Customization Services

Customization Services involves any modifications or extensions that change how the out-of-the-box ERP system works.

Customizing an ERP package can be very expensive and complicated. Some ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages have very generic features, such that customization occurs in most implementations. It is also often possible to extend the standard ERP package by purchasing third party software to provide additional functionality. Customization work is usually undertaken as bespoke software development on a time and materials basis.

Customization can be further classified into:

• Core system customization
• custom extensions in custom libraries.

Core system customization is where customers change the software vendors’ proprietary code. This means that the software will no longer be supported by the vendor for the particular function that was customized as the code would be modified to the customers need. The customers IT department will then normally support the code in-house or subcontract a consulting organization to do so.

Custom extensions are where a customer build bolt on custom applications that run parallel to the standard system i.e. custom extended applications. Modules that are extended but core code not changed remain supported but the extensions will have to be supported by the customers IT department or subcontracted consulting organization.

Maintenance and Support Services
Maintenance and Support Services involves monitoring and managing an Operational ERP system. This function is often provided in-house using members of the IT department, but may also be provided by specialist external consulting and services companies.

ref: wikipedia, insurance software

Configuring an ERP system

ERP Systems we are talking here and we talked different aspect of erp system. ERP System is part of Agency Management System which also include CRM Software and SFA Software. We talked Implementation of erp system in last post. Today we are going to talk about Configuring an ERP System.
Configuring an ERP system is largely a matter of balancing the way you want the system to work with the way the system lets you work. Begin by deciding which modules to install, then adjust the system using configuration tables to achieve the best possible fit in working with your company’s processes.

Modules - Most systems are modular simply for the flexibility of implementing some functions but not others. Some common modules, such as finance and accounting are adopted by nearly all companies implementing enterprise systems; others however such as human resource management are not needed by some companies and therefore not adopted.


A service company for example will not likely need a module for manufacturing. Other times companies will not adopt a module because they already have their own proprietary system they believe to be superior. Generally speaking the greater number of modules selected, the greater the integration benefits, but also the increase in costs, risks and changes involved.

ref: Insurance Software, agency management software, wikipedia

Implimentation - ERP Systems

Agency Management System with crm and sfa software is part of ERP System. we are talking here different aspect of erp system. today we are going to talk how to impliment erp system.

Because of their wide scope of application within a business, ERP software systems are typically complex and usually impose significant changes on staff work practices. Implementing ERP software is typically not an "in-house" skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed.

The length of time to implement an ERP system depends on the size of the business, the scope of the change and willingness of the customer to take ownership for the project.[citation needed] A small project (e.g., a company of less than 100 staff) may be planned and delivered within 3-9 months; however, a large, multi-site or multi-country implementation may take years.

To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: consulting, customization and support.

ref: agency management system, Insurance Software, wikipedia

ERP

ERP Systems we are talking here. Agency Management System is part of any ERP System. Today we are going to talk about before and after concept of ERP.

Before the concept of ERP System
Prior to the concept ERP systems, departments within an organization (for example, the human resources (HR) department, the payroll department, and the financials department) would have their own computer systems. The HR computer system (often called HRMS or HRIS) would typically contain information on the department, reporting structure, and personal details of employees. The payroll department would typically calculate and store paycheck information. The financials department would typically store financial transactions for the organization. Each system would have to rely on a set of common data to communicate with each other.

For the HRIS to send salary information to the payroll system, an employee number would need to be assigned and remain static between the two systems to accurately identify an employee. The financials system was not interested in the employee-level data, but only in the payouts made by the payroll systems, such as the tax payments to various authorities, payments for employee benefits to providers, and so on. This provided complications. For instance, a person could not be paid in the payroll system without an employee number.

After
ERP software, among other things, combined the data of formerly separate applications. This made the worry of keeping numbers in synchronization across multiple systems disappear. It standardised and reduced the number of software specialties required within larger organizations.


ref: Agency Management System, wikipedia

ERP System Features - 2

ERP System we are talking here, we talk ERP System Features in our last post. Today we are continueing that here as a part of agency management system.

ERPs are often incorrectly called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers, or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems.

ERPs are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and information technology, this would include accounting, human resources, marketing, and strategic management.

ERP II means open ERP architecture of components. The older, monolithic ERP systems became component oriented.

EAS — Enterprise Application Suite is a new name for formerly developed ERP systems which include (almost) all segments of business, using ordinary Internet browsers as thin clients.


ref: Insurance CRM , SFA Software, agency management system, wikipedia

ERP System Features

Enterprise Resource Planning (ERP) System we are talking here and in last post we talk about Overview of ERP System.

Today we are going to talk about ERP System Features.

Ideally, ERP delivers a single database that contains all data for the software modules, which would include:

• Manufacturing
  Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow.
  
• Supply Chain Management
  Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation.
  
• Financials
  General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets.
  
• Projects
  Costing, Billing, Time and Expense, Activity Management.
  
• Human Resources
  Human Resources, Payroll, Training, Time & Attendance, Benefits.
  
• Customer Relationship Management
  Sales and Marketing, Commissions, Service, Customer Contact and Call Center support.
  
• Data Warehouse
  and various Self-Service interfaces for Customers, Suppliers, and Employees.

ref: CRM Software, wikipedia

Enterprise Resource Planning (ERP)

We talk ERP System -1 and ERP System-2 in our past talk. Today we are going to talk about Origin of the term ERP.

The Origin of the term Enterprise Resource Planning:-
The term ERP originally implied systems designed to plan the use of enterprise-wide resources. Although the initialism ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Businesses, non-profit organizations, nongovernmental organizations, governments, and other large entities utilize ERP systems.

To be considered an ERP system, a software package must provide the functionality of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.

However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance (one system instead of two or more) to easier and/or greater reporting capabilities (as all data is typically kept in one database).

Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM), Human Resources, Warehouse Management and Decision Support System.

ref: CRM & SFA Software, wikipedia

ERP Systems-2

Enterprise Resource Planing (ERP)--2

ERP Risks
• Technical Risk (Easy to fix)
o Result of IT
• Business Risk
o Result of methodologies, and processes related to ERP implementation
o Cohesion of process through the supply chain
• Organizational Risks (Hard to fix)
o Result of environment - organizational structure

ERP Trends and Future
• Outsourcing
• Extended enterprise system
• Data warehousing
• Business Intelligence
• CRM

ERP Outsourcing

• IDC Study : Business process outsourcing is 60% of all outsourcing worldwide

Data Warehousing

• A vital enterprise technology that is revolutionizing the way companies are
accessing information and using it to create data storage
• Data warehouse is a subject oriented database, designed specifically for decision support
• Data mart a subject specific data warehouse often departmental
• On-line Analytical processing (OLAP) - Multi dimensional analytical tools for
accessing storing and manipulating decision support and EIS - style information
• Data mining - knowledge discovery process of extracting previously stored data

Data warehouse and the Web
• Benefits
o less expensive
o universal interface
o less administration
o portable code
• Disadvantages
o stateless/sessionless

CRM
Today the important business issues or opportunities within the organization are, its customers and its competitive landscape Looking at that many organizations have decided that a Customer Relationship Management (CRM) initiative will enable you to tackle them. Though you know that CRM is a strategic initiative that extends far beyond the technical solution, you are also aware that technology is an instrumental driver of your final success. Organizations can leverage the CRM –ERP integration to the enhancement of operational effectiveness. By linking front office, customer-facing systems (CRM) with back-office systems (ERP, HRM, SCM), organizations can build an infrastructure that enables streamlined business processes, which in turn will lead to operational effectiveness enhancement.
In our next part we will talk about Workflow management.

ERP Systems--1

Enterprise Resource Planning (ERP)--1

Some organizations - typically those with sufficient in-house IT skills to integrate multiple software products - choose to implement only portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. How does a organization get to this stage. The stage of implementing full ERP system.
How ERP became part of business life over a period of time?

New World Disorder

• Standards change or became irrelevant very quickly
• Rules are set by consensus
• Speed is the only sustainable competitive advantage
• You will compete with your partners
• Surprise! Technology is driving business again!
• Networks will make platforms almost indistinguishable
• The web is becoming business platform

IT and Business

• Focus of the 80s automate IT as a substitute to processes and tasks
• Late 80s - Integration to increase effectiveness between applications - when IT augments, it informations!
• Focus of the 90s - Realized that IT alone cannot provide sustained competitive advantage - need outstanding execution of business process.
• Focus of the New Millennium - Best business practices are required to be competitive. CRM and Inter organizational process are new focus.
In next part we will look at ERP Risks, ERP Trends & Future, and Workflow Management.