The Effect of ERP on Mid Market Companies

When Enterprise Resource Planning was first introduced, very few companies could actually afford it. In most cases, the only companies that could afford this technology were Fortune 1000 firms. However, like many forms of technology, the cost involved with ERP would eventually be reduced, allowing small to medium sized businesses to afford it.

While ERP has been around for little more than a decade, more companies are now seeing the benefits of using it. Many companies in the Middle East and Africa have failed to utilize the benefits of ERP, and the reason for this deals with procedure rather than cost. Many of these companies have used the same methods for many years, and are unwilling to switch to something new.

ERP vendors had a tendency to focus on companies that had very deep pockets. At the same time, many of these companies made the mistake of viewing ERP as simply being a new technological tool that they could use to increase their profits. They failed to look at the implementation issues surrounding this technology, and many of them lost substantial amounts of money. In some cases, hundreds of millions of dollars were lost when a company failed to properly implement an ERP system. It should be noted that many companies learned from their mistakes and those of their contemporaries, and they were effectively able to install and utilize ERP systems. While this has allowed ERP vendors to gain billions of dollars in profits, a number of issues have occured in the last few years.

First, many large companies have already implemented ERP, and this means they are not in need of another system. This means vendors must look for othe markets in order to generate revenues. The next logical market would be the small to medium sized business market. Companies which are designated as "mid market" are those that have no more than 500 workers and maintains a turnover of no more than $100 million. There are a number of things that separate these companies from their larger counterparts, and these differences extend beyond their revenues. Many mid market businesses have to deal with tough economic issues as well as fierce competition from smaller countries. Because of this, these companies will be looking to utilize every form of technology they can get their hands on.

In addition to this, mid market companies must be able to optimize their businesses. This includes things such as supply maintenance and accounting. While Fortune 1000 companies would spend millions of dollars implementing an ERP system in the 1990s, mid market business can now implement the same technology for about $100,000. This has allowed Enterprise Resource Planning to become a low cost solution for companies who are looking to utilize it. Before a mid market company decides to utilize ERP, it may be a good idea to look at their larger counterparts to learn from them. They should view their successes as well as their failures. Most importantly, they should understand how to avoid failure while simultaneously reaching for success.

The results of studies connected on companies that have utilized ERP show a number of things. It should first be noted that firms that utilized ERP technologies how surpassed their competitors by 20%. This means that Enterprise Resource Planning is a powerful technology that can give companies an edge in the marketplace.

This also demonstrates that small companies can achieve the same feats. A number of companies have failed when attempting to use ERP, and much of this rests on their own actions rather than the actions of the technology.

A company must make strategic plans before purchasing ERP systems. It is not a matter of just installing the system and letting it run. A number of things must be done to insure the system will work properly. The goal of ERP is to integrate the many processes of a company, and this technology should only be used by companies that are willing to do this. They must work closely with the vendor to ensure everything is implemented correctly. If this is not done, it will be very difficult for the company to succeed. There are a number of companies that fail for this exact reason.

Source: www.exforsys.com

Read more ...

Oracle E-Business Customization A New Paradigm For Development

If your company has Oracle E-Business Suite (Oracle Financials, Oracle Applications), it probably uses Oracle Forms and Reports to customize an E-Business module. These tools are based on event programming and a huge set of facilities to make the developer’s job easier. Oracle Forms is a RAD (Rapid Application Development), and just like most RAD is based on event programming. So, you usually program having a user interface on mind, the “clicks” the user will do, and the possibilities you would like to give the users. Let us call this event programming paradigm, strong words to say the kind of principles this way of programming has.

As already mentioned before, Oracle has a huge Java strategy. Its recommendation is clear about the use of Java over new implementations. Pay attention at the last bullet we took from the Oracle Statement of Direction at

http://www.oracle.com/technology/products/forms/pdf/10g/ToolsSOD.pdf:

• Move from client-server to the Web
• Upgrade to the latest versions
• Interoperate with Java/J2EE
• Develop new modules using JDeveloper

If you are supposed to develop in Java, the best way is to know and use Java as an Object Oriented (OO) language. At the same statement of direction mentioned above, Oracle said they have done JDevelopers a comfortable IDE for Forms Developers. But is this enough for you?

Java is not only a language. Actually the word Java is overused. Instead to mention the thousands of others “J” acronyms is much easier to say just Java. For example, to make a simple program in Java you will use the standard J2SE which has a lot of interfaces. To make a web interface you will probably use one of these API/Frameworks: JSP, Java Servlets, Struts, JSF, or some others similar to make the same. But, anyway, they all will use Java and, as we said, Java is an OO language and you should program just like this paradigm is alike: using encapsulation, inheritance, Java Interfaces, etc.

Everybody knows OO paradigm is not new, so it is better for you. People and the market know already what to do, and the best, what to avoid. We recommend you, first of all, to recognize this is a different (not difficult!!) way of doing. If you do so, you’ll open your mind to learn, what will make things much easier for you.

Next step is to study about OO Analysis and Design, we will help you writing some articles about it. Try to know what is UML(Unified Modeling Language) and how this will help you. Realize JDeveloper has an environment to design using UML, and this is very helpful.

Well … what’s next? Probably to specialize on Web, Server, Oracle ADF, Struts, etc. It’s common to find people specialized on client or server technologies; it’s too much to be good on everything. Good luck!!!

Author: Andrew Karasev

Read more ...

The Essence of ERP

If you are interested in Enterprise Resouce Planning, it is important to understand the essence of this technology. The basic idea of ERP is that the whole is more powerful than the individual parts. In traditional computer applications, transactions are processed separately. A large number of organizations have used this system for quite some time, and there are still some who continue to use it today.

With traditional systems, eacn transaction must be handled separately, and they are connected to functions which are specific. Enterprise Resource Planning is just the opposite of this. Instead of separating transactions, they are all treated equally.

It is important to realize that most of the application programs used by companies that simply used for manipulation. They will contain data, and this data will be processed and presented in the proper form when a user requests it. One of the primary problems with this process is that is no connection between the application programs which are used by various departments. With ERP, there may be hundreds of data tables which store information for numerous transactions, but they will not be limited. They will be integrated in a way that will allow them to be handled by multiple users for different purposes, and these users don't have to be located in the same department.

There are a number of advances in technology that has contributed to the growth of ERP. Enterprise Resource Planning is directly connected to Information Technology. The improvement of IT with the decreasing cost of computers has made it possible for small businesses and organizations to begin using ERP. When Enterprise Resource Planning was first introduced, it was designed to run on powerful mainframe systems. With the introduction of PCs and client servers, along with RDBMS, Enterprise Resource Planning has been introduced into smaller markets. When ERP is used with a client server, the server will store information, and the consistency of processes will be maintained.

The issues of program logic and information processing will be split between the client and the server. A number of ERP systems will use what is called a three tier structure. It can utilize business rules that are normally not connected to the primary system, and this will ensure that the proper validation checks are used. Many of the companies that use Enterprise Resource Planning are those that carry out operations in multiple locations. To make sure these transactions are carried out properly, a number of ERP systems are being utilized. In order for ERP systems to function properly, there are a number of things they will need to feature.

The first of these is flexibility. Many companies need to change their operations and transactions on a regular basis, and the ideal ERP system must be able to adapt to these changes. Client server technology is important, because it will allow the ERP system to operate on multiple database back ends, and it will do this through a process that is called ODBC, or Open Data Base Connectivity. Another important feature of ERP systems is modularity. The term modularity is used to describe a system that is "open." The module must be capable of being detached whenever it is needed to work with other system modules. It should also be capable of supporting multple computer platforms.

Most companies will use a variety of system platforms, and they may also be in need of third party platforms. The ideal ERP system must be capable of offering this. It is also important for an ERP system to be comprehensive. It must be able to support a large number of different functions that are related to the company. In addition to this, it must be calibrated for a diverse range of companies and organizations. When one is looking at the quality of an ERP system, they must look beyond the company. Instead of limiting it to boundaries within the company, they should make sure it supports the internet and other elements within the company. It is also crucial for the organization to look at best business practices. A collection of these business process should be used on an international scale. The overall goal of a company should be to take the business processes of the physical world and apply them to computers.

Source: www.exforsys.com

Read more ...