Identification of SME Business Problems and overcoming with implementing ERP software
Prepared by
Student
name
Table of Contents
Executive Summary
Businesses
all over the world are urging towards the use of advanced technologies and
techniques that paves the way for development. The need for this development is
to compete with the wide range of customers and to satisfy the customers. The
internal issues should be resolved initially in order to make the effective
business. The issues such as payroll, procurement, supply chain management,
order management, human resource management and the other departments should be
resolved effectively. The use of ERP has been suggested here for the business
as part of the business development. The businesses could be benefitted by
implementing the ERP based tools. Here, the use of Netsuite by Oracle has been
suggested since it can be suitable for the Ecommerce and the payroll. There are
several recommendations that are made here in the report that could be helpful
in implementing the software in the business.
Identification of SME Business Problems and overcoming with implementing ERP software
Introduction
Small and Medium size businesses are always trying to be cost-effective and gaining more profits. In order to obtain this in the business, the use of the Information Technology based products are highly helpful. The problems that are identified in the business will be like the challenges in managing the teams, maintaining the flow of materials in and out of the industry, logistics, payroll moving to the current trends, etc. The one solution that has been developed for the businesses is Enterprise Resource Planning (ERP). It is a software tool that is highly helpful in managing the business in terms of inventory, supply chain management, logistics, payroll, procurement, distribution and the other major features. In order to understand the problems that are faced in the business and the solutions that are provided by ERP tool, the following report will be highly helpful.
Literature Review
What is ERP?
ERP or Enterprise Resource Planning is the software that standardizes, integrates and improves the business in the various domains like finance, procurement, distribution & logistics, human resources, customer relationship management, payroll, etc. Here, the most importantly ERP systems are highly used by SMEs to reduce the efforts and gain more profits (Moutaz Haddara, 2011).
Importance of ERP
On studying the performance of the business after implementing the ERP tool it is identified that there is a great impact that is made by the system. It improves the performance in all the departments of the business (Ahmed A. Elragal, 2011). In addition it also reduces the human effort that is required to perform the task in addition with sustainability.
Practical applications and features
The ERP tools are highly used in the business for reducing the human power. The challenges that are identified in the business could be easily resolved with the help of the ERP. There are several features that could be helpful for SMEs to resolve the existing issues and are discussed in the following,
· The enterprise wide integration that helps in integrating all the departments in the business.
· Real-time operations of the business could be resolved.
· The consistency could be achieved with the ERP solutions.
· Payroll and employee details could be managed (Päivi Iskanius, 2013).
· Supply chain management and distribution can be handled with the single system.
Method
There are several number of ERP tools that are available in the market which could provide effective solutions to the business. But on analyzing the tools, the two most popular and widely used tools that are identified are SAP and NetSuite by Oracle. These two are the global leaders who are providing effective solutions to the business in terms of every departments. The reason for the selection of the two tools is that these two will be used by the wide number of customers globally. The ERP system has to be initially selected and they the users has to be hosted by the organization (Sitalakshmi Venkatraman, 2016). Though the subscription is based on the number of users, the number of users who will be using the system should be decided before implementation.
Findings
In order to clearly understand between the tools the comparison between the two could be helpful. The following table will be used for understanding the comparison between SAP Business One and Netsuite.
|
SAP Business One |
Netsuite |
|
The main focus of the tool is to provide solutions for business like manufacturing, distribution and professional services. |
Netsuite focuses on financial management, order management, inventory and Ecommerce based solutions. |
|
The total number of customers globally are 50000. |
There are about 16,000 customers using Netsuite globally. |
|
The subscription plan is as per the requirement, one time plan, monthly plan and annual plan. |
The subscription is long term and has to be renewed annually. |
|
Standard Enterprise user starts at $94 per month. For one time professional license it is about $3212 per user. |
The basic application starts at $999 per month. The license for the user is about $99 per month (Wiktor Borowiec, 2018). |
Recommendations
· Implement the business with the software called as Netsuite by Oracle. It is widely used and has been highly popular.
· Use it for cost effective and is enough for implementing in SMEs.
· Netsuite is highly suitable for Ecommerce applications which is not available in SAP.
· Use this software will be charged annually which is comparatively lesser than SAP.
· License for the Netsuite can be bought either through directly or by partner. This helps in overcoming the issues in buying the licenses.
Conclusion
From the above report, it has been identified that there are several challenges in the business like the procurement, supply chain management, distribution and logistics, ecommerce, etc. The use of ERP tool can be helpful in overcoming the issues that are identified by providing the effective solutions. The tool that has been suggested for using the organization is Netsuite by Oracle. Before implementing the tool in the organization, the suitability should be verified. Thus, it can be addressed that the Information Technology has been highly helpful in providing proper solutions for the business with various solutions.
References
Ahmed A. Elragal, A. M. A.-S., 2011. The Effect of ERP System Implementation on Business Performance: An Exploratory Case-Study. Communications of the IBIMA , Volume 2011, pp. 1-20.
Moutaz Haddara, O. Z., 2011. ERP Systems in SMEs: A Literature Review. 44th Hawaii International Conference on System Sciences.
Päivi Iskanius, M. M., 2013. ERP implementation in manufacturing SMEs - An empirical study. 25th NOFOMA Conference, pp. 1-16.
Sitalakshmi Venkatraman, K. F., 2016. Challenges and Success Factors of ERP Systems in Australian SMEs. MDPI systems, 4(20), pp. 1-18.
Wiktor
Borowiec, 2018. NetSuite vs SAP: Ultimate Comparison Guide. [Online]
Available at: https://www.techfino.com/blog/netsuite-vs-sap-ultimate-comparison-guide
[Accessed 15 September 2021].
No comments:
Post a Comment