changes in the marketing message, may have pushed many customers to choose instead for third- party solutions to access and make data from SAP ERP transactional databases more extensivelyaccessible.Typically, an ERP vendor has established a fixed software rental fee and partners with other firms that provide processing and implementation service. The ERP vendors also offer a choiceof implementation and customer services options. This means that a single public agency canacquire the same ERP software from a variety of providers with multiple pricing formats.Implementation of SAP Oracle ERP Systems is often approached in a Big Bang, let's-do-it-all-at-once style of approach. Another approach to SAP Oracle ERP system implementation hostinghas agencies replacing existing modules one at a time until the full ERP system is in place. Theunderlying theme is to plan long term and select an ERP vendor for a number of years. At thesame time, act short term by implementing financials, or HR/payroll, or maintenancemanagement, or utility billing one module at a time, as the older systems become obsolete.Implementations are now being completed in nine months and often can take less time. Four-month implementations are even possible in smaller agencies.Implementing
one module at a time has the disadvantage of having to build interfaces to the remaining legacy systems that will eventually be discarded. On the other hand, the potential of having to maintain a single
and work with a single vendor toobtain a truly integrated system is considered worth the cost in the long run.The major advantage to SAP Oracle ERP Systems application hosting is that medium andsmaller public entities can obtain the functionality and power of comprehensive administrativeand financial systems at a fraction of the costs of installing and maintaining these systems ontheir own.The most important of these advantages are the following: the opportunity costs associated withsoftware ownership, its zero residual value, and reduced useful life expectancy. In addition, withthe difficulty that local governments have in attracting and retaining IT staff, application hosting becomes an even more attractive alternative and one that local government financial managersshould seriously consider.
SAP ERP OPERATIONS
To best serve customers, organizations are focusing more on the agility and speed of delivering products and services. The efficiency of the entire operational process chain impacts anorganization's ability to serve its customers well. Operational excellence is the ability of anorganization to achieve a high level of customer service, while reducing operating costs. Anorganization can then run its business at the speed of change with more agility, from its suppliersto its customers, no matter which changes occur in the market and in demand.For many organizations, the SAP ERP Operations solution has become the software backbonethat contributes to excellent performance supporting end-to-end operational processes in all keyareas: procurement and logistics execution,
and manufacturing, and sales