BRIEF ON ERP-SAP

 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  BRIEF ON ERP-SAPmarket and in demand.
 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  Rana Basu, UtechFor many organizations, the SAP ERP Operations
 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  SAP R/3 is the formersolution has become the software backbone that
name of the main ENTERPRISE RESOURCEcontributes to excellent performance supporting
PLANNING software produced by SAP AG. It is anend-to-end operational processes in all key areas:
enterprise-wide information system designed toprocurement and logistics execution, product
coordinate all the resources, information, and activitiesdevelopment and manufacturing, and sales and
needed to complete business processes such asservice. This excellence is a culmination of SAP's
order fulfillment or billing.experience over more than 30 years, with thousands
Implementing enterprise resource-planning systemsof successful customers in more than 25 industries.
can be extremely painful, and once you have themWith SAP ERP Operations, your organization can
up and running they may seem to interfere with therealize its full efficiency and cost-effectiveness
speed and agility needed for electronic business. Arepotential. With smoother day-to-day operations, you
they a waste? No, but the real advantages aren'tcan maximize your profitability, free up resources and
always noticeable.budget so that you can invest more in innovation.
Throughout the 1990s, the majority of large industrialGaining competitive advantage, you can look toward
companies installed enterprise resource-planning (ERP)the future, and operate as a best-run business over
systems--that is, enormous computer applicationsthe long term.
allowing a business to handle all of its operationsSome of the issues deserving attention in SAP ERP
(finance, requirements planning, human resources, andMarket are as follows:
order fulfillment) on the basis of a single, integratedCorporate move and reactions to SAP ERP
set of corporate data. Enterprise resource-planningSAP has been constantly improving its products and
systems assures massive improvements influshing them in the market. Any advanced version
efficiency--for example, shorter interval betweenfrom the company will witness a vast improvement
orders and payments, lower back-office stafffrom the predecessor. This practice has been
necessities, cheap inventory, and enhanced customerconstantly encouraged in the company. However the
service. Encouraged by ERP's potential, businessesusers are adopting another plan of action. They
around the world invested some $ 300 billion in itchoose to integrate the applications by purchasing
during the decade.software programs from some other company .Such
 a software will meet the requirements of the
SAP, one of the leading providers of ERP solutions,particular function in the latest version of SAP) in the
has thrown its hat into the ERP application rental ring.place of the advanced SAP version. This saves them
SAP ERP applications are available on an outsourced,money without having to make any compromise on
hosted basis. For a fixed monthly rental fee, small tothe functions covered.
midsize companies can now reap the benefits of aAwareness
top ERP package without the capital investment andWhile the earlier paragraph presents the steps
infrastructure needed to implement such a setupexecuted by companies in reaction to SAP and ERP
in-house.in response to the latest version it ought to be
With the emergence of application rentals, however,understood that the awareness among companies
any size company can have a top-notch ERP systemregarding the same are not upto the mark. The
even though they don't have the IT resources ordecision of the companies to go for third party
capital traditionally needed. This is because thesoftware programs cannot always be justified. There
hardware and software is maintained at the vendor'sare instances wherein the companies won't be able
site and you merely access the system via theto capitalize on the added features if they don't
Internet or other connection.move to SAP ERP for the selected functions. This
reports that recent surveys of the enterprisefactor is not understood by a vast majority of
resource planning (ERP) market have revealed poorcompanies. They select to stick to their own
market knowledge or acceptance of thepractices. Even in that case they fail to understand
business-to-business e-commerce portal offered bythat the troubles (if any) are the consequences of
SAP.not implementing SAP ERP. It is not the question of
Of respondents at companies currently using orwho is to be blamed for not creating the required
planning to use an SAP ERP system, 31.5 percentawareness but the question of when is it going to be
have "no knowledge", less than 14 percent arecreated and how. The sooner they are created
currently evaluating it, and only less than 2 percentgreater are the chances for better results. This calls
are in fact using it.for lots of efforts from everyone in realizing the
These results clearly give us an idea about thedreams of sap erp enterprise.
damage done to SAP ERP's market position by itsSAP becomes the savior of computer associates
reluctance to identify the Internet as an inflectionInternational
point in the ERP market. SAP ERP is trying hard toComputer associates International a victim of a scam
catch up, but these surveys shows that the delay ininvolving huge amounts of money has chosen to
delivering and uncertainty caused by changes in theimplement SAP in order to put the systems in proper
marketing message, may have pushed manyplace and establish practices to ensure accountability.
customers to choose instead for third-party solutionsTheir choice of SAP in replacing the enterprise
to access and make data from SAP ERP transactionaloperations is backed by the fact that SAP has
databases more extensively accessible.provided exemplary services and that there is not a
Typically, an ERP vendor has established a fixedsingle enterprise operation that has remains
software rental fee and partners with other firmsuntouched by the company. The special features of
that provide processing and implementation service.SAP ERP enterprise are believed to help the
The ERP vendors also offer a choice ofcompanies in tracking down valuable information and
implementation and customer services options. Thisas well monitor the performance in a concise manner.
means that a single public agency can acquire theStrategic alliance with Microsoft Corporation
same ERP software from a variety of providers withMendocino is ERP software developed by SAP in
multiple pricing formats.collaboration with Microsoft. This product aims to
Implementation of SAP Oracle ERP Systems is oftenmake use of Microsoft's presence in computers viz
approached in a Big Bang, let's-do-it-all-at-once stylethrough non ERP applications like Windows and
of approach. Another approach to SAP Oracle ERPothers. Needless to mention the special features of
system implementation hosting has agencies replacingSAP has been given due coverage and duly compiled.
existing modules one at a time until the full ERPAnother advantage of this common software is that
system is in place. The underlying theme is to planit brings together some applications which would not
long term and select an ERP vendor for a number ofhave otherwise been possible. This is believed to
years. At the same time, act short term byease SAP ERP enterprise operations.
implementing financials, or HR/payroll, or maintenanceSAP continues to be the leader in Indian Market
management, or utility billing one module at a time, asSAP and ERP remains the favorite choice of
the older systems become obsolete. ImplementationsEnterprises in India a nation with full promises for IT
are now being completed in nine months and ofteneducation, skills and manpower. This remains true
can take less time. Four-month implementations areirrespective of the fact whether IT experiences an
even possible in smaller agencies.upward or downward trend in the country. They are
Implementing erp vendor selection one module at apoised to penetrate many segments and attract
time has the disadvantage of having to buildmore customers given the increasing awareness and
interfaces to the remaining legacy systems that willdemands and competition to thrive at par with the
eventually be discarded. On the other hand, themarket standards. SAP ERP market is also
potential of having to maintain a single technologycompetitive.
and work with a single vendor to obtain a trulySAP unearths flaws in accounting
integrated system is considered worth the cost inSAP and ERP also hit the headlines when it was
the long run.implemented in a shipping company. SAP not only
The major advantage to SAP Oracle ERP Systemshelped the company in rectifying the accounting
application hosting is that medium and smaller publicpractices but also helped to do away with procedural
entities can obtain the functionality and power ofdelays and other inherent errors that remained
comprehensive administrative and financial systems atunnoticed for a considerable period of time. The
a fraction of the costs of installing and maintainingsoftware initially pointed out the discrepancies in data
these systems on their own.transfer from departments which affected one
The most important of these advantages are theanother and the final accounting figure.
following: the opportunity costs associated withSAP chosen for back office operations
software ownership, its zero residual value, andSAP ERP integration is not solely restricted to
reduced useful life expectancy. In addition, with theprocess mechanizations and error rectifications. It can
difficulty that local governments have in attractingas well handle many or little small process/processes
and retaining IT staff, application hosting becomes anin a routine manner. This has become evident on its
even more attractive alternative and one that localimplementation in the systems of Jet Blue Airlines for
government financial managers should seriouslythe sake of managing the back office operations.
consider.The depth of operations undertaken by SAP ERP
 SAP  ERP  OPERATIONSand its strength become the judging factors when it
To best serve customers, organizations are focusingcomes to the question of performing functions like
more on the agility and speed of delivering productsthis.
and services. The efficiency of the entire operationalOn Southcorp's choice from SAP to Oracle
process chain impacts an organization's ability toThis company suddenly moved to the software
serve its customers well. Operational excellence is theprovided by oracle and JDEdwards from SAP.
ability of an organization to achieve a high level ofHowever sources reveal that the decision had
customer service, while reducing operating costs. Annothing wrong to point on SAP. They had to
organization can then run its business at the speed ofrestructure and hence they accepted the offer to
change with more agility, from its suppliers to itsmove to a new solution. Moreover their functions did
customers, no matter which changes occur in thenot require to be dealt only by particular software.