Overview of ERP

Discuss About The Understanding Between Organizational Learn?

ERP (Enterprise Resource Planning System) is business process management software that permits the company to use a system of combined applications to manage the activities of the business related to the technology and human resources. ERP helps the company to combine all the major activities of the business (Beal, 2017). This software is designed to be used by the large businesses, to customize and analyze the data to handle deployment and upgrades. The report talks about the use of the ERP by the RealTech Company. RealTech Company is an information system organization which is specialized in the deployment and the deployment of the new technology and information system. RealTech include different departments such as accounting and finance, marketing and sales, Management, IT, Support and Human resource, Supply Chain Management. The report talks about the implementation of the ERP software application in the RealTech Company (Seethamraju, 2015). The managers of the company are willing to replace the whole system with the ERP application.

There are many vendors in the market who are providing the ERP solution or the Cloud-based ERP solutions. According to the requirement of the company the components are integrated and customized ERP system (Issar, & Navon, 2016). Below are some of the components that are specialized to handle define business activities of the organization.

Human resource module manages the employee information, records related to the performance reviews, skill matrix, job descriptions, and attendance tracking. The organization maintains HR team in the organization for efficient management of the human resources (Armstrong, & Taylor, 2014). HR team also plays a vital role in the payroll system which includes management of the salaries, payment reports, travel expenses and reimbursement tracking. ERP software can help the companies in managing the employee training tracking.

Marketing and sales module include the process like sales queries and inquiries analysis, accepting sales orders, tracking pending sales order, drafting sales invoices along with the proper taxation. All the sales transactions are accomplished by sales module of ERP. The marketing module includes generating the awareness about the product (Ganore, 2013).

The inflow and the outflow of the capital are managed and control by the finance module. The finance module includes all the finance related transactions such as balance sheet, expenditure,  payment receipts, tax management account ledgers, bank statement, budgeting. ERP helps the company in making the finance module an easy task. With the single click on the finance module, there is an availability of the required finance data that is required for the running business.

Four types of ERP Application Software

CRM department helps the company in enhancing the sales performance of the company along with this, CRM helps with better customer services and healthy relationship with the customer as well as with the potential customers. The CRM module helps in managing and tracking the detailed information of the customer.

The SCM module manages the flow of the product items from the producer to the end users and from the end users to the customers. Supply chain management of the company involves sales return and replacing process, demand and supply management, transportation, shipping and tracking (Stadtler, 2015).

There are different types of ERP application software that can be used for the different purposes. Four types of ERP application software are discussed below which shows some of the difference with the other application software.

Oracle + NetSuite – ORACLE

The oracle enterprise resource planning offers a completely innovative and effective solution for the organization for all sizes. Oracle is the one cloud for the entire business that is designed for the management of the accounting, financial, compliance, and tax reporting and risk management. Oracles acquire NetSuite officially; this enhances the reach of NetSuite’s cloud ERP solutions for mostly midsize businesses (Oracle+ NetSuite, 2017).  This ERP is cheaper than the SAP ERP.

Dynamics – Microsoft

Microsoft Dynamics is a combination that helps the business to make the adaptable business decision with the confidence. This ERP comprises of a group of ERP product which aims at the diverse market segment, ranging from Dynamics GP for SMBs to Dynamics 365 for the finance and operations. This ERP formed for the purpose of the Microsoft business processes.

SAP Business one – UNEECOPS

SAP business one application is an all-in-one, which is affordable ERP solution. This ERP solution is used by the companies to manage an entire business for the sales along with the CRM and Finance and Accounting. It helps the business streamline processes, speed up profitability growth and act on appropriate statistics. This ERP is used for the business who wants to earn a maximum of the profit. 

SAP ERP- SAP

SAP ERP is designed for the middle organizations as well as the large organizations of all the in sectors. This solution provides support to only four module of the business that includes financial, operations, human resources and corporate services (Magal, & Word, 2013). This ERP is more expensive than the Oracle.

SAP ERP is an Enterprise resource planning software which is developed by the German Company SAP SE. SAP consist of various types of the modules such as Financial and accounting, sales and distribution, CRM and SCM. SAP ERP supports business processes in approximately 25 industries with 37 languages along with the 45 localizations. It is beneficial for the company to enhance the competitiveness, flexibility, simplify the business scenario administration (Lorenc, & Szkoda, 2015). This ERP brings some functional capabilities for the business that helps the business in the processes.

SAP ERP application software for RealTech

RealTech Company should make the use of the SAP application software that helps the company in the smooth supply chain. The current application that is used by the company includes the application which was developed 10 years ago. These applications include Java and Oracle. The SCM support the other activities of the company such as developing production plans, receiving the equipment into the stores, inventory control, and purchasing, distributing, ordering hardware equipment’s from suppliers. The integration of the business is poor that is a reason there is the need of the SAP. SAP ERP is most popular ERP and acts in a different way. SAP is best for the real-time tracking and management of the finance, HR, accounting, sales, SCM. The RealTech Company faces problems with the integration of business functions and these problems can be resolved with the implementation of the SAP ERP in business.

The combination of the SAP ERP with the RealTech business is must for the smooth working. The modern technologies of ERP help to enhance the efficiency of the company (Nwankpa, & Roumani, 2014).

Marketing and sales are vital processes for the business, a combination of marketing and sales with the ERP help the company in enhancing the profit of the company. It helps in speeding up the manufacturing process with the help of proper planning and scheduling to monitoring the manufacturing process.

The supply chain management is one of the most important modules for the RealTech Company. ERP helps in reducing the cost of the support for the end-to-end procurement and logistics processes. The main aim of the supply chain management is to make the product available to the customers (Monczka, Handfield, Giunipero, & Patterson, 2015). Integration of the ERP with the supply chain will help the company in enhancing the customer services and makes the product easily available for the customers.

The ERP needs to be integrated with the finance and accounting module. The ERP helps in automate and streamline of the finance operations while confirming the regulatory compliance. The finance and accounting module plays a vital role in the organization. The integration of the ERP helps the company to get the details in a single click.

The integration of SAP ERP with the HR is beneficial for the RealTech Company. It helps in recruiting, administration, promotion, professional development and onboarding. This ERP helps the companies in managing the real bases tracking of the employees training. This helps the RealTech in managing the HR operations and processes.

SAP ERP suits the RealTech operations

Conclusion

The report throws light on the role of the ERP in the business operations. The report is based on the RealTech Company who requires an ERP system in the business that helps the company for the smooth operation of the company. SAP ERP system can be combined with any other system to perform the smooth working. Though, the implementation of the SAP ERP in the organization is an expensive deal. This is the only reason due to which the small companies don’t implement this ERP.  The SAP brings the Standardization of business process in organizations. Though this system is a very complex system, some organization might not be able to adjust to the ERP (Kanellou, & Spathis, 2013). Hence, there are some of the benefits of the usage of the SAP ERP but along with the advantages, there are some disadvantages also. The RealTech Company should implement SAP that enhances the efficiency of the company’s operations.

References

Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Beal, V., (2017). ERP – enterprise resource planning. Viewed on 20^th September 2017, https://www.webopedia.com/TERM/E/ERP.html

Ganore. (2013). Basic Modules of ERP System. Viewed on 20^th September 2017, https://www.esds.co.in/blog/basic-modules-of-erp-system/#sthash.IxU4daxB.wZCmSoHs.dpbs

Issar, G., & Navon, L. R. (2016). Enterprise Resource Planning (ERP). In Operational Excellence (pp. 33-36). Springer International Publishing.

Kanellou, A., & Spathis, C. (2013). Accounting benefits and satisfaction in an ERP environment. International Journal of Accounting Information Systems, 14(3), 209-234.

Lorenc, A., & Szkoda, M. (2015, May). Customer logistic service in the automotive industry with the use of the SAP ERP system. In Advanced Logistics and Transport (ICALT), 2015 4th International Conference on (pp. 18-23). IEEE.

Magal, S. R., & Word, J. B. (2013). Business Process Integration with SAP ERP. Epistemy Press LLC.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

Nwankpa, J., & Roumani, Y. (2014). Understanding the link between organizational learning capability and ERP system usage: An empirical examination. Computers in Human Behavior, 33, 224-234.

Oracle+ NetSuite. (2017). The #1 Cloud ERP. Viewed on 20^th September 2017, https://www.netsuite.com/portal/home.shtml

Seethamraju, R. (2015). Adoption of software as a service (SaaS) enterprise resource planning (ERP) systems in small and medium sized enterprises (SMEs). Information systems frontiers, 17(3), 475-492.

Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg