The decision to purchase an
enterprise resource planning (ERP) system
can lead to some challenging questions for IT professionals at
small and medium-sized businesses (SMBs):
- Which one offers the proper fit of software to business
processes?
- How fast is too fast when it comes to implementing the
system?
- What effect will the Oracle vs. SAP battle have on my
organization?
This IT Management Guide offers tips and articles that answer
those questions and more for IT pros tasked with launching ERP
systems. For free advice and resources on other IT and business
topics, visit our main
SMB IT Management Guide section.
Table of contents
Hasty ERP implementations may fall short
ERP not just for manufacturers anymore
SAP All-in-One vs. MS Dynamics
Oracle-SAP lawsuit carries warning for CIOs
CRM suites suit SMBs
More resources
[Shamus McGillicuddy, News Writer]Small businesses that take the plunge into enterprise resource
planning tend to go live with their ERP projects faster than
midsized and large businesses.
Speed is often a virtue, but businesses that focus on it as a
measure of success tend to overlook the true potential ERP has for
transforming their operations.
"There is more focus in smaller companies on just getting things
in there, which is probably why they're so fast," said Cindy
Jutras, vice president of manufacturing and ERP research at
Boston-based Aberdeen Group Inc. "At the same time they seem to
stop short of taking it to the next level. They get in there, and
then they kind of stop."
According to an Aberdeen survey of 1,200 manufacturers about ERP
adoption, 86% of small companies achieved their first "go live"
milestone within their first year with ERP, whereas midsized
companies reached "go live" in less than a year just 64% of the
time and large companies just 47%.
Jutras said 24% of the 450 small businesses (companies with less
than $50 million in revenue) surveyed measured success by the
amount of time it took them to reach their first "go live"
milestone.
Learn more in "
ERP implementations may fall short for hasty SMBs." Also:
[Cindy Atoji, Contributor]Enterprise resource planning has moved out of the old factory
building and into shiny new headquarters. Though its roots are in
large-scale manufacturing, ERP has evolved to address other
functions and sectors, especially small and medium-sized businesses
that require integrated systems in order to compete on a global
playing field.
This new generation of ERP is more than a traditional accounting
package -- it's "the brains of a company," managing all facets of
operations, said Ray Wang, an analyst at Forrester Research Inc. in
Cambridge, Mass. Most ERP systems have a central database with
different modules -- supply chain, human resources, inventory,
payroll and more -- that share access to common data. This
collective brainpower is especially valuable to SMBs, which often
run a disparate set of rusty legacy applications: personnel waste a
lot of time keying in the same information over and over.
Learn more in the full tip,
"
ERP not just for manufacturers anymore." Also:
- SAP, Oracle may strive in vain for SMBs
(SearchSystemsChannel.com)
Oracle and SAP are trying to push their enterprise applications
down into the midmarket, but few SMBs are looking for all-in-one
enterprise resource planning applications not tweaked for their own
vertical. -
ERP consolidation may be threatening innovation
(SearchCIO.com)
AMR Research Inc. analyst Jim Shepherd and two top IT executives
sound off on the pluses and perils of consolidation in the ERP
space.
[SearchSMB.com, SearchSAP.com]For the giant multinationals of the world, SAP continues to be
the dominant enterprise resource planning player. But once you move
down a notch, the picture changes dramatically. Microsoft, once
content to play second fiddle to SAP's ERP core, is quietly but
steadily ramping up its Dynamics series with a uniform Dynamics
package offering in the works for a 2008 release.
SAP's All-in-One product has many strong points, but so does
Dynamics. On the flip side, either solution has its distinct
weaknesses compared with the other guy. Which path is best for your
company? And what can you expect in the years ahead? Will
Microsoft's lower cost and ubiquitous presence (i.e., existing
"beach heads") translate into market dominance, or will SAP
continue its midmarket growth through focus on business values and
technical finesse?
Read the arguments for each side in
"
SAP All-in-One vs. MS Dynamics." Also:
[Linda Tucci, Senior News Writer]It's gonna get ugly.
Oracle Corp. has publicly called out German rival SAP AG as a
thief. In a lawsuit filed in U.S. Federal District Court in
the Northern District of California March 22 and posted on its
company Web site in English and German, Oracle accuses SAP
and its TomorrowNow Inc. subsidiary of engaging in "systematic,
illegal access" to Oracle's computerized customer support systems.
The suit claims SAP used the passwords of former or soon-to-be
former Oracle customers to download information outside the purview
of what the customer had licensed.
Oracle's no-holds-barred legal action against SAP may turn out
to be a case "about corporate theft on a grand scale," as the
lawsuit states. The claims are very serious, said attorney Erik
Phelps. The breadth and depth of Oracle's complaint indicates the
seriousness with which it views the matter. SAP has vowed to
"aggressively defend itself against the claims made by Oracle in
the lawsuit," and it will be interesting to see its response, added
Phelps, who is not affiliated with the case.
But for CIOs, the 43-page complaint by the leading developer of
database and applications software against the largest German
software company should read more like a cautionary tale, said
Phelps, who specializes in technology issues at Michael Best &
Friedrich LLP in Madison, Wis.
Learn more in the full story,
"
Oracle's call-to-arms against SAP carries warning for CIOs."
Also:
[Sue Hildreth, Contributor]Small and medium-sized businesses need
customer relationship management (CRM)
software just as much as their big-company competitors do. It
not only automates many time-consuming sales and service-related
tasks, such as fulfillment, but it also provides a 360-degree
view of customer buying habits and problems.
But purchasing the right CRM system -- one that fits the budget
and really works the way the staff needs it to -- can be daunting
for a small firm. And price is almost always the first and most
problematic stumbling block for SMBs.
"It always comes down to cost," said Jim Berkowitz, CEO of
consulting firm CRM Mastery Inc., based in Denver. "I say to
people, this is not about spending money. It's about making an
investment that should bring a return to the business."
Find out more in more in
"
CRM suites suit SMBs." Also:
-
CRM for SMBs: IT Management Guide
CRM options for SMBs are rapidly increasing. This guide will help
you make informed choices with CRM news for SMBs, product options,
how-to tips and expert advice. -
Business intelligence applications
Read this excerpt from Business Intelligence: The Savvy
Manager's Guide to learn about the various applications of
business intelligence and how you can use information strategically
to help your business.