A Review On Enterprise Resource Planning Systems Information Technology Essay

A Review On Enterprise Resource Planning Systems Information Technology Essay INTRODUCTION An enterprise resource planning (ERP) systems is that they integrate across functions to create a single, unified system rather than a group of separate, insular applications. As ERP system is providing optimal solutions and strong control over the company operations, every business is looking forward for this adoption. Since currently available ERP softwares are charging at higher level of licencing and supporting costs, businesses are in the necessity of finding an open source alternative. This document provides the feasible open source alternative option to the current market leader in the proprietary ERP SAP ECC. Open Source ERP Systems: The following are the popular open source ERP systems available in the latest market. Though there are many number of open sources are available like Opentaps, Ofbiz, ERP5, and so on here only considered few which are moderately fulfil business requirements in compare with SAP solutions. Adempiere This is one of the major ERP leaders in the open source technologies and has been resulted most successful in small and medium industry users mainly in Retail, Trading, Manufacturing and service sectors. [Adempiere Release Manual]. This is highly motivated and active community based software and is in the top 5 positions according to sourceforge.net. Compiere In the current era, Compiere is the most popular open source ERP+CRM application. It is a comprehensive solution for SMEs. This provides solutions in Distribution, Retail, Manufacturing and Service industries with highly adaptable and easy to use enterprise class applications. In ERP, first time Compiere started revolutionary design through which applications are enabled with easy customization and extension without any programing. Openbravo This is more commercial oriented open source ERP. ERP solution provides a robust application which integrates distribution, inventory, E-commerce, accounting and point of sale workflows. This has been received continuously best open source awards in 2009 and 2010 from Infoworld and many more recognitions from various Organizations. It is developed in java and oracle, postgres SQL databases can be used. OpenERP(Farmer TinyERP) This is comprehensive suite for all operations of an Enterprise. It follows the modular approach which helps customer to initiate one application and then add others as they go. This is designed through a famous 3 tier MVC architecture. Written in Python and Database is PostgreSQL. Clients are required to install flash components in their web browser to access. OpenPro OpenPro is a leader in licensed Enterprise Resource Planning (ERP) software using open source technology and also this is the first web based ERP software started on demand in the market since 1988. This software designed as a platform independent and is written in open source php. Over the years, Software has shown continuous improvements by providing advanced features along with application stabilization. This is recognized as best suited for the larger businesses. Open Source ERP Pros and Cons The following are the advantages and disadvantages of above open source alternatives. ADempiere Advantages: Architecture Model driven Architecture Active data dictionary reducing 80% coding work in customization Browser/Server + Client/Server Database independent : PostgresSQL/Oracle/ (MySQL) Function Structure Provides ERP, CRM, POS. Manufacture module Multi Organization, Multi currency, Multi accounting, Internationalization Market Top 5 in SourceForge.net. Existing customer / user base. Rich practice in real business environment, rather than a guinea pig in the library. Community Highly motivated and active. Global support. Disadvantages: Community No formal political structure to make decisions. No specified road map. Lack of sufficient funding, cant afford core developers. Market Not very well-known to the general public. Customer / user base is small compared to SAP. Implementation Not simple enough for quick implementation which is important for small-sized enterprise. Total Cost of Ownership (TCO) is shifted from licensing costs to lack of expertise local support in some countries. Compiere Advantages Multi company and complex corporate hierarchy support Multi currency and multi language support Delivers fully integrated ERP product with complex warehouse management processing and etc. Rich internet applications by using ajax integration and this delivers functionality, usability, responsiveness and personalization through a Web browser The system uses a centralized and active application dictionary to store meta-data and rules to managing custom solutions Easy upgrades without programming which sustains the customer customization through upgrade tool Provides complete application level security Vendor independent Stable and well tested No information hiding , full transparency of coding by open source Extraordinary wide reach, no starting costs Model driven architecture, Application directory is available Any sql database is supported Disadvantages Not currently complete opensource, since the choice of Oracle database. Based on thick client Java Swing GNU licence needs derivative work to be returned. OpenBravo Advantages Easy integration with other applications since it supports REST and SOAP services. Provides training, support, consulting, outsourcing options to partners and clients at lower costs means lower total cost of Ownership. Web based ERP Revolutionary architecture Unique combination of MVC and MDD, innovative approach to build and maintain software coding. Scalability Openbravo can scale irrespective of the size and sector of the company Easy installation and No vendor/supplier lock in Modularity without any maintenance issues application can be easily extended. Disadvantages Even an ordinary person can write a PHT client class for REST service. This leads to security issues and shows the doubt on code reliability Currently at lower Support and maintenance cost, future is not guaranteed since OpenBravo is commercial focused. Loose coupling between database integration in coding perspective. OpenERP (Farmer TinyERP) Advantages It has majority of all other application advantages. Modular structure helps to easy adoption of new applications Certain customization can be done through web browser in online SAAS services are available Very small footprint, windows installer of just 85MB, installation will done in minutes time. Ease of use Advanced technology usage Very Innovating software double entry management in inventory control Internationalization 72% scored from Independent experts group evaluation in Open source erp softwares. Disadvantages OpenPro Advantages Applicable for all sizes of businesses Written on open source PHP First web based software, mature , reliable and faster Since web based, clients or users or sales representatives can access system from anywhere remotely through a web. No maintenance cost Shorter implementation time Disadvantages No frequent updates for open source whereas available for OpenPro commercial products. No support at free of cost. Need to pay More commercial oriented rather than open source. Evaluation of Open Source ERP System Functional Fit Flexibility Support Continuity Maturity Customization Flexibile upgrades Internationalization User Friendliness Architecture Scalability Security Interfaces Operating System Independence Database Independence Programming language Support infrastructure Training Documentation Project structure Community activity Transperancy Update frequency Other lock in effects Development status Reference sites In order to select the best open source alternative hierarchically structured criteria has been chosen. All open source alternatives information has been categorized into 5 groups and compared with each of other along with the need of company requirements. The following comparison table gives the clear picture of selected ERP system. ERP System Implementation Strategy Implementation is the key process for which company needs to identify a strategic approach. As per Guido Capaldo Study, proved that a planned oriented approach is required for estimating the capabilities that firms should have in order to select the more appropriate implementation strategy. Implementation process divided into 5 phases for smooth execution. Each phase has its own deadline to successful completion. Phase 1: Strategic Planning Project Team: Forming a project team with first line employees from each department and senior management. SMART objectives will be prepared for entire team and team members will be assigned with specific task. Activity tracker will be designed to track each activity such as timelines, training plan formulation, objective finalising. Examine current business processes: Team should examine their individual department business processes whether they are ready to automate or to identify any gaps which need to be fulfilled. Set Objectives: Clearly defined objectives needs to be set. Since implementation is a major task, setting S.M.A.R.T objectives are more crucial. In order to define an objective, team should be able to understand the scope of the business. Develop a project plan: Team should develop a project plan with the clearly defined objectives, timelines, and training procedures with each team member individual responsibilities stated. Result of this, all team members todo list will be clearly defined. Phase 2: Procedure review Review Software Capabilities Train on each and every aspect of OpenERP software. Project team dedicatedly review the software capabilities. Ensure that there are no any technical gaps. Identify manual processes Project team should identify the manual processes for automation and also documented well for the rollout steps. Develop standard operating procedures This is one of the critical success factors for smooth implementation of an ERP. Every aspect of the business needs to be well documented as per SOPs. Ensure that properly updated when SOP changes. Phase 3: Data Collection and Clean up Convert Data Identify the data which needs to be converted Collect new Data Review all data input Cleanup data Phase 4: Training and Testing Pre-test the database Verify Testing Train the trainer Perform final testing Phase 5: Go live and Evaluation Develop final go live checklist Evaluate the solution