP ERP courses are many.

Read about ERP Benefits. Also know about NetSuite ERP Review.

Typical Implementation Timeframe For New ERP System

Many companies and organizations are turning towards an Enterprise Resource Planning or an ERP system nowadays. The ERP implementation costs have reduced over the years but the typical implementation timeframe for ERP system has not reduced much. It usually takes more time than expected for the implementation process. The typical timeframe is suggested to be around 12 to 18 months but since it depends on a lot of factors involved, it could take more time. The factors it depends on are number of users, expectations, team member’s efficiency, etc. The implementation time can increase as the load increases or as the number of users increase. If there are many business partners, many branches or many business units, the typical implementation timeframe for ERP system increases too. Also if the client expects that each and every problem of the business process should be solved through automation, this might also delay the timeframe. Large distances between the branches of the organizations can waste a lot of time.

The typical implementation timeframe for ERP system can increase if the business process is complicated. In that case the time spent for understanding the client’s requirements may be more and the customization at each phase may take extra time. The team members and the consultants need to be professionals and experts in their field so as to be able to complete the project on time. They should be dedicated and experienced so as to be able to solve the problems which come up during the process. The technical consultants and the functional consultants both should be efficient and hardworking. The typical implementation timeframe for ERP system can be reduced if the client involves himself at each stage and assists too.

The customization process is done to alter the application so as to fit to the needs of the client. This process is important and takes time as it requires code work to be done by the technical consultants. This step may also delay the typical implementation timeframe for ERP system. A lot of paperwork is also involved in the implementation process. The consultant needs to do a lot of documentation which needs to be approved by the project manager and the client. Coordination and interactions are required between the team members and the managers and the client. If there is improper coordination between the team members, it would cause unnecessary delays.

Every step and procedure of the implementation phase needs detailed attention of the consultants. It is difficult to decide a fixed or typical implementation timeframe for ERP system since there are so many procedures and so many people involved. A delay in any step of the phase will cause a delay in the whole process. Ideally, a small company may require about six months for the enterprise resource implementation whereas a large scale organization may require about 18 months as a typical implementation timeframe for ERP system. If one tries to rush things during the process, some steps may be skipped or cause a failure in the project.

Read about ERP Benefits. Also know about SAP ERP Review.

What We Have To Do Before Implementing Or Selecting ERP

As the market trend shows, all companies are opting for implementing an ERP system. Not only the big scale companies but the medium sized and small scale companies are also following this trend. If you are thinking of implementing an ERP system too, the one question on your mind must be what we have to do before implementing or selecting ERP for our company? To determine this it is important that you evaluate your business and analyze the areas where the company is suffering from losses. Using old and obsolete procedures and not the latest technologies may be causing problems in business. First and foremost these methods have to be identified for they maybe unproductive and costing you more than it should. If these methods are not corrected, it will get complicated and more expensive to implement an ERP system.

Another thing to be done before implementing or choosing ERP for your company is to accept the fact that it is going to cost you money and time. There are many expenses associated with the enterprise resource planning application like the software charges, license charges, consultant's service charges, etc. The process also involves many steps and therefore takes some months before it can function smoothly.

One should be prepared with a good amount of revenue and time to invest. You need to analyze and assess the features of the software available which is best for your company. A team of people will be needed to be dedicated to this process so as to speed up the procedure and decision making. Consultants and technical staff will be required to analyze the requirements. Before implementing or choosing ERP for your company, you should ensure that the procedures pass through the regulations and follow the industry standards. This will enable easier automation process. A list of the key business procedures should be marked so as to let the service provider know of these procedures. The solution provided should include those vital business procedures and accordingly customization should be done.

What we have to do before implementing or choosing ERP for our company also depends on the various department leaders. They should be convinced that the company needs an ERP system in the first place. All should be aware of the change that is going to take place after the implementation and be ready for it.

The focus should be towards seeing the business functions as it is needed in the desired system. Choosing the best ERP system from the available package in the market depends on the requirements of your business. The price factor, time duration, efforts and resources have to be also kept in mind before implementing or choosing ERP for your company. Thorough evaluation should be done and then the ERP package should be chosen. You also need to arrange for the hardware which is required for implementing the ERP system in your company. The team of functional and technical ERP consultants need to be hired who will be responsible for the implementation. Make sure you hire competent and capable consultants before implementing or choosing ERP for your company.

Read about ERP Benefits. Also know about NetSuite ERP Review.

Future Trend In ERP Consulting Is Bright

Enterprise Resource Planning or ERP is taking over the market and all organizations and businesses are turning towards it. Instead of the traditional accounting system, people prefer ERP system which allows for automation of complete enterprise. The data is maintained at a centralized location and the modules are linked together. These are customized to suit the need of the client whether a health care agency, government agency, retail sector, educational institutions or defense sector.

ERP has evolved from a manufacturing resource planning to a complete enterprise resource planning. The latest technologies have increased the utility and importance of the functioning of ERP systems. The future trend in ERP consulting is that it is going to be the most demanded job in future. As the medium scale organizations have started implementation of ERP system for the growth of their company, the small scale organizations will also follow soon. Application of ERP will not be just limited to big companies but also the small sized companies. The costs of the ERP applications have reduced over the years and people understand the benefits too.

The future trend in ERP consulting is bright according to the changes taking place in the current market. The mentality of the business leaders is changing and they are willing to imply ERP for the growth and benefit of the company. Due to this willingness, they will need to hire ERP consultants to implement and look after the system. The demand of the functional ERP consultants and the technical ERP consultants will increase according to the future trend in ERP consulting. Any company looking to implement ERP application will need to hire a consultant for the expertise he has to offer. His roles and responsibilities are well defined and one cannot do without hiring an ERP consultant for its implementation. The responsibilities of the consultant are many from pre implementation stage to end user training which cannot be over looked. The future trend in ERP consulting will require the consultant to be aware of the latest technologies available and to be up to date with the service.

The new ERP systems will have a non centralized system instead of a centralized one. This way the databases will be maintained by the departments separately which will lower the costs and speed up the system drastically. The future trend in ERP consulting will include improved software which offers an improved forecasting.

All the retail stores will also turn to ERP which provides customized solutions for all kinds of companies. In future, the ERP system will have a lower implementation cost and a lower maintenance cost too. The solution will be implemented in lesser amount of time and will enable the client to get defined solution for all procedures instead of merging them. The automation of business procedures will be done in lesser time and with lesser resources. As the future trend in ERP consulting shows that the demand is going to increase manifold, there will also be a lot of competition to face in the market. The consultants need to be ready for a competitive path with the knowledge of the latest technologies.

Read about ERP Benefits. Also know about SAP ERP Review.

Most ERP Implementations Take Long Time To Complete, Why?

ERP implementation involves a lot of people in the process like the functional ERP consultants, Technical ERP consultants, team members, managers and the client. Since many people are involved, many processes are also involved. There can be a number of reasons why ERP implementations take long time to complete. The team members need to be efficient, dedicated and have coordination between them. Other factors which can affect the implementations are insufficient budget, frequent change in business plans, improper analysis of the project, testing delays or incapable ERP consultants. Also to adapt to the requirements of the clients takes some time and the ERP implementations takes so long to complete. Once done, there may be some variances which would take some more time to rectify and resolve.

ERP implementation is a critical job which depends on the size of the company and the operations complexities. There is a lot of work involved in the process and may take many months to complete. There are many steps involved and it has to start with understanding of the requirements of the client. Mapping of the needs has to be done in order to provide a solution to the client. It may take a while to satisfy and convince the client with the solution offered and the client may want to view the proof of the concept. If he is satisfied, then the implementation starts.

The consultants also need to document everything from the requirements to the solution. These documents are approved by the customer’s team and the project manager and feedback is given. If there are any changes to be made in the documentation, it may take some more time. After this GAP analysis, the consultant starts the process of implementation. The modules may need to be customized according to the client's requirements. Since the implementation process involves many parts and many people behind it, coordination between the teams is highly important. All parts are interrelated and if any part is not completed, the whole process of ERP implementations take so long to complete. A user guide has to be made and training has to be given to the users of the system.

All these steps are why most ERP implementations take long time to complete. The other reasons which delay the work can be the complexity of the software used, the complexities involved during customization, inefficiency of the members of the team and shortage of resources. If the team members are not capable of analyzing the risks and the loopholes of the system or cannot offer a proper solution, the process gets delayed. Due to such delays there may be a shortage of resources which causes further delays. A wrong estimation of the cost also may lead to shortage of the resources. Delays in communications and interactions at every phase take a lot of time and delay the project. The customer may also be responsible why most ERP implementations take so long to complete. The customer may have unrealistic expectations or delay some decisions at the implementation stage.

Read about Disadvantages of ERP Software. Also know Tally 9 Features, Advantages.

ERP Consultants - Technical Vs Functional

Most of the business houses and big organizations are opting for ERP consultants nowadays. An ERP system is adapted to the customer's business process and is made industry specific. The demand for ERP system has increased the need for ERP consultants to implement the system. The consultant is required to understand the business process and manage the day to day functioning of an ERP system in the organization. These consultants can be functional consultants and technical consultants. The functional consultants need to have knowledge of business process and should know the functionalities of the different modules. The technical ERP consultant needs to provide the technical support for evaluation, implementation and after sales to the client.

Functional consultants and Technical consultants both are required for conceptualizing, designing, implementing and for maintaining an ERP system. Both technical as well as functional consultants have their roles and responsibilities well defined and offer their respective expertise to the projects. The functional ERP consultant vs technical ERP consultant is required to offer his work before the start of the implementation phase. He has to outline the scope of the business functions which will be implemented in the ERP system.

The consultant has to identify the problems that occur during the implementation phase and address the issues. He acts like an advisor and suggests the improvements that can be done to improve the existing business process of the customer. He needs to take care of the communication between the core team members. He is required to map the needs of the client and suggest an appropriate solution accordingly. All these steps take place in the pre implementation phase and then the implementation phase starts once the customer is satisfied. The functional consultant has to prepare documents regarding the needs and the solutions provided. These documents need to be approved by the client and his project manager to go ahead with the GAP analysis. He needs to handle the coordination and interaction between the module consultants and technical consultants.

Technical ERP consultant has a different set of roles and responsibilities from that of a functional ERP consultant. The technical consultant needs to be well versed with the latest technologies and work of the programming and coding aspects of the system. He has to trouble shoot the errors and fix the bugs if present in the system.

A technical consultant is usually not involved in the pre implementation phase and becomes active once the implementation phase starts. The consultant may not directly interact with the client but needs to interact with the financial consultant and the project manager for updating them on the progress of customization. This technical consultant looks at the modification process of the application according to the requirements of the client. One cannot say who is more important in functional ERP consultant vs. Technical ERP consultant as both are required for the implementation process. There has to be a sound coordination between both the consultants in order to work on the project smoothly and complete it on time.

Read about Disadvantages of ERP Software. Also know about Top 10 ERP Software.