Enterprise Resource Planning Case

INTRODUCTION

Enterprise resource planning (ERP) combines the internal and external management information throughout an entire organisation. Enterprise resource planning is one the best management information system that incorporates and automates the various business processes related to production, distribution etc. This technology helps staying on the cutting edge of new competitors. When selecting the correct ERP software vendor, it is essential to consider the suitable ERP software system. There are numerous reputed ERP system vendors like oracle applications, sap etc.

When choosing ERP software vendors, the major apprehension is that enterprise system may have significant resource tools and unexploited application. Sometimes when you at the outset install ERP software solution, it may later turn out to be unsuitable for the operational procedure and this can bring huge losses to the business or organisation.

CRITERIAS WHEN SELECTING ERP SOFTWARE VENDORS

There are various criteria to be considered when choosing ERP software vendors, to start with;

a) Functional fit: This is the capability of the vendor's software to be able to satisfy the organisation's business requirements. The fit of the vendors' software is to be checked with the requirement by the demonstration of the software. The business team provides the vendors with list of their requirements, the vendor shows if and how the software meets the said requirements.

b) Technology: This considers the technical suitability of the software and it ability to boost the business over midterm to long term. The business IT team should define the technology path of the business so you do not waste time with the vendors who don't fit the technology direction of the business.

c) Vendor's ability to execute and also its viability: This checks the capability of the vendor to accomplish short-term obligations and also deliver possible solutions to the business during its product's useful lifetime.

d) It is necessary to get information on the vendor's stake in the market. A look on the vendor's background, previous experiences etc. This helps to know the benefits and also the problems while selecting a vendor.

e) Another criterion to be considered is the vendor's flexibility which is to say that the vendor should be able to accept and implement suggestions; this would help to achieve mutual benefits.

OPEN SOURCE ERP SYSTEMS

This is software whose source code is available with licenses that allows usage, amendment or improves the software to the user. Linux, Firefox are some examples of the products of OSS. The Open source of ERP is frequently based on various open source CRM packages.

Benefits of an open source ERP system

There are various benefits of an open source ERP system which are;

* It's entirely independent of the vendor.

* High level of accuracy

* The cost of its maintenance is low

* More flexibility

* Better security

Available Open source ERP applications

According to user ratings available in the market, below are the open source ERP software applications;

* Open Bravo

* Apache of Bix/Opentaps

* ERP5

* Compiere

* XTuple

OPENBRAVO

This is a type of ERP application designed for minor and standard sized business. It's also a web based open ERP software that comprises of vigorous functionalities which are considered part of extended ERP e.g. financial management, warehouse management, production management etc.

Advantages of openbravo

* It allows vibrant improvement and updates.

* It allows appropriate management of master data.

* It allows incorporation with point of sale equipment which however increases sales process.

Disadvantages of openbravo

* Difficult setting up process

* Problems of logins

* Specific training is required.

Limitations of Openbravo

* To run the software, high speed internet connection is needed.

* It tends to work only with oracle database

* It allows windows xp and other old operating systems

Apache of Bix/Opentaps

This is ERP software that consists of set of enterprise modules that incorporates and powers many of the business procedures of an organisation. Examples of open taps are purchasing, CRM etc.

Advantages of Opentaps

* Its installation method is simple.

* It operates with the major databases

Disadvantages

* It doesn't work on HTML databases

* It lacks simplicity in documentation.

Limitations of Opentaps

* It's limited to minor size business

* It doesn't operate on older versions of operating systems

ERP5

This application is centred upon ZOPE application server. It's generally to aid the mid-market sectors and also offers other vertical market resolutions with aerospace, banking etc.

Advantages of ERP5

* Work flows are customisable

* ERP5 tools and source codes are entirely open sourced.

Disadvantages of ERP5

* Problems are encountered when loading the raw data files.

* Workflow simulations are associated with problems.

Limitations of ERP5

* The