Enterprise Systems 

Enterprise Systems

        Enterprise systems seem to be a recognized vision by companies in today’s world. These viable software packages have the potential to seamlessly integrate all of the flowing data through the consumer information, accounting and financial information, supply chain information, and human resource information of the company. For managers who are struggling with high expenses and frustrations, incompatible systems of information, and varying practices of operating, the notion of a solution that is off-the-shelf to the business integration difficulty is enticing (Andergassen et al., 2015). This paper aims to recommend the best enterprise system to be implemented at Sugar Inc Company and the challenges they are likely to experience.

There are three different types of enterprise systems available today are Supply Chain Management (CSM), Enterprise Resource Planning (ERP), and Customer Relationship Management (CRM). CSM software deals with logistics and resources needed to ensure products get to the consumers, CRM software focus is on consumer information, and ERP systems integrate supply chain, human resource, accounting, and consumer relationship management systems within their modules (Weedmark, 2018). The ERP software package makes the most sense when a company has several business functions they want to access on an enterprise system. For this reason, the ERP is the best to implement in SugarSquared Inc.

ERP systems enable the smooth running of the company’s business through merging and protecting its information and automation procedures and generating easy to recognize trends. Through these and many more, the ERP systems benefit an organization by improving the efficiency of their long-term planning and daily operations (Al-Turki, 2011). SugarSquared Inc. could gain several benefits by implementing the ERP system.

Benefits of ERP System

Even though ERP is regularly a considerable investment, it can merge the IT costs of the company and advance its efficiency. Moreover, the use of a single system reduces end-users’ requirements of training, as they only require to learn a single system than having to interact with various solo applications. The ERP permits full access to all procedures significant for the business of the company by ensuring data in all departments is readily available to the company plus its high-ranking management. The complete visibility of ERP system offers more clear workflows and consents to procedures of departments to be effortlessly tracked with extreme efficiency (Hanafizadeh and Ravasan, 2011).

The ERP system enables the company to evaluate and relate functions between departments, minus the stress caused by multiple emails and spreadsheets. Additionally, the majority of the ERP vendors provide services of business intelligence together with their software. This service lets businesses gain a deeper analytic insight level into their operations. These insights help in the planning of the company by recognizing both operational difficulty and strengths areas that require enhancement. This offers users of ERP with the ability to create well-informed decisions founded on metrics and trends. If correctly implemented, an ERP system can significantly eliminate or reduce monotonous manual procedures. Therefore team members can only focus on tasks that affect revenue (O’Shaughnessy, 2017).

The clients of the company also get to benefit from the ERP system. Due to streamlining and centralization of consumer information, the sales team of the company can concentrate on generating and retaining consumer relationships instead of spreadsheets maintenance. Majority ERP systems currently support the integration of e-commerce. The business of such a company can better handle web-based interactions with the client and the processing of an order.

Challenges in implementing this System

ERP implementation is usually not a straightforward procedure that spontaneously improves efficiency. Truth be told, companies do experience several difficulties when trying to implement ERP systems. The perfect product selection is essential to attain gains in productivity. During the selection of the ideal ERP system to be applied, the company should know about the previous projects, experience, and industry vertical of the vendor (Maditinos et al., 2012). Senior management plays a vital role in the success of the implementation of ERP systems. They need to make effective decisions and not delay operations within the company. The cost of implementing an ERP system is much higher than the original costs of the company. The overall cost is dependent on the cost of customization, the greater it is, the higher the final cost of implementation. Employee resentment is expected after execution, which could severely destroy the productivity procedure. Therefore, there is a need to ensure the employees undergo particular motivation and training. This training familiarizes the employees with the ERP software (Tondon, 2016).

Factors to be addressed when choosing an ERP Vendor

The preferred vendors of the ERP system have teams who are experts in setting accurate expectations and then providing them while continuously advancing their ERP systems to promote security. Users of Oracle ERP cloud rate the System’s security characteristics as the greatest within the ERP vendor industry (Columbus Louis, 2019). Some factors need to be considered before choosing the best ERP systems to be implemented within SugarSquared Inc. The improved tool of pricing for Oracle can generate any difference for the company. Oracle can modify the base prices of the company to relate with the exchange rate, currency, market segment, etc., and can also manage discounts and profit margins using guidelines set. Asset Lifecycle Management is an Oracle’s specific tool that allows the full realization of the financial capabilities of the company. Oracle has excellent reporting abilities plus visual illustrations, resulting in faster communication. This ability is key to the company if the basis of the human resource decisions is on data. Data that is simple to visualize can enable the company to project its future from its history.

Most of the inventory management is currently useful because of cloud deployment. ERP systems that are cloud-based allow for actual visibility of all information within the business. Oracle’s inventory management allows the company to have a complete comprehension of how their products move. Oracle stresses that its inventory management boosted productivity. Oracle also boasts on its solutions to risk management that aid in implementing the enterprise-wide agreement and automating other compliance types in several industries. These tools aid in preventing cash leakage and bring policy enforcement levels that assist companies in being assertive about the risks they possibly could face.

A ‘Supplier Invoice to Payment’ is an Oracle tool for procedure management used in vendor dealings. This includes payment of invoice, creation of a contract, and registration of supplier tools to aid easing of the company’s purchase of what is necessary for it to function. The sourcing and time and labor cloud tools of Oracle offers transparency for these forms of tracking. Oracle has improved APS, allowing the company to develop its tracking costs and efficiently allocate resources. Generally, the strengths of Oracle lies in their data and reporting abilities.

The use of the integrated ERP systems eliminates the need for numerous diverse methods to be used in the company and merges to a similar System across various geographies. Different locations may view and use related information regardless of the physical geography and removes the storage of redundant data in numerous physical areas. The ERP system systems improve productivity by integrating data and procedures across multiple departments and locations, which will let SugarSquared Inc. deliver product quick, process orders faster, and invoice consumers appropriately. The ERP systems will also offer the company several tools of reporting and creating information that is up-to-date and time-sensitive quicker and friendlier to the user.

References

Al-Turki Um Al. (2011). “An exploratory study of ERP implementation n Saudi Arabia.” Product Planning and Control. 22, pp. 403-413.

Andergassen, R, Nardini, F., & Ricottilli, M. (2015). “Emergence and Resilience in a Model of Innovation and Network Formation.” Networks and Spatial Economics. 15, pp 293-311.

Columbus Louis. (2019, October 22). “Which ERP Systems are the most popular with their Users?” Forbes. Available at www.forbes.com/sites/louiscolumbus/2019/10/22/which-erp-systems-are-the-most-popular-with-their-users/#4e53115319da

Hanafizadeh, P., & Ravasan, A. Z. (2011). “A Mckinsey 7S model-based framework for ERP readiness assessment.” International journal of enterprise information systems.

Maditinos, D., Chatzoudes, D., & Tsairidis, C. (2012). “Factors affecting ERP system implementation effectiveness.” Journal of enterprise information management. 25, pp. 60-78. Available at http://dx.doi.org.libproxy.mit.edu/10.1108/17410391211192161

O’Shaughnessy Kim. (2017). “Benefits of ERP: Advantages and Disadvantages of an Enterprise Resource Planning System.” SelectHub. Available at www.selecthub.com/enterprise-resource-planning-/erp-advantages-and-disadvantages/

Tondon Veronica. (2016, December 9). “Top 10 Challenges Faced by an Organization in ERP Implementation.” Invoicera. Available at www.invoicera.com/blog/10-common-challenges-in-erp-implementation/

Weedmark David. (2018, October 22). “Types of Enterprise Systems.” Bizfluent. Available at www.bizfluent.com/info-8061463-types-enterprise-systems.html