ERP Research Kit

ERP 101 Research Kit
Welcome to the Consona ERP 101 Research Kit! Please browse through the pages in this document that cover some of the most common ERP software discussion topics.
Introduction
Searching for software isnt an easy task. If it were, there would be no place for all the buyers guides, software directories, and industry consultants that fill up your results page when youre googling for answers and places to start. Sometimes early on in your search for ERP software, its helpful to just get your terms straight.Consona is here to help you understand definitions and get familiar with the vocabulary. To get a handle on the vendor landscape, and know what to expect in terms of pricing or what a typical implementation looks like. Theres a lot to think about. We get it. A provider of ERP software to manufacturing companies of all sizes for the past 30-odd years, Consona has vast experience in helping buyers navigate the field of vendors against unique RFI requirements. We may or may not have a solution that fits your needs, but were more than willing to provide you with resources that can assist you in your search.
Contact Consona
Dont want to read? Call one of our product experts and well talk you through it. Dial 888 8 CONSONA or (888) 826-6766 or +1 (317) 240-1200.
www.consona.com
Table of Contents
About ERP Systems Benefits of an ERP System What is an ERP System? ERP Software Definition ERP System Cost ERP System Examples ERP System Integration ERP System Implementation ERP Software Comparison ERP Software Companies Best ERP Software Enterprise ERP ERP Certifications ERP Consulting ERP Failures ERP Market ERP Reviews ERP Software for Manufacturing Consona ERP Software Market ERP Software Modules ERP Software Price ERP Software Sales ERP Success ERP Support List of ERP Software Popular ERP Software Selecting ERP Software Types of ERP Software Web Based ERP Software 3 4 5 6 7 9 11 13 14 16 18 19 20 21 23 25 26 27 28 29 30 32 33 34 35 36 37 38 39

www.consona.com
About ERP Systems

ERP systems form the information management backbone for companies of all sizes and in all industries. ERP software covers the gamut of operations from basic inventory control, customer orders and purchasing to advanced planning and scheduling, distribution management, international financials and more. The most powerful aspect of ERP systems is that they are fully integrated around a single database to enable cooperation and collaboration across the enterprise. This means that ERP systems help to break down the walls between departments and empower users to share information and tie their everyday activities more closely to company goals and customer service. If you are looking for a concise ERP system definition, consider this one from the APICS dictionary: Enterprise Resource Planning (ERP) is a Framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage. ERP is essentially a computer model of your business processes that can be used to get a clear view of the entire organization, its activities and requirements; enforce procedures and best practices; and support management decision-making with reporting, analysis, and decision support tools. The last phrase of the definition is particularly important. ERP helps a company use its internal knowledge for external advantage. Major ERP system components include the central database that stores and manages the definition of your business (bills of materials, process definitions, capacities, customers and suppliers, etc.) and activities and status (inventory, schedules, forecasts, orders); software modules that address specific business areas like inventory, production scheduling, customer orders, general ledger and forecasts; and management tools like an executive information system (dashboard), report generator, and analytical tools. There are a variety of types of ERP systems. Examples include traditional on-premise systems where the user company licenses the software and installs and maintains it on their own computer hardware, and a growing community of cloud-based Software-as-a-Service (SaaS) offerings from traditional vendors as well as some newer vendors that only operate in the SaaS world. SaaS is seen as a particularly attractive alternative ERP system for small businesses because there is a much lower up-front expense and less need for in-house technical support resources. The ERP system market is dominated by two large vendors, SAP and Oracle, which cater to big companies. A few vendors (such as Infor) serve medium and large companies with a large pool of products accumulated through acquisitions over the last decade. A number of vendors focus on the mid-range and several are dedicated to small business users. Some vendors have multiple products that are positioned to specific industries and/or different sized companies. (Consona falls in these two categories, serving both small and midsize companies, as well as niche manufacturing industry markets.) There are even a few open source ERP systems providers that give their software away for free but may charge for support.

www.consona.com
The Benefits of an ERP System

Any company investing in any new tools or equipment will want to know that the investment will pay off have sufficient return on investment (ROI) to justify the expenditure. And thats certainly the case with an ERP system. Interest in implementing a new or replacement ERP system usually starts with a need to address some operational difficulties trouble in meeting production schedules, too much inventory, high costs, inability to meet competitors moves, shortcomings of the current system, or sometimes just a general desire to improve performance. Once this interest is recognized, a project team is established to set a budget, select a system, and put together an ROI justification. Most companies will identify inventory reduction as one of the biggest benefits of an ERP system. Many companies actually achieve the savings that they anticipate, but it is the implementation effort and the focus on procedures and discipline that generate inventory reduction (without increasing shortages), not the software itself. Nevertheless, the software implementation is the mechanism for the improvements so its not unfair to give the ERP system the credit. Many companies also achieve significant cost savings through increased productivity, better control of material acquisition, improved quality and reduced lead time. These are all direct and measurable improvements that are often sufficient to fulfill most companies capital expense guidelines. But there are even greater benefits available from ERP that are less easy to measure and therefore are often overlooked.
The REAL Advantages of ERP Systems

ERP collects, manages and distributes information across functional boundaries and helps break down information silos those barriers that stand in the way of full cooperation between production, materials, planning, engineering, finance and sales/marketing. The resulting higher quality, reduced time-to-market, shortened lead times, higher productivity and lowered costs can help improve customer service and increase sales and market share as well as margins. Measurements, analysis and simulation capabilities can help companies plan better and react sooner and more effectively to changes in demand, competitive actions, and supply chain disruptions. Modern ERP systems are built for the internet-enabled world with e-commerce capabilities and provision for integration and collaboration with supply chain partners, customer portals, and enhanced tracking of incoming material and outgoing product to extend the visibility and control. Many companies are challenged by the continually changing requirements of Internet-based business processes and find that their current ERP system is not able to take them where they need to go. Its hard to put a value on the ability to take advantage of new and evolving ebusiness imperatives or the cost of not being able to keep up with (or perhaps even lead) the competition.

www.consona.com
What is an ERP System?

So, what is an ERP system? ERP stands for Enterprise Resource Planning. The term was first introduced in the mid-1990s by Gartner as a replacement for Manufacturing Resource Planning or MRPII, the former name for the software application suite that manufacturers use to manage information from throughout the company and its operations. This software suite actually got its start in the 1950s and 1960s with the development of bill-ofmaterial processors and programs to manage inventory and develop material requirements plans (the original MRP interestingly, the core calculation that was MRP half a century ago is still included in a central module of todays ERP software for manufacturers). These basic functions were the foundation upon which additional functions were added production control and purchasing, master planning and forecasting, financials and costing making up the MRPII cross-functional, integrated application suite that manufacturers rely on to consolidate and communicate information throughout the business. ERP is simply a new name that reflects the continued growth of MRP and MRPII into an even more all-encompassing set of integrated applications including such things as customer relationship management, field service and warranty tracking, distribution planning, shop floor data collection, supplier relationship management, web-based collaboration, e-commerce, and more. Any ERP system definition would not be complete without at least mentioning that the system is built around a single relational database management system with analysis tools and an executive information system (dashboard). Todays ERP is also delivered with a modern graphical user interface, role-based access control and security, and easy integration with common business tools like Microsoft Office (Word, Excel) and e-mail. There are a number of developers / vendors that supply ERP systems. Examples include the top ERP system suppliers (by revenue and market share) SAP, Oracle, Microsoft and Infor as well as many more specialized offerings like Made2Manage from Consona aimed at small-tomedium sized companies. Its worth noting that the term ERP is being applied to application suites outside of the manufacturing market. Service providers, hospitals, general business offices and others can now license broad-ranging integrated software suites that are marketed as ERP solutions. Many companies simply want to know: what is the best ERP system? There is no single or simple answer to that question. Although most ERP solutions for manufacturing companies contain very similar functionality, features and capabilities, they vary in depth, complexity, price, technology, and applicability to specific industries. Some ERP solutions are designed to be flexible and adaptable across a wide range of industry environments while others are targeted at specific niches electronic assembly or food and beverage, for example. Selecting the best ERP system is an important undertaking and should be done with great care. Choose a system that fits well in your industry, meets any unique company needs, is comfortable for your users, is developed and supported by specialists that understand your business needs, and is from a company with a proven track record of success (in your industry) and the financial staying power to continue to support and enhance your system into the foreseeable future.

www.consona.com
ERP Software Definition

According to the APICS dictionary, Enterprise Resource Planning (ERP) is a: framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage. The definition of an ERP system, then, would be a set of software applications that organize, define and standardize the business processes necessary to effectively plan and control an organization. Essentially, ERP applications are a computer model of your business, embodying the products and processes, information flow, procedures, and relationships between functions and activities. A set of planning applications can provide recommendations for what must be accomplished in order to meet the forecasted demand and keep the business functioning smoothly. Planning is at the core of ERP and is embodied in a top-down hierarchy of functions master planning, detailed material and resource planning, and execution (production control and purchasing). Master planning is the executive level function that sets the operational business plan (supports the sales and operations planning [S&OP] process). Detailed material planning (Material Requirements Planning or MRP) uses bill of material and inventory information to develop a complete manufacturing and purchasing plan for all products, assemblies, components and materials. At the same level, capacity requirements planning (CRP) ties the production plan to resource availability work center capacity and loading. Clustered around the planning core functions, additional software modules provide support for executing the plan (production control, purchasing), gathering information for tracking status and feedback to planning (closed loop) and for accounting and control. Additional modules help manage customer orders and fulfillment, forecasting, costing (often integrated within the execution functions), master data (bills of material and routings), finance (accounts payable and receivable, payroll, general ledger, financial reporting and analysis), quality, shop-floor data collection, and more. You really cant define ERP systems without some mention of the technology infrastructure. ERP must be built on a single, comprehensive database management system. Data analysis and reporting tools are also an essential part of the system, allowing full exploitation of the broad range of information that the system will manage. Another essential technology characteristic is Internet connectivity and e-business links for e-commerce and customer service, supplier relationship management, and collaboration. Modern systems employ thinclient, highly graphical, tailorable role-based user interface with simple connections to and from Microsoft Office applications (Excel, Word) and e-mail. ERP systems are available on a variety of hardware platforms and operating system environments including cloud-based Software-as-a-Service (SaaS) subscription.

www.consona.com
ERP System Cost

How much does an ERP system cost? It should come as no surprise that the answer to that question will start with the phrase It depends It depends on the number of users. It depends on the level of sophistication and complexity of the solution. It depends on the size and complexity of the implementation project. And it depends on whether you have to buy and install hardware along with the software, whether you will continue to use hardware and infrastructure already in place (perhaps with upgrades) or whether you choose a hosted (cloud/SaaS based) deployment strategy.
Tiers of ERP Cost

ERP software and ERP suppliers are often discussed in term of tiers. Tier 1 products include the biggest products and vendors that serve the largest companies needs. SAP and Oracle are the biggest of the big. Some analysts may include Microsoft and/or Infor in Tier 1 because of their market share even though they sell ERP systems more aimed at the mid-market. Tier 2 or mid-market system vendors include suppliers like QAD and IFS as well as products like (Consona) Made2Manage, Infor SyteLine and Microsoft Dynamics AX. ERP systems for smaller companies (not often called Tier 3, even though that is what they would actually be) include Intuitive ERP, MAS90, Microsoft Dynamics GP, and others. ERP system prices for software are generally competitive within a category of solution providers. For example, if you are considering SAP and Oracle, expect their price quotes to be very similar. Tier 1 software is typically more costly than Tier 2. Tier 3 would be the least costly. Companies in final negotiations with several solution providers from different tiers may be surprised to find that the prices are very competitive for a given sales opportunity.
ERP Implementation Costs

ERP software price is only a part of the total ERP system cost. Following a common rule, software is 30% of total implementation cost, hardware might be another 20%, and half of the total goes for implementation services, data conversion, consulting and training. These percentages can vary quite a bit from 30-20-50 but the point is this: the software is usually quite a bit less than half of the total cost and in some cases could be as little as 10% of the total. The larger, more complex solutions have a reputation for high implementation costs due to the complexity of the solution. Vendors find this (high cost) particularly challenging and continually try to simplify the process and reduce the implementation burden, with varying success. Suffice it to say that the less complex solutions generally are easier to implement, at a lower services cost, and quicker time-to-benefit.

www.consona.com
ERP TCO
ERP system cost should be viewed in the context of lifecycle cost or total cost of ownership (TCO). Consider the up-front cost for hardware, software and implementation plus operations, support and maintenance cost for a reasonable span of time like (at least 5 to 7 years). Most ERP system providers charge an annual maintenance fee in the range of 18-20% of the purchase price and it is well worth the cost. A maintenance subscription will insure that you have continuous (phone and web-based) support, bug-fix services, as well as system updates and enhancements as the supplier continues to invest in the product and take advantage of new functions and technologies.
SaaS ERP Costs

Most ERP system suppliers now offer a Software-as-a-Service (SaaS) deployment option for their systems (and some suppliers are SaaS-only). SaaS is a monthly subscription pricing paradigm. There is no up-front software license cost and no hardware or operating system cost (the system is hosted in the cloud) but monthly or annual costs will be higher than the maintenance fee with normal licensing. Again, compare costs on a TCO basis over a reasonable timeframe to understand your total expense.

www.consona.com
ERP System Examples

Lets start with an ERP applications definition. According to Wikipedia, Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization. ERP systems automate this activity with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Primarily a system for manufacturers (although there are many other broad-based information systems marketed as ERP in other industries), ERP is available from a wide range of vendors in a number of different forms to fill the needs of all types and sizes of manufacturing companies. ERP solutions can be categorized in a number of different ways by the size of the solution or the market share of the supplier; by the specific vertical industry that the system is designed to support; or according to the technology platform it runs on.
By Size
The two 800 pound gorillas of ERP system examples are SAP and Oracle, with the most market share between the two taking in about half of the total dollars spent on ERP. Next in line, and there are differing opinions about actual revenue and relative position, are Microsoft (Dynamics GP and Dynamics AX), Infor (SyteLine, VISUAL, and a number of other solutions), CDC, Epicor, IFS, QAD, Consona, and many more.
By Technology
In years past, there used to be a significant division in ERP solutions based on the operating environment (hardware / operating system / database) in which they functioned. Much of that distinction has disappeared or become irrelevant with the near universal adoption of webbased architecture and Windows or browser presentation layer and user interface. Nevertheless, ERP solutions can be categorized by server platform and database, although many solutions can be implemented in several environments. For example, there are versions of SAPs products that operate on mainframe systems, UNIX or Windows/Intel platforms. Many of Infors products use the IBM Systemi (AS/400) platform and integral DB2 database (Infor XA, Infor LX, Infor Prism, Infor System21) but other Infor products reside on WinTel platforms (VISUAL, Syteline). Probably the most significant technology differentiator is database system but here again many products will work with a choice of databases, most often Oracle or SQLServer (Microsoft). Many ERP buyers prefer to limit the number of technology suppliers they want to deal with, simplifying the support and maintenance tasks. Microsoft is the winner in those accounts as companies almost inevitably standardize on Microsoft Office products, prefer the Microsoft SQLServer database, and gravitate toward and all Microsoft solution including the platform for their ERP system.

www.consona.com
By Industry
There are two major divisions in terms of industry applicability, with many products adding capabilities to bridge the gap and serve both markets. Initially, ERP evolved in support of the discrete side of manufacturing companies that deal with hard goods fabricated and assembled from individual parts. The process side of manufacturing, working with materials and products that are or contain liquids and powders (materials and products that pour) felt left out and eventually got their own ERP solutions specifically designed to support their needs. More recently, discrete-oriented ERP solutions continue to add process capabilities (the ability to handle recipes, potency, continuous processing schedules, product grading, etc.). Examples of process industry solutions include Infor Prism and CDC Ross ERP. Specific industries benefit from ERP solutions designed to support industry-specific needs. Examples include Encompix for engineer-to-order manufacturing; Axis for metals, wire and cable; Cimnet for printed circuit board manufacturing; DTR for plastics manufacturing; and Relevant for Department of Defense contractors.

www.consona.com
ERP System Integration

One of the most important characteristics of ERP systems is that they are built on a single comprehensive database to share information across the enterprise. ERP system integration, on the internal side, can be assumed to be complete and comprehensive. And as long as the ERP systems covers all of your information management needs, and there are no external systems or applications in place or planned, integration should not be a concern. ERP system integration with the outside world is another matter entirely. Most companies have more than just an ERP system and many also want to exchange information and documents with trading partners. The good news is that information and document exchange with partners is pretty straightforward these days through web-based application design, included collaboration functionality in most systems, and accepted standards for business document and transaction exchange through EDI (Electronic Data Interchange, a rather dated but still widely used protocol for exchanging purchase orders, acknowledgements, ship notices, etc.) and the newer and more capable Web services / SOA protocols and standards. Integrating ERP with other enterprise applications is the more problematic area of ERP system integration. In addition to the ERP business information backbone, many companies have other systems for Manufacturing Execution (MES) and data collection, Quality management and process control (may be a part of MES), Warehouse Management (WMS), Transportation Management (TMS), and/or other outside systems that could benefit from integration with the ERP backbone. One of the most frequent requirements is the need to connect to a separate Customer Relationship Management system or CRM. The customer interface is perhaps the most critical aspect of business communication and the areas where companies tend to be the most unique and exhibit their competitive edge (providing excellent customer service). As such, many find that generic ERP customer order fulfillment falls short of their CRM needs, so they seek out a best-of-breed or specialty application to handle the marketing and sales support functions of CRM. Integration with the rest of the ERP suite provides the critical link between demand (CRM) and supply (ERP).

www.consona.com
There are several approaches to CRM integration (also applies to MES integration, WMS integration, etc.) including the following, in order of increasing cost, delays and risk: Single source buy CRM from the same supplier that provides your ERP solution. It is likely that full integration is already built-in. Pre-integrated find a (third-party) CRM supplier who has already developed an integration with your brand and version of ERP. Fourth-party integration Some independent (or perhaps not-so-independent) software suppliers may have developed a packaged integration between your ERP and your chosen CRM. This may be a rather rare opportunity limited mostly to ERP and CRM products with a large installed base Middleware integration can be accomplished through middleware toolsets, using SOA and Web Services design. This approach is most beneficial when there a number of integrations to be built and maintained since the tools can be expensive. Custom programming best suited for one-to-one integration projects. Relatively expensive. Take the longest to build and test. Often less comprehensive than other approaches because the links are all hand-built. Most expensive and troublesome to maintain.

www.consona.com
ERP System Implementation

Enterprise Resource Planning implementation can be a daunting task, often taking a number of months to complete and costing more than the price of the software and hardware involved. But if you are prepared, and the proper resources are applied to the job, ERP system implementation can be completed on time, within budget, and delivering excellent return on investment (ROI). ERP system implementation, sometimes called MRP implementation after one of the core ERP modules and the old name for this kind of software, is essential to earning the improvements and benefits the company anticipates when deciding to spend the money for a new system. The ERP system and software are tools, not unlike a milling machine or a plasma cutter they will not run effectively and deliver the benefits if not properly installed and set-up and run by trained, motivated operators (users). ERP touches nearly every aspect of the business and therefore the implementation process should be a team effort with participation from all departments materials, production, customer service, engineering, accounting, administration, and more. It is best if all interested parties participate in the system selection as well so that they have involvement and ownership in the system right from the beginning. Another key part of the implementation effort is to have support and commitment from the very top one or more executive sponsors who will keep the system project at a high priority and help resolve conflicts over resource availability and interdepartmental differences. The third key element of ERP implementation success is user training and education. People inherently fear the unknown and the best way to overcome any reluctance to embracing the new system is removing the unknown element from the equation. In addition, the system will undoubtedly embody new and different ways of doing things and additional sources of information that users will not be able to fully exploit if they are not trained to do so. And dont install a new system and then force it (modify it) to look and act like your old system if you keep doing things the same way you always have, you will continue to get the same results. And that wont be much of a return on your investment. Smart companies will try to avoid modifying a packaged ERP system. Modifications are costly and delay the time-to-benefit for the system. Modifications severely complicate support, maintenance and upgrades to the system, and may compromise the systems function and integrity. A packaged ERP system is considered to be a good fit if it handles 80% or more of the companys needs right out-of-the-box. The remaining 20% should be resolved through procedural changes (maybe you shouldnt be doing it that way or doing it at all), work-arounds, or add-on software from a reputable supplier. ERP system implementation can be a difficult transition for a company but properly planned, adequately supported and managed, and implemented by a motivated cross-functional team with senior management support, the new system can supply the tools and the industry-proven best practices that will take your company to the next level of performance, longevity and profit.

www.consona.com
ERP Software Comparison

You didnt really expect to find a brand-for-brand ERP software comparison here, did you? Not only would that be legally treacherous and motivationally suspect, it would also be misleading and unfair to you, a shopper for ERP or for information about ERP systems and suppliers. Features and functions change, and are in truth only a part of the picture. And any comparison of features and functions must be done in light of a specific companys needs and capabilities. Rather, let us offer some advice on ERP software comparison shopping and system selection based on decades of experience and a thorough knowledge of the ERP market.
ERP Feature/Function Advantage is so Last Century

On a feature/function basis, todays ERP software products are more alike than different. This is a relatively mature market and the major players continually enhance their products to the extent that any truly unique or breakthrough feature is soon copied and improved upon across the industry. If your preferred vendor does not offer that slick new function that you saw in a competing product last week, chances are good that they will have it before long and maybe even do it better, having learned from the experiences of the first company to introduce the leading-edge improvement. The foregoing notwithstanding, companies should understand what they do and how they do it in the context of standard industry practice. Identify those things that are unique to the way you run your business and service your customers and (assuming that you wouldnt be better off converting to industry best practices) look for software that best supports those unique needs and processes.
Its a Partnership
When selecting an ERP system, you are choosing more than software; youre choosing a partner in the overall management of your business. ERP is the custodian of the information that powers the business and coordinates all of the parts of the enterprise. You want a partner that you can trust to get the job done and continue to work with you for the long term (talk to existing customers). You also want a partner that shares your values and your passion for manufacturing a company that understands your business and its challenges and is committed to helping you be successful.
Staying Power
Since this is a long-term commitment on both sides, you want a partner that is likely to be around five or ten or fifteen years from now. Do your due diligence on the suppliers financial stability and look at its track record in terms of product support, acquisitions (as either the acquirer or the acquired) and the support posture for the particular product you are considering. Does the product have a strong installed base? Has the product received regular updates including new technologies? Is there a published roadmap for future enhancements?

www.consona.com
What About CRM?

All of the above holds true for CRM system comparison as well. CRM comparison should proceed along the same lines identify unique (and valuable) practices, look for software that best supports those unique requirements, and select a partner that shares your values, supports their software and users well, and has the financial staying power to continue to enhance their product into the foreseeable future.
In Summary
Do look at feature / function comparison to identify the systems that fit your companys needs but pay particular attention to those processes or approaches that are unique and are a key to your competitive advantage. Once you have a short list of candidates, focus on the suppliers and assess their record of satisfied customers, the strength of the support provided, and their prospects for future financial health and product enhancement.

www.consona.com
ERP Software Companies

The ERP software market evolved as most do, with a large number of independent developers launching products to compete for a healthy and hungry community of manufacturing companies that needed the capabilities that ERP provides. Through the 1990s, many ERP software companies entered the market and most thrived as demand seemed almost unlimited. Starting in the late 1990s, the ERP software market experienced a rather dramatic consolidation. ERP software companies selectively acquired other ERP system vendors which were in turn acquired by bigger ERP software companies. In 1998 there were more than 200 independent ERP software companies in the market. Those 200 suppliers mostly ended up as part of only a handful of remaining suppliers by 2006. The good news here is that almost none of the ERP products were abandoned during this market consolidation. The acquirers generally continued support for the acquired products and eventually provided either a new combined product offering and/or a reasonable migration path to their flagship offerings. Very few ERP system vendors closed their doors and left the user community hanging. Of course the biggest ERP software companies participated in the acquisition activity with SAP focusing on best-of-breed and niche products to fill out their portfolio and broaden the range of functionality and technologies they have to offer. Oracle built their entire ERP position on acquired products and added PeopleSoft (which had previously acquired Vantive, Red Pepper, and JDEdwards which in turn had swallowed YouCentric and Numetrix), Demantra, Datalogix and Siebel. You can see how the acquisitions followed acquisitions which followed acquisitions, making it a bit difficult to trace all the genealogy. The most notable acquirer during this time period was Infor Global, responsible for more than 20 acquisitions which, tracing the succeeding layers, accounted for more than 50 products/companies. Other examples include Sage (Abra, Adonix, MAS90/MAS200, PeachTree Saleslogix, and more), Exact (Macola, Kewill ERP, Vanguard), and Epicor (Datawroks, ROI, Avante, Manfact, DataFlo), and Microsoft (Great Plains, Navision, Solomon). Consonas strategy has been to build a portfolio of products that address specific industries. Starting with its initial Made2Manage system for mid-sized, custom manufacturers centered on a casual bill-of-material for making complex products, acquisitions have added: Intuitive ERP for a broad range of small to midsized manufacturing environments including electronics, medical devices, aviation and others. Encompix ERP offers project scheduling and management for engineer-to-order projects that involve complex manufacturing and close tracking of projects, costs and schedules. Compiere is the leading open-source, Cloud-based ERP system for distribution and manufacturing worldwide. AXIS ERP solution for manufacturers of metals, wire and cable, as well as metal service centers.

www.consona.com
Cimnet Systems ERP solution for printed circuit board engineering and fabrication, including design, fabrication, and certification. DTR ERP software and services for the unique requirements of plastics processors. Relevant ERP is software designed to meet the specialized Earned Value Management (EVM) requirements of US Department of Defense contractors.
Uniquely, Consona also has made a huge commitment to industry leading CRM with and knowledge management (KM) software applications that span customer service and support, sales and marketing. In addition, Consona also offers a number of pre-configured, cost effective, best-in-class solutions that span industry, departmental, business function, and/or methodologybased needs.

www.consona.com
Best ERP Software

What is the best ERP software? Thats a question with many answers or no answer depending on who is asking the question and what criteria the questioner has in mind. The basic truth is this: most ERP solutions are more alike than different. But that is not to say that you can randomly choose any system from any of the top ERP software vendors and expect to get the same results. Theres a lot more to ERP than simply checking off the modules and functions and assuming they each fill the square in the same way. Nevertheless, ERP is ERP and most systems cover the basic elements quite well inventory and production, planning and scheduling, purchasing and customer orders, financials and costing and the rest. The devil, as they say, is in the details. So, rather than ask what the best ERP solution is, ask what are the best ERP solutions for a company in your industry, of the size of your company, and with the objectives and needs of your company. In a textbook ERP selection process, the company will survey the market and identify some number of candidates that offer an ERP solution that is appropriate for their size and industry perhaps as many as a dozen first cut candidates. Some companies will limit their search to the top ten ERP software providers and others will limit the breadth of their initial search in other ways to arrive at a realistic number of candidates to start with. There are several selection tools and directory websites that can be very useful in compiling the first cut list. Further research will whittle down the list to a more manageable number say three to six. This is the short list of potential best ERP solutions for the company. More research, meetings, demonstrations, and reference checks will lead the company to the final selection of the best ERP solution for their particular situation and needs. The final selection will likely hinge upon factors other than a simple feature/function comparison. The best ERP solution for your company will be the one that:

Best addresses any specific or unusual processes or procedures, particularly those that might be competitive differentiators in your market. Is most comfortable for your users meaning the look and feel that most closely resembles the way the users do their jobs. Consider how easy it is to tailor the user interface to make it more usable. Comes from a company with support resources that understand your industry and have successful implementations in your industry.
Comes from a company with good financial stability and a history of product support and enhancement that promises to keep the system up-to-date with new technologies as they emerge.

www.consona.com
Enterprise ERP
Enterprise Resource Planning (ERP) is a suite of software that supports the information management needs of the entire enterprise. ERP systems are available for a number of vertical markets including manufacturing, distribution, retail, services and others, but are best known as the successor to Manufacturing Resource Planning (MRP II), which was developed for manufacturing companies. When selecting an ERP package, look closely at individual ERP applications, definition of functions as they fit your specific needs, and how well the supplier supports implementation and continued maintenance of the software product. Enterprise ERP, a redundant term, is available from a large number of suppliers, with four developers sharing the majority of market share: SAP, Oracle, Infor and Microsoft. Other significant ERP software suppliers are Consona, Epicor, QAD, IFS and others. These suppliers evolved their businesses under the traditional licensing model wherein the customer company licenses the software and installs it on its own in-house servers. All of these suppliers now also offer a hosted option and Software-as-a-Service (SaaS) licensing model. Under SaaS, there is no up-front software license fee and the software is not installed locally. The system is hosted and supported by the supplier for a monthly fee, usually based on the number of users. Many additional suppliers exist, most targeting small and midsized manufacturers. That list might include companies like MetaSystems and Interprise ERP as well as SaaS-only vendors like Compiere, Plex and NetSuite. In addition to the usual sources for enterprise ERP systems, there are a limited number of Open source ERP software solutions available. While the concept of open source enterprise ERP might seem risky, some companies choose to go this route for cost reasons, confidence in their own IT resources (to provide support), or enthusiasm for the cutting edge, community driven architectures and technologies found in open source stacks. When choosing to use open source ERP, manufacturing companies are assuming a calculated risk open source programs are not controlled and supported by an industrial-strength corporate infrastructure, such as is provided by the above-mentioned software vendors and supported by licensing and maintenance fees. On the plus side, most open source ERP software solutions are relatively new and incorporate the latest (open source) technology and tools. With open source ERP, web based resources are generally the only support available via community information exchange facilities. Some companies offer for-fee support of open source ERP software solutions.

www.consona.com
ERP Certifications
While there is no governing body that controls or even defines Enterprise Resource Planning (ERP), APICS, the Association for Operations Management does offer a certification program in production and inventory management (CPIM) that covers the body of knowledge that surrounds ERP. Certifications include an advanced designation for fellow-level recognition (CFPIM). The APICS certification knowledgebase is generic, including all of the theory and practice of planning, execution and control of operations, and management of resources. While not addressing the specifics of any particular implementation of these principles in ERP software, every ERP product on the market adheres to and applies the APICS principles. Many manufacturing professionals take advantage of APICS classes, reference books and professional development opportunities to learn the concepts behind ERP. Testing for certification is organized into five subject areas and exams: Basics of Supply Chain Management; Master Planning of Resources; Detail Scheduling and Planning; Execution and Control of Operations; and Strategic Management of Resources. Applicants must achieve a passing score in all five exams to gain certification. A program of continuing professional development governs certification maintenanceindividuals must renew their certification every five years. Individual ERP software vendors offer various certifications related to their specific software features, functions and use, and not necessarily the theory and practice of ERP in general or the efficient operation of a manufacturing business. These system-specific certifications are generally intended to qualify consultants and implementation partners to work with end-user customers. Therefore, you might find Oracle certifications (although they might focus on Oracle database functions and operation), Peoplesoft certifications, SAP certifications, and so on. There is SAP ERP certification training available through SAPs vast network of partners and affiliates. Be aware that there are many technical certifications that may be of interest to ERP user companies as credentials to watch for when recruiting or contracting for technical support. Microsoft, for example, offers a number of technical certifications for their products Microsoft Certified Technology Specialist (MCTS), Microsoft Certified Professional Developer (MCPD), Microsoft Certified IT Professional (MCITP), Microsoft Certified Data Base Administrator (MCDBA), and a number of others. There are three SOA certification programs, sponsored by IBM, BEA and ZapThink.

www.consona.com
ERP Consulting
An ERP system implementation is a mission-critical activity that a manufacturing company employee might only experience once or maybe a few times during a career. Such an important responsibility is challenging for anyone without a lot of experience so many companies engage some outside ERP consulting help so that they can benefit from the experience of professionals who have been through the process many times before. ERP consulting services are offered by the large international accounting firms and their business advisory divisions and subsidiaries, by system hardware and software vendors, and by national, regional and local specialty ERP consulting firms. ERP consulting companies might also offer CRM consulting, technology consulting (systems and networks), and business advisory services as well. Some veteran ERP experts have created their own ERP consulting jobs by offering their services to the community as independent consultants, relying on direct billing rather than collecting an ERP consulting salary from one of the above-listed entities. Rather than seek work with an established firm, for example, this individual will work independently and may eventually hire additional consultants and build a local or regional firm of their own. ERP consulting spans a broad range of services and assistance, from basic education and training (e.g., What is ERP? How does MRP work? Basics of inventory control, Plant scheduling, etc.) to software-specific implementation and use advice. A qualification you might watch for is an APICS CPIM or CFPIM certificationcertified in production and inventory management or certified at the fellow level in the same disciplines. APICS also offers a Certified Supply Chain Professional (CSCP) designation. Generally, a consultant should be able to bring an objective view to your companys situation and needs and offer sound advice based on experience with other companies facing the same issues and perhaps using the same tools and software. Most reputable ERP consultants have deep experienced in one or more software systems, having worked with a number of implementations of those systems. The best will also be manufacturing specialists as much as (or more than) software or technology experts. Expertise in the specific software functions and procedures is available from the software supplier and from licensed affiliates. The consultant should be more broadly experienced and objective than someone closely associated with a particular software product.

www.consona.com
A consultant is not a programmer and a programmer is not a consultant. Programmers carry out specific tasks, creating, modifying or fixing software programs. Consultants offer advice and may actually specify or design programs but will not execute that advice or write the programs. And that is probably the most important thing to keep in mind about consultantsthey should not be tasked with responsibility for any specific implementation task (other than delivering education or training). The future users of the system must take responsibility and ownership of system implementation activities and tasks.

www.consona.com
ERP Failures
Theres no shortage of news stories about ERP failures under headlines like Biggest ERP failures of 2010, but of course the news media loves a disaster. As summarized in a long-time media saying: If it bleeds, it leads. While there are some notable ERP system failures every year, there are many more system successes, but those dont make headlines. Focusing on the failures, however, it is interesting to look into the causes of ERP failures. Business publications and general news sources generally react to the accusations and lawsuits, and therefore deal only with the results and the finger pointing, and not often the reasons for ERP failures. Consistent with patterns established through long-term analysis on ERP failure, new research and statistics confirm that ERP failure is more often implementation project failure rather than ERP system failure. In other words, its not that the system and software do not function. Its that the project failed to properly select, install and implement the system. Thats a key distinction. A company can learn valuable lessons from another companys failure. ERP projects are challenging in many ways: Software selection and implementation are rare experiences in the life of most manufacturing professionals, so there is little experience to draw on. There is a lot at stake ERP is the custodian and manager of vital company information. An ERP project is a significant investment in money, time and resources.
Learning from the success and failure of others is a smart thing to do. Similar lessons are available from CRM failures, supply chain management failures, and any other major system project success or failure. While many books have been written about ERP system implementation, the keys to success can be summarized in just a few main points: Executive commitment is required to allocate the resources needed, resolve any interdepartmental conflicts, and keep the project a high priority throughout the life of the project. Youll need a strong, motivated inter-departmental project team for selection and implementation. ERP is not an IT project; it is a business improvement project and ownership by the users is mandatory for success. User education and training is necessary to overcome fear of change and prepare future users to take advantage of all the new system has to offer. Double your education and training budget (and make sure to spend it all)its the best investment you will make in project success. Change management and project management are key aspects of project success.

www.consona.com
Of course, some projects fail because the wrong system was chosen, the supplier and/or implementation partner was incompetent or dishonest, or the hardware or software failed, but these are rare occurrences. The vast majority of ERP system failures are failures in the implementation process and these are avoidable. Many failed implementations, in fact, can be fixed through re-implementation or other remediation, proving that it wasnt really the system that was at fault.

www.consona.com
ERP Market
The ERP market is projected to bring in sales in the $25 billion dollar range in 2012a healthy market by almost any comparison. The ERP marketplace is stable and growing after a bit of a slow-down during the recent recession. Companies that postponed investment in enterprise systems during the difficult times are now beginning to invest again as business returns to a growth phase with the improving economy. ERP market size, impressive as it is, isnt really of much important to anyone except ERP software suppliers. Although there are quite a number of those suppliers, a small handful enjoy a majority of the ERP market share. 2011s top two ERP suppliers were SAP and Oracle. Market leaders also include Microsoft and Infor. Between the four companies, they enjoy more than half of all ERP revenue over the last several years. After the top four, there are a number of other established, successful ERP suppliers including Consona, Epcior, QAD, IFS, and others. Each of these companies has carved out a place in the ERP marketplace by offering alternatives to big ERP that are affordable, quicker and easier to implement, and/or specially designed to address the unique needs of a specific market segment. The ERP market has undergone a significant consolidation over the last ten years. Many of the independent ERP suppliers that evolved in the 1980s and 1990s merged or were acquired as companies sought out additional functionality, technology or market share. Interestingly, the concept of a supply chain management market distinguishable from and ERP market has never really taken hold. Supply chain software evolved from advanced planning and scheduling (APS) and supply chain planning functionality has been absorbed by the ERP market, blurring the distinctions between the two segments. Generally speaking, supply chain software, in addition to planning and optimization, includes warehouse management, transportation management and supply chain event management systems.

www.consona.com
ERP Reviews
Theres no shortage of analysts, pundits and industry watchers who offer ERP system reviews and comparisons. ERP reviews are available at a number of Internet sites including FindAccounting.com, Inside-ERP.com, TopTenERP.org, SoftwareAdvice.com, ERP.com, and BusinessSoftware.com; consulting companies software selection services, and through the APICS professional association, among others. ERP software comparisons tend to focus on features and functions, along with the technology used and usability / aesthetics of the ERP system. A limited number of individual reviews of specific products are available, but the majority of the competitive information is in the form of comparative charts (grids or spreadsheets), or selection tools that will compare a list of desired features against lists of features contained in the individual products. Such reviews and comparisons will likely include all of the major vendors and their products, and perhaps some of the lesser-known offerings, as well including SaaS-only productsbut will likely not include open source ERP. Reviews may or may not be completely objective. Some reviews, comparisons and commentaries are sponsored by vendors or supported through advertising (even the analyst reviews may be vendor-sponsored and thus suspect). While not actually fraudulent, such sponsored reviews may not be completely unbiased or may be subconsciously colored by the sponsors support and/or participation. It might be helpful to check reviews in the early stages of a system selection process but its probably more useful after developing a short list of potential suppliers, simply to reduce the number of reviews youd have to read. Getting to the short list is greatly assisted through the use of a selection tool that will pare down the choices to products that fit your market and your companys needs. Reviews are no substitute for due diligence in system selection, but they can be helpful in highlighting features or limitations that might not be on your list. Remember, though, that reviews are prepared in the context of a range of user needs and may not capture the specific product characteristics that are most important to your company, its products, procedures and markets. You might also find reviews for specific parts of a broader enterprise system, for example MRP reviews or CRM reviews that address only those parts of the system.

www.consona.com
ERP Software for Manufacturing

ERP software for manufacturing is an established, relatively mature market with a considerable number of suppliers. Literally thousands of manufacturing companies rely on ERP software to manage the entire range of business activities from CRM, manufacturing inventory and processes, accounting software, manufacturing planning, purchasing, quality, and more. In addition to traditional manufacturers, other kinds of companies use ERP software. Distribution companies can use a sub-set of manufacturing ERP (without the production applications), and other versions of ERP are tailored for service providers, financial institutions, retailers, and other kinds of companies. The best type of ERP manufacturing software for your business is the software that is written for your industry and supported by people who know your industry. While manufacturers are generally more alike than different, there are differences in needs due to the nature of the products, processes and markets. A company that makes, say, small kitchen appliances, is very much like a company that makes power tools for the home. But both of these companies are quite different from a company that makes frozen dinners, or one that makes CNC machining centers. Some ERP software solutions are developed to meet the needs of a wide variety of industries, with the ability to tailor or configure the system to better fit specific vertical markets. The market leaders, SAP, Oracle (including software originally developed by JDEdwards and PeopleSoft manufacturing software) and Microsoft Dynamics manufacturing are examples. Others are developed with a narrower market in mind. Consonas Made2Manage ERP is designed exclusively for small and midsize discrete manufacturers, with seamlessly integrated enterprise resource planning and shop floor execution. Consonas AXIS ERP, for example, is focused on the needs of metals, wire and cable manufacturers. Consona Cimnet contains ERP functionality specifically for printed circuit board engineering and fabrication. Consona DTR ERP is designed for the unique requirements of plastics processor. When selecting a manufacturing ERP program, first look at functionality. Once you have found the package or packages that best fit your needs, look at the supplier(s). Do they have a history of successful implementations in your industry, with companies of your size? Do they provide regular updates to fix problems and incorporate new technologies and new functions? Are they financially stable so they will be there when and if you need them down the road?

www.consona.com
Consona ERP Software Market

Enterprise Resource Planning (ERP) software is in great demand because it provides companies with a comprehensive set of pre-integrated information management functions that tie together the information from across the enterprise. But its difficult to address the ERP software market because there are actually many different software markets under that umbrella. Most people might think of ERP in terms of manufacturing because that is where the term originated. But many other industries can also take advantage of the comprehensive and integrated nature of ERP. There are ERP systems for retailers, distributors, service providers, financial institutions, and just about any other business category you can think of. You can also think of subsets of application functionality as being their own markets like, for example a CRM software market for companies that are focused on customer resource management of an accounting software market. Some observers might even consider individual vendor ecosystems to be sub-markets, or other specific sub-sets like hosted ERP software to be their own market segments. Defining ERP software market size is equally difficult for the same reasons; it depends on whether you are talking about all business software or some defined sub-set. That said, billions of dollars are spent each year on ERP software, no matter how you define it. The majority of companies in the world have some form of ERP Each segment of the market has its ERP market leaders, companies that have the largest installed base or the highest sales revenue. In the general ERP market, the top 10 ERP applications providers would include SAP and Oracle with the largest market share and revenue. Next on the list, youll find Microsoft and Infor. After that, it gets a bit confusing or controversial. Depending on what numbers you use and where you get your information, the rest of the top 10 will include Consona, Epicor, IFS, QAD, Syspro, Sage, Glovia, and others. Some of these vendors offer multiple solutions, so a list of the top 10 ERP solutions might be a bit difference in sequence but would include most of the same vendors. There has been considerable consolidation in the ERP market over the last 10 years, and some companies offer solutions aimed at specific market segments. Consona, for example, has Made2Manage ERP for a broad range of manufacturing environments, Intuitive ERP for make-to-stock companies, Encompix for engineer-to-order manufacturers, AXIS for metal wire and cable manufacturers, Cimnet for printed circuit board makers, DTR for plastics companies, and Relevant for the special needs of companies doing business for the U.S. Department of Defense.

www.consona.com
ERP Software Modules

Enterprise Resource Planning (ERP) software is usually packaged in functional pieces that can be implemented in various combinations. These ERP software modules address specific functions like inventory control, planning, customer order management, purchasing, production control, general ledger, accounts payable, etc. This functional organization adds to the flexibility of the ERP product. A distribution company that does little or no manufacturing can license and install the financial applications, purchasing, customer order management and inventory, for example, and have a solution tailored to their needs. If at a later time they expand into manufacturing, they can license additional modules that will essentially snap in place and expand the system as needed. This modular design also allows software developers to put together product offerings for specific industries. By adding a module of food safety software, quality management and lot tracking, or product configuration, for example, an otherwise general purpose ERP system becomes a niche product that is well suited for a company in the food industry. By developing modules with specific functionality, an ERP vendor can assemble a variety of niche products like ERP for automotive suppliers, ERP software for life sciences, ERP for chemicals, etc. Modular design helps developers focus on specific industries and functional needs while not reinventing the wheel by duplicating the more universal functions like inventory control and purchasing. Customers benefit by not having to buy and maintain functionality that they dont want or need. Most ERP software has grown and broadened over the years in part by adding new modules to the product offerings. Some of these are developed from scratch to capture demand opportunities and some in response to customer requests. Some modules are the result of acquisition: the ERP developer might buy a company with a point solution that can be converted into a module of the ERP system.

www.consona.com
ERP Software Price

ERP software price is nearly always negotiable and each company buying a given ERP system is likely to pay a slightly different actual price compared to any other company. Final pricing is a factor of company size and strategic importance to the supplier (maybe the vendor desperately wants a reference account in a particular industry); size of the order (number of seats or applications); bundle of services and other extras included in the order; state of the market at that particular time (is the supplier ahead of or behind expectations yearto-date); competitive pressure (is the vendor trying to match or beat a competitors bid); negotiating skills of both parties, and other factors. These factors apply whether the negotiation is for a full suite ERP solution or for a more limited application like a CRM price or Warehouse Management System (WMS) price. Perhaps the most powerful influence on final price is the competitive situation. Initial bid or list price for ERP software solutions are surprisingly similar, even when comparing so-called Tier 1 to Tier 2 solution providers. Buyers should understand that any ERP cost comparison should also include consideration for the rest of the implementation costs that will be incurred. Software license fees are only a part of the total cost to implement and ERP software solution, in fact, not even the majority of the costs. An old rule of thumb states that the software makes up only about one-third of the total cost to implement ERP, with hardware / technology and conversion and consulting and user training making up the other two thirds. Exact percentages vary, of course, with some more complex solutions requiring more consultation and assistance. With a Software-as-a-Service (SaaS) deployment, up-front cost for software and hardware is virtually eliminated but conversion implementation and training costs will still apply. SaaS is a licensing and deployment option that swaps up-front capital investment for monthly fees. Total cost of ownership over a reasonable life cycle period (7 to 10 years) will be similar, with SaaS total cost likely to be somewhat higher over the long term. Open source software is not the same as SaaS licensing. Open source ERP software is available from a modest number of sources and consists of software available without the traditional license fee. The software is community supported, meaning that the users contribute fixes and enhancements, rather than a developer with tight licensing control. Some open source software is available with paid support. Other open source ERP solutions like Compiere ERP, offer a cross between open source ERP and traditionally licensed ERP. Compiere ERP has open source roots and architecture, but offers a very low cost commercial version that is fully supported.

www.consona.com
Any open source ERP comparison in conjunction with traditional paid software should recognize that the user company takes on a significantly more active involvement in support and maintenance of the software, compared to a traditional licensing agreement. Buyers should factor in those additional support costs in their total cost of ownership assessment.

www.consona.com
ERP Software Sales

By virtually any measure, ERP software sales are healthy and growing. A recent Gartner report listed total enterprise software sales at $114.4 billion in 2011, with ERP software making up the largest segment at $23.2 billion. Office suites are the second largest segment at $15.7 billion. ERP software has been a healthy market for many years as companies have realized that integrated applications that address the information management needs across the broad enterprise landscape are essential to the efficient and effective operation of the business. Like most markets, though, there have been some ups and downs along the way. The late 1990s saw a surge in ERP software sales as companies rushed to replace aging systems before the dreaded Y2K calendar change. As a result, ERP software sales soared during 1998 and 1999 but then lagged for the first couple of years of the new millennium. Much of the normal demand for those years was accelerated into 1998 and 1999 and companies that had not purchased new ERP systems during that time were exhibiting justifiable concern over the impact of the Internet on enterprise systems. The emergence of e-business provided yet another stimulus to ERP software sales as companies realized that antiquated systems were inhibiting their ability to move forward into new online markets and adopt collaboration and portal technologies to enhance supply chain performance. Once developers incorporated e-business capabilities into their products, sales rebounded as many companies chose to implement a new system rather than enhance existing software for e-business or wait for their incumbent supplier to bring the enhancements to their product. Sales patterns can be seen in CRM software sales, accounting software sales, and other software markets that reflect what ERP software sales did in earlier years when ERP became an accepted strategic direction for forward-looking manufacturers. CRM sales have followed the emergence of this business area (customer service and customer intimacy) as a strategic priority. Whether it was the evolution of software capabilities, changes in the market, or an emerging phase of corporate maturation that drove this heightened interest in customer service is debatable. CRM is an important part of most companies go-to-market strategy. CRM capabilities are included in many ERP software systems but third-party CRM solutions have also evolved into a significant market presence on their own.

www.consona.com
ERP Success
How do you measure ERP system success? Is it simply the completion of the data conversion and ERP implementation process (the system is installed and functional)? Or is it the complete achievement of all objectives set at the initial planning and justification of the project? Real ERP success is probably neither of these. A fair measure of success might be implementation of the system to the point where company employees are using its features and functions as part of their day-to-day activities and achievement of a return-on-investment that justifies the cost of the system project. There are many headlines and news articles about ERP failure and case study articles and marketing pieces about ERP success, but not much discussion of just what success means or how a company would go about measuring ERP success. ERP systems are information management tools that company employees can use to support management decision making. The tools themselves do not deliver any benefitsthere is no advantage to having the latest and most advanced, multi-million dollar manufacturing ERP software in place if the users do not know how to take advantage of it and apply the technology to the better performance of their jobs: producing the right products in the right quantity, at the right time, at the right cost to satisfy (or exceed) customer expectations and generate a profit. The best measure of ERP success is the following: 1. Installation success: Install the system, complete the tailoring/setup, convert and/or input the data, install sufficient hardware to provide convenient access. 2. Complete the implementation: Define and document system functionality in the context of how it will support operations. Train the users. Start operations using the system. 3. Leverage system information and functions to improve operations to the extent that real return is achieved: Cost reductions, revenue improvements, lower inventory, shorter lead-time, better customer service, etc. sufficient to generate a provable returnon-investment sufficient to justify the cost and effort expended. These objectives should be achievable in any ERP project and should be reflected in the project plan and justification at the start. Project justification (expectations) should be realistic, achievable, documented and measurable.

www.consona.com
ERP Support
ERP support for an organization implementing a new ERP system is always a major consideration. Even with a mature, installed ERP, support is still critical throughout its lifecycle. In addition to the expected internal IT support, companies necessarily rely on support from the supplier for fixes, updates and enhancements and may also rely on other resources for other kinds of ERP support. The first line of support usually comes from the software supplier. The supplier will provide bug fixes, periodic releases and enhancements, and call-in or online support for an annual fee that averages between 18% and 22% of the cost of the software license. For those products that are sold through third-party affiliates (also referred to as Value-Added Resellers or VARs), that local affiliate is the first-line of support, backed up by the supplier itself. Affiliates are contractually allied with the supplier and are paid to represent the supplier, sometimes in a given geographic area or focus industry. The affiliate will usually offer a package that includes the software, installation and implementation support, data conversion and user training. Usually, the affiliate is available after implementation for continuing support as needed with consultants and programmers. Some companies choose the option of outsourcing ERP support, in addition to the support available from the supplier and/or its affiliates. A number of companies offer expertise and experience with specific software products and their use in various industries. Some are associated with large firms including hardware companies (IBM, HP), or accounting and advisory firms. Some are independent local or regional technology support organizations. Whoever you are considering for ERP support, biographies/resumes of the people who will be working directly with your company should be reviewed and the people interviewed before signing the contract. Be aware that larger support organizations may insist on the flexibility to substitute other consultants, so be sure to include an approval clause. When planning your need for ERP support, staffing ratios and other rules of thumb might be helpful, but it really comes down to the amount of in-house support there is and how reliant you will be on outside support. Take full advantage of the support available from the software supplier and its affiliates, but also consider some independent advice and support from nonaffiliated consultants and industry experts that can help you see beyond the specific features, functions, and capabilities built into the ERP software that you are considering or have selected.

www.consona.com
List of ERP Software

Any list of ERP software providers has to include the biggest ERP software names: SAP and Oracle, as well as Microsoft and Infor. These four companies make up a majority of the ERP systems installed and sold. Each of these vendors has multiple products. Oracles offerings, for example, include Oracle EBusiness Suite, PeopleSoft, JD Edwards Enterprise One, JD Edwards World, and the relatively new Oracle Fusion applications that are intended to be the migration path for all of these products. Any ERP systems list worthy of the name will also include a significant number of additional suppliers such as Consona, Epicor, QAD, IFS and others. But to be truly useful, the list should specify how each ERP software product is best suited for specific vertical industry markets. The best ERP software for a given company or market may also be the most popular ERP software in that market, but way down the list in overall sales or installed base when looking at the entire universe of ERP. Now that weve established that the best list of ERP software will be one that is industry-specific, understand that some products will show up on multiple lists. Lets say a mid-size company that makes metal equipment cabinets is looking for a new ERP system and compiles a list of ERP software to investigate further. That list may include Oracle JD Edwards Enterprise One, Infor Syteline, QAD MFGPro, and Consona Made2Manage. Another company that makes small mechanical devices to-order might compile a list that includes Infor Visual ERP, Consona Intuitive or Made2Manage, QAD, and Oracle Enterprise One. ERP software suppliers often emphasize industry applicability in their marketing. A company searching the market should also look to history. ERP software that is widely used and successful in other companies in their industry should be good candidates for inclusion on their own short list of potential solutions. There are a number of sources for system selection assistance, some of them offering free ERP software selection tools, with which you list your needs and company characteristics and the tool responds with a list of software solutions that match your requirements. Some selection tool sources include softselect.com, technologyevaluation.com (toll also available through apics.org), erp.com and others.

www.consona.com
Popular ERP Software

The most popular ERP Software comes from SAP and Oracle, followed by Microsoft and Infor. While these four companies enjoy a considerable share of the overall ERP market, they are by no means the only ERP software suppliers out there. Many other suppliers offer a wide variety of ERP software choices for manufacturers in general and for specific vertical markets. The most popular ERP software is not necessarily the best ERP software for any one particular company. Each company must define their specific needs and find the product or products that offer the right functionality and features to fit those needs. The most popular ERP software packages in any given industry are likely those that best fulfill that industrys needs. While manufacturers in general are more alike than different, each industry segment does have unique processes and needs. Some software packages are designed for specific markets: steel centers, printed circuit board manufacturers, food and beverage companies, or automotive suppliers. Others are more general: industrial equipment manufacturers is a relatively broad category. In any specific vertical niche, the most popular ERP software package may be one that is focused on that specific niche, have significant market share in that niche, but not even by on the radar in any compilation of overall most popular ERP systems. Companies selecting a solution should not be overly focused on market share or popularity. The first concern must be functionality and appropriateness for the companys specific industry and unique needs. After appropriate solutions have been identifiedthe proverbial short list of most attractive productsproceed with the due diligence of system selection. Study the short list candidates offerings in detail and identify any functional shortfalls or missing features. Evaluate the usability of the system designhow the future users feel about the screens, functions, and access, and how it will fit in with their every-day duties. Talk to existing users in your industry and companies of about the same size as yours. Investigate the support structure; talk to current users about the support and assistance the supplier provides. Check the companys financial stability and future product roadmap to assure yourself that the supplier will be there in the future with updates and enhancements to keep your solution state of the art. Expect to pay a fair price for your solution. Yes, there is free ERP software out there in the market, and low-cost ERP software as well, but expect to get what you pay for. Totally free open source software is community supported and takes more commitment within your company to keep it up-to-date and bug-free. Many open source products are available in a professional or commercial version that does have a cost associated with it or open source with a paid support option; however, the support offered is not necessarily at the level you would expect with a traditional, commercial software package. Let the buyer beware.

www.consona.com
Selecting ERP Software

Many companies are apprehensive when faced with the need for selecting ERP software. It is an important decision, critical to the companys future performance, and most selection teams have little or no experience to draw on. The first secret to success is to make sure that the selection is in the hands of the future users of the systemnot IT. ERP is a business management tool that just happens to utilize IT services and support. The users are the ones to determine whats needed and what fits and active participation in the selection process helps build a sense of ownership that is critically important to successful implementation and use. IT can and should play an advisory role in system selection, but should not be in charge so it wont be viewed as an IT project. Selecting ERP systems takes time and effort, as does the implementation process. Be prepared to assign sufficient resources to the task. Map out your selection process, allocate the necessary resources, select the project team, and manage the project through to completion. Traditional project management processesproven tools for managing a special task (as opposed to a continuing activity) apply to a system selection and implementation project whether it is an ERP system project or another system selection and implementation task. Since this is a one-time task, it is likely that in-depth experience and expertise might not be available in-house, but there are many outside resources available to help. There are a number of system selections tools for identifying the software products that offer the functionality you need. Some are even free. Search for ERP software selection and similar terms to find companies such as: FindAccounting.com, Inside-ERP.com, TopTenERP.org, SoftwareAdvice.com, ERP.com, and BusinessSoftware.com, apics.org), and many more. You also may consider hiring the services of a reputable consulting resource to not only help with the selection, but also to assist in project planning and management throughout the selection and implementation process.

www.consona.com
Types of ERP Software

What is ERP software? Enterprise Resource Planning (ERP) is, according to the APICS dictionary, a Framework for organizing, defining and standardizing the business processes necessary to effectively plan and control an organization ERP software provides the tools to manage business information throughout the enterprise. There are several ways to characterize the different types of ERP software. Solutions can be sorted, for example, by the size of company they are designed to serve using the common Tier 1 (large company) Tier 2 (midsized company) and Tier 3 (small company) designations. ERP software can also be categorized by deployment strategy: on-premise or hosted Software-as-a Service (SaaS). Note, however, that many on-premise ERP systems are also offered through a SaaS licensing option. There are other ways to categorize the different types of ERP systems. Some systems are designed to serve specific industry vertical markets. There is ERP software for industrial equipment manufacturers, ERP for the healthcare industry, ERP for pharmaceutical companies, etc. There are even specialty products for very specific industries. Consona has an ERP product just for plastics companies, another for circuit board manufacturers, and one designed exclusively for engineer-to-order companies with project-based manufacturing. Given the wide variety of types of ERP software available, most companies take advantage of ERP software selection tools to develop the short list of products that will be actively considered for their implementation. Best practices would include initial screening with one or more selection tools to identify three to seven solutions that appear to have the best fitthe proverbial short list. Then the team should dig deeper into each of these offerings to validate the initial selections and perhaps whittle the list down to the best three candidates. Each of these vendors should be invited to present a demonstration and develop a proposal including conversion, training and implementation assistance. Due diligence and final selection and negotiation follow before you sign ERP software and services contracts. No matter who you select to provide your ERP software: Oracle or SAP, Microsoft of Infor, Consona or Epicor, or any of the other suppliers, be sure to choose a supplier that knows your industry, has successful users in your industry, and has demonstrated a commitment to your success.

www.consona.com
Web Based ERP Software

Web Based ERP Software Advantages and Disadvantages Many companies are interested in web based ERP software as an alternative to the traditional on-premise licensing model. Web-based ERP software is reputed to be less expensive, easier and quicker to implement, and easier to maintain. Similar interest applies to web based CRM software and web based accounting software for the same reasons. Web based manufacturing software, web based CRM software, and other web-based software products are often referred to as Software-as-a-Service or SaaS offerings. SaaS refers to the licensing model used. With traditional on-premise software, the buyer company must buy or license, install, and support the computer hardware and the application software at their facility. With the SaaS model, the user company pays a monthly fee that includes hosting of the applications and the license to use them. There is little or no up-front capital expense. SaaS solutions may or may not be offered on the cloud. Web Based ERP Software Advantages and Disadvantages The primary advantage of a SaaS or web based ERP software solution is the low up-front cost. Another advantage is that there is no need for a local infrastructure with staff technology experts to maintain and support the systems. Software suppliers often tout a faster time-to-benefit because there is no need to buy and install all the hardware and software; all thats needed is a browser and a web connection. The majority of ERP software implementation is still required, however, including data conversion, user training, etc. A disadvantage of web based ERP software is that monthly fees will eventually add up to an overall higher cost (total cost of ownership) than locally supported systems. Understandable, of course, because the vendor bears all the costs to host and maintain the systems, plus it needs to make a profit. Economies of scale help reduce the overall cost for individual user companies but total cost of ownership will be higher for SaaS applications over time. While every company engaged in ERP software selection should consider SaaS as an option, it should not be the first consideration. Nearly all ERP solutions on the market today are available as either on-premise or hosted (SaaS) implementations, with the exception of some solutions that are SaaS only. When completing your strategic ERP software planning, solutions should be evaluated first and foremost on the functionality and fit for your business needs. Deployment optionson-premise or SaaSare a secondary consideration after youve found the best software fit for your needs.

www.consona.com

ERP Research Kit

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ERP Research Kit

Uploaded by

Copyright:

Available Formats

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

About ERP Systems

ERP 101 Research Kit

The Benefits of an ERP System

The REAL Advantages of ERP Systems

ERP 101 Research Kit

What is an ERP System?

ERP 101 Research Kit

ERP Software Definition

ERP 101 Research Kit

ERP System Cost

Tiers of ERP Cost

ERP Implementation Costs

ERP 101 Research Kit

SaaS ERP Costs

ERP 101 Research Kit

ERP System Examples

ERP 101 Research Kit

ERP 101 Research Kit

ERP System Integration

ERP 101 Research Kit

ERP 101 Research Kit

ERP System Implementation

ERP 101 Research Kit

ERP Software Comparison

ERP Feature/Function Advantage is so Last Century

ERP 101 Research Kit

What About CRM?

ERP 101 Research Kit

ERP Software Companies

ERP 101 Research Kit

ERP 101 Research Kit

Best ERP Software

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

ERP Software for Manufacturing

ERP 101 Research Kit

Consona ERP Software Market

ERP 101 Research Kit

ERP Software Modules

ERP 101 Research Kit

ERP Software Price

ERP 101 Research Kit

ERP 101 Research Kit

ERP Software Sales

ERP 101 Research Kit

ERP 101 Research Kit

ERP 101 Research Kit

List of ERP Software

ERP 101 Research Kit

Popular ERP Software

ERP 101 Research Kit

Selecting ERP Software

ERP 101 Research Kit

Types of ERP Software