Mi0038 Unit 13 Slm

Enterprise Resource Planning Unit 13

Sikkim Manipal University Page No. 275

Unit 13 ERP Market

Structure:

13.1 Introduction

Objectives

13.2 ERP Market

13.3 SAP – AG

Products and Technology

R/3 Overview

SAP Advantage

13.4 BAAN Company


Baan ERP Modules

Global Support, Education, and Consulting

13.5 Oracle Corporation


Oracle Applications

Vertical Solution

13.6 People Soft

Business Management Solutions

Commercial Solutions

Industry Solutions

Applications

13.7 J D Edwards World Solutions Company


Modules

13.8 Systems Software Associates Inc (SSA)


BPCS Applications

13.9 QAD

Application MFG/PRO

Modules

13.10 Summary

13.11 Terminal Questions

13.12 Answers

13.13 Case Study

13.14 Glossary



13.1 Introduction

By now you must be familiar with the concept of ERP, its essence in an

organisation, its market and application in a wide variety of industries. This

unit familiarises you with some of the vendors and the market space that

various vendors have occupied with respect to ERP.

The ERP market is fast growing and very competitive. AMR Research Inc. is

a leading industry and market analysis firm specialising in enterprise

applications and enabling technologies. They had analysed in 2002 that

Enterprise Resource Planning (ERP) software market will grow at a

compound annual growth rate of 3.7% over the next five years. During 2007

this revenue growth reached double figures. The findings of the AMR report

indicate the continued growth of three primary factors. These are:

ERP vendors are expanding market presence continuously by offering

new applications such as supply chain management, sales force

automation, customer support and human resources.

ERP vendors to sustain their rapid growth will try to sell more licenses

into their installed base. Currently, ERP vendors have a 10-20%

penetration (i.e. %age of total employees currently using the ERP

system). This will grow to 40-60% within the next five years.

ERP originated in the manufacturing industry. Today ERP usage has

spread to nearly every type of enterprise including retail, utilities, public

sector, and healthcare organisations. Most will purchase new ERP

systems over the next five years, often for the first time.

In this unit, we will study some of the top vendors in the ERP market, their

profile, their product offerings, and product features.

The companies featured here are SAP AG, Baan Company, Oracle

Corporation, People Soft, J.D. Edwards, SSA and QAD.

Learning Objectives:

After studying this unit you will be able to:

Describe the ERP market.

Explain the major players in ERP and their respective market share.

Assess the various market trends in ERP.

Recognise the target market of ERP.



Analyse and know how to potentially use ERP in the market driven

economy.

Assess the seven major ERP vendors – SAPAG, Baan, PeopleSoft, JD

Edwards, Oracle, QAD and SSA.

13.2 ERP Market

The vendors in the ERP market are segmented into two levels.

They are focusing on expanding product functionality, new market targets

and higher penetration rates. The top level consists of five vendors (1998) –

SAP AG, Baan PeopleSoft, Oracle Applications, and J.D. Edwards. These

companies, account for 64 % of the ERP market revenue and have grown

over the past year at a furious pace of 61 %. In addition, Oracle, People Soft

J.D Edwards, and Baan are each expected to approach or exceed $1 billion

in total revenue in 1998, while SAP will approach $5 billion. In the survey

conducted by ARM during the year 2005 the list had few changes with new

players entering into the huge market of ERP.

Some of the companies were not able keep up with the technology and lost

their market like Baan. Some even went for merger like PeopleSoft and J.D.

Edwards. The figure1 13.1 shows the total revenue of the top five ERP

vendors of 2005 survey. The graph in the figure 13.1 shows the total

revenue in millions of the top five companies in ERP market (2005). The

graph also shows the strength of each company in terms of revenue and the

monopoly they have in the ERP market.

1 www.amrresearch.com



Figure 13.1: Top Five ERP Vendors

The efforts these companies (SAP AG, Baan PeopleSoft, Oracle

Applications, and J.D. Edwards) made as start-ups, created a new market

for ERP. Although ERP was considered only for manufacturing large scale

industries, they penetrated into new smaller markets during 90’s.

AMR Research had predicted that the ERP market will reach $14.8 billion in

total company revenue in 1998. In addition, when third party services like

hardware, databases, and networking are considered, AMR Research

estimated that the ERP infrastructure was worth over $ 42 billion. It was

obvious that the market for ERP would continue to be one of the largest,

fastest growing and most influential in the applications industry. It was

poised for steady growth into the new millennium.

It is evident from the figure2 13.2 that the SAP had conquered the major

portion of the market with 29% of the total global market. This showcased

the efficiency and the strength of the company in handling customers and

technology. Oracle stood next to SAP followed by JD Edwards and

PeopleSoft. The most important aspect noticed is that 27% of the markets

occupied by other vendors were local vendors. They had a better picture of

their local conditions and benefited from it.

2 www.amrrresearch.com



Others

27%

SAP AG

29%

PeopleSoft

6%

Baan

5%

JD Edwards

7%

Oracle

Applications

10%

QAD

2%

Intentia

2%

Marcam

3%SSA

5%

JBA

4%

Figure 13.2: Shows the global market share of the major ERP vendors.

Compared to the global market the scenario in India is slightly different. The

Indian ERP package Ramco's Marshal accounted for 9% of the market

share as shown in Figure3 13.3.

This proved the capability of Indian companies to penetrate the Indian

market in spite of the presence of some global giants. According to the

Dataquest survey (Dataquest, April 15, 1999), of the Indian ERP market,

SAP is the market leader with 20% market share. The survey also showed

that ERP does not appear to be new to the Indian market. This is indicated

by the large number of solutions, which have been implemented.

While SAPs R/3 and QADs MFG/PRO continued to dominate the Indian

market, the presence of some of the lesser-known brands like J.D. Edward

and SSA’s BPCS cannot be ignored. Other familiar and strong competitors

like Oracle’s Financials, Ramco‘s Marshal, and Baan also dominate the

second and third level of the domestic ERP market.

3 Dataquest Magazine



QAD

10%

SAP

20%

Others

23%

MAMIS

4%

JD Edwards

10%

SSA

10%

Ramco

9%

Oracle

7%

Baan

7%

Figure 13.3: Indian ERP Market Share

There was also an extensive list of ERP solutions being implemented in

much smaller numbers. The ERP awareness in Indian organisations was

growing. The survey shows around 35% of organisations are using ERP for

more than 24 months. Some of the companies have been using ERP for

less than 24 months and the number is growing. Assuming an average

implementation process of 18 months, 35% of organisations have therefore,

been grappling with ERP issues for close to 4 years and longer. Amongst

the organisations planning to implement ERP in the future, the research

indicated that SAP still remains the number one preferred solution. This is

followed by Oracle Financials, Baan and MFG/PRO. Home-grown solutions

like Marshal and MakESS have also been indicated as preferred options.

13.3 SAP– AG

Systems, Applications and Products in Data Processing popularly known as

SAP or Systemanalyse und Programmentwicklung was founded in the year

1972, in Germany. It is the leading global provider of solutions for

client/server business application. SAP has installations in over 107

countries.

SAP’s ERP package is available in two versions – the mainframe version

(SAP R/2) and client/server version (SAP R/3). Most prominent among



SAP’s product range is the enterprise application suite R/3 for open

client/server systems. With SAP Systems, customers can opt to install the

core system and one or more of the functional components. You can even

purchase the software as a complete package.

SAP customers have chosen to install SAPs client/server suite in more than

19,750 sites worldwide. The System Software is accepted as the standard in

key industries such as oil, chemicals, consumer products, and high

technology and electronics.

SAP has work force strength of over 19,300 and has offices located in more

than 50 countries across the world. SAP is the most successful vendor of

software on standard business applications. It is also ranked as the fourth

largest independent software supplier in the world.

During the fiscal year, ending December 31, 1998, SAP AG reported

revenues of DM 847 billion, a 41% increase over 1997s revenues. In the

same period, sales of R/3 rose by 31%.

13.3.1 Products and Technology

SAP products feature a sophistication and robustness unmatched by other

business software solutions. SAP has developed a huge library of more than

800 predefined business processes, spanning each functional software

requirement. These processes can be selected from the SAP library. It is

then included within the installed SAP applications, after modifying the

application solution to suit the user's exact requirements. New business

processes and technologies become available regularly to the customers.

This enables the SAP customers to add state-of-the-art solutions to meet

their ever-changing business demands. The power of SAP software lies in

real-time integration. It has the ability to link a company's business

processes and applications. It also supports immediate response for any

change throughout the organisation on a departmental, divisional or global

scale. The international strength of the products extend to every aspect of

the application, such as the support of multiple currencies simultaneously,

and the automatic handling of country-specific import/export, tax, legal, and

language requirements. The complete suite of the applications on R/3 is



available in over 24 languages, including Japanese and other double-byte

character languages.

13.3.2 R/3 Overview

R/3 employs three-layer client/server architecture. This is widely recognised

by SAP customers, technology partners, and industry analysts. They believe

it as a winning approach for solving some of the day's most demanding

information-management challenges. The three-layered architecture

separates a system into three functional layers, each structured to support

the demands of its function.

The Database layer resides on mainframe or central servers host

computers.

The Application layer holds the logic of processing for the system,

preparing and formatting data for individual offices or departments.

The Presentation layer, installed on Personal Computers (PC), handles all

the tasks related to the presentation of data. This includes user interfaces

that enable easy access to complex applications and data. SAP has also

incorporated and integrated intranet and Internet technologies into business

solutions for its customers. Both internally and together with its partners, the

company is defines, and creates a number of Internet standard-based

interfaces, applications, and business processes. This helps in stretching

the usefulness of SAP software to entirely new ways and to new classes of

customers.

Through its Industry Business Units (IBUs) and extensive development

network, SAP works closely with its customers to develop new information

technology approaches. With the help of this SAP is trying to meet the

unique demands of a wide spectrum of industries. With this approach,

customers become members of the SAP development team, sharing their

best practices, and solutions.

R/3 enables react quick reaction and is more flexible, and leveraging on the

changes is on added advantage. Everyday business will surge, and this

means one can concentrate on strategically expanding to address new

products and markets. The R/3 System is ideal for companies of all sizes,

and industries and 50% of its users are small scale industries. It gives them



a forward-looking information management system, and the means to

optimise their business processes. R/3 consists of powerful programs for

accounting and controlling, production, and materials management, quality

management and plant maintenance, sales, and distribution, human

resources management and project management. Already, over 2,000,000

users put R/3 business applications to test every day. R/3 also has

information and early warning systems which helps in troubleshooting and

problem resolution.

R/3 brings together individuals who work on shared tasks within the same

company, in a network of companies, or in their dealings with customers

and business partners. R/3 unlocks ways to optimise organisational

structures for a smoother flow of information at all layers and between all

parts of the organisation. With integrated workflow management and access

to up-to-the-minute information, R/3 lets employees assume greater

responsibility, and work more independently.

R/3's applications consist of various modules. They can either be used

alone or in combination with other solutions. From a process-oriented

perspective, greater integration of applications increases the benefits

derived.

The following are the R/3 modules:

Financial Accounting: Collects all relevant company data for

accounting, and provides complete documentation and comprehensive

information. At the same time it also provides up-to-the-minute basis

information for enterprise-wide control and planning.

Treasury: A complete solution for efficient financial management across

the company worldwide ensures liquidity, proper structuring, financial

assets profitability and helps minimise risks.

Controlling: A complete array of friendly planning and control in

instruments for company-wide controlling systems. Along with a uniform

reporting system for coordinating the contents and procedures of the

company's internal processes.



Enterprise Controlling: Continuously monitors company's success

factors and performance indicators on the basis of specially prepared

management information.

Investment Management: Offers integrated management and

processing of investment measures and projects from planning to

settlement. It also includes pre-investment analysis and depreciation

simulation.

Production Planning: Provides comprehensive processes for all types

of manufacturing, from repetitive, make-to-order and assemble-to-order,

production, through process, lot and make-to-stock manufacturing. Also

to integrated supply chain management with functions for extended

MRP-II and electronic Kanban, plus optional interfaces for PDC, process

control systems, CAD and PDM.

Materials Management: Optimises all purchasing processes with

workflow-driven processing functions, enables automated supplier

evaluation, lowers procurement and warehousing costs with accurate

inventory and warehouse management and integrates invoice

verification.

Plant Maintenance and Service Management: Provides planning,

control and processing of scheduled maintenance, inspection, damage-

related maintenance and service management to ensure availability of

operational systems, including plants and equipment delivered to

customers.

Quality Management Monitors: captures and manages all processes

relevant to your quality assurance along the entire supply chain,

coordinates inspection processing, initiates corrective measures and

integrates laboratory information systems.

Project System: Coordinates and controls all phases of a project, in

direct cooperation with Purchasing and Controlling, from quotation to

design and approval, to resource management and cost settlement.

Sales and Distribution: Actively supports sales and distribution

activities with outstanding functions for pricing, prompt order processing

and on-time delivery, interactive multilevel variant configuration and a

direct interface to Profitability Analysis and Production.



Human Resources Management: Provides solutions for planning and

managing your company's human resources, using integrated

applications that cover all personnel management tasks and help

simplify and speed the processes.

13.3.3 SAP Advantage

SAP has established partnership with hardware manufacturers, database

providers and technology and service companies which play a significant

role for successful implementation. Client/server architectures, database

systems take care of managing enterprise data. They communicate with

application servers that coordinate the actual applications and control

communication with the database. At the client level, where the end users

work, the cycle of tasks is appropriately distributed across various

computers. The process ends with a presentation of the results on the

desktop for the user to apply across various levels of management For

efficient implementation and use of R/3, the Business Engineer application

of SAP allows installation and customisation of R/3 quickly and smoothly.

This is provided at minimum cost and with maximum reliability. After the

Business Engineer is fully integrated into the R/3 System, it helps in

analysing, designing and configuring business processes. As a result,

considerable time is saved in implementing R/3 and in subsequently

customising the system as business needs change, but it also greatly

reduces the cost.

The Business Engineer delivers a complete tool kit that greatly facilitates the

implementation of R/3 and the engineering of the business processes. For

example, the R/3 Procedure Model guides through the different project

phases step-by-step from project generation to going live. in order to always

be on the right track, a wide range of tried and tested, graphically portrayed

business scenarios and processes are stored in the R/3 Reference Model.

From this wealth of experience, the best possible processes can be chosen.

The openness of R/3 sets the pace in the market for client/server software.

You can:

Link together R/3 systems or loosely couple distributed R/3 applications.

Link both third-party software and popular desktop programs such as

MS Word, MS Excel, and MS Project to R/3 applications.



Integrate specialised systems for computer-aided design (CAD), plant

data capture (PDC), or mobile data entry.

Incorporate specific solutions for industry, such as laboratory systems or

geographic information systems (GIS).

Include enhancements to R/3 applications, such as systems for

production optimisation and transportation planning.

Open up new business opportunities with e-commerce, thanks to direct

cooperation between R/3 and the Internet.

Use Java technology to make R/3 available to users with a familiar GUI

on the Internet.

Include fax, e-mail, optical archiving systems and multimedia tools in the

R/3 System's business applications.

Electronically transmit via EDI, receive and process data from R/3

applications.

Build cooperating groups of solutions between R/3 applications and

SAPs R/2 System.

Activity 1

Make a list of the various ERP software or solution providers with their

various products available in the market today.

Self Assessment Questions

1. _________________is a, the leading industry and market analysis firm

specialising in enterprise applications and enabling technologies.

2. The _______________ is accepted as the standard in key industries

such as oil, chemicals, consumer products, and high technology and

electronics.

3. R/3 employs three-layer _____________ architecture.

4. The _______________ delivers a complete toolkit that greatly

facilitates the implementation of R/3 and the engineering of your

business processes.

5. Client/server architectures, ____________ systems take care of

managing enterprise data.



13.4 Baan Company

Baan Company is one of the leading providers of enterprise business

software in the global market. Baan was founded in the Netherlands in 1978

by brother’s Jan and Paul Baan. Baan Company offers a widespread

collection of best-in-class, component-based applications for front office,

corporate office and back office automation. These applications are in use at

over 7,000 customer sites worldwide. Baan Company products reduce

complexity and cost, improve core business processes. They are faster to

implement and use, are more flexible in adapting to business changes. They

also optimise the management of information throughout the entire value

chain.

Baan Company's product family offers on-going delivery of open

components for enterprise applications. It consists of a comprehensive and

flexible suite of year 2000-compliant software solutions and best-in-class

business modelling tools. These tools are based on a flexible, multi-level

architecture which can scale to meet the needs of small, medium, and large

enterprises. Baan Company makes this possible with its open architecture.

This enables customers to migrate to new technologies and product

releases at their own pace. Referred to within Baan Company as Dynamic

Enterprise Modelling Strategy Execution (BaanDEMSE), this unique

approach puts business requirements at the heart of the implementation

process.

Baan Company and its partners work closely with customers to insure the

success of every installation. They also enable customers to achieve the

highest level of self-reliance desired. The company's most important

customer base includes industry leaders such as Boeing, Philips, Mercedes

Benz, Nortel, Fujitsu Network Communications and Motorola. Baan

Company aims to ensure that every interaction its customers have is in line

with its “Three I” philosophies:

Integrity: In its interactions with its customers, colleagues, partners, and

shareholders.

Innovation: In what it builds and how it delivers.

Initiative: In the speed and focus it brings to all aspects of its market

opportunity.



13.4.1 Products and Technology

Over the past 14 years, Baan Company has evolved from revolutionising the

Enterprise Resource Planning (ERP) software market to now offering the

most complete set of single-vendor enterprise business applications. The

foundation for Baan's products is differentiated through their open

component architecture and through the use of BaanDEM. BaanDEM via a

graphical process/model-based view provides a business view of the

enterprise. It is modified or templated to the specific needs of industry

groups or individual customers. BaanDEM delivers the capability to rapidly

configure and re-install Baan.

Company’s applications from a single view, helping to ensure that the Baan

Company enterprise application accurately reflects a company's most

current organisational structure, business practices, and operational

procedures.

Baan's product line features multi-layer architecture for maximum scalability

and flexible configuration. Applications are isolated from the systems

environment. This enables the support of new hardware, operating systems,

databases, networks and user interfaces without any modification to the

application code. Baan Company supports popular UNIX platforms as well

as Microsoft NT. Baan has the distinction of being the first solution provider

in its class to earn the 'Designed for Microsoft BackOffice logo certification.

Products also support major relational database systems (Oracle, Informix,

DB2, Sybase, and Microsoft SQL Server).

Built on a commitment to reduce the complexity of IT solutions, the Baan

product collection assembles best-of-class components. They keep them

"evergreen" through on-going release cycles. This enables enterprises to

update their information infrastructure in manageable and incremental

initiatives.

Three advantages distinguish each component element within the

BaanSeries-based family of products including.

They are:

1. Best-in-class components

2. Evergreen delivery;



3. Version independent integration.

The BaanSeries-based product family includes:

Baan Enterprise Resource Planning (BaanERP)

BaanFrontOffice

BaanCorporateOffice Solutions

BaanSupply Chain Solutions.Baan offers specific vertical industry solutions

for aerospace and defence companies engaging in multi-level projects and

contracts. Baan's A&D offering includes BaanProject to enable the effective

management of key functional business process areas. Baan also offers

specific vertical industry solutions for automotive companies. Many of the

world's leading automotive companies use Baan's business applications to

support worldwide manufacturing, distribution, and financial operations.

Baan's product suite offers automotive companies next-generation

information technology across manufacturing, supply chain and front office

operations.

13.4.2 BaanERP Modules

BaanERP, the successor to Baan IV, is a proven enterprise resource

planning software application. It is fully integrated and provides exceptional

functionality across the enterprise. BaanERP consists of a number of

interdependent components that can be deployed to meet business needs.

The flexibility within BaanERP allows customers to maximise the benefits of

both best-in-class solutions and a fully integrated, high-performance system.

BaanERP includes the following components - manufacturing, finance,

project and distribution.

Manufacturing Module: It includes Bills of Material, Cost Price

Calculation, Engineering Change Control, Engineering Data

Management, Hours Accounting, Product Classification, Product

Configuration, Production Control, Production Planning, Project

Budgeting, Project Control, Repetitive Manufacturing, Routings, Shop

Floor Control, Tool Requirements, Planning and Control, Capacity

Requirements Planning, Master Production Scheduling, and Material

Requirements Planning.



Finance Module: It includes Accounts Payable, Accounts Receivable,

Financial Budgets System, Cash Management, Financial Reporting

System, Fixed Assets, General Ledger, Cost Accounting, and Sales

Invoicing.

Project Module: It includes Project Budget, Project Definition, Project

Estimating, Project Invoicing, Project Monitoring, Project Planning,

Project Progress, and Project Requirements Planning)

Distribution Module: It includes Sales Management, Purchase

Management, and Warehouse Management.

13.4.3 Global Support, Education, and Consulting

Support: Baan Global Support is a company's best source for fast, consis-

tent problem resolution, as well as preventive technical advice. Baan Global

Support offers a broad range of support services. It includes telephone

support, Critical Incident Support, an Interactive Support Website, and an

Ongoing Subscription to Innovation. Baan has closely linked Implementation

Solution Centres around the world. They support internal and third party

implementation consultants as well as customers. Baan also assists

customers in establishing on-site competence centres to manage all aspects

of the implementation and ongoing systems use. Products are available in

over 59 countries through both direct and indirect channels, and are

translated into more than 20 languages.

Baan Education: As a partner in lifetime learning, Baan Education helps

maximise the return on investment in people and technology. Baan

Education addresses the education needs of everyone in an organisation. It

includes newly hired employees to seasoned professionals who are

maturing with technology. Baan Education offers new Internet-based

learning called Virtual Campus. With Baan Education, a partner can realise

the company's goals of profitability, productivity, and competitive advantage.

Baan Education's process-based course, addresses not only specific Baan

Company's enterprise applications. It also provides an in-depth

understanding of the business processes that its applications automate.

Thus, Baan Company extends education beyond simple functionality. It

takes into account the various conditions within which its applications are

used in their manufacturing, sales, financial, and technical environments of



a company. This lifetime learning approach means that a company's

workforce is always side by side with the latest technology and business

developments.

Baan Consulting: Baan Consulting is dedicated to implement Baan

Company’s enterprise applications around the globe, along with the

thousands of customers served by its consulting partners. Baan Consulting

has a successful track record with well over 1,000 customers worldwide, in

almost every business environment. Baan Consulting provides a wide range

of services, such as Project Management, Business Consulting, Application

Consulting, and Technical Consulting. Consultation support is provided

throughout the implementation process, and after a company goes live with

the project. Baan Consulting works with its client through Internet-based

Baan Cyber Consult offering.


6. _________________ product family offers on-going delivery of open

components for enterprise applications.

7. These tools are based on a flexible, _____________ architecture which

can scale to meet the needs of small, medium, and large enterprises.

8. ______________ are isolated from the systems environment.

9. ________________ helps maximise the return on investment in people

and technology.

10. Baan Consulting works with its client through Internet-based

_____________________ offering.

13.5 Oracle Corporation

Oracle Corporation (founded in 1977) is the world's second largest software

company. It is also the leading supplier of software for Enterprise

Information Management (EIM). With annual revenues exceeding $ 8.0

billion, the company offers its tools, database, and applications products,

along with related consulting, education and support services. Oracle

employs more than 41,000 people in more than 145 countries around the

world. Oracle has its headquarters in Redwood Shores, California. It is the

first software company to implement the Internet computing model for

developing and deploying enterprise software across its entire product. They



are application development, databases and relational servers, and decision

support tools, and enterprise business applications.

13.5.1 Product and Technology

Oracle software runs on personal digital assistants, set-top devices, network

computers, PCs, workstations, minicomputers, mainframes, and massively

parallel computers. Oracle8i, the latest version of Oracle industry's leading

database, is the database for Internet Computing. Oracle's family of

database, networking, and gateway products enable corporations to access

any data, on any server, over any network, from any client device.

Oracle's Warehouse Technology Initiative (WTI), one of the fastest growing

and most comprehensive alliance programs in the data warehousing

industry. It provides customers with a complete solution on data

warehousing. This is based on the industry-leading Oracle database, and

more than 60 complimentary third-party software products and services.

WTI is designed to increase the quantity and quality of Oracle-based data

warehousing solutions. This provides customers with greater choice,

specialised tools, Oracle-optimised products, and streamlined support as

they build their data warehouse system. Oracle's integrated Business

Intelligence Solutions deliver powerful capabilities to users anywhere in the

enterprise, at any time. End users benefit from sensitive tools that provide

easy access to business data and fast answers to any question. Oracle's

Business Intelligence family of products including integrated releases of

Oracle Reports, Oracle's enterprise reporting tool, Oracle Discoverer,

Oracle's award-winning ad-hoc query and analysis tool, Oracle Express,

and Oracle's industry-leading enterprise online analytical processing (OLAP)

engine. Oracle also offers pre-built OLAP applications like Oracle Financial

Analyser and Oracle Sales Analyser which help to further reduce

implementation time and costs.

13.5.2 Oracle Application

It is a leading provider of packaged and integrated front office and ERP

solutions for the enterprise. It is also a division of Oracle Corporation, the

world's second-largest software company and the largest supplier of

software for information management. Oracle Application’s strategy is to

offer all the enterprise solution components like proven applications,



advanced technologies, business expertise and partnerships required to

enable customers to execute strategies quickly. It also assists in managing

the risk of change, and lead their respective industries in right direction.

Oracle Applications is the only collection of enterprise business applications

from a major Enterprise Resource Planning (ERP) vendor that follows the

Internet Computing (IC) model. Each of the over 45 modules for human

resources, financials, manufacturing, supply chain, and front office

automation is web-enabled. It also allows the modules to be deployed on

corporate intranets with no software, other than a browser, required on

users’ desktops. This architecture allows organisations to shift the

complexity of application management, maintenance, and upgrading from

users' desktops onto centralised, professionally managed servers. Hence, it

significantly reduces the cost of deploying and administrating the software.

By minimising network traffic, this approach also makes it economical to

deploy the applications over Wide Area Networks (WANs) to hundreds or

thousands of users. This system has enabled the company to distribute

critical business information much more broadly which is only possible in the

client/server model.

Oracle Applications further exploit the low-cost and universal access in the

Internet Computing model. By providing a set of applications specifically

designed for secure, self-service business transactions across the Internet

and corporate intranets this is achieved. These applications are integrated

with Oracle Workflow to completely automate business processes.

Oracle Applications comprise of 45-plus software modules, which are

divided into the following categories:

Oracle Financials

Oracle Human Resources

Oracle Projects

Oracle Manufacturing

Oracle Supply Chain

Oracle Front Office

More than 6,000 customers in over 76 countries use Oracle Applications.

Available in more than 29 languages, Oracle Applications lets companies



operate in multiple currencies and languages, support local business

practices, and legal requirements. It also handles business-critical

operations across borders.

A brief overview of the Oracle Application categories is given below:

Financials: Oracle Financial Applications can transform a finance

organisation into a strategic force. In today's fast-moving corporate field,

organisations require access to critical financial management functions.

With Oracle Financial Applications, companies will be able to work

globally, lower their administrative costs, close their books faster, and

improve cash management. At the same time they provide the strategic

information required for making timely and accurate decisions.

Projects: Oracle Projects Applications improve operational efficiency by

providing an integrated project management environment. This supports

the full lifecycle of every project in your enterprise, increasing top-line

revenue growth and bottom-line profitability. It acts as the bridge

between operations systems and corporate finance. Oracle Projects

Applications provide a central storeroom of certified cost, revenue, billing,

and performance data associated with your business activities or

projects.

Human Resources: Well-managed human resources directly improve

the bottom line and contribute to competitive advantage. The ability to

hire, motivates, and retains the most capable workforce; engage

employees and line managers directly in managing their skills and

careers. It also provides comprehensive and up-to-date workforce

information for management on a global basis. These are a few of the

characteristics important for success of this software. The Oracle Human

Resource Management System (HRMS) provides comprehensive

facilities for organisations to achieve such goals.

Manufacturing: Oracle Manufacturing Applications are the industry-

leading mixed mode manufacturing solution. It enables companies to

achieve market leadership by becoming more customer-responsive and

efficient. This product family supports companies from small, single-

facility environments to multi-plant, global manufacturers with complex

requirements. Oracle Manufacturing Applications help companies



increase revenue, profitability, and customer loyalty. It is achieved by

universally capturing demand, planning the extended enterprise in one

rapid step. Along with these it ensures that the most efficient

manufacturing process is used to produce each product in the

respective company using it.

Supply Chain: Oracle Supply Chain Management Applications simplify

supply-chain processes by providing a single, integrated environment for

managing the extended enterprise. Oracle enables effective trading

partner collaboration and supply-chain optimisation capabilities that are

essential to gain and sustain competitive advantage. Oracle Supply

Chain Management Applications help in increasing market share while

improving customer service. It also helps the company in minimising the

costs across the networked supply chain system.

Front Office: Oracle Front Office Applications provide a true customer-

centric approach. Allowing you to better understand your customer

relationships, their value and profitability. Oracle Front Office

Applications increase revenues, decrease sales and service costs, and

maintain customer retention and satisfaction. The sales, marketing, and

service solutions provide deep integration with the entire enterprise

collection of applications. Hence, enabling you to attract and retain

profitable customers through a unified set of channels, including Web,

mobile, and call centre.

13.5.3 Vertical Solutions

Oracle also provides vertical solutions with a full line of modular product

components aimed at the unique requirements of many major industries,

including automotive, aviation, aerospace and defence, communications,

consumer packaged goods, energy downstream, energy upstream, financial

services, high-tech, public sector, and utilities.

This uniqueness and versatility of the company not only provides the

required solution to the customer but also the support system has made it

the most preferred choice of many companies. Their commitment and

knowledge over the field has made them the most successful vendors in the

ERP market. Their continuous innovation and up gradation in technology



has provided an edge over other ERP vendors to firmly hold on to the ever

changing ERP market.

13.6 People Soft

PeopleSoft Inc. was established in the year 1987 to provide innovative

software solutions that meet the changing business demands of enterprises

worldwide. It employs more than 7,000 people worldwide. The annual

revenue for the year 1998 was $ 1.3 billion. PeopleSoft's objective is to

provide innovative software solutions that meet the changing business

demands of organisations worldwide.

PeopleSoft develops software that supports enterprise wide solutions to

handle core business functions. This includes human resources

management, accounting and control, project management, treasury

'management, performance measurement, and supply chain management.

It provides enterprise solutions which is industry-specific to customers in

select markets. Like healthcare, manufacturing, communications, financial

services, higher education, public sector, services, retail, transportation, US

federal government, and utilities. PeopleSoft Select offered by the company

is a complete packaged solution including software, hardware, and services

to address the needs of medium sized organisations.

Solutions of PeopleSoft run on a variety of leading hardware and database

platforms. Like IBM, Sun Microsystems, Compaq, Hewlett-Packard, Informix,

Microsoft SQL Server, Sybase, DB2, and others. PeopleSoft delivers Web-

enabled applications, workflow, OnLine Analytical Processing (OLAP), and

so on.

13.6.1 Business Management Solutions

PeopleSoft solutions extend across the globe. The applications help in

managing a broad set of business processes, from human resources and

finance to supply chain management. One can implement a single

application, or a complete enterprise wide solution. The flexible design lets

you modify the applications to your specific needs. The PeopleSoft's

business management solutions are in the areas given below:

Human Resources Management

Accounting and Control



Treasury Management

Performance Measurement

Project Management

Sales and Logistics

Materials Management

Supply Chain Planning

Service Revenue Management

Procurement

13.6.2 Commercial Solutions

Supply Chain Management: PeopleSoft has the industry's only complete

enterprise resource planning solution that is built around supply chain

optimisation. A Demand Planning module enables sophisticated forecasting,

using both real-time and historical information. PeopleSoft's complete suite

of Supply Chain Management products provides comprehensive support for

any organisation that produces or markets a physical product.

Service Industry Solutions: PeopleSoft also provides a complete

commercial support solution for service industries. The Service Revenue

Management suite features modules supporting the tracking of time and

labour, payroll processing, project management, billing, and expense and

receivables processing. A suite of Procurement modules is also available

supporting purchasing, inventory management, payables and expense

processing, and asset management.

13.6.3 Industry Solutions

PeopleSoft supports industry-specific market initiatives in many business

sectors. The initiatives include industry specific products, customisation of

existing applications, and sales and marketing support through direct

channels and business alliances.

PeopleSoft has 11 distinct business units, which provide software solutions

specific to a broad range of public and private sector industries. These

Industry partners help in making the solutions widespread and spanning the

enterprise from the back office to the front lines. From service and

manufacturing to education and government, PeopleSoft solutions are



global, enterprise-wide, and modified to unique industry requirements. The

different business units are:

Communications

Federal Government

Financial Services

Healthcare

Higher Education

Manufacturing

Public Sector

Retail

Service Industries

Transportation

Utilities

13.6.4 Applications

PeopleTools is an integrated set of client/server business application

development and customisation tools from PeopleSoft. These tools enable

customers to implement, modify, and maintain PeopleSoft applications as

well as to extract, analyse and manipulate data. PeopleTools includes

several tools for reporting, customisation and workflow.

PeopleSoft continually adds and refines technology to optimise their

customer’s information systems. They help customers take advantage of

new and emerging technologies, giving them more choices and freedom to

develop their own innovative business processes. Some of them are given

below:

Self-Service Applications: Helps to improve productivity throughout the

organisation. PeopleSoft focuses on providing the occasional user with

easy access to information and functionality specific to their role. They

have developed a set of self-service applications to help companies

quickly and cost-effectively distribute functionality throughout the

enterprise over the Internet, and intranets. Built with a spontaneous

interface based on a standard Web browser such as Netscape

Navigator or Microsoft Explorer. These Java-based, cross-platform

applications enable employees, customers, suppliers, and other

occasional users to perform self-service administrative tasks easily. Self-



service applications are linked to PeopleSoft core product lines. Such as

PeopleSoft Accounting and Control, Human Resources Management,

and Materials Management.

Web Client: Self-service applications use the PeopleSoft Web Client.

The Web Client is downloadable on demand and runs on a Web

browser across multiple platforms. Its affordability, open architecture and

simplicity provide an ideal framework for delivering enterprise solutions

to a large number of people. Applications don't need to be installed at

every desktop; they are accessed easily through a browser. In addition

to supporting self-service applications, the PeopleSoft Web Client has a

Work list and Query interface. This improves the flow of the company's

business processes and improves access to information for occasional

users. Furthermore, all data transmitted between the Web Client and the

application server is coded for added security. Because the Web Client

takes advantage of PeopleTools, self-service applications can be

deployed across the Internet or existing corporate intranets with

common business rules workflow logic and security features.

Multi-layer Transaction Processing: The ability to support large

numbers of parallel users, while maintaining reliable, and superior

performance, is critical to enterprise-wide data processing. PeopleSoft

works in a variety of settings over Local Area Networks (LANs) and Wide

Area Network (WANs), throughout organisations. In the latter, the

application logic runs on an application server instead of the client. The

application server is designed to relieve the client from processing

intense SQL transactions, thereby reducing LAN traffic and improving

performance across WANs. Three layered architecture also provides

increased scalability to accommodate high volumes of parallel users

while maintaining a consistent and reliable performance level.

PeopleSoft continues to support its traditional two layered architecture

as well.

OnLine Analytical Processing (OLAP): Companies must be able to

quickly extract and analyse the information they require for effective

decision-making. OLAP, or online analytical processing, is a powerful

method for interactively analysing data online. PeopleSoft integrates



popular OLAP tools including Cognos PowerPlay and Arbor Essbase

that enable users to easily share multidimensional data stored in various

locations. With the Cube Manager application, users can define the data

they want to extract into an OLAP cube. It enables them to quickly view

information from all different angles to test conclusions, conduct what-if

scenarios and compare alternative strategies. With multidimensional

information presented in quick-read formats, managers can make better

decisions, react faster to competitive threats and identify inefficiencies.

Workflow: An essential part of the solution, PeopleSoft workflow

capabilities help communications companies achieve enterprise-wide

integration of information, applications, and people. Workflow enables a

company to automate many time-consuming clerical tasks, while putting

useful data into the hands of users. With workflow, the company's

PeopleSoft applications do more of the work. For example, if managerial

approval is needed for a work order, the system automatically forwards

the request. Workflow can also help the company track projects, by

initiating a workflow message to the appropriate person when a project

exceeds a predetermined cost. The company can even bring non-

PeopleSoft users into the workflow process, using e-mail systems and

the Internet for collecting, and distributing data.

Activity 2:

Visit a nearby departmental store and find out the features as a small

business unit what the requirements an ERP package must provide

them.


11. Oracle's __________________ one of the fastest growing and most

comprehensive alliance programs in the data warehousing industry.

12. Oracle Applications further exploit the low-cost and universal access

inherent in the ____________________ model.

13. Oracle Projects Applications improve operational efficiency by

providing an integrated _____________________ environment.

14. _____________ focuses on providing the occasional user with easy

access to information and functionality specific to their role.



15. PeopleSoft works in a variety of settings over _____________and

________________.

13.7 JD Edwards World Solutions Company

1977 Denver, Colorado, three men left the accounting world to form a

software company that would specialise in midrange computing solutions.

Each of the three founders Jack Thompson, Dan Gregory and Ed McVaney

lent a small portion of his name for the company name. On March 17, JD

Edwards was formed.

In the early years, JD Edwards designed software for several small and

medium-sized computers. They eventually started focusing on the IBM

System/38 in the early 1980s. It was in this effort that JD Edwards

pioneered the Computer-Aided Systems Engineering (CASE) software

development and design tool. This lend for consistency across the broad

range of JD Edwards' integrated applications.

As JD Edwards' business continued to grow, it became obvious that

servicing a large number of customers was creating challenges. The

company could either remain small or serve customers on an individual

basis or, with a breakthrough in technology; it could become an industry

leader in enterprise software. When McVaney and Thompson began to

design and implement Worldsoftware, they provided the pathway to success.

By the mid-1980s, JD Edwards was being recognised as an industry-leading

supplier of applications software for the highly successful IBM AS/400

computer, a direct successor of the System/38.

With the June 1996 introduction of OneWorld, the company once again

achieved a technological breakthrough. Building on the CASE technology

pioneered in the 1980s, OneWorld combines a full range of platform

independent applications with an integrated toolset. OneWorld gives

organisations the power to configure their systems and applications as their

needs change.

Today, JD Edwards is a publicly traded company that has more than 4,700

customers with sites in over 100 countries and more than 4,200 employees.

The company attributes much of its success to a corporate culture that



emphasises quality at all levels. JD Edwards' commitment to its product

quality, its corporate culture and a customer centric approach enable the

company to deliver and support leading enterprise software solutions that

solve business problems.


JD Edwards offers its solutions primarily for the AS/400 platform. JD

Edwards's has two application suites, OneWorld and WorldSoftware.

WorldVision, provide comprehensive supply chain management functionality

across the wide range of technology. Both can run parallel on the same the

AS/400 platform, share data and interact with each other as a unified

solution.

13.7.1.1 OneWorld

JD Edwards OneWorld is flexible enough to support an extended solution by

integrating with existing, best-of-breed and other company products. This

can be achieved without sacrificing the security, integrity, or consistency of

the existing systems or data. OneWorld's own Application Programming

Interface’s (APIs) , as well as such industry standards as CORBA, ODBC

and other packaged integration solutions ensure that you won't be locked

into limited functionality, and any of the future opportunities.

OneWorld embraces change with its modular architectural foundation. The

information processing is segmented into five functional elements. They are

database, data warehouse, business objects, reporting, and GUI. The users

can link these elements in a variety of configurations from one level, with

every element running on a stand-alone PC, to five levels or more. One can

also distribute the elements geographically, departmentally, or

administratively. You also can configure and reconfigure in the field, as

requirements change. There are provisions to add new servers, even Web

servers, without having to rewrite applications for the new machine.

OneWorld has the tools and technologies that will quickly bring archived

data to light. And you can extend and supplement those technologies with

solutions offered by leading industry data warehousing and decision support

specialists. The customer has the option to choose the data warehousing



solution that he wants. OneWorld provides alternatives, so that you can

choose the most appropriate solution based upon your own requirements.

With OneWorld, you can distribute your enterprise applications to

employees, business partners, and customers using web-based technology,

without rewriting your applications. OneWorld software version supports

client/server and Internet modes. This results in an extended enterprise that

works together to support the same business tasks.

No matter how well your applications fit, they probably need a little

modification to fit precisely to the needs of your organisation. With

OneWorld, you get a powerful set of tools to make those alterations.

OneWorld's toolset uses business logic, not symbols and syntax, to drive

the modification process. Change your business specifications, and the

toolset automatically regenerates the appropriate object code. You can

modify applications, balance processing loads run reports, and build

graphical user interfaces without writing codes. Add hardware and

databases without bringing your business to a halt. Since modifications are

made with the same toolset used to build OneWorld, it's all integrated.

When a new release arrives, your changes will automatically be

incorporated you won't have to make them again. The interface is consistent

whether you are partitioning applications or replicating data. This will save a

lot of time and effort in reprogramming and retraining. OneWorld allows you

to build highly flexible workflow solutions and execute, predefined, and

unplanned processes in your organisation. With OneWorld, your ability to

learn, implement, and maintain workflow at all levels of your organisation is

simplified.

13.7.1.2 WorldSoftware and WorldVision

In the age of technology change, the popularity of many enterprise software

solutions is fleeting. The resulting obsolescence is frustrating and costly. It is

better to have a system that has the necessary functionality with built-in

longevity. More than 4,000 customers have found this staying power in JD

Edwards WorldSoftware. On its strength and the reliability of it’s host-centric.

IBM AS/400 foundation, WorldSoftware's global popularity has endured in

the ERP marketplace for over a decade.



Inherently flexible and easy to use, WorldSoftware readily adapts to your

situation, letting you:

Selectively mix, match and integrate software applications from among

its diverse industry product suites.

Easily modify it to ongoing business, local and organisation-specific

requirements.

Add WorldVision, its advanced graphical user interface, to gain

client/server benefits.

Optionally run it alongside OneWorld, JD Edwards' network-centric

solution, to gradually incorporate other computing platforms into your

network.

JD Edwards WorldVision provides the Graphical User Interface (GUI) with a

look and feel common to the PC. At the same time it protects your

investment in WorldSoftware and the AS/400. WorldVision also allows you

to:

Maximise productivity by shrinking the amount of training users need.

Make a safe move to client/server by leveraging your existing host-

centric WorldSoftware applications.

And like WorldSoftware, another bread of software WorldVision is

developed and continually enhanced for the future. For example, you can

have WorldVision as a Windows 95/NT style GUI for a PC and as a Java-

based interface for use across the Internet, or intranets.

13.7.3 Modules

The different product modules available from JD Edwards are:

Foundation Suite: Consists of Back Office, CASE Foundation,

Environment/ Toolkit, Financial Analysis Spreadsheet Tool and Report

Writer, WorldVision GUI, Electronic Burst & Bind.

Financial Suite: Consists of General Accounting, Accounts Payable,

Accounts Receivable, Fixed Assets, Financial Modelling and Budgeting,

Multi-Currency Processing, Cash Basis Accounting, Time Accounting)

Logistics/Distribution Suite: Consists of Forecasting, Requirements

Planning, Enterprise Facilities Planning, Sales Order Management,

Advanced Pricing, Procurement, Work Order Management, Inventory



Management, Bulk Stock Management, Quality Management, and

Advanced Warehouse.

Management: Consists of Equipment Management, Transportation

Management, Job Cost and Service Billing

Services Suite: Contract Billing, Subcontract Management, Change

Management, and Property Management.

Manufacturing Suite: Consists of Configuration Management, Cost

Management, Product Data Management, Capacity Planning, Shop

Floor Management, and Advanced Maintenance Management)

Architecture, Engineering, Construction, Mining and Real Estate

Suite: Consists of Procurement, Inventory Management, Equipment

Management, Job Cost, Work Order Management, Subcontract

Management, Change Management, Contract Management, Contract

Billing, Service Billing, Homebuilder Management, and Property

Management.

Energy and Chemical Suite: Consists of Agreement Management,

Advanced Stock Valuation, Sales Order Management, Bulk Stock

Management, and Load and Delivery Management.

Government, Education, and Not-for-Profit Solutions: Consist of

Financial Administration and Reporting, Budget Administration, Fund

and Encumbrance Accounting, Grant and Endowment Management,

Purchasing and Material Management, Warehousing and Central Stores

Management, Human Resources Management, Service and Work Order

Management, Capital Project and Construction Management, Contract

Management, Plant, Equipment, and Fleet Maintenance.

Utility and Energy Solutions: Consists of Customer Information

System, Human Resources Management, Work Management,

Regulatory Reporting, Supply Chain Management, Project Management,

Enterprise Maintenance Management.

JD Edwards offers customers the means of achieving greater ongoing

control of their businesses. It is enabled by their ability to define and

redefine the way they do business as markets, customers and competitive

conditions change. Behind this customer commitment is a twenty-two year



history of listening to customers, understanding what they ask of business

technology. At the same time learning the problems and requirements of

their industry and developing solutions accordingly. By emphasising

solutions, relationships, and value, JD Edwards maintains its focus on what

truly matters to its customers.


16. _____________ combines a full range of platform independent

applications with an integrated toolset.

17. Change your business specifications, and the toolset automatically

regenerates the appropriate__________.

18. A network of certified service and support providers complements the

services directly available from ______________ to ensure timely

implementation and ongoing quality of the solution.

19. Through continual enhancements in features and functionality,

____________________ opens to other technologies.

13.8 Systems Software Associates Inc.(SSA)

System Software Associates (SSA), Inc. is one of the leading providers of

software for industrial businesses in the world. The company was founded in

1981 by Roger E. Covey. Covey at age 26 was already experienced in

selling software manufacturing systems. He had worked previously for

Chicago, Illinois-based Professional Computer Resources, Inc before

starting his own company.

The reason for the company's early growth was its unique distribution

system. Covey had determined that selling through retail channels made it

difficult to find customers, while selling though a direct sales force and

providing extensive servicing made it difficult to turn a profit. Therefore, SSA

instead developed a network of local affiliates, trained by SSA, that would

sell, install, and service the products for a commission. This enabled the

company to expand at an impressive rate while keeping its overhead costs

low.

Covey and his employees decided to focus on improving the company's

specialty, integrated software packages for industry. Instead of searching for

the ways to diversify the product line the company had. In 1984, SSAs sales



reached $3.9 million. This growth continued rapidly through the mid 1980s

with the services they offered to medium-sized companies. Since these

companies often needed to expand their computer system capacities and

software capabilities. However, they wanted to achieve this without hiring

programming personnel as a part of their work force. Since hiring program

developers was not only costly but also required resources to support it.

SSA was able to make use of this opportunity and establish its market is

these medium sized companies.

SSA by 1989 had a workforce of 400 employees with over 4,000 customers

in 30 countries. The company was producing software in eight languages,

including French, German, Italian, Chinese, and Japanese. They were

offering twenty-six integrated software products for their customers. At a

price rang varying from $50,000 to $500,000, depending on the size of the

computer on which the applications were to run. Network of associates

working for SSAs had grown to 52 by the middle of 1989, penetrating nearly

every major market in the world. The competition became tough when IBM's

improved integrated software package was released to the market. However,

the market for integrated software for medium-sized companies remained

somewhat under-penetrated, and SSA was able to sustain its rapid growth

rate through the year. The company's sales increased to $95 million, with

net income reaching $11.1 million in 1989. SSA had made its presence felt

in the ERP market.

After Covey's resignation, his place was filled by Larry J. Ford. Larry J. Ford

was the vice-president of IBM, in charge of marketing the AS/400. Ford, who

had been with IBM for 28 years, had occupied the posts of president,

chairman, and chief executive of SSA. Under leadership of Ford, SSA

continued to prosper. Increasing stress was placed on the company's CASE

products, which assist clients in adapting software for their own purposes as

business conditions change. SSA had over 4,000 customers, more than half

of them were overseas customers. The company's net income finally began

to stabilise during that year, although sales continued to climb, reaching

$146 million.

SSA concentrated its attention on a new strategy for supporting open-

system client server computing environments. Using its CASE technology, it



began offering more flexible software than compared to previously available.

The company's new version of its most important BPCS series was called

Business Planning and Control System/Advanced Solution (BPCS/AS).

BPCS/AS consists of over 40 applications integrated in it. These

applications can be easily modified to keep up with rapid changes taking

place in the hardware on which they are run and the business climates in

which they are used. The company announced that its new client/server

application products can run on systems based on UNIX as well as on the

AS/400. Now SSA is the single largest supplier of software for IBM

manufactured AS/400 line of minicomputers. The flexibility of SSAs software

products are so flexible that they can be reconfigured to meet specific

customer and business demands in any industry. The company through

offices and business support system in 67 countries maintains its global

presence. It also provides support for clients with the help of a network of

over 5,000 professionals working round the clock.


Business Planning and Control System (BPCS) is the main product line of

SSAs. This is an integrated group of software products for industry that

includes applications for manufacturing, distribution, and financial operations.

The company is also a major force in Computer-Aided Systems Engineering

(CASE) technology. Its AS/SET line uses CASE technology to allow clients

to construct their own applications. Electronic Data Interchange (EDI)

enables businesses to communicate electronically with trading partners, is

another area in which SSA has developed advanced products. The

company's new software line the Main/Tracker automates, maintenance,

performs safety inspection, and warranty tracking. Therefore it is one of the

leading maintenance management system software in the world.

Some of the most popular products of SSA are:

Business Planning Control System (BPCS): BPCS consists of

processes that monitor various functions of distribution and

manufacturing.

Business Performance Management: Business performance

management (BPM) consists of a set of management and analytic

processes, supported by technology, that enable businesses to define



strategic goals and then measure and manage performance against

those goals.

Customer Relationship Management (CMR): CMR consists of the

processes a company uses to monitor and organise its contacts with its

current and future customers. CRM software is used to support

processes. Also information about customers and their interactions can

be entered, stored, and accessed by employees in different company

departments. Typical CRM objective is to improve services provided to

customers, and to use customer contact information for targeted

marketing.

Financial Management (FM): FM is the sub-division of finance that

concerns itself with the managerial significance of finance techniques. It

is focused on assessment rather than technique. It is an

interdepartmental approach that borrows from both managerial

accounting and corporate finance.

Human Capital Management (HRM): HRM is the strategic and rational

approach to the management of an organisation's most valued assets

the people working there who individually and collectively contribute to

the achievement of the objectives of the business.

Product Lifecycle Management (PLM): PLM is the process of

managing properly the entire lifecycle of a product from its conception,

through design and manufacture, to service and disposal. PLM

integrates data, processes, people, and business systems and provides

a product information backbone for companies and their extended

enterprise.

Supply Chain Management (SCM): SCM is the management of a

network of businesses that are interconnected, involved in the ultimate

provision of product and service packages required by end customers. It

monitors the movement and storage of raw materials stock, inventory,

work-in-process, and finished goods from point of origin to point of

consumption.

Supplier Relationship Management (SRM): SRM is a discipline of

working in cooperation with the suppliers that are vital to the success of



your organisation, to maximise the potential value of the relationships of

the supplier.

Lets us study about SSAs highly popular product the BPCS. Business

Planning Control System (BPCS) was developed by System Software

Associates (SSA), which later became SSA Global Technologies. This

software is used to control the operations of manufacturing company’s

processes.

BPCS consists of MRP logic for manufacturing operations, provided

there are high standards of data validity such as engineering

specifications and inventory accuracy. It runs on several systems, which

includes the IBM System also known as IBM AS/400 or IBM eServer

iSeries.

It is written in SQL, As/Set, RPG, and other IBM languages somewhat

unique to the System.

The main strength of BPCS that helps it to compete with other ERP vendor

is its manufacturing and planning applications.

13.8.2 BPCS Applications

BPCS Applications dependent very much on the BPCS software version of

SSA. Since, SSA enters into partnerships with various specialty suppliers of

applications such as Data Mining, Bar Coding, and so on, and suppliers that

integrated with a particular version.

Most planning in BPCS Application suite functions are used in both

Distribution and Manufacturing. The BPCS Application suite includes:

Financial: It consists of Costing (CST), Accounts Payable (ACP),

Accounts Receivable (ACR), Billing BIL, General Ledger GLD, Cash

Management (CSH), Multiple Currencies (MLT), Currency Translation

(CTR), Financial Assistant (FIN), Fixed Assets (FXA), Payroll (PAY),

Business Modeling, and Data Mining.

Planning: It consists of Forecasting (FOR), Master Scheduling (MPS),

Material Requirements Planning (MRP), Capacity Planning (CAP),

Distribution Resource Planning (inter facility) (DRP), Planner's Assistant

(PLN), and Simulations.



Distribution: It consists of Inventory (INV), Purchasing (PUR),

Customer Order Processing (ORD), Billing (BIL), Sales Analysis (SAL),

Promotions and Deals (PRO), and Performance Measurement

(PRF),(such as supplier quality and on-time, your company performance

in supplying to the customers, our internal quality control, Multiple

Environments, Companies, Divisions, Facilities, Warehouses, and

Locations).

Manufacturing: It consists of Bill of Material (BOM), Inventory (INV),

Shop Floor Control (SFC), Master Scheduling (MPS), Material

Requirements Planning (MRP), Capacity planning (CAP), Laboratory

Management (LMS), Just In Time (JIT), Quality Control (QMS),

Repetitive Manufacturing, CIMPath (Barcoding and Data collection)

(CIM), Advanced Process (chemical) Industries (API), and Performance

Measurement (factory production) (PRF).

Systems Applications: It consists of ASAP Information Retrieval, Misc

Reports & Retrievals, System Parameters or Business Rules,

Transaction Effects, Documentation, Data Base X-Reference, Interest

Area Menus, Sliding Y2K Window, and Data Base upgrade.

13.9 QAD

QAD was founded in 1979 and now has a presence in 21 countries and

employs more than 1100 people. The company's products include

MFG/PRO, On/Q, Service/Support Management, Decision Support, and

Qwizard. The company's flagship product is its ERP solution MFG/PRO. It is

available in 26 languages and has more than 4,000 installed sites in over 80

countries. The company got the ISO certification in 1995. QAD offers a

variety of supply chain and Enterprise Resource Planning (ERP) software

products to manufacturing industries within the automotive, consumer

products, electronics, food and beverage, industrial products and medical

sectors. QAD software optimises your enterprise by increasing the speed of

internal processes and by synchronising distributed operations.

QADs flagship product, MFG/PRO software, provides multinational

organisations with an integrated Global Supply Chain Management solution.

It includes financial, manufacturing, distribution, and service/support



management applications within an open system environment. Internet-

Enabled MFG/PRO allows you to share information and conduct commercial

transactions over the Internet.

QAD's On/Q Extended Supply Chain Applications manage the complex

demand and fulfilment transactions of large multinational corporations with

dynamic, collaborative relationships spanning multiple enterprises. Service/

Support Management are designed for companies who not only

manufacture and sell their products but also offer after-sales service and

support. QADs Decision Support is a tool designed to provide

manufacturers with access to information necessary for informed decision-

making. Qwizard, QADs interactive mentor for users of MFG/PRO software,

is a value-added tool that provides easy-to-use business modelling,

implementation, and interactive learning tools.

QAD has currently developed a number of business arrangements with

Product Alliance Partners to enhance the effective functionality of QADs

products.

13.9.1 Application

MFG/PRO software is one of the successful client/server ERP applications

as it dramatically increases the internal efficiencies of distributed operations

within months of purchase. The software is complete, open, flexible,

scalable, interactive, and designed to address the operations requirements

of today's manufacturers. It is available in 26 languages, is year-2000

compliant, and supports multiple currencies including the Euro.

MFG/PRO includes a large set of solution components for manufacturing,

distribution, financial, supply chain, and service /support management.

Configurable and interoperable, it is open to best-of-breed components,

uses either Oracle or Progress databases, and runs in UNIX, Windows and

Windows NT environments.

MFG/PRO can be implemented at multiple locations and it easily scales to

meet the changing business requirements. MFG/PROs user interface is an

ultra-thin Java browser. MFG/PRO is also available with a Windows

Character User Interface (CUI).or Graphical User Interface (GUI).



Manufacturers need a solid strategy for achieving and maintaining

competitive advantage. MFG/PRO software quickly synchronises distributed

operations within your enterprise, enabling you to balance supply and

demand across multiple sites. MFG/PROs supply chain functions include

centralised order processing, centralised purchasing, enterprise operations

planning, distribution requirements planning, and enterprise materials

transfer. By using MFG/PROs enterprise-level supply chain functions, you

can manage supplies within your enterprise far more effectively, no matter

how widely distributed your sites are. This means you will be able to

respond to customer needs much more rapidly.

13.9.2 Modules

MFG/PRO of QAD is a fully integrated software package available on a

module by module basis. MFG/PRO addresses the entire manufacturing

band from repetitive to configure-to-order. It is appropriate for batch process

like make-to-stock, configure-to-order, and repetitive manufacturing

environments. With world class supply chain management tools, it is

particularly useful for multinational companies. The various modules of

MFG/PRO are:

Distribution: The Distribution Modules (DM) of MFG/PRO are used to

monitor inventory balances and manage purchasing and sales order

entry activities.

Manufacturing: The Manufacturing Modules (MM) are used to regulate

all manufacturing activity within the various types of production

environments.

Financials: The Financial Modules (FM) interface with the Distribution,

Planning and Manufacturing modules to report the financial implications

of the company's activities.

Service/Support: Service/Support Modules (SM) are designed for

companies which not only manufacture and sell their products, but also

offer after-sales service and support.

Supply Chain: Supply Chain Management (SCM) is the control of

goods and information from supplier to customer.



Master Files: Master File’s (MFs) functions provide access to a series of

foundation modules that are used by the rest of the MFG/PRO

applications. These master files include: Inventory Control Settings,

Items/Sites, Addresses/Taxes, Physical Inventory, Multiple Database

configurations, and Manager Functions.

Activity 3

Consider that you are a manager, in a manufacture industry and you are

asked by your management to recommend ERP software for one of the

supply chain process. What are the criteria’s that you keep in mind

before choosing software or an ERP system?


20. SSA concentrated its attention on a new strategy for supporting

________________ client server computing environments.

21. ______________________ is the main product line of SSAs.

22. _____________ includes an extensive large set of solution

components for manufacturing, distribution, financial, supply chain, and

service /support management.

23. MFG/PRO is also available with a Windows graphical user

interface______________________.

13.10 Summary

Analysing ERP market share is quiet different when compared with

reviewing the market segments for any other product or service. The

segmentations in that case will be numerous and in the form of many criteria

like physical, geographical, functional, distribution level and many more

factors. ERP the segmentation falls in than three main categories namely

type of the industry, size of the industry and geographical areas in terms of

the nations where the product is demanded. This helps in arriving at ERP

market and ERP software market share. (Instead use ERP Market can be

segmented into three major segments/Categories).

While discussing size of industry it refers to the volume of business

transacted and the capacity of the firm in terms of large sized or mid sized

or low rung. When it comes to the question of type it refers to the mode of



business via hospitality or insurance or manufacturing or health and so on.

The market for them purely depends on the services offered by the vendor.

The question of geographical segmentation involves a detailed study when it

comes to ERP markets.

The companies SAP, Baan, Oracle, PeopleSoft, JD Edwards, SSA and

QAD and their respective products have not only revolutionised the ERP

market but also give it a new dimension. With new technologies and the

capability to provide solutions to the small scale industries along with the

customer support services have enabled them to penetrate into the small

and unorganised sectors. Both the vendors and the customers are

benefiting form this highly flexible and cost effective solutions.

13.11 Terminal Questions

1. Who are the major players in the global ERP market and what are their

market shares?

2. Who are the major ERP players in the Indian market and what are their

market shares?

3. What are the modules available in SAP R/3?

4. Write a note on Oracle and its application.

5. What are the functions of Baan’s Global Support, Education, and

Consulting operations?

6. Discuss briefly about JD Edward’s and PeopleSoft’s applications and

their various modules.

13.12 Answers


1. AMR Research Inc.

2. System Software

3. Client/server

4. Business Engineer

5. Database

6. Baan Company's

7. Multi-level

8. Applications

9. Baan Education



10. Baan Cyber Consult

11. Warehouse Technology Initiative (WTI),

12. Internet Computing

13. Project management

14. PeopleSoft

15. Local Area Networks (LANs), Wide Area Networks (WANs)

16. OneWorld

17. Object code

18. JD Edwards

19. Architecture

20. Open-system

21. Business Planning and Control System (BPCS)

22. MFG/PRO

23. Graphical User Interface (GUI)

Terminal Questions

1. Refer section 13.2

2. Refer Section 13.2




6. Refer Sections 13,6 and 13.7

13.13 Case Study

The new Chief Information Officer's responsibility was to replace the

out dated computer systems with new packaged systems. It had to

provide a competitive advantage through technology for the company.

This meant using sophisticated systems to bring more resources to

market (that is, filling jobs faster with their temporary employees), while

at the same time slashing prices by reducing operating margins. The

objective was to implement improved business processes by

configuring and installing packaged ERP systems according to the

results of an enterprise-wide reengineering effort.



The sales and service department will be able to fill jobs faster with

temporary employees by using sales support applications. This was

supposed to be configured in to the new system based on best practices

identified and propagated throughout the organisation's distribution

network. New business acquisition and retention of existing customers is

going to be enhanced through customer management software and

customer information reporting.

With the use of the packaged applications the field offices will be able to

reduce operating margins. This is meant to support field office functions,

such as billing, payroll, time accounting, and collections. The definition

of flow of activities, core business processes, and decision support

needs will ensure the proper configuration of the packaged software to

take advantage of reengineered processes with the latest technologies.

The pre-integrated nature of the ERP-packaged software that is going to

be implemented will provide a new baseline for all the company's

systems. Plans were made to include those that will not be involved in

the initial installation. These included systems that were isolated without

integration requirements, systems that were not included in the available

ERP functions and some special in-house applications and customised

applications. Systems will be modified into the new order on a

scheduled basis, and new development will target the standards

established by the new ERP implementation. Integration will increase as

all application of the company move into the new ERP environment.

Therefore, the company will begin to develop superior knowledge

management at the corporate level to be used for decision-making.

But the CIO's main problem was the seemingly overwhelming gap

between what he knew (the fragmented puzzle of the company's current

systems) and what he needed to know (business requirements for the

new systems). The CIO had minor information about how the existing

systems were actually being used to conduct business in the company.

His field managers, technical managers, and the headquarters staff that

supported them all wanted the package installation to succeed. All the

managers held a piece of the information needed to make it a success,



but none could see the whole picture. Without the crucial analysis of the

use of current systems as a basis for defining future business

requirements, the implementation project risked missing the mark.

Questions:

1. Do you think the company’s management was clear about the

implementation process that it wanted to carry out?

Is their any requirement of the company’s top manager to take the

responsibility of the implementation process?

2. What were the results the company was expecting from the new

implementation?

3. How do you think the CIO has to overcome the problem that he is

facing in this situation?

13.14 Glossary

Term Description

Attributes To regard somebody or something as having particular

qualities required or demanded by a particular organisation

or group to meet some requirements.

Best-of-breed In the market of ERP companies performing extremely well

when compared to its counterparts is considered to be the

best in that group.

Leverage Power over other people, especially something that gives an

advantage but is not referred to openly in an organisation.

Mainframe A fast powerful computer with a large storage capacity that

can accommodate several users simultaneously

Obsolescence It is the state of being which occurs when an object, service

or practice is no longer wanted even though it may still be in

good working order.

Application Suite A collection of computer programs, usually application

software and programming software of related functionality,

often sharing a more-or-less common user interface and

some ability to smoothly exchange data with each other.



References

1. ERP Demystified 2/E by Alexis Leon.

2. ERP Market by M.H. Lakdawla.

3. www.amrresearch.com.

Mi0038 Unit 13 Slm

Documents

sikkim manipal

online analytical

enterprise

shop floor

bulk stock

changing business

comprehensive

wide area