Understanding the ROI of ERP

If a companies wants to succeed with ERP, they must know how to properly implement it. However, this is only one of the things that a company must deal with if they want to succeed with this system. They must also have the resources to properly train their staff on using it.

The company as a whole must be determined to make use of this system. If this is not done, there is little point in setting up the system to begin with. If you wish to set up ERP, you must look at your return on investment. If you cannot see a reasonable return on your investment by using it, it may not be a good idea to spend money and time implementing it.

There are three things companies will want to pay attention to when they are deciding whether or not ERP will be a good return on their investment. When these three things are taken into consideration, the company will ensure that the system that is picked will allow them to achieve their goals. To do this, a company will first need to pay attention to the methods involved with implementing the system. Failing to do this will put them at a severe disadvantage. The biggest mistake made by most businesses is choosing can ERP system by placing an emphasis on the functionality and architecture. This is like purchasing a used car based on how it looks on the outside. When this is done, the results are always the same. The system is installed, the payment is made, but no one is happy with the results. The goals that the company originally set out to achieve by implementing the system are not realized. A tremendous amount of capital and time has been wasted. Because of the company wasted time and money on a system that didn't work, they now find themselves in a situation where they are losing the edge against their competitors. What is wrong with this situation? The answer is implementation. The vendor did not present a proven method of successfully implementing the system in a way that would allow it to be useful to the company.

It is important to realize that implementation and installation are two different concepts. Getting the two confused can lead to a number of complications. Installation can be defined as the process of moving from one software to another while keeping problems at a minimum. Implementation can be defined as a method that a company uses to achieve their goals by transforming the way they carry out operations. With implementation, the software is the tool that is used to achieve this objective. The process of implementation does not start while a company is looking for ERP vendors. It begins when the company present a goal that the ERP system will be used to achieve. The goal is the key. If there is no clear goal, selecting a vendor is a waste of time.

Once a company has come up with a clear goal they wish to achieve, the next step is to find a vendor that can help them achieve it. The only time a vendor should be chosen is if the company does not already have the necessary technology to achieve their objectives. Once a company begins the process of choosing an ERP vendor, they must look at more than the functionality of the system.

They must also look at the ability of the vendor to help them change their business processes in a way that can allow them to reach their goals. How can the company evaluate the vendor? There are three methods available.

The first method is to look at their sales efforts. Pay attention to how they want to assist their customers. The second strategy is to request the references of the vendor. If they are a quality company, they should have a solid reputation. The third thing companies will want to do is analyze the implementation methods of the vendor. Are they consistent in helping you achieve your goals? If they are, you will want to consider them. If they aren't, you will want to find another vendor. You must find a vendor that is able to help you based on work they've done with clients in the past.

Source: www.exforsys.com

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Oracle rolls out first fusion-born BI offering for SMBs

Oracle has announced a new packaging of its business intelligence technology that is aimed at small and medium sized businesses (SMBs) previously priced-out by its enterprise-class platform.
The Oracle BI Standard Edition One (SE One) builds on the same Oracle BI Suite Enterprise Edition (EE) product the company introduced a year and a half ago that incorporates technology acquired from Siebel Analytics and home-grown Oracle reporting tools.

SE One includes Oracle's core OLAP analysis, ad hoc and production reporting, and role-based interactive dashboard tools as well as a Standard Edition One of the Oracle's 10g database, the Oracle Warehouse Builder (OWB) ETL tool for building data warehouses and marts, and Oracle's core BI Server infrastructure that provides a unified metadata layer across all the end-user products.

Dave Planeaux, director of BI product marketing at Redwood Shores, California-based Oracle, said the SE was specially tailored for SMBs and large workgroups within organisations in terms of packaging, functionality and price.

"We have basically included everything you need - reporting, analysis, dashboarding and building data marts to get a BI and data warehousing system running. And at a price-point that is approachable for SMBs."

Pricing for the SE One software starts at $1000 per user - with a minimum of five users and maximum of 50 users.That is a much lower entry cost than the EE which sells for $15 000 users (or $225 000 per processor) with a minimum of 50 users.

Planeaux also said that SE One comes with a greatly simplified installation process. "We are providing a single install for all the suite's components that run on a single server."

Oracle had been selling another BI product at this same market for several years - Oracle BI Standard Edition which is based on Oracle's Discoverer product packaged up with the Oracle Application Server Enterprise Edition.

But Planeaux said the new SE was the first Fusion-led BI foray into the SMB space. Fusion is the name for Oracle's modern SOA-based architecture for tying together all its various applications and tools.

Functionally the SE One includes more or less the same capabilities as EE but without some bells and whistles like proactive alerting and disconnected analysis.

Also in SE One's BI Server, the number of data sources that customers can connect to is also limited to an Oracle database plus one other relational source. Access to flat file sources is however unlimited.

While Planeaux believes that connecting to a multitude of data sources will not a pressing issue for most SMBs, he does point out that SE One customers can use the included OWB tool to integrate data from other sources into an Oracle database.

Because SE One is built on more or less the same technology as the EE, Planeaux said that customers can easily upgrade when user-scale demands it.

"Because SE One shares the same core technology as EE, companies that outgrow it can just acquire a license with no re-implementation needed. They can continue to use the same reports, multidimensional analysis, and dashboards they already have."



Our view

With Oracle BI Suite SE One it seems as if Oracle has simply lowered the price-bar for its EE software. Sure cost has always been a major barrier for the adoption of BI and data warehousing technologies among budget-constrained SMBs. But there are other factors that need to be taken into consideration, not least packaging and ease of use.

Oracle said it has included all the 'right' components needed for BI - which is a bit of a generalisation. More importantly perhaps is the pre-configuration of these components to work with one another. Oracle also claims to have 'dramatically simplified' installation, which is important for companies that are constrained in terms of in-house IT skills. But the area where Oracle needs to be a lot more convincing is in ease of use.

Oracle BI Suite EE is not the most complex suite on the market. But it certainly carries a learning curve. Customers should press Oracle on what they intend to do in terms of supporting customers with tutorials, training and education. If not, then they risk getting their hands on a complex set of BI technologies, albeit at a bargain price, that they struggle to use.

Finally Oracle could do with a serious re-think of its BI branding. 'BI Suite' appended with 'SE, EE, and/or One' make for a confusing mix. Surely there is a more simplified branding to go with the various packaging.

Source: Computergram

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The Importance of Enterprise Resource Planning

There can be no doubt that ERP is an important tool in our world of today. As more businesses begin to compete on a global scale, it will become critical for them to streamline their operations and processes. However, it is important to realize that ERP is not the cure to all the problems a company will face. There are a number of pros and cons to this technology, and those who understand this will be the most likely to succeed.

One of the most powerful benefits of ERP is that it successfully companies the many system architectures of a company. Indeed, this is why the technology was originally introduced.

When business processes are streamlined into a single cohesive unit, the company will operate at a higher level. This will lead to a higher level of productivity, and this in turn will lead to more profits. Another powerful advantage of ERP is greater levels of information flow, along with a higher quality of information. Given the fact that we are living in the Information Age, this is critically important. Companies must be able to rapidly transfer information from one place to another. When information is transferred quickly and efficiently, the company or organization will be able to act on the data within a short period of time. However, it is not simply enough to transfer information quickly. The organization must be able to make sure the data is high in quality. All of the information in the world is useless if it is not high in quality. In addition to information flow and data quality, ERP is also powerful because it allows a company to effectively manage its inventory. When the products are manufactured, it will be done with a high level of precision. Perhaps the most important thing about this technology is that the costs will be decreased. When a company has to deal with large amounts of paperwork, managing it can be costly. It is also expensive to integrate various software tools that were not originally designed for each other.

Once the processes of a company are integrated, the costs involved with maintenance and transfer of information will be low. The money saved by the organization can be used to invest in new products or marketing strategies. Enterprise Resource Planning is powerful because it allows a company to become highly flexible. An organization that uses this technology will be able to quickly adapt to changes that occur in the market. Though it may require a great deal of corporate restructuring, the benefits will pay off handsomely in the end. Flexibility is very important today. If an organization is not flexible, it will be difficult for them to stay competitive.

One of the most powerful advantages to ERP is the implementation of software. Even though Y2K didn't become the disaster that many people expected, it gave rise to the concept of making sure software was properly implemented. In addition to dealing with software issues, ERP can also help companies integrate their operations. At the same time, it is important to realize that there are a number of challenges involved with utilizing ERP. Perhaps one of the greatest of these challenges is cost. Enterprise Resource Planning tools are outside the price range of many organizations.

When ERP was first introduced, the only companies that truly could afford it were Fortune 1000 companies. Even then, there was the problem of getting workers to accept the new tool. A number of companies would purchase complex ERP tools, only to find that it was not successful because the end users failed to properly use it.

Another problem with ERP is the implementation. Setting up this system can be complex and time consuming, and the minimum implementation time for a large company is six months. Despite this, there have been cases were it took 18 months to fully implement the system. Some clients have also complained that ERP software is not flexible.

It is important to understand that ERP tools must be customized to meet the needs of the company. In most cases, it will not be useful when it first purchased. Each company has unique needs, and ERP tools must be able to meet them. A number of companies run into problems when they attempt to customize the software.

Source: www.exforsys.com

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