What is the purpose of creating an erp system. Functionality of the ERP system


An ERP system is an effective way of doing business that helps manage the workflow as a whole, plan the activities of individual business elements of the enterprise, and improve the operation of all production facilities.

You will learn:

  • What is an ERP system and when is it needed.
  • What are the advantages and disadvantages of an ERP system.
  • What functions does the ERP system perform in the enterprise.
  • How to choose an ERP system.
  • How to properly implement an ERP system in an enterprise.
  • What kind of training is needed for personnel who will work with the ERP system.
  • What determines the cost of an ERP system?

What is an ERP system and when is it needed?

To better understand the meaning of the ERP system, it is not enough just to know the decoding of these letters (Enterprise Resources Planning) and the translation of this definition into Russian (enterprise resource planning), it is better to study the history of its occurrence.

At the end of the 20th century, mass business process automation: PCs were rapidly spreading, programs for financial and accounting, electronic document management, checking the functioning of machinery and equipment were developed for them.

The difference in the principles of doing business was not only in the digitization of information, but also in the emergence of new methods for analyzing and exchanging data, combining initially different types of information. The result of this was the opportunity to see the entire work of the enterprise as a whole and to analyze the functioning of its individual areas (the work of the main production, warehouse, accounting). The information obtained made it possible to more competently distribute the use of production capacities and make the right decisions.

It was this way of doing business that was called ERP, and the software used for this purpose was defined as an EPR system.

Thus, all programs designed for accounting, personnel management, etc., are parts of the ERP system, while CRM (customer relationship management system) also refers to ERP and translates as "customer relationship management system."

Currently, all of the above components of the basic configuration of the ERP system are often used as separate programs. For example, only accounting can be automated at an enterprise, while all other information is stored in various programs of the standard MS Office package.

There is no point in arguing about whether CRM and electronic accounting are components of an ERP system, however, it is clear that over time, the level of automation of business workflows will only grow along with the number of software licenses sold, as well as the volume of services for installation and further maintenance.

In a situation where the company started its activities quite recently, there is no need for deep automation of work processes. Documents can be prepared in standard computer applications, and the director will be able to clarify the necessary information from one of the staff. However, along with the expansion of the entire business, the number of operations, documentation, and employees increases, which entails the need to store and analyze all information in electronic form.

If the company as a whole does not use an ERP system, then, as a rule, all information is stored randomly, which makes it difficult to find it. Sometimes there are situations in which the work of the ERP system is established only in some separate division.

What functions does the ERP system perform in the enterprise

The functionality within which it is possible to use an ERP system depends on the scale and direction of a particular company, the specifics of its work, but in general it should be aimed at general business management. The standard functionality is:

1. Production

  • drawing up specifications for manufactured goods or services provided to calculate the volume of necessary consumables and hours of work of employees;
  • planning and managing the operation of the company at various scales: from specific production equipment to entire divisions.

2. Finance

  • drawing up plans for the use of the organization's financial resources and tracking results;
  • current accounting, accounting for taxes and other payments to the budget and extra-budgetary funds, financial reporting and controlling;
  • work with company assets, which include cash in bank accounts, securities, fixed assets (for example, real estate).

3. Logistics

  • management of the supply of materials and shipment of finished products: maintaining a database of contracts and counterparties, drawing up plans and reports on goods in stock, etc.;
  • preparation of data on all necessary consumables in order to fulfill previously calculated production standards.

4. Frames

  • personnel records and maintaining timesheets, staffing, payroll;
  • search and registration of employees;
  • preparing workforce plans.
  • drawing up plans for the sale of products;
  • preparation and implementation of advertising campaigns and marketing communications;
  • calculation of prices for manufactured products, development of discount programs, sales, etc.

6. Projects. Reporting

  • the presence of a large number of standard reporting forms for all areas of the organization's activities, as well as the ability to create additional reports;
  • verification and performance analysis enterprises;
  • development of a general policy for the work of the organization, including the setting of deadlines for each of the tasks set, the calculation of the resources required for these purposes (cash, materials, working personnel).

ERP-system in the enterprise: 4 stages of implementation

A full-fledged implementation of an ERP system in an organization can take from a couple of weeks to several years (depending on the volume and scale of the company's activities). At the same time, both the company's own IT specialists and employees of the developer company can install the ERP system.

The implementation of an ERP system can be divided into the following steps:

Stage 1. Primary organization

The stage in which tasks are defined, goals are set, after which a technical project plan.

Stage 2. Project development

Further, the work of the enterprise is studied: development plans, production processes. This information is the basis for selecting the structure of the ERP system, as well as for making adjustments to the technical plan (if necessary).

Stage 3. Project execution

The procedure for implementing business processes in the enterprise will be based on the installed ERP system, so at this stage it is necessary to transfer data from the accounting systems that were used earlier to the ERP system, unify them with each other. In a situation where it turns out that the modules of the ERP system are not enough for a given enterprise, at this stage it is possible to refine it. Upon completion of the installation, the basic principles of the ERP system are brought to the employees of the organization and trial tests are carried out.

Stage 4. Commissioning

At the final stage, you can find and fix problems that arise during the operation of the ERP system.

What methods are used to implement an ERP system

The following methods can be used to implement an ERP system:

  1. Phased implementation, when the implementation of the ERP system is carried out in turn in some interconnected processes, which minimizes risks of problems.
  2. "Big bang" - the entire system is installed at once. This approach can be used in a small organization with simple manufacturing processes. At the same time, special attention should be paid to the testing stage in order to identify all possible errors in the operation of the ERP system.
  3. Deployment is a partial installation of software with subsequent distribution to other enterprise structures. On a separate site, the deployment method can be applied both in stages and simultaneously, since, in general, the risks of unsuccessful implementation are small.

The choice of the method of implementing an ERP system for each enterprise should be made very carefully, by analyzing the possible costs, as well as taking into account the experience of other companies.

Who trains staff about what an ERP system is

Explaining the basics of working with an ERP system is one of the most difficult stages of its implementation. Doing business using an ERP system can change business processes in an enterprise, which entails the need to carry out on a par with official duties as well as the functionality associated with the use of this software package. Thus, the main point for the company's management is to prepare the staff morally to work with the ERP system.

When implementing an ERP system, there may be a problem with the lack of desire among ordinary employees to learn how to work with it, because such automation makes the work of management easier. In this situation, the way out is the transfer of such workers to other positions. Most of the staff, as a rule, thinks in the future and understands the need for training in order to use the acquired knowledge in work.

From the quality of the learning will depend on the efficiency of using the ERP system. Employees should have a good understanding of the basics of its work and have the appropriate motivation, because if the staff does not understand for what purposes such innovations are used, then the results of the implementation of the ERP system will not be noticeable. Thus, employees should understand that the use of this software package can be an important lever to improve the efficiency of the entire enterprise.

Training employees in the basics of working with an ERP system should begin in advance. You can conduct an internal advertising campaign, prepare accessible information about the goals that will be achieved after the start of using this software package. In a specially developed document - "Personnel Training Strategies" - this task is designated first. In this document, all employees of the enterprise are divided into groups depending on the amount of necessary training activities, and all other training steps are listed.

As a rule, several groups are allocated into which the entire staff is divided. For example, a separate group can be distinguished company management and middle managers who will directly manage the operation of the enterprise and make the necessary decisions. Another group is that part of the users who perform the main functionality in working with the ERP system, without delving into the details of business processes, but having deep knowledge of the software package. And the third group is the main part of the employees who will enter the primary data into the program.

The first two groups should be trained by employees of the organization that developed the ERP system, while the bulk of the personnel from the third group can learn the basics of the program remotely or through colleagues who have already received the necessary knowledge.

Training can be carried out both in the training centers of consulting agencies, and directly at the enterprise. In some cases, the developers of the ERP system determine the obligatory condition for obtaining the appropriate certificate from employees of the second group.

Consulting agencies enter into agreements with major vendors such as SAP, Microsoft, Oracle, Sun, Cisco, which gives them the right to train how to work with the program and issue supporting documents upon completion of training. Information about this can be found on the official websites of such companies. Domestic developers - "Sail" and "Galaktika" - have their own training centers.

ERP system: an example of successful implementation

One of the enterprises engaged in the production and sales of refrigeration equipment - Howe Corporation(USA) – in order to conduct business more efficiently, it decided to implement an ERP system based on a service-oriented architecture (SOA) of the 2nd generation. This made it possible to immediately get results and see the benefits of using this ERP system, since the quality and profitability of all business processes have significantly increased.

This organization got the opportunity to more qualitatively analyze the volume of material reserves and the need for their replenishment. After the implementation of the ERP system, Howe Corporation has all the necessary tools for planning activities both in the short and longer term, which eliminates the use of an unreliable calendar method of planning.

Also, all the possibilities of using the ERP system were evaluated by an international company Alfa Laval, which has set itself the goal of achieving improved performance by improving the efficiency of business processes. In one of the Alfa Laval offices in Bulgaria, the Epicor iScala ERP system was used, which helped to carry out a detailed analysis of the use of materials and raw materials, control the timing of their purchase to fulfill the relevant orders, which affected reduction of industrial waste. At the same time, since the ERP system fully automated all business processes, this made it possible to reduce the volume of excess products in warehouses, as well as to minimize downtime in production.

Another company is IO Electronics- can also serve as an example of the successful use of an ERP system. Their goal was to successfully achieve the targets set for the next 4 years.

According to the director of IO Electronics, with the rapid development of activities and the development of other production areas, the profitability of the enterprise can significantly decrease if there are failures in the exchange of information between internal divisions. However, when using an ERP system, all information becomes available online. Upon completion of the task, the ERP system undergoes updates, which allows you to trace the entire production process and see the actual availability of a particular product, as well as avoid an overabundance of inventories in warehouses.

Practitioner tells

How an ERP system reduced the need for working capital by 40%

Sergei Sukhinin,

Since earlier our company did not have an ERP system, it was impossible to quickly note changes in the business process, which entailed a lack of materials for the assembly of finished products, uncoordinated activities of workshops, deterioration in the quality of the final product and increased consumption of raw materials. All these unnecessary costs could only be reduced by implementing an ERP system.

The main activity of our organization is production, so the tasks of automating planning and managing business processes were top priorities. Having determined that an ERP system would help us in solving our tasks, we wanted to achieve such goals as:

  1. Increasing the efficiency of spending working capital.
  2. Reduction of inventories stored in warehouses.
  3. Creation of a production program taking into account the available capacities.
  4. Reducing the level of work in progress.
  5. Creation of a general list of materials used in production.
  6. Improved material rate calculation process.
  7. Increasing the accuracy of procurement plans, which will help reduce the volume of illiquid stocks in warehouses.

Only after the introduction of the ERP system, we were able to correctly plan the volume of materials needed for production based on the analysis of stocks in warehouses, which led to a reduction in working capital costs by 40%. Further, such an analysis helps to purchase only those materials that are necessary for a particular business process. The organizational structure of the company was also optimized, which contributed to the reduction of employees in the production and dispatching department by 50% without compromising the quality of work.

We can sum up the following results of the implementation of the ERP system in our company:

  1. Production balances in warehouses decreased by 60 million rubles.
  2. In all areas of activity, control is carried out based on the results of the analysis of measured indicators. Employees' incomes depend on the work they have done or not done, and they are solely responsible for this.
  3. The purchase of production raw materials and their further distribution to the workshops are fully controlled.
  4. The balance of illiquid materials decreased by 20 million rubles.
  5. The procurement plan has become optimal; changes are made to it in a timely manner if such a need arises.
  6. It became possible to plan the load on production facilities and, accordingly, the number of workers required for this.

What ERP system is in demand among Russian companies

Software systems that currently exist on the IT technology market can be developed by domestic and foreign companies. At the same time, they differ not only in the country of development, but also in the built-in functionality.

Foreign ERP systems, such as programs from SAP, Oracle, PeopleSoft, Sage, Baan, Microsoft Business Solution, can be used in enterprises of any category and are examples to follow. However, when working with such systems in Russia, some difficulties may arise:

  • the absence of the required number of specialists trained at the appropriate level for the implementation and further maintenance of the ERP system;
  • the unwillingness of domestic organizations to rebuild established business processes, since foreign management systems have significant differences from those used in Russia;
  • high implementation cost.

However, Russian developers are also trying to expand the capabilities of their own software systems in accordance with the needs of customers. Such ERP-systems successfully cope with the tasks set in the case when it is necessary to automate certain areas of the organization's work and it is not necessary to introduce a software package into the work of the entire enterprise as a whole. An example is the software of 1C and Galaktika companies.

11 ERP Implementation Mistakes

To improve the efficiency of the enterprise, installing an ERP system is almost the most expensive and most difficult task. The final price of implementation, as well as the time required for this, will depend on the number of errors that occur in the process.

Mistake 1. Poor planning.

This fact may lead to a misunderstanding of the present and future state of the ERP system, incorrect automation of business processes.

Mistake 2. Superficial analysis of organizations-developers of ERP-systems.

As a rule, the main criterion is low cost, but sometimes developers deliberately underestimate the cost of services in order to test the implementation process on the first customer. Upon such an installation, serious flaws and failures in the system can be identified.

Mistake 3. Misunderstanding the needs of the enterprise.

After deciding that it is still necessary to implement an ERP system, the customer company does not fully understand which software modules they need to install. This can be used by unscrupulous vendors who will include a lot of unnecessary components in the ERP system or, on the contrary, the installed functionality will not be enough.

Error 4. Underestimation of time and material costs.

Incorrect determination of the timing of implementation and the cost of installing an ERP system can lead to unreasonable expectations of a rapid increase in the efficiency of business processes.

Mistake 5. Lack of qualified employees at the customer enterprise.

The team of the enterprise should include employees with a sufficient level of knowledge in any field, from management and accounting to accounting in a warehouse, purchasing materials, etc.

Mistake 6. Lack of priorities.

If you do not set the right priorities initially, then during the installation of an ERP system you will often have to switch between different tasks, and this can lead to a delay in the installation process, unforeseen problems, etc.

Mistake 7. Insufficient staff training.

If you do not show employees all the functionality of the ERP system and how to use it, the staff of the organization may refuse to work in the system altogether or use its capabilities only partially.

Mistake 8. Underestimating the accuracy of primary information.

Since the key point of the ERP-system is the analysis of information, the result of its work will largely depend on the correctness of the initial data. Avoid typing errors and carefully check the information provided.

Mistake 9. Using outdated applications.

Very often, enterprises use both an ERP system and previously installed software in parallel - there is a duplicate data entry. Thus, the time for the final implementation of the ERP system is increased.

Mistake 10. Lack of a test period.

Sometimes testing of the installed software package is carried out only on a few users, which does not allow you to see all the shortcomings and the current load on the ERP system in a timely manner.

Mistake 11. Lack of a plan for maintenance and implementation of updates.

Without this, the software package will very soon become irrelevant. For the hardware component of the ERP system, it is necessary to regularly increase production capacity, since the volume of information processed will also grow. The program component may require adjustment in the event of, for example, changes in legislation.

These mistakes are the most common, but each company may have individual problems. To minimize them, you need to carefully prepare a plan for installing an ERP system at each stage.

What determines the cost of an ERP system

The final price of the ERP system will be a combination of the following components:

  1. The prices of the software complex itself: the main set of modules and additional components.
  2. Installation service cost.
  3. Making improvements and adjustments to the program based on the needs of the customer company.
  4. Further service and support.

To reduce the cost of implementing an ERP system, it is necessary first of all to pay attention to Russian suppliers, since foreign programs have a higher acquisition price and require significant changes to comply with domestic legislation.

Expert opinion

The implementation of the ERP system cost the company $ 2.5 million

Sergei Sukhinin,

Head of the Department of Automated Control Systems of OJSC Scientific and Production Complex Elara, Chuvashia

The license to install the ERP system cost us $470,000, and the total implementation cost was $2,500,000. However, already in the process of using the ERP system, a positive effect was achieved, while the costs were fully reimbursed 1.5 years after the installation of this software package.

Information about experts

Sergey Bratukin, director of practice "Distribution" Columbus IT&Russia, Moscow. Sergey Bratukin in 1997-2005 worked as a consultant in the Russian division of Columbus IT. Participated in the implementation of large-scale projects for the implementation of ERP systems in companies such as Torgovaya Ploshchad, MVO, Starik Hottabych, Formula Kino, Avtomir, etc. The international consulting company Columbus IT provides consulting services for the selection, implementation and support of corporate information systems, as well as management consulting. Founded in 1989 in Denmark, currently has offices in 28 countries around the world. Over the eight years of Columbus IT's work in Russia, more than 200 enterprises have become clients of the company, including SSM-Tyazhmash, Trade House Perekrestok, Dixy, L'Etoile, Unimilk, Istok, Toyota and many others

Sergei Sukhinin, Head of the Department of Automated Control Systems of OJSC Scientific and Production Complex Elara, Chuvashia. Elara Research and Production Complex OJSC is a leading Russian manufacturer of flight and navigation systems, automatic and remote control systems, on-board computers and display systems for military and civil aviation aircraft. Within the framework of the cooperation agreement with JSC Russian Railways, JSC Elara is preparing for the production of devices and systems for Russian railway transport.

Before starting to consider the functionality of the 1C: ERP Enterprise Management software product, it makes sense to determine what requirements are placed on automated systems that implement the ERP concept. The MRP / ERP model itself, in addition to interacting with customers and suppliers, includes the following subsystems:

  • Inventory Management;
  • Supply management;
  • Sales management;
  • Manufacturing control;
  • Planning;
  • Service management;
  • Supply chain management;
  • Financial management.

In these subsystems, more than one and a half dozen groups of functions of the production and marketing system are implemented. The most famous of them, one might say, live their own lives. They are used so widely that they are not always associated with part of the ERP concept. An example is the functions of sales planning: what company does not plan in general, and sales in particular? These don't exist!

In the ERP concept, sales planning is included in the Sales and Operations Planning (S&OP) group. Here it means not only the planning of the actual sales, but also the connection, balancing the sales plan with production plans, available production capacities, stocks, procurement and supply processes, financial plans, etc.

Of course, in practice, all enterprises perform interconnected planning. However, often the management of the organization tries to find its own way, by trial and error, looking for its own approaches to this task. In a word, they are re-inventing the functions already available in ERP, “reinventing the wheel”, which has long been embodied in the ERP concept. Of course, a much more effective and reasonable solution would be to turn to ready-made solutions and adapt the functionality of the ERP system to the needs of a particular enterprise.

How it works?

Let's consider how the provisions of the ERP concept are implemented in the software product "1C: ERP Enterprise Management".

"1C:ERP" includes the following functional blocks:

  • Planning and budgeting in 1C:ERP;
  • CRM and marketing ();
  • Sales;
  • Procurement;
  • Warehouse and delivery;
  • Production;
  • Personnel;
  • Salary;
  • Treasury Department;
  • Financial result and controlling;
  • Regulated accounting;
  • International financial accounting.

Sales planning, which we considered above (and with it such functions of the ERP system as production plans, purchases, accounting for the availability of production facilities, stocks, etc.), is implemented in the Planning and Budgeting block. This subsystem allows you to create interconnected plans, evaluate their balance, obtain a cost estimate, make informed decisions, and, if necessary, make adjustments.

Blocks and subsystems of "1C:ERP", providing financial and economic opportunities, fully meet the legal requirements for accounting. They allow you to implement corporate requirements for management accounting and reporting, organize separate accounting of the financial and economic activities of the enterprise, order accounting of costs and costing, implement almost any budgeting model, and ensure effective cash management.

1C:ERP fully implements all the features of the 1C:Trade Management 11 solution related to trading operations. The subsystems "Personnel" and "Salary" correspond to the functionality of the solution "1C: Salary and personnel management 3".

Thus, "1C:ERP" includes the functionality of a whole range of advanced industry solutions from 1C.

However, the program still does not implement all the functions that make up the concept of ERP. This is explained by the fact that in the real business practice of Russian enterprises, some of this functionality is simply not in demand. In addition, this is due to the architecture of the software product itself, which "by default" is a typical and mass solution. Satisfying most of the basic requirements, the system cannot incorporate all the nuances of the operating activities of each particular enterprise. "Fine tuning" of the system, its adjustment to the goals, objectives and characteristics of the company are implemented in the process of business automation, at the stage of implementing an automated system.

Therefore, if we compare the list of subsystems of the ERP / MRP model with the functionality of "1C: ERP", we can say with confidence that "1C: ERP" closes all the necessary groups of functions. In addition, this software solution allows you to keep various types of accounting and generate arbitrary reporting. The system complies with all the requirements of Russian legislation for regulated accounting and reporting. All this makes 1C:ERP an effective enterprise management tool.

In this article, we will talk about what is meant by the term ERP system, when this software appeared on the market and what it was created for, and we will also try to predict in which direction systems of this class will develop.

We will also try to answer the main questions that arise from those who decide to figure out why this software is so in demand by modern enterprises:

  • What software can be classified as ERP?
  • Why do companies around the world spend significant sums for their business on the implementation of ERP systems?
  • How are these systems arranged?

The history of the concept of ERP

Before starting a conversation about ERP systems, it is worth remembering where this concept came from. ERP term or enterprise resource planning was a development of the concept of MRP (MPR-II), which was used to refer to a class of systems developed back in the 60s of the last century and intended for organizing production processes (first of all, material planning "MRP", and later resources in general " MRP-II") and production accounting. Those. the very concept of MRP (-II) was and still is related to information systems designed to automate production activities.

In the 1990s, the Gartner Group and a number of other companies were looking to apply the planning approaches implemented in MRP systems to other areas of business, expanding the capabilities of MRP in terms of planning activities and managing enterprise processes.

It was from these works that the term "ERP" was born, first used by the Gartner Group and intended to refer to a new class of systems.

From the very beginning, ERP systems have been positioned on the market as systems that, in addition to solving resource planning tasks, also solve data organization and optimization of processes related to the functioning of the back office, such as inventory management, sales, pricing, accounting, etc. d.

Figure 1. Composition of ERP systems

In addition to the term ERP, the definitions of "Enterprise Management System", "Integrated Enterprise Management System" are actively used, and in fact, they all describe ERP systems.

Architecture of modern ERP systems

While every company is unique in some ways, they all face a common challenge: to stay competitive in today's business environment, companies need a reliable and efficient way to store and access heterogeneous information. This problem is solved by the modern ERP system.

A typical ERP system is a set of modules (or even separate applications), each of which manages a specific process: procurement, sales, production, accounting and tax accounting, personnel processes, customer support, CRM, warehouse logistics, etc. At the same time, the system covers the main processes of all activities of the enterprise.

As a result, the ERP system is a comprehensive information management system for managing information within an organization that solves the entire range of tasks of managerial, regulated and other types of accounting, in contrast to specialized software designed to automate a specific business process or activity.


Figure 2. List of tasks solved by the 1C: ERP system Enterprise management

As a result of the implementation of an ERP system in a company, business owners and managers can simplify and automate time-consuming back-office tasks, help employees become more productive, and most importantly, get an operational (often in real time) cut across all areas of activity with the possibility of parallel analysis and development planning.

Classification of ERP systems

Having understood what is usually understood by the term "ERP system", we will try to classify these systems by type. It must be said right away that the classification is rather arbitrary, because there are quite a few signs by which such software can be classified: functionality, positioning, size of organizations for which the solution is intended, and much more. We tried to simplify the classification as much as possible by dividing ERP solutions into the following groups:

  1. Complex information systems. This group includes universal ERP systems. They can be adapted to the processes of a wide variety of companies - from large industries to financial institutions. Such solutions have a wide range of settings and advanced integration mechanisms to remain as versatile as possible and meet the requirements of different business sectors. The largest players operate in this market, and the market for such systems occupies the largest share compared to the markets for other types of systems (which we will discuss below). Examples: Oracle, SAP, Netsuite, 1C.
  2. Industry information systems. These ERP systems are focused on a specific industry, sometimes even on a narrow direction within the industry (for example, ERP systems designed to automate companies selling air and railway tickets). Often such products are released by startups or companies that, being unable to develop a product that competes with large players in established markets, are trying to find their own small niche and take a leading position in it. Many large companies, entering this market, start with specific industries, gradually developing the solution towards maximum versatility. Examples: Microsoft Dynamics AX, Brightpearl, Epicor Retail, 1C.
  3. ERP for small business. Formally, such systems cannot be classified as ERP, however, small companies have enough functionality of such systems to meet all their needs at a lower cost of both the program itself and implementation and subsequent ownership. Often such ERP systems are modular, and the functionality is cut down compared to more expensive products.
  4. Thus, instead of installing a comprehensive information system, the company implements a small product that serves one or two key business processes, but does not cover other areas of the enterprise. Example: PeopleSoft (a system that implements the functions of accounting, personnel management and CRM), 1C:UNF.
  5. ERP systems open source. Open source ERP systems currently occupy a small part of the total ERP market. But such solutions are often supported by companies that have teams of developers and analysts on staff to refine and integrate the system with their local information resources. Example: Odo.

Advantages of modern ERP systems

The market for ERP systems is growing from year to year, both in value terms and in the number of workstations. This is evidenced by numerous market studies. Why are more and more enterprises, from giants to small companies, seeking to implement modern ERP systems?

The main advantages provided by the ERP system implemented at the enterprise:

  • A deeper understanding of the processes taking place in the company and a decrease in response time to changes. Thanks to the consolidation of all key information in a single system, it becomes possible to promptly receive management reporting on all aspects of the enterprise's activities in real time;
  • As a result, a private (but very important) advantage of consolidating operations and data in one system is to ensure data comparability, eliminate duplication and form a common vision of ongoing processes for all participants;
  • Modern ERP systems contain built-in predictive tools that can be used to make informed decisions about the next steps in business development;
  • Cost reduction through the introduction of unified end-to-end business processes, automation of labor-intensive tasks, elimination of redundant processes, as well as simplification of training and adaptation procedures for new users;
  • Thanks to a uniform IT landscape, the ERP system allows you to increase the security of data storage, simplify the tasks of restricting access, and thereby increase the level of information security.

Disadvantages of ERP systems

To complete the picture, having outlined the advantages, we should dwell on the disadvantages of switching to modern ERP systems:

  • High cost of implementation and ownership. Until now, the traditional scheme for implementing ERP systems implies large initial costs for implementation. Moreover, the money must be spent even before the system will work, and the business will receive its benefits.
  • High implementation risks. There are a large number of implementation difficulties, including a heavy legacy in the form of the peculiarities of the operation of old software that must be taken into account during the transition, and the resistance of personnel to change, and the lack of qualified personnel within the enterprise capable of organizing the transition process and further support, and much more. Until now, projects for the implementation of ERP systems in enterprises remain one of the most risky for business.
  • Insufficient universality of ERP solutions. Despite the fact that leading manufacturers are trying to make their solutions as flexible as possible and suitable for any business requirements, it is clear that practice is far from theory. There may simply be no completely suitable solution on the market, so often the product is adapted to a specific organization, which significantly increases the cost of the project.

ERP systems are constantly evolving, and leading vendors are trying to take into account the existing shortcomings in new versions of the software and level them as much as possible.

How to determine if your business needs ERP

Any company is unique in its own way, although at different times it faces common problems for all such organizations. Below we will try to help determine if it is time for your company to consider investing in an ERP system.

If most of the points below apply to your business, then it's probably time to seriously consider implementing an ERP system in your business:

  • Your team members spend too much time on tasks that can be simplified or automated;
  • You do not have online access to the data required to make a decision here and now;
  • You have many diverse integrations with external systems;
  • Your enterprise uses a large number of unrelated software products and tools;
  • You do not have reliable information about the balance of goods and materials in warehouses or cash at the box office;
  • You personally spend a lot of time searching for information, trying to increase the productivity and efficiency of employees, and departments are difficult to interact and are reluctant to share information with each other;
  • You do not have full access to information when you leave the office;
  • You lack the tools to monitor the implementation of decisions made.

To be sure that the investment in a new ERP system will pay off, you need to detail the specific problems that exist in your organization, and before making decisions, understand exactly how the ERP system can help solve these problems.

The modern international market for ERP systems is huge and continues to grow. To date, thousands of software vendors are represented on it, the exact number of which no one knows - some players leave the market, but new ones are constantly appearing.

Basically, the market presents industry solutions developed for the needs of specific industries: certain areas of production, logistics, retail, and others. However, the leaders of the international market are companies that offer the most comprehensive solutions.


Founded in 1972, SAP has now opened subsidiaries around the world and organized interaction with a number of external teams involved in the development of add-ons for the company's software products.

SAP is represented on the market by two main products:

  1. SAP Business All-in-One. This ERP solution, built on the latest SAP HANA platform to date, is positioned as a comprehensive solution covering 25 business sectors, including, of course, manufacturing and sales, and designed for large companies. Includes business intelligence (BI) and forecasting product.
  2. SAP Business One. It was released to the market to strengthen the position of SAP in the segment of solutions for small / medium organizations. The solution is based on the same platform as SAP All-in-One, but less functional and versatile.

Microsoft took second place in 2017 with Microsoft Dynamics AX. Despite the lower versatility compared to SAP products, the solution is suitable for companies engaged in trade and provision of services, thanks to which the company annually increases its market share and actively develops its product.

Third place was shared by Oracle and Infor, followed by (by a wide margin) second-tier companies: Epicor, Sage, NetSuite and others.

The Panorama study also notes that SAP has taken the first place in terms of the payback period for investments in ERP. In terms of implementation speed, Oracle products lead, and in terms of implementation costs, NetSuite systems took the lead, costing customers an average of 2.8% of revenue.

The benefits of Infor's systems were highlighted in particular, such as the wide range of mobile options for remote offices and employees, reliable and intuitive business data analysis tools, and optimal implementation time and cost, as well as return on investment.


The leading position in the Russian market with a share of slightly less than 50% is occupied by SAP, followed by 1C with a share of about 32% and other players with a significant margin: Oracle, Galaktika and others.

However, in addition to estimating the market share in dollar terms, one can look at the number of automated jobs in the Russian market. In terms of the number of implementations and workstations, more than 80% of the market is occupied by 1C, being in fact a monopolist in terms of ERP systems for small and medium-sized businesses.

The Future of ERP Systems

Since the 90s of the last century, the ERP systems market has been actively developing, as the number of organizations implementing ERP systems to optimize key business processes and improve data visibility has grown like an avalanche.

At the same time, the costs of implementing ERP systems were also rising, and it was not so much about the cost of hardware or software, but about the costs of implementing and developing systems in an ever-expanding market and changing processes. As a result, "traditional" systems, due to their high cost, have become simply inaccessible to small and medium-sized businesses.

The situation has changed with the advent of "cloud" technologies and the development SaaS (Software as a Service). Already now, all market leaders offer the opportunity to start using their key products by subscription.

The main advantages of this approach are:

  • Scalability - you can buy additional functions as your business grows without the need to implement a new system;
  • SaaS solutions, due to their specifics, provide access to the ERP system via the Internet anywhere and anytime;
  • Low capital costs - there is no need to buy equipment, related software, there are no large one-time payments for the implementation of the system;
  • The system is maintenance-free - the supplier takes over the tasks of updating the system, performs troubleshooting, thereby reducing downtime.

A significant disadvantage of SaaS is the impossibility of finalizing the solution to the requirements of a particular enterprise and a number of other restrictions, so some large enterprises opt for "hybrid" ERP systems, which offer the ability to combine traditional system ownership and subscription schemes. With this scheme, part of the subsystems is located in the cloud (and access to them is offered by subscription), and part is on the customer's servers.

It can be predicted that this market will only develop, moreover, systems that are distributed only via SaaS and do not have a “traditional” deployment option at the site of the customer company have begun to appear on the market.

Another clear trend is the widespread introduction mobile access to systems. Access is implemented in various ways, some ERP systems support integration with their own mobile applications developed for iOS and Android, some offer access through a web browser. However, such access today is always a compromise between the restrictions imposed by mobile interfaces, security requirements and the functionality expected by the client.

You can be sure that in the future, the possibilities of remote data access will expand and new products for remote work will appear on the market, both from market leaders and from newcomers.

Another direction of development, under which they even came up with a new term "ERP 2.0" is the implementation social interactions in system. "Social" ERP system allows you to effectively use social networks, closely interacting with Facebook and Twitter, implements new channels of communication, helps to increase customer loyalty and, as a result, increase conversion when selling goods and services.

Results

It can be said for sure that today there is a rapid development and change in the ERP systems market. Thanks to the development of cloud technologies, ERP systems have become

are available to companies of any size, and now even a small business, by subscribing, can start using a "heavy" ERP system, the implementation of which in a company in a more traditional way would be impossible.

As a result of the widespread introduction of new technologies, the modern user imposes more and more stringent requirements on the capabilities of the ERP system in terms of remote work. Therefore, in the near future, we can expect products to appear on the market that will not differ in terms of functionality and security, no matter whether the user works remotely or from the office.

All these changes benefit the end user of ERP systems and will certainly lead to an even greater increase in the market share occupied by EPR systems, making them familiar tools for companies of any industry and any size.

Our clients in the field of creation and implementation of ERP systems are such large companies as: Federal State Unitary Enterprise Research Institute Voskhod, LLC Transstroymekhanizatsiya, NGK ITERA, subsidiaries of the Itera holding, LLC MDK, and many others. In total, over 300 companies of medium and large businesses in Moscow and the Moscow region, as well as more than 10 large enterprises in the regions of Russia, use our services. Our corporate information systems development department has over 50 highly professional employees (programmers, managers, developers, etc.). The department, in turn, is divided into divisions (departments and groups) depending on the platform for the IS architecture (Oracle, 1C, Microsoft, and others) and the purpose of the information system (CRM, ERP, Cloud Technologies, document management systems, ITSM, SaaS, and others). ). Thus, we are ready to offer our customers not only a wide range of different platforms for creating ERP systems, but also a variety of different system approaches to solving company IT problems.


For a start-up business, we recommend ERP solutions foropen-Source platforms, implementation and price of such solutions is acceptable for any level of business, due to the open source, the functionality of the program can be finalized even on your own. We do not indicate the platforms, since there are a lot of them, and it will not be difficult to download the ERP module for free from the Internet, however, each "shareware" solution on the Open Source platform cannot be instantly integrated into the workflow, it requires refinement of the program code, and ideally, for normal performance, ERP should be created from scratch based on the base that the customer has.

For small and medium enterprises and companies we recommend staying at platform 1C for the integration of ERP applications - the functionality is quite wide, the implementation is relatively fast, the platform is "Russified" (more precisely, it was created by domestic developers, due to which the main language is Russian) and perfectly integrates with other solutions from 1C.

For large enterprises we recommend platformOracle for the development of ERP systems, as it allows you to create complex personalized solutions, ranging from basic ERP functions to the construction of complex models and processes. However, the Oracle platform, with the right choice of hardware, allows you to achieve the best performance to date. ITERANET is also ready to act as an integrator (supplier) of technical solutions for the implementation of the ERP system. Read more about implementing Oracle ERP in the following sections.

You can also leave a preliminary application with your comments and wishes on the ERP system, you will be allocated a personal manager who will contact you as soon as possible.

What is ERP?

ERP is Enterprise Resource Planning, in Russian "enterprise resource planning". This is a fairly broad concept, and a fairly wide range of programs that can be attributed to the class of such systems. However, the distinguishing feature of all ERP systems from other systems is the focus on the integrated organizational component of the system, which allows not only managing financial management, assets, labor resources, production operations in one software solution, but also keeping records and optimizing all business processes of the company, create models of processes and their solutions. ERP is a general definition, while an ERP system is a finished product that allows you to solve all the above tasks.

It should be understood that there are no ready-made ERP systems, in the specifics of the fact that even firms from the same industry have different staff, different financial transactions, different approaches to sales and procurement, supply chain and solutions. The theory and practice of ERP was born in 1990, and appeared on the basis of two other methods: MRP II and CIM.

MRPII is the "second" version of the material requirements planning system. MRP ("first version") stands for Material Requirements Planning, in Russian translation "planning the need for materials." The entire logistics industry is based mainly on the MRP concept, while this concept appeared back in 1950, and became outdated within 20-30 years, as it did not contain a very important point, namely the “cost reduction” of supply chains. This “theory” reached Russia too late, so there are no software solutions in domestic business based on material requirements planning. The main task MRP is the planning of the supply of materials, the creation of chains of transportation and the transition of one task to another, the transfer of the production schedule into the so-called "chain of requirements", planning of requirements, synchronization of the company's actions in time. MRP 2 (MRP II) is actually the same "planning" except for the first and second words - in the second version, material was replaced by manafuturing, and requirements were replaced by "resource". Even in the very concept of the two concepts, the difference is visible, the first MRP assumed only material requirements planning, while the second MRP already required production resource planning. MRP II is a planning strategy that includes both financial and operational planning. Here the main foundation is monetary planning. MRP II includes the following steps (they should also be present in ERP practice):

  • sales and operations planning (Sales and Operation Planning - SOP);
  • demand management (Demand Management - DM);
  • simulation (English version - Simulation);
  • input / output control (I / OC);
  • management at the level of the production shop (Shop Floor Control - SFC);
  • Distribution Resource Planning (DRP);
  • product specification (Bill of Materials - BM);
  • drawing up a production plan (Master Production Scheduling - MPS);
  • evaluation of performance results (Performance Measurement - PM);
  • material requirements planning (Material Requirement Planning - MRS);
  • warehouse management (Inventory Transaction Subsystem - ITS);
  • scheduled deliveries (Scheduled Receipts Subsystem - SRS);
  • capacity planning (Capacity Requirement Planning - CRP);
  • logistics or MTS (English version - Purchasing);
  • planning and control of production operations (Tooling Planning and Control - TPC);
  • financial management (Financial Planning - FP).

The concept of ERP and ERP systems

ERP(English abbreviation of words EnterpriseresourcePlanning, translated as “enterprise resource planning”) is a systemic and organizational strategy for combining various areas of the production process and its management, such as asset management of production and financial operations, human resources management, organization of financial management, and at the same time this process is focused on constant balancing and maximum optimization of all available resources of a given enterprise with the help of a specially developed common application software package that can create and display a common data model and maintain all the necessary processes for all areas of the enterprise that uses this system. An ERP system is a specific software package that optimizes and helps implement the overall strategy ERP.

History of ERP development

This system and concept of ERP was proposed and formulated by Gartner analyst in the 90th year of the 20th century. It was a vision of the evolution of MRP II and CIM. (from the beginning to the middle of the 90s of the 20th century, a small number of successfully sold ERP systems appeared on the information product market), which were actively in demand by large organizations and business structures. Among such information packages, the most famous were the developments of the Dutch company Baan, also companies SAP, Oracle, JDEdwards(part of Oracle), PeopleSoft. Thus, a market for services for the implementation of ERP systems into business systems began to form. The bulk of the information packages were offered by the Big Four companies. But already in the first years of the 21st century, there was an association of suppliers of these products, which released a significant number of ERP systems for all forms of ownership for both small and medium-sized businesses. To date, the most famous manufacturers of this software are companies Sagegroup and Microsoft .
To date the implementation of an ERP system is a prerequisite for the operation of any public company. In this regard, since the late 90s of the last century, ERP systems have been a prerequisite for the successful operation of any industrial enterprise, and today these software systems are used by almost all large organizations, regardless of ownership, all countries of the world, and all economic sectors.

History of development and creation of ERP systems

Abbreviation ERP introduced at one time by a well-known analyst Gartner LeeWylie in the 90th year, in the process of research on the development of production resource planning of large enterprises. Wylie, on the basis of logical conclusions, came to the conclusion that it is necessary to create multi-user systems that can be produced in large quantities, that can provide optimal management of all available resources of the enterprise, as well as covering the entire scope of the organization's activities, which refers to both the main activity aimed at the release of the final product, as well as the coordination of the procurement of raw materials, the marketing of the final product, the movement of the enterprise's finances, and of course the personnel employed in the production cycle.

In the very early 1990s, this concept became widely known with the support of large manufacturers of application software systems. These were software SAPR/3, which were released in the 92nd year. An advanced enterprise material management package was also released. SAPR/2. Company OracleApplications, creates in these years, based on a software package of its own development in the late 80s, its own product based on the integration and reengineering of previously released applications.

Already closer to the middle of the 90s of the 20th century, a market for the implementation of ERP systems was practically formed. At the same time, both the manufacturers of this software and numerous consulting companies were engaged in consulting services and further promotion of the systems. For company comparison Andersenconsulting in 1996, more than three thousand consultants were involved in the implementation of the system R/3, in company SAP- about 2800 consultants worked in PricewaterhouseCoopers there were 1800 of them, and in the company Deloitte& Touche 1400 people involved in the promotion of this information product are involved. If we take the figures of the late 90s, then from 50 thousand R/3-consultants 10% worked in SAP.

By the end of 1998, the company PricewaterhouseCoopers, describing the picture of the ERP systems market, applied a new lexical phrase to more accurately characterize the process - BOPSE, which determined the main suppliers ERP. These were Oracle, SAP, Baan, Peoplesoft, and company JDEdwards. Of course, there were other players in the market for the provision and implementation of ERP systems, such as QAD, lawson, RossandSolomon, Greatplains, but they were non-BOPS.

As of the state of affairs, by 1998, approximately 60% of all multinational corporations to systematize and optimize their activities implementedSAPR/3.

At the very beginning of the 90s, ERP systems were mainly introduced in industry by machine-building enterprises as systems that implement MRPII component, but already starting since the second half of the 90s, the introduction of ERP systems has become widespread. It (implementation) has become especially noticeable in the service sector, as well as numerous energy sales companies, as well as telecommunication enterprises. ERP systems began to be implemented by non-profit organizations, as well as public authorities.
At the same time, due to a significant increase in the number of modules and applications in ERP systems, as well as the expansion of their functionality, the attitude towards ERP systems as a global software for organizations of all types of activity begins to change. At the same time, this information product begins to replace other application programs aimed at solving similar problems, but not having all the capabilities of ERP.

By the beginning of 2000 in the packageERPadditional functions are introducedCRMandPLM. These applications can be considered as stand-alone and universal systems for back-office processes, as well as resource management systems. In addition, the capabilities of CRM-systems allow you to manage external relationships between the enterprise and the front office, and the PLM software package to manage the intellectual property of the enterprise or another person who installed it.

With the global expansion of the Internet and the practical development of the functionality of Internet resources and web browsers at the turn of the 90s and early 00s, without exception, all the main manufacturers re-equipped ERP-systems with Internet access. One of the first who made this innovation was the company SAPin 96. These were attempts to implement the implementation of some functionality, and the first to fully organize global Internet access to the system in 98 was the company Oracle. And already in 2000, a web interface appeared for the package Peoplesoft.
At the end of the 99th year, the development and implementation of the first ERP system was started, which was freely distributed on the network - this Compiere. Following it, other free ERP packages appeared. Perhaps the most famous and widespread among them are OpenERP, ADempiere, ERP5,openbravo(forksCompiere) .

Already in the early 2000s, there was an integration of ERP system software vendors. For example, we can note the facts - the beginning of 2000, companyMicrosoftintegrated the company into its structuresGreat Plains. The result of the merger can be considered the release of a software package MicrosoftDynamicsGP. It is also necessary to note the integration of companies Damgaard and Navision. The result of the merger can be considered software development MicrosoftDynamicsAX, as well as the package MicrosoftDynamicsNAV. Further, the merger of companies went at a faster pace, so at the beginning of 2003 the company Peoplesoft buys a company JDEdwards for $1.7 billion, thus taking second place in the ERP market. The share of this holding has become almost 12%. Considering that the market size of this software package in 2004 was $23.6 billion, then we can imagine the effectiveness of such transactions. This step allowed Peoplesoft get ahead of Oracle, and only give a little SAP. But the market is a market, and at the end of 2004 the company Oracle made a takeover PeopleSoft, acquiring it for $10.3 billion.

The ERP system market is growing steadily, already in 2006, licenses for the right to use this software were sold worth $28 billion. It should be noted that the increase in just one year amounted to 18%. In 2005, the market was segmented by manufacturers of ERP systems as follows: SAP occupied 42% of the market, Oracle- 25%, company Sagegroup just over 7%, the company Microsoft less than 7%, info about 6%, however, the dynamics of the market by 2010 reduced leading gapSAPandOracleto market coverage rates of 24% and 18%, and the share Microsoft, at the same time, increased significantly and amounted to 11%. Since the second half of the first decade of the 21st century, ERP systems have been equipped with a support function everywhere. service-oriented architecture. This has made it possible for most major systems to automatically call almost any function using a standardized method. This made it possible to reduce the cost of the system to overcome intersystem mismatch for organizations that used systems from several manufacturers. Also, new platforms and ready-made proposals for the implementation of composite applications appeared on the market. In addition, since the mid-2000s, many ERP systems have appeared that were provided by subscription (for example, this is NetSuite and Plex), and then major vendors made it possible for customers to use their systems by subscription.

Fundamentals of ERP

If we take the main characteristic feature of the ERP strategy, then it is necessary, first of all, to note the possibility of a fundamental approach to using a single model of the transactional system, which can be applied to the main number of operations and all current business processes going on in the organization. Moreover, these systems can be applicable for any functional and territorial disunity of processes occurring in a production or other process, regardless of the reason for their occurrence and origin, the system will provide an opportunity to integrate information from all operations performed into a common information base for subsequent system processing and obtaining results in real time , as well as the selection of balanced plans.

Another distinguishing feature of an ERP system is the ability to replicate. This principle makes it possible to use one software package for any enterprises and organizations, while for each of them it is possible to apply different settings and set the necessary extensions. This distinctive feature acts as one of the main conditions for the implementation of ERP systems. Also, one of the reasons for the global use of replicated ERP systems, instead of individual software development, makes it possible to apply best practices through methodreengineeringbusiness processes according to the solutions used in the ERP system. Of course, the customer can also request an individual ERP system, tailored only to the specifics of his production or organization, but this approach is extremely rare today.

In connection with the global implementation of ERP systems, as well as their implementation in completely different territorial entities, in organizations and enterprises with completely different profiles, it is required to support a variety of currencies and languages ​​applicable in a single software system. In addition, there is a need to support many organizational units of a single process (these can be several legal entities, or several enterprises of the same holding, or dispersed suppliers of the same manufacturer, or geographically remote branches of the same holding), as well as the use of several charts of accounts, and fundamentally different ones, so it can be various schemes for tax deductions, accounting - all this is a necessary condition for the use of ERP systems in transnational holdings and corporations.

Modularity system for implementing ERP systems

The convenience of implementing ERP systems is that they can be integrated into the production support process in stages. One or several modules with different functionality can be put into operation in turn. Moreover, this process can be carried out at any stage of activity, while installing not all software (modules), but only those packages that are relevant for the organization or production today. The modularity of using ERP systems makes it possible to obtain solutions based on the use of several ERP systems at once, while you can select the best for yourself from each system. To date, there is approximately a common differentiation for all manufacturers by modules, as well as their grouping - this is usually: personnel, finance, operations.

Starting from the 90s, add-ons for systems were introduced as modules of all large ERP systems without exception. customer service, opportunity personnel management, various projects, as well as the possibility production cycle management. But then all these modules began to be delivered as separately supplied information products within the framework of ERP systems, but at the same time maintaining the basic requirements of continuity within the existing business application packages. At the same time, this did not affect the efficiency of using the ERP system as a whole.

The universality and global applicability of ERP systems in completely different areas of activity imposes on them the requirement to be as universal as possible, and at the same time organize support for industry-specific requirements. Of course, all major systems already include ready-made modules and extensions "sharpened" for various industries in their software, and the buyer only has to order a ready-made additional upgrade package for himself. Among such packages, systems for extractive industries, organizations of the public administration sector, engineering and manufacturing industries, retail trade, education and medicine, distribution, financial organizations and banks, insurance companies, telecommunication and energy enterprises, and many other business sectors can be distinguished.

Finance

Loadable financial modules, such as the general ledger (ledger), can definitely be considered the main component of the ERP system. At the same time, there is a module that allows you to generate periodic financial statements, as well as generate due diligence (official integrity) using the financial modules of the ERP system.

To date, the number of additional financial modules and ERP blocks is huge. But, nevertheless, they can be systematized and the main four directions can be distinguished. This is, first of all:

  • accounting: general ledger, current accounts both for receipt (debtor accounts) and accounts for payment (accounts payable), consolidated budget;
  • accounting and management, controlling: accounts for accounting for the costs and income of enterprises and organizations, for accounting for products of production or consumption, for ongoing projects, as well as a system for calculating the cost of manufactured or consumed products;
  • treasury: a system for managing the liquidity of the enterprise and products, cash management. It includes the ability to control bank accounts and cashier management, a system of interaction with banks in which the accounts of an enterprise or organization and all existing divisions and branches are located, management of loans and other borrowings;
  • financial and managerial: management of fixed assets of the production process, investment management management system, financial control management and management of possible risks of the enterprise.

At the request of the customer, ERP systems can be included financial planning module, as well as managing the main indicators of production efficiency.

ERP Module - Personnel

The main difference between ERP, as a development strategy for an enterprise or organization, and various applications for MRP II or automation programs for determining the income of employees is the combination of information about the labor resources of an enterprise for effective planning and management of all economic operations, taking into account information about the potential opportunities of the personnel involved. The second distinguishing feature is the ability to accurately determine and identify costs as they occur and combine them with information about the necessary compensation of the working personnel involved in them.

It is this module that guides the development strategy of the enterprise, taking into account the method of managing the personnel of the organization and the enterprise as human capital, and already within the framework of this concept, it is possible to determine and implement the functional features of these modules. They display the specifics of personnel management, maintaining information about the possible professional skills of each employee, it is possible to plan training in connection with changes in the production cycle, building a career etc. Based on all this information, which is systematically processed in these modules and the strategic management of the entire organization is built, financial management is calculated, as well as key performance indicators.

The main modules of personnel management are:

  • Recruitment system;
  • Personnel accounting system;
  • Accounting for general working time;
  • The system of remuneration, payment of bonuses;
  • Work order management system;
  • Compensation and payroll system;
  • Personnel assessment system;
  • Organization of calculations of the productivity of the labor resources of the enterprise;
  • Organization of pension accounting for employees;
  • Management system for staff development.


ERP Module - Operations

These plug-ins help to adjust the activities of enterprises in the creation and implementation of manufactured products and services offered. In addition, they have all the necessary functions to optimize these processes. Despite the specific disunity of various business areas, several areas of operational modules can be distinguished:

  • Logistics: these modules coordinate the supply, regulate relationships with various suppliers, build the management of all deliveries and transportation of goods, coordinate warehouse work and inventory management, monitor the inventory of fixed assets;
  • Production: these modules carry out production planning, accounting for manufactured and sold products, system management of all production programs of a given organization;
  • Providing: these modules manage the maintenance of industrial complexes, scheduled and current repairs of equipment, capacity development planning, transport potential management;
  • Marketing: these modules coordinate pricing policy, configure and process incoming orders, build a sales system, product promotion and after-sales service organization.

In addition to these blocks, there are some modules that are exposed as separate software, but at the same time they are easily integrated into the overall package of the ERP system (you can select such blocks - EAM for maintenance and repair, PLM for specification management, CRM for sale APS and MES for production management, product distribution).

Modern Market of ERP-systems

According to the company PanoramaConsulting, which conducted an analysis according to the accounting data of ERP systems for 2010, all manufacturers of ERP systems can be divided into three groups:

  1. SAP (24%), Oracle (18%), Microsoft (11%);
  2. Epicor, Sage, Infor, IFS, QAD, Lawson, Ross - 11% for all;
  3. ABAS, Activant Solutions, Baan, Bowen and Groves, Compiere, Exact, Netsuite, Visibility, Blue Cherry, HansaWorld, Intuitive, Syspro.

Total cost of ERP systems

The situation on the Russian market differs from the world market (2010):

  • SAP - 50.5%,
  • 1C - 26%,
  • Oracle - 8.2%,
  • Microsoft - 7.4%,
  • Galaxy - 2.4%

The total cost of the software sold was $650 million.
On the Ukrainian market of this software:

  • SAP - 43.4%,
  • "Information technologies" - 15.7%,
  • 1C - 13.9%,
  • Oracle - 11.7%,
  • Microsoft - 6.1%

The total value of the software sold was $46.64 million.

Oracle ERP

Oracle has taken the path of developing various modules designed to solve narrowly focused tasks. Many modular Oracle systems are combined into certain business packages, which, in turn, are further integrated and "added" to the needs of the customer.

To meet the needsERP systems module "Oracle E-Business Suite" was created. ITERANET was the first company in the CIS when it implemented the Oracle system for the needs of the ITERA holding in 2000. Every year (since 2000) ITERANET employees attend more than 5-10 Oracle partner events, are sponsors and partners of events, at each conference ITERANET specialists are the leading speakers of the events. We are a certified partner in the sale and implementation of Oracle E-Business Suite systems, our CIS department has established work in the field of integration / implementation, building, and automation of processes based on Oracle E-Business Suite in order to create ERP systemsOracle.

The system developed on Oracle is used by such institutions as the Ministry of Internal Affairs of the Russian Federation, the Federal Security Service of the Russian Federation, Sberbank of Russia, the Central Bank of the Russian Federation (Central Bank of the Russian Federation), the FSNP (Federal Tax Police Service), Beeline (VimpelCom), Promstroibank, Comstar, Bank of Moscow, and many others . As we already wrote - Oracle occupies about 18% of the market of integrated corporate systems.

Oracle E-Business Suite (abbreviatedOEBS) beforehadtitleOracle Applications. OEBS is one of the few solutions that includes all the necessary functionality for managing logistics, sales and sales, marketing, customer and customer service, personnel (HR), production, finance, supplier relations, and many other modules.

Oracle E-Business Suite integrates perfectly with other solutions from Oracle, due to which you can very quickly expand the functionality of the ERP system within the company, so your company gains mobility and independence while expanding production. Oracle's hallmark is its complete coverage of both specific life cycles and processes at the lowest level of activity, as well as a powerful reporting system for directors and managers, which allows you to see the whole picture of the business. When implementing Oracle ERP at the customer's site, it is necessary to determine the current corporate information system, determine the development paths for the information system, draw up a complete map of business processes, draw up business requirements from the customer to the information system and determine in which places the corporate information system can automate processes.

All these actions are carried out by ITERANET together with the customer's representatives. Based on the diagnostics of existing business processes and business requirements of the customer, technical documentation is compiled, which is based on the Oracle AIM (Application Implementation Method) methodology. The customer, based on this methodology and the final documentation, will be able to make his own changes and give recommendations on the modernization of the project before the start of work on the implementation of OEBS.

In the future, the implementation phase of Oracle E-Business Suite begins in conjunction with the customer's representatives. All works are agreed in advance, have a clear schedule, all stages have a specific deadline and performers, during implementation, the risks of delay are taken into account. During the implementation phase of Oracle ERP, and in the future, ITERANET specialists train the customer's personnel to work with solutions, conduct seminars and lectures to improve the skills of the customer's employees.

Main modular sectors of Oracle E-Business Suite

  • Manufacturing control
  • Finance
  • Lifecycle management
  • Logistics management
  • Project management
  • Maintenance and Repair Department
  • Business Performance Management (CPM)
  • Materials Management
  • Customer Relationship Management
  • Personnel management system
  • financial service

Program composition of Oracle E-Business Suite

Relationship management and interaction with the client base

The module is responsible for managing relationships Customer Relationship Management (CRM), it includes the following solutions:

  • Oracle Channel Revenue Management
  • Oracle Marketing
  • Oracle Order Management
  • Oracle Service

Service management

To manage services, there is a Service solution that is responsible for customer information services both by telephone, email, contact center, "smart support", etc. It includes the following solutions:

  • Advanced Inbound Telephony
  • Advanced Outbound Telephony
  • advanced scheduler
  • Spares Management
  • teleservice
  • Depot Repair
  • Interaction Center
  • iSupport
  • Mobile Field Service
  • Scripting
  • Service contracts
  • Email Center
  • field service

Financial management

This is one of the more interesting modules of the OEBS system. Oracle E-Business Suite Financials is responsible for the entire financial part of your company, taking full responsibility for all cash flow inside and outside the company (financial analytics, reports, loans, payroll, asset management, management of "treasury" or valuable items, financial life cycle assets, etc.). The following modules are part of the Oracle E-Business Suite Financials:

  • Financial Control & Reporting
  • Asset Lifecycle Management
  • Procure To Pay
  • Cash & Treasury Management
  • Governance, Risk and Compliance
  • Credit-To-Cash
  • financial analytics
  • Lease and Finance Management
  • Travel and Expense Management

Human asset management or human capital management (Human Capital Management)

The HCM module includes solutions that allow you to establish contact within the company, the so-called Team Building. There are also modules for the personnel service (HR department), and human resource management, reporting, modeling of human resource load processes, and Talent Management. The following programs are part of HCM:

  • Workforce Service Delivery
  • Global Core Human Capital Management
  • Talent Management Applications
  • Workforce Management
  • HR Analytics

Project Management (Project Portfolio Management)

This solution allows you to fully manage projects, interaction within the company to solve projects, appoint responsible persons, build reports and analytics on the success of the project, manage the purchase of goods / materials within the project, there is monitoring and preparation of project documentation. Full list of applications inside PPM:

  • iProcurement
  • Supplier Lifecycle Management
  • Oracle Contract Lifecycle Management for Public Sector
  • iSupplier Portal
  • Oracle Procurement & Spend Analytics
  • Services Procurement
  • Sourcing
  • Oracle Spend Classification
  • Oracle Supplier Network
  • Procurement Contracts
  • Purchasing
  • Oracle Supplier Hub
  • Landed Cost Management

Supply chain management

ITERANET is the strongest player in the domestic market in the field of supply chain management (Supply Chain Management). This solution integrates modules into the company that allow you to establish a supply chain and delivery processes, manage logistics steps, optimize planning and procurement. SCM (Supply Chain Management) includes the following Oracle solutions:

  • Advanced Procurement
  • Business Intelligence and Analytics
  • Value Chain Execution
  • Value Chain Planning
  • Order Orchestration and Fulfillment
  • Manufacturing
  • Asset Lifecycle Management
  • Product Value Chain Management

Value chain planning

This Value Chain Planning solution is designed to optimize business processes in order to reduce the cost of the final product, or to reduce production costs. VCP integrates perfectly with other solutions, as well as with JD Edwards EnterpriseOne. Value Chain Planning includes the following modules:

  • Advanced Planning Command Center
  • Value Chain Planning for JD Edwards EnterpriseOne Customers (PDF)
  • Advanced Supply Chain Planning
  • Strategic Network Optimization
  • Collaborative Planning
  • Service Parts Planning
  • Demand Management
  • Real-Time Sales and Operations Planning
  • Demand Signal Repository
  • Global Order Promising
  • Rapid Planning
  • inventory optimization
  • Production Scheduling
  • Predictive Trade Planning and Optimization

Creating value

Value Chain Execution is a complementary solution similar to value chain planning, but with a different software component. VCE (Value Chain Execution) allows you to manage inventory, transportation, company mobility, inventory accounting. Value Chain Execution includes the following software solutions:

  • transport management
  • inventory management
  • Landed Cost Management
  • Mobile Supply Chain
  • Global Trade Management
  • Warehouse Management

1C ERP

It should be understood that despite the fact that the 1C company has solutions for SCP (manufacturing enterprise management) and 1C: Enterprise, they do not fully solve ERP tasks. However, the license cost and technical hardware are significantly cheaper than competitors from Oracle or SAP. At the same time, the 1C program code is mastered faster and is more understandable in domestic specifics, which makes it possible to integrate various 1C solutions within the company much faster. At the same time, the insufficient functionality of the SCP or 1C Enterprise is replenished by many other programs that can form one ERP cluster. ITERANET is one of the oldest "players" in the 1C solutions market. Since we are a system integrator, we did not take the path of a “franchisee”, but the path of integrating technical means, while in addition we can integrate and upgrade 1C modules, since we have a large staff of programmers on our staff. Our main difference is an integrated approach to solving problems, while our opponents have to use the services of contractors to solve non-traditional issues. We can afford to solve absolutely any issue on our own when implementing ERP systems based on 1C for the customer.

From June 8 to June 16, 2013, a conference was held in the Dominican Republic, at which the proposals of the undisputed leader in the field of workplace automation, the 1C company, were considered in detail. This time, developments were offered to help corporate clients. In particular, the latest solution was presented " 1C: Enterprise Management (ERP) 2.0 ". The release of the beta version of this program is scheduled for the summer of 2013, but the participants of the conference have already been thoroughly acquainted with the possibilities and prospects for implementing this solution.

A new solution has been implemented on the now sensational platform " 1C:Enterprise 8.3". In fact, a unique and latest improvement in software "", which is currently used everywhere not only in Russia, but also in the CIS countries. Representatives of almost all major organizations work with these programs. And the scale and number of projects aimed at improving work and automating a huge number of jobs is simply amazing. The possibility of evaluating many years of experience in using past versions of the program has allowed programmers to create software that will not only make working with it even easier, but will also achieve the desired results even in very large projects.

Let us dwell on the fact that all the developments that are produced by 1C company invariably enjoy well-deserved popularity among consumers, among them the ERP solutions of this company. After all, they are the epitome of reliability, ease of use, affordability and quality. Various modifications of systems and solutions for various industries offered for enterprise management are widely used in the Russian Federation, Kazakhstan, Belarus and Ukraine. Half a million client licenses have been sold for these products. And the total number of people whose activities were automated using " 1C: Manufacturing enterprise management", currently has more than six million. Company representatives regularly monitor customer satisfaction with the use of their company's software products. And according to the results of this monitoring, more than ninety percent of all users evaluate the program as "good" and "excellent".

More than a hundred of the most famous specialists worked on the improvement and development of the software solution "1C: Enterprise Management (ERP) 2.0", and a special expert committee was created to assess the quality, it consisted of the largest partners of 1C, as well as numerous heads of departments of the largest Russian concerns and industrial enterprises.

The attention of developers, among other things, was focused on solving those functionalities that are most needed by large enterprises, despite the difference in areas of activity and the technical complexity of implementing individual production processes.

It was this fundamental and detailed approach that made it possible to empower the new ERP solution and open the way for use in ever new areas of application compared to previous versions of the program.

Functional features of 1C ERP

With regard to the management of production processes, the quality of planning previously depended entirely on the accuracy of regulations, the current accounting system will make it possible to nullify this dependence. And for the planning of production processes, it will be possible to use the information presented in the resource specifications.

There are two levels in production management through software. The first level is the level of the logistician, that is, the main dispatcher of the enterprise. The second level is the workshop, that is, the local level of management.

At the first level, where planning is carried out by the chief dispatcher, the production schedule is developed. All production orders are placed in a queue, according to priority and deadlines. Then they are entered into the production schedule, which, in turn, takes into account the availability of production capacity and the availability of material resources required for a particular order. After that, each order is divided into stages and planning intervals. Then each of the intervals is assigned to a separate executing unit that will work on this order.
At the second level of production process control, the production schedule is tracked by shop floor dispatchers, the purpose of which is in a dedicated department, to create a schedule for the work center. Also, local dispatchers manage deviations. Departments have the right to choose one, the most appropriate management model. Thus, depending on it, the schedule can be drawn up for all centers that ensure the operation of the enterprise or for bottlenecks in the production process, according to the TOC methodology (when the option is maintained, in which a number of work centers are automatically determined, by determining the type of total load on equipment). In the third variant of work, the schedule may not be drawn up at all, then a simplified scheme for calculating the load on equipment and control is performed for the total duration of the production stage.

At individual stages of the manufacturer's production, control over the implementation of standards through route sheets.

In production, a "semaphore" system is introduced for notification. It allows the dispatcher to define the production control zone, which will reduce labor costs. Unfavorable and problem areas of production will be identified. Thus, this tool allows specialists who provide control of the production process to make a forecast of the unfavorable development of the situation. Thus, the number of unpleasant situations related to production delays, delays in production batches, and release failures will be reduced.

Maintenance and repair of equipment also requires control automation.
All objects of operation are divided into certain classes, depending on the specific characteristics, the proximity of the composition, passport data, operating time indicators, the need for repair work, the proximity of the operating mode. The state in which the object is located, its location in a certain period of time and belonging are taken into account. Maintenance of these objects can be carried out with detailing up to the repair unit.

The system being introduced makes it possible to constantly monitor facilities, taking into account their condition, identify defects and developments, which makes it possible to plan in advance measures aimed at proper and timely repair of equipment.
It is also possible to link controlled objects of operation to the working shop of production. In this case, repair work must be taken into account in production planning, since certain work centers become unavailable for production purposes during the repair work. In turn, it is possible to attract any production resources to the repair. Moreover, production can be involved in meeting the needs of personnel involved in the repair of equipment.

As a result, it is obvious that when combining the repair management subsystem and the production subsystem, the user receives the ability to form a unified system for meeting the needs of the enterprise. Moreover, that system will include the activities of the entire enterprise, on the basis of which the final cost of servicing objects of operation will be derived.

Monitoring and analysis of performance indicators

What allows you to bring a new solution to this area of ​​​​activity of the enterprise? It contains unique mechanisms that will allow you to easily build a hierarchy of goals and indicators, monitor individual indicators, deciphering the source data, and analyze financial results in each of the areas of the enterprise.

The advantage of using the 1C:Enterprise 8.3 platform is that users will have quick access to all indicators from any mobile devices running on the Android system.

Financial flow management

For financiers of large enterprises, the program also provides new opportunities. The system introduced the possibility of maintaining tabular data entry, as well as their subsequent correction, and with the preservation of the history of the changes made. A variety of tools have been introduced that allow you to automatically calculate all budget items, as well as decipher them to their original values. Moreover, in each of the articles, use up to 6 levels of analytics.
Now it is possible to use not one, but several sources when calculating each of the indicators. You can calculate them in the screen version of maintaining and editing the budget. Such an improved structure makes it possible to generate financial forecasts and analyze the implementation of planned indicators.

The software solution enhances the functionality of keeping records of all the company's operations, in particular the issuance of loans and loans, transactions carried out using plastic cards become transparent. It is also possible to maintain a payment calendar and establish full control over ongoing operations. Tools have been introduced into the system that make it possible to form payment agreements for future dates, coordinate the spending of monetary assets, and conduct a scheduled inventory of the company's settlement accounts and cash desks.

The settlement management system also compares favorably with other versions of the program.
The program allows you to keep separate management and regulated accounting. Also exercise control over the limits of debts, and it is carried out automatically. It facilitates the inventory, including with respect to mutual settlements. As a result of its activities, this part of the program displays several types of reporting, in particular, statistics and analysis of the status of mutual settlements with all contacting enterprises.
Regarding carrying out activities within the framework of regulated accounting, it should be noted that the solution allows you to conduct automated accounting without additional time and effort. When reporting, the version of the unified chart of accounts is used. The rules that underlie the reflection of the company's operations are configured independently. Those economic accounting facts that are reflected in the operational accounting block are detailed in terms of significance and relevance in accordance with primary documents, and then recorded in regulated accounting. Various reporting forms are automatically updated using Internet resources. It is also possible to take into account the activities of those enterprises that have brought some of their divisions to an independent balance sheet.
The program is equipped with a customized methodological model that allows you to easily maintain IFRS reports. It includes posting templates, charts of accounts, and financial reports. It is possible to reflect postings in accounting, create separate documents for typical transactions, register financial and non-financial indicators.

Thanks to the latest software developments, it is possible to maintain a certain warehouse structure, hierarchy. Even in large warehouses, it is possible to carry out a system inventory, while there will be no need to stop their work even for a short period of time. It is possible to organize mobile jobs for warehouse workers. Additional possibility to reserve material values ​​within orders.
Regarding the procurement, it is noted that it is possible to select suppliers based on the results of an in-depth analysis of the proposed terms of cooperation. You can also control emerging needs and the quality of their satisfaction.
It is possible to increase the level of sales, thanks to the analysis of ongoing events, the competent formation of prices and price lists.

There is also a function of continuous monitoring of the level and composition of sales and customer orders.

The user in relation to customers can conduct dossier of each regular customer, enter loyalty cards. And also to carry out constant analysis of the work of managers and sales representatives.

As for the calculation of the cost of manufactured products, constant monitoring is carried out over the amount of resources spent, based on operational accounting data. The cost estimate is carried out in several currencies, which are initially set by the user. Costs are taken into account for all activities.
The proposed software has a number of important technological advantages.
It provides the user with the reliability, scale and performance of systems, the organization of work with staff and clients in real time, the use of the ability to log in using communication devices running on Android, the ability to customize an individualized interface. The user can enable individual parts of the solution without changing the configuration.

Despite the obvious advantages of the new version of the program developed by 1C, it is not planned to remove the previous versions of the programs from maintenance, in view of the fact that they are safely used by many enterprises. The company claims that if a decision is made to completely migrate to a new version of the program, all users will be notified of this at least 3 years before the termination of service.

SAP ERP

Characteristics of the SAP ERP system (production resource management)

SAP ERP system and automation strategy for production management

The abbreviation ERP stands for Enterprise Resource Planning is an integrated package that includes many functions of management and planning systems for all resources of organizations and enterprises in whose system this software package is installed. The ERP system, in its essence, is fundamentally different from the usual accounting systems, which make it possible to conduct only a narrow focus of activity, as, for example, with numerous accounting programs, the ERP system allows you to provide full information support for the enterprise development strategy.

In order for you to have a complete picture of all the business processes taking place in the company, you need an ERP system that has the ability to most accurately and clearly display the real picture of everything that happens within the production process. It can visually show the direction vector of the company's movement. This is very convenient, as for a manager, he sees all the problems that arise and ways to overcome them, while he absolutely needs to keep all the information in his head, the ERP system summarizes and systematizes all incoming information and issues it as requests are formed.
The head of the company in real time can monitor the activities of the entire company, which he manages. Moreover, the scale of the organization in which this system is installed is absolutely not important, its possibilities for covering incoming information are practically unlimited. ERP system allows you to make forecasts as a whole on the activities of the enterprise, and to get the opportunity to obtain information on the most insignificant nuances of the activities of each link of the enterprise. Efficiency of information processing, its deep study enables the company's management to significantly free up time for streamlining their activities, time management, determining a development strategy, or just relaxing.

By implementing an ERP system, you can get the following benefits:

  • The required amount of work is significantly reduced, due to the fact that the system does not require additional and repeated introduction of the same type of information into the computer's memory;
  • Significantly improves the system of control over all processes occurring at the enterprise;
  • When using an ERP system, the quality of analytical research of incoming data increases, which significantly increases the efficiency of doing business in the current conditions of doing and developing a business;

Recently, Russian business has significantly increased its interest in ERP-systems. Today, many enterprises of the Russian economy have reached the necessary stage of production development, when one of the dominant development factors is the introduction of a global information system into the production process. At the same time, the development of the entire business as a whole depends on its quality of work. If business management tends to lag behind the speed of its development, and at the same time, an increase in market share has a negative trend due to the lack of well-established business processes, all this together will inevitably lead to significant problems. Therefore, only an ERP system with a well-defined company development strategy can become a reliable foundation for the company's development.

In the development of any enterprise there are periods of intensive development. At this point, the company's expenses grow quite systematically and tend to grow steadily. Incomes in such a development trend reach a maximum level after a while and then stabilize for a long time. Such a macroeconomic model indicates that the production cycle in the process of its growth tends to lose margins. It is at this moment that the thin thread connecting the profitability and costs of the production process breaks. And in the end, a dynamically developing company with a huge turnover, which has all the attributes of a successful business, in fact, works out at the end of the reporting period in a deep minus. Of course, when the business of the 90s of the 20th century had a liquidity ratio of 100, or even 200%, then with such indicators there was no need to control the entire production cycle. Today, every percent of additional profit is given only with the help of strict control and systematization of information, which can only be given by a specially designed computer program.
Since the active introduction of ERP systems abroad in the 90s of the last century, statistics have been tracked on the use of this information platform in relation to the time spent by the company's management to find the optimal algorithm of actions in a given situation. So, according to research, ERP systems allow you to free up time by 20-80% compared to other methods of obtaining the necessary information. ERP brings the main direction of movement of the entire production process to the direction that makes it possible to extract the main income. That is, almost any operation that finds its justification in the system and is evaluated by the program in terms of its impact and efficiency.

In the 76th year, SAP GmbH released its first system that allowed planning and managing enterprise resources. This step seemed to mark the beginning of a new era of conducting, systematizing and managing a business. The release of this program became the starting point for opening the ERP systems market. Today, after almost 63 years, SAP continues to hold a leading position in the market for such software. At the same time, she created an almost new model of integrated solutions in matters of management, strategic business planning, and we can say that the words "ERP" and "SAP" have become synonymous today.

The SAP R / 2 ERP system released at that time (the first generation of software in this direction) allowed processing and centralized processing of incoming data in real time. Already the second generation of this software - SAP R/3- allowed to rely not only on the received data, but to focus on the analysis of ongoing business processes. The essence of the system was to constantly standardize ongoing business processes within the enterprise, and at the same time significantly increase their efficiency. Today, those systems have been replaced by a completely different business solution of a new generation with new capabilities - SAP ERP. These techniques are based on numerous developments of previous generations of programs, as well as the unlimited possibilities of the Internet. Business opportunities SAP "Enterprise Resource Management" (SAP ERP) makes it possible to cover all areas of the enterprise - from financial to management accounting of the company's development. A new function of personnel management, operational activities and the introduction of corporate service departments has been introduced. In addition, the software package includes powerful analytical tools that can significantly improve the efficiency of the analysis of the information received.
ERP systems of the first and second generations mainly solved the problems of increasing efficiency and optimizing internal processes taking place in the company, and the latest generation of ERP significantly expanded its functionality and is designed to solve complex business scenarios that include not only internal processes occurring in the enterprise , but also the business processes of all business partners of a given company, from suppliers to buyers of the final product. This system allows you to significantly increase the degree of productivity of all participants in the production process and at the same time organize the maximum return from all elements of integration for this business.

Assessment of the possible risk of implementing SAP ERP software

Advantages

Using an ERP system makes it possible, using only one software shell instead of a large number of disparate ones. At the same time, this software can easily manage all areas of the enterprise - finance, personnel, operations. At the same time, the ability to load additional modules that complement the operating capabilities of the system leaves such user programs out of competition, aimed at solving narrow professional tasks. All areas of the company's activities are covered by the ERP system.
In ERP systems, there is the possibility of both delimiting access to information, and complete isolation of individual modules from the general view. Such measures are aimed at countering emerging external threats, for example, the possibility of industrial espionage within the framework of the enterprise, as well as preventing and detecting internal threats, in particular theft.
Working in conjunction with a CRM system, a system for determining the level of quality control, an ERP system integrated into a single information space is aimed primarily at meeting the needs of the company that installed it, as a means of maximum automation in business management.

Flaws

Despite all the advantages of using this information package, there are significant difficulties in introducing ERP systems into the work system of business structures of various levels, the reasons for this phenomenon can be systematized and identified:

  • Insufficient degree of confidence of company owners in this type of product, as a result, weak support from them in support of this project;
  • The resistance of certain departments and departments in providing information relating to the activities of certain business entities and for this reason significantly reduced confidential information reduces the effectiveness of the system;
  • Insufficiently trained and qualified personnel, as well as a poor policy of regularly entering and maintaining the relevance of the database system in the ERP.
    Possible restrictions on the use of ERP systems:
  • Today, due to the rather high cost of the ERP-systems package, small and medium-sized businesses cannot afford to buy this software. And also keep a qualified specialist in his staff who would be responsible for the systematic work with ERP;
  • Despite the fact that the program can be purchased in parts, nevertheless, its acquisition is quite expensive for many businessmen;
  • Like any program, an ERP system can produce inaccurate data or even fail if the system suddenly has a "weak link" - associated with a negligent partner or a certain department responsible for providing information;

I would especially like to note the limitations associated with the problem of compatibility of actions with previously installed systems.

There is a misconception that ERP systems are difficult, and sometimes impossible, to fit a company's specific workflow or take into account all existing business processes. In fact, before implementing an ERP system, there is a long period of describing the unique business processes of the company. And finally, after entering all the data, An ERP system is a created projection of a company in a virtual space.

Software Applicability Analysis

SAP ERP analysis

SAP ERP after detailed consideration is a special information system ERP (Enterprise Resources Planning - which provides complete planning of all enterprise resources). This information shell is designed to fully automate all types of company activities:

  • Management and accounting;
  • strategic planning taking into account aspects of activity;

In recent years, there has been a new concept of ERP-systems released on the basis of the platform Netweaver: "the system does not cover all areas of the enterprise, but should provide services based on the processing of data obtained from software from various manufacturers.

SAP is currently busy developing and implementing automated systems that allow you to manage all the internal processes of an enterprise.

  • Among them are:
  • Accounting analysis and control system;
  • System of analysis and control of enterprise trade;
  • System of analysis and control of the production cycle;
  • System of analysis and control of financial activity;
  • System of analysis and control of personnel management;
  • Analysis and control system warehouse management, audit activities;
  • and many other processes that optimize the work of the enterprise as a whole.

Applications can be easily adapted to the legal framework of any country. In addition to selling software, SAP offers numerous and qualified services for its implementation in the real sector of the economy, while it uses its own methodology for promoting an information product ( at first the system was called ASAP - Accelerated SAP, today - ValueSAP).
Today, SAP's main ERP system is officially called SAP ERP ECC (Enterprise Core Component). The possibilities of the latest generation of software "Enterprise Resource Management" (SAP ERP) makes it possible to cover all areas of the enterprise. Among these areas are: financial and management accounting, an automated personnel management system, an information module responsible for the operational activities of the enterprise, as well as analytical information on the activities of corporate service departments. But, the main direction of applicability of this software can be considered the formation and provision of detailed analytical information. For the formation of which special tools are introduced. To date, the latest version The current version of the SAP ERP system, which is officially sold by distributors and supported by the company, has an index - 6.0.

SAP ERP system in Russia

The SAP ERP system includes a certain set of functional elements presented in different modules, which are adapted to the Russian conditions of applicability and implemented in accordance with Russian legislation. The structure of the software includes all kinds of interactive reports:

Turnover balance sheet for creating reports in material accounting;

built-in various printables:

  • Form-Template - "invoice";
  • Form-Template - consignment note TORG-12;
  • Form-Template - “a package of standard forms of material accounting (form M-4 "Incoming order");
  • Form-Template - M-11 "Limit-fence card";
  • Form-Template - M-15 "Invoice for the release of materials to the side";
  • and many other "Form-Template" for the economic activity of the enterprise.

In addition, the Russian version includes elements of dialogue transactions, they are not available in the regular version of the program released for Germany. In previous versions of ERP, released before the program with index 6.0, with the integrated Russian Add-On package (Russian localization), it was necessary to install it additionally, and already from version 6.0, the Russian Add-On package is included in the general package as "RF-specific functionality" . The software package for Russia is developed by SAP CIS.

Software Functional Model - SAP ERP

The SAP ERP system consists entirely of a set of modules that can be integrated into one common package and which support almost all business processes in the production or other cycle, while all modules are integrated with each other and can exchange information in real time.
The "SAP Transaction" module is an application program that performs a specific business process in the enterprise management system (this can be the posting of funds to settlement accounts, or posting an invoice, generating some report, etc.) This module performs operational oversight of the data, and performs a logically complete and defined set of actions. (from a technical point of view, this is a kind of "shortcut" needed to call a service program on ABAP/4).

The entire System is divided into separate modules, and each module also consists of a certain number of transactions, which should cover a certain part of the operation of the enterprise. The boundaries of the modules are essentially very conditional, data is constantly exchanged between them, in addition, individual program modules may well have common settings, worksheets with integrated data, and the option of sharing the program on ABAP / 4 is quite possible.

Module - Finance (FI)

This piece of software is designed to organize the financial statements of an enterprise organization or other form of activity. It includes:

  • Functions for reporting on debtors, creditors and auxiliary accounting;
  • Functions for reporting and entering into the General Ledger (ledger);
  • Functions of reporting "Accounting for accounts receivable";
  • Functions of reporting "Accounting of creditors";
  • Functions of reporting "Financial management";
  • Reporting functions "Special register";
  • Reporting functions "Consolidation";
  • Integrated information system for accounting and reporting on financial activities.

Controlling (CO) module

This module makes it possible to keep records of the costs and profits of the enterprise as a whole, and for each individual link in the production cycle.

It includes:

  • Possibility of generating the report "Accounting for costs by their places of origin (cost centers)",
  • Possibility of generating the report "Accounting for costs by orders";
  • Possibility of generating the report "Accounting for project costs";
  • Conduct a cost estimate;
  • Carry out "Control of profitability (results)";
  • Possibility of generating the report “Control of profit centers (profit centers)”;
  • Possibility of generating the report "Accounting for production, Controlling the activities of the enterprise."

Module - Asset Management (AM)

In fact, this module is necessary for accounting for fixed assets of an enterprise and methods for managing them.
The main elements of this module:

  • Block "Technical management of fixed assets of production";
  • Block "Maintenance and repair of production equipment";
  • Block "Controlling investments and sale of assets";
  • Block "Traditional accounting of fixed assets";
  • Block "Replacement of fixed assets and depreciation of equipment and fixed assets of production";
  • Block "Management of investments of the company".

Module - Project Management (PS)

This module is applied. The PS module supports structural planning, management of all production cycles, tracking and coordination of long-term projects with any level of complexity.
The main elements of the PS module:

  • Possibility of coordination of the direction "Control of financial resources and resources";
  • Possibility of coordination of the direction "Quality control";
  • Possibility of coordination of the direction "Management of temporal data";
  • Project Management Information System,
  • General modules.

Module - Production Planning (PP).

This Module is mainly used to organize long-term planning and set up control functions for all activities of the enterprise as a whole. The main elements of this module:

  • production orders,
  • technological cards,
  • Specifications (BOM),
  • Material Requirements Planning (MRP),
  • product costing,
  • Work centers (places),
  • Planning for continuous production.
  • Sales planning (SOP),
  • Production planning (MPS),
  • Production management (SFC),
  • Kanban (Just in time),
  • Cost accounting by processes,
  • Mass production.

Module - Materials Management (MM).

This module supports the supply and inventory management operations in the organization of the enterprise, and this module is applicable in various business transactions conducted by the enterprise. The main elements of the module:

  • Organizing the purchase of materials;
  • Organizing inventory management;
  • Organization of warehouse management;
  • Systematization of control of accounts of the enterprise;
  • Organization of assessment of stocks of necessary materials;
  • Organization of certification of services and goods of the supplier;
  • Processing of data on performed works and services;
  • Creation of the base of the information system of stock management of the enterprise;

Module - Sales (SD).

This module is very important, it brings clarity to the policy of the final product of the enterprise, in addition, it solves the problems of distribution of the final product, sales organization, determines the systematics of deliveries and final billing.
The main elements of the module:

  • Organization of pre-sales support in production,
  • Possibility of generating the report "Processing requests";
  • Ability to generate a report "Processing proposals";
  • Possibility of generating the report "Processing orders";
  • Ability to generate the report “Processing deliveries;
  • Organization of invoicing (invoicing);
  • Block "Information system of sales".

Module - Quality Management (QM).

This module integrates the entire information system of the company, and also controls the quality management system. In addition, it has built-in functions that provide activities aimed at planning the quality of goods and services of this company, the implementation of verification and quality control of products at all stages of its production, as well as during its purchases.

The main elements of the module:

  • implementation of quality control;
  • organization of quality planning;
  • information support for product quality control (QMIS).

Plant Maintenance and Repair (PM) module.

This module is indispensable in the process of cost accounting and at the stage of planning the expenditure of resources for the implementation of current maintenance and scheduled repairs of fixed assets.

The main elements of the module:

  • formation of the request "Unscheduled repair";
  • formation of the request "Service management";
  • formation of the request "Scheduled and preventive maintenance";
  • creation of the report "Maintaining specifications";
  • Organization of an information system for maintenance and repair of fixed assets.

Module - Personnel Management (HR).

This is a fully integrated system that is designed to plan and manage the work of all personnel involved in the cycle of the company's activities. The main elements of the module:

  • Administration of personnel activities;
  • Analysis and Calculation of the salary of employees;
  • Personnel time data management system;
  • The system for calculating the expenses of employees on business trips;
  • Definition of benefits;
  • System of invitation and recruitment of new personnel;
  • Organization of work to improve the skills of working personnel;
  • Organization of the process of optimal use of the enterprise's workforce;
  • Organization and holding of seminars and training events;
  • Organizational and time management;
  • block for processing information on personnel systematics.

Module - Information flow management (WF).

This module, as an integrated unit in its role, connects application modules with the embedded technologies of the ERP system, as well as all the service tools and tools of this information product. The ability to manage the entire workflow with the possibility of automated control of all business processes according to a previously introduced analysis algorithm according to predetermined and prescribed procedures and rules. In addition, this module has an office system with its own built-in e-mail, as well as a company's document management system, a loaded universal classifier, as well as the ability to integrate with any CAD system. If a certain event occurs in the system, then simultaneously with it, the protocol of this event is launched and the corresponding process is turned on. The module includes a system flow manager and in doing so initiates an incoming workflow item (Workflow Item). Then the system combines the incoming data, then the documents are combined, and the information is processed according to a certain built-in logic scheme.

Module - Industry Solutions (IS).

This module integrates built-in SAP, SAP R/3 application modules, as well as additional specific programs specifically for each business sector. To date, developed and can be easily integrated into a single modular package industry solutions for business support:

  • Package of industry applications "aviation and space";
  • Package of industry applications "defense industry";
  • Package of branch applications "automotive industry";
  • Package of industry applications "oil and gas industry";
  • Package of branch applications "chemical industry";
  • Package of branch applications "pharmaceutical industry";
  • Package of branch applications "machine-building industry";
  • Package of industry applications "consumer goods";

electronic and non-manufacturing sphere:

  • Industry application package "banking";
  • Package of industry applications "insurance";
  • Package of industry applications "state and municipal management";
  • Package of industry applications "telecommunication technologies"
  • Package of industry applications "public utilities";
  • Package of industry applications "health";
  • A package of industry applications "retail trade".

Module - Basic system.

This module serves as the basis for the SAP R/3 information system. It properly guarantees the full integration of all application modules and complete independence from the hardware platform on which this software is installed. Also, the basic system makes it possible to organize work in a system of multi-level distribution of architecture - "client-server". The SAP R/3 shell can fully run on the following servers:

  • Windows NT
  • UNIX,
  • AS/400
  • S/390

In addition, SAP R / 3 can be easily integrated with other DBMS, such as:

  • oracle,
  • informix,
  • Microsoft SQL Server

Users can work in OS:

  • Macintosh
  • Windows
  • OSF/Motif

The basis is a special module. Its functionality is much wider than the information presented. The performance of the system as a whole depends on its functioning. Core module administrators are solely responsible for the overall operation of SAP.

Tasks of the basic module:

  • Initial registration of all settings and tuning of all built-in performance parameters of the system as a whole;
  • Building an administration system for all embedded databases;
  • As necessary, update the system software and install the necessary update packages for modules and updates;
  • Organization and implementation of transfers to a productive system;
  • Basic project administration - the main input and assignment of all roles to users involved in the organization of work on this project;
  • Organization of the backup process of intermediate and final data on ongoing operations;
  • basic setting of the interaction of individual systems involved in the process of analyzing and processing data;
  • Organization of system control, with the prescription of the software task - to identify and identify emerging problems in advance and take all necessary measures to eliminate them;
  • Organization of access settings to integrated modules and systems of SAP support services;
  • Analysis of generated errors and their elimination;

Today, the SAP ERP system is the most extensive software shell among similar information packages. Therefore, almost all the leaders of the world economy have chosen it as their corporate production management system. At the same time, according to statistics, approximately 30% of all companies that purchase the SAP R / 3 system are not giants of the economy at all, but companies with a turnover of less than $ 200 million per year. And the thing is that the SAP ERP system has the ability to configure the entire system specifically for the enterprise or company that purchased it. Each customer who purchases this software will have the impression that by purchasing it, he will work with the most individualized version that is configured with his production run parameters.

SAP ERP - configurable system

The indicators of a certain level of the system include the way it is configured, the wider the proposed possibilities for configuring it, as well as the performance of all general system settings without further rewriting, the higher the overall technical level of this system is of course estimated. Based on this defining parameter, the SAP ERP system constantly occupies one of the leading places in the world. In addition, in each case, the user practically does not change the initial settings of the system, and this is done by the appers, they configure SAP for the client, taking into account all the features of the production cycle of his business. (Abaper is a specialist programmable system in the ABAP/4 language).

In the current situation in the global economy, for dynamic development it is necessary to move from outdated methods of company management. It is necessary to move from analytics with a pencil and notepad to modern systems of analysis and strategic development. Such a transition can be made using the workbench technology - for SAP ERP Business Engineering Business Engineer. The capabilities of this module allow you to develop a competent disposition, alignment of forces and possible actions aimed at achieving the goal of dynamic development of the enterprise. The intelligent settings of the SAP ERP system and the open user interface of Business-Engineer allow you to create economically literate industry solutions based on the state of affairs in the enterprise. The system allows you to develop several action templates, calculate subtotals and calculate the final result.

The Business-Engineer Package includes three modules:

  • SAP ERP Business Configurator, a system that supports certain technologies for creating and automatically maintaining models in the dynamics of an enterprise with a customization function;
  • SAP ERP reference model - contains an organizational model, a process generation model, a data processing model, a model for applying and distributing functions, and a model for creating business objects;
  • The SAP ERP Repository is a dynamic database of incoming data for Reference Model requests, a bank of industry models and a database of created enterprise development models.

A very professionally designed interactive Business-Engineer package significantly improves the quality of the simulated enterprise business processes and simplifies the process of configuring the SAPERP system.

How SAP ERP works

Let's look at the conceptual apparatus of this system.

  • The system (central instance) is a common server with all kinds of application developments of connected modules, as well as a DBMS.
  • The client (client) is an independent part in the context of the R/3 system. Each client has its own data model (including master and dynamic data, created charts of accounts, and certain settings). A system typically has one or more clients.

In fact, under each client - you can lay down each element of production - whether it is a workshop, a branch, or a separate production. At the same time, programs based on ABAP/4, reporting forms will necessarily be common to the entire system of clients.

Business Engineering in SAP ERP

Repository- a database of all built-in ABAP programs, with a detailed description of the structure of all entered data, schemas and tables, which are periodically accessed by programs. The repository is common to all tenants of the system.

Transport protocol– a program service that allows you to transfer data between all clients of the system.

Released request is a certain number of files with certain information.

Release- this internal term in SAP defines "approval", sending data to work.

Landscape is a set of a certain number of systems between which it is possible to transfer the main settings and necessary programs. Typically, SAP exposes such a landscape:

1 - development system. This system includes 3 clients;

300 - a landscape in which you can change the current settings and load programs. All changes fall into the schema of the request to create a migration.

400 - a landscape in which nothing can be changed. Scheme of use - preliminary testing of programs and general system settings.

200 - landscape - sandbox (Sandbox). Test mode for experimenting with variable settings. Allows you to track the dynamics of transactions, works without requests.

2 - quality control landscape. Only two tenants are used:

500 - user training and development of illustrative examples;

600 - verification, verification, correctness of actions and settings.

3 - a productive system (a system that works towards the conclusion of the final and desired result)

The server is a specialized, sufficiently powerful and at the same time reliable computer, which is designed for long-term storage, systematic processing of data dynamically transmitted over the network from all end users.

A Database Management System (DBMS) is installed here - a complex program that provides storage of all data in the form of tables, with the possibility of dynamic replenishment and processing, organization of user requests according to various initial combinations. Work inside the DBMS is carried out at the level of the SQL programming language (StructuredQuery Language). The DBMS also stores business data and all final system settings, a repository and full texts of programs in the ABAP/4 programming language are installed.

SAP-th is the Application Server (Application Server) - a program that runs on the server, and which performs all the necessary and requested actions to work on the data of all registered users.

It is better to explain it with this diagram - the logic of working with SAP ERP:

General organizational structure and composition of users

  • Role (separate) - defines the possibility and list of actions of this user in the system.
  • Role (Group) - Includes all individual roles.

All Roles in the system are client-dependent, they must be created and registered.

The role contains:

  • all prescribed additions to the general user menu;
  • all authorization objects are specified – all allowed user operations are specified;

One user can have several prescribed roles, but the settings are written for each (at the level of the logical operation “OR”) if the commands are inconsistent, the system may display a message stating that the user has “Insufficient permissions”.
A permission profile is a written and compiled role. The whole system works only with user profiles.

All groups "User groups" are divided into the corresponding subgroups:

  • Defined "User groups by functionality/applications"
  • User groups by system usage status: administrators, developers and users.
  • User groups with certain access restrictions to database systems;

Economic feasibility of efficiency when using an automated SAP ERP system

To know, to predict, to determine the strategy - these are three whales for every business leader. With their help, all business models are built. The time has come when it is impossible to develop a competent development strategy without using ERP systems. Speed, accuracy, validity - three words that most accurately characterize the effect of strategic development from the use of these systems.

The overall benefit of the project from the implementation of ERP-systems is clear. There is a full-scale ordering of all information about all the processes of the enterprise, all its divisions and the branch network. Moreover, it does not matter where the branch is located (at least on the other side of the Earth), all information issued upon the appropriate request will come in real time and change following the dynamics of the entire system. ERP systems can work better than many analysts, the only condition for their success is professionally trained service personnel and the full amount of information entered into the system.

Ease of transformation, the ability to connect and remove information modules following a change in the specifics of actions - this is the competitive advantage of these systems. In addition, full coverage of the company's activities makes it possible to more accurately monitor the situation and more quickly respond to it. At the same time, the time of the company's employees is significantly freed up, which in turn is the potential for overall development, and hence the potential for the company's growth. Employees can save up to 20% of their time when using ERP systems.

However, the rather high cost of these application information packages stops business owners from purchasing them. At the same time, the annual maintenance of programs also costs some money, and not small ones. Also, the creation of the necessary infrastructure, which would ensure the operability of the entire system, must be included in the expense item.
Despite this, those companies that have already installed ERP systems note that there has been a fundamental change in the development of production. All processes of economic activity of the enterprise are constantly adjusted or completely rebuilt, and at the same time, costs are reduced, against the backdrop of a significant increase in profitability.

For the smaller one, SAP GmbH has launched other information products on the market with a lower and fixed price. Of course, no one will tell the details of transactions and the pricing of installing SAP ERP at large industrial complexes, however, according to many analysts, the costs of their installation, maintenance and modernization pay off very quickly, which is due to really working models of business proposals issued by the system from the processed data of the systems of these companies.

SAP ERP Implementation Summary

The main benefit of implementing SAP ERP in many business projects is that this action leads to a reassessment of all existing business processes.

The analysis of ongoing business processes provides an invaluable opportunity to rethink, as well as change the established rules and procedures for doing business. Sometimes such a movement is carried out by fulfilling the initial conditions that are necessary for the initial implementation of the system. However, as experience shows, the successful application of this system is possible only if the company's employees comprehend the need for change and actively support the ongoing renewal process. Therefore, it is recommended, within the framework of this project, to involve the majority of employees both in the development and in methods of planning processes that will significantly improve the management process at the enterprise.

A very important clarification - the introduction of the system improves discipline and increases accuracy in the execution of business processes. Of course, these processes improve many indicators of production processes, but there is a downside - this is excessive formalization. Analysis and modeling of business processes, by themselves, do not bring any economic benefits. Therefore, it is important not only to analyze and develop a certain business model, but to bring under it at least one client or manufacturer who would benefit from it. And from the implementation of which he would have received invaluable benefits. Once the system is up and running, the fact can be noted that a standardized business process development system can be applied. This will significantly save time and material resources for the development of the enterprise as a whole, and hence material benefits for each employee.

Other systems, programs and platforms for creating and implementing ERP

  • 1C:Enterprise 8.0
  • CIS "Flagman"
  • System21 Aurora (Business/400)
  • MFG/PRO
  • BSManager CRM/ERP
  • Complex "BUHta"
  • OrganicERP
  • iRenaissance
  • Infor SyteLine ERP
  • Microsoft Dynamics AX
  • Microsoft Dynamics NAV
  • Oracle E-Business Suite
  • SAP Business Suite
  • IFS Applications
  • SAP Business One
  • Ultima ERP
  • IT Enterprise
  • ERP AVA
  • SAP R3
  • SIKE ERP
  • Compass
  • Microsoft XAL
  • Millennium BSA
  • MONOLITH SQL
  • Scala
  • Galaxy
  • HansaWorld Enterprise
  • AVARDA.ERP
  • Spectrum:ERP
  • Comtec for Business
  • ASTOR
  • business control
  • Global ERP
  • Oracle JD Edwards Enterprise One
  • KIS Lexema
  • Sage ERP X3
  • Virtuoso
  • paydox
  • info:COM
  • Smart Retail Suite
  • Technoclass
  • OPTiMA-WorkFlow
  • NOTEMATRIX
  • Accounting. Analysis. Control
  • Business Suite
  • Lawson M3 ERP
  • KIS "ILADA"
  • proLOG software package
  • INTALEV: Corporate management
  • LITER
  • ALTIUS - Construction Management
  • TRONIX
  • DeloPro
  • MACONOMY

Translated from English, Enterprise Resource Planning (ERP) means "enterprise resource management". The ERP system is designed to plan the company's resources needed in production, procurement and sales.

The principle of operation of the ERP system is based on the creation, filling and use of a single database, which includes information necessary for all departments of the enterprise: accounting, supply departments, personnel, etc.

The functionality of ERP systems differs, however, there are functions that are common for all software products:

1. Development of plans for production, sales.
2. Maintenance of technological specifications that provide for the operations and resources necessary for the production of a particular product.
3. Determining and planning the needs for the production of components and materials, costs and deadlines for the implementation of the plan.
4. Purchasing and inventory management.
5. Managing production resources at various scales: from an enterprise or a separate workshop to a specific machine.
6. Financial management of the enterprise, management, accounting and tax accounting.
7. Project management.

Compared to other software solutions, an ERP system has a number of advantages:

  • Creation of a unified information environment that greatly facilitates and optimizes the work of departments and management.
  • The ability to distribute access rights between employees of any departments, from the head to the junior manager of the sales department.
  • Availability of a wide range of solutions for organizations of various types and sizes.
  • Ability to manage multiple divisions, enterprises, concerns, corporations.
  • Compatible with various software products and platforms, high reliability, flexibility, scalability.
  • Possibility of integration with systems and applications already used at the enterprise, in particular, with systems for design automation, process control, sales, and workflow.

Along with other systems that automate production, ERP greatly simplifies the process of enterprise management, resource allocation and sales planning.

When do you need an ERP system?

At the first stages of the company's existence, there are no special needs for automation: all documents are developed using conventional office programs, and in order to receive this or that information, the manager just needs to call the employee. Gradually, the number of documents, the number of employees, the volume of operations is growing, and there is a need to create storages and systematize data.

In an enterprise operating without ERP, all documents are often stored haphazardly, which greatly complicates management. There are also cases when some systems are still installed, but they work exclusively for a specific department.

Accounting, personnel, supply and other departments have their own databases, the workflow between which is difficult. This directly affects the efficiency of work: in order to find out this or that information in the personnel department, the accountant has to make a request by e-mail or call the personnel officer.

It is impossible to achieve effective management, optimization of resources of the entire enterprise and, finally, an increase in the productivity of various departments in such conditions.

ERP-system - the best choice for enterprises of any size, groups of companies, firms with geographically distributed branches.
ERP system:

  • Significantly speeds up document flow between departments
  • allows an employee with certain rights to get instant access to information
  • makes it possible to effectively manage the work of remote branches and employees.

Also, various accounting programs are often offered as alternatives, created exclusively for the formation of financial and tax reporting.

Distinguishing ERP from other systems is quite simple. ERP system:

  • integrates databases and tasks of ALL departments of the enterprise: from accounting and customer service to production and logistics;
  • can help in the performance of any tasks of the enterprise;
  • allows you to create a single information environment.

The main task of an ERP system is to optimize the management of ALL enterprise resources, regardless of the form in which they are presented. This is a single system that includes solutions for accounting, engineering department, supply department, personnel, warehouse, etc.

Such different ERPs

At the moment, there are two main concepts of ERP-systems. These are ERP and ERP II.

The first is understood as software that allows you to organize the work of an enterprise of any type and covers all production processes.

ERP II is a specialized management system that takes into account the key features of an enterprise. It is developed taking into account the tasks that need to be solved by a company of a certain size, type of activity, form.

There is a huge number of off-the-shelf software developments specialized in small firms, manufacturing enterprises, service companies, trade organizations, etc. There are ERP systems designed for one standard enterprise, a company with geographically remote branches, and even a multinational company.

ERP systems can have a different structure. In particular, cloud ERP has recently gained the most popularity - more convenient, scalable and easy to use for medium and small businesses.

How to avoid unnecessary costs for an ERP system with the online program Class365

The implementation of a full-function ERP system in small and medium-sized businesses may not be cost-effective, both because of the high cost and the long implementation period.

You can automate the processes of a small company and avoid high costs using the Class365 online program. The online service allows you to automate the work of the warehouse, retail outlets, customer relationships. In the program, you will also be able to manage all financial flows. This solution is optimal for wholesale and retail trade enterprises, companies providing services, engaged in online sales.

The online solution is beneficial for the manager, since he does not need to additionally train the staff. The program, despite the wide functionality, is surprisingly simple and employees can master it on their own in no more than 15 minutes. In addition, the company does not have to squeeze into a tight budget to purchase a standard licensed application.

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