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What does erp mean? What is an ERP system? Enterprise financial resource planning

The ERP concept evolved from the simpler concepts of MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning).

There is an opinion that the ERP concept is an improved version of the MRP II concept. But this is not true, because there are significant differences between the two concepts. The main difference is that ERP moves away from “inventory” management schemes and considers the interests of the client as one of the most important planning factors.

The ERP concept assumes that the system uses only one integrated program instead of several separate ones. A single system manages processing, distribution, logistics, inventory, delivery, invoicing and accounting.

The system for differentiating access to information, implemented in ERP systems, in combination with other company information security measures, is designed to prevent both external threats (for example, industrial espionage) and internal ones (for example, theft). Implemented together with a quality control system, ERP systems are aimed at maximizing the satisfaction of the enterprise's needs for business management tools.

The ERP concept includes:

The ERP concept has such an important feature as the ability to globally manage production, goods and services. This feature is very important for large international corporations, where subsidiaries and divisions interact with each other, while being located in different countries and regions.

The software tools used in ERP systems make it possible to carry out production planning, generate the flow of orders and evaluate the possibility of their implementation in the departments of the enterprise.

An ERP system, unlike an accounting system, is, first of all, a resource planning system. It analyzes not only activities for previous and current periods, but also compiles future results. ERP systems are not just a data warehouse. They include resource planning and optimization modules, and most of the accounting functions are aimed at supporting the functioning of these modules.

To implement planning and optimization functions, the system must have feedback. Based on management goals, a plan is first drawn up, then in the process of performing work, the enterprise’s performance indicators are recorded and analyzed. By comparing the goals set and the results achieved, a corrective action is developed. And the accounting system only records the results. It does not contain functions for automating planning and comparing planned and actual indicators. In other words, accounting systems perform only a small analytical part of management, but not a synthetic one. This is the main difference between the concept of an ERP system and an accounting system.

Our clients in the field of creation and implementation of ERP systems are such large companies as: Federal State Unitary Enterprise Research Institute "Voskhod", LLC "Transstroymekhanizatsiya", NGK "ITERA", subsidiaries of the holding "Itera", LLC "MDK", and many others. In total, our services are used by over 300 medium-sized and big business on the territory of Moscow and the Moscow region, as well as more than 10 large enterprises in the regions of Russia. Our corporate information systems development department has over 50 highly professional employees (programmers, managers, developers, etc.). The department, in turn, is divided into divisions (departments and groups) depending on the platform for the IS architecture (Oracle, 1C, Microsoft, and others) and the purpose of the information system (CRM, ERP, Cloud Technologies, document management systems, ITSM, SaaS, and others ). Thus, we are ready to offer our clients not only a wide selection of different platforms for creating ERP systems, but also many different system approaches to solving the company’s IT problems.


For a start-up business we recommend ERP solutions atOpen-Source platforms, the implementation and price of this kind of solution is acceptable for any level of business; due to the open source code, the functionality of the program can be improved even on your own. We do not indicate platforms, since there are a huge number of them, and downloading an ERP module for free from the Internet will not be difficult, however, every “shareware” solution on the Open Source platform cannot be instantly integrated into the workflow; it requires modification of the program code, and Ideally, for normal performance, ERP should be created from scratch based on the database that the customer has.

For small and medium-sized enterprises and companies we recommend staying at platform 1C for the integration of ERP applications - the functionality is quite wide, implementation is relatively fast, the platform is “Russified” (more precisely, created by domestic developers, due to which the main language is Russian) and integrates perfectly with other solutions from 1C.

For large enterprises we recommend platformOracle for the development of ERP systems, as it allows you to create complex personalized solutions, ranging from basic ERP functions to the construction of complex models and processes. At the same time, the Oracle platform, with the right choice of hardware, allows you to achieve the best performance today. ITERANET is also ready to act as an integrator (supplier) of technical solutions during the implementation ERP systems. Read more about Oracle ERP implementation in the following sections.

You can also leave a preliminary application with your comments and wishes regarding the ERP system, you will be assigned a personal manager who will contact you as soon as possible.

What is ERP?

ERP stands for Enterprise Resource Planning, in Russian “enterprise resource planning”. This is a fairly broad concept, and a fairly wide range of programs that can be classified as such systems. However, a distinctive feature of all ERP systems from other systems is their focus on the integrated organizational component of the system, which allows not only to manage financial management, assets, labor resources, production operations in one software solution, but also to keep records and optimize all business processes of the company, create models of processes and their solutions. ERP is a general definition, while an ERP system is a finished product that allows you to solve all the problems described above.

It is worth understanding that there are no ready-made ERP systems; the specifics are that even companies from the same industry have different staff, different financial transactions, different approaches to sales and purchasing, supply chains and solutions. The theory and practice of ERP originated in 1990, and appeared on the basis of two other methods: MRP II and CIM.

MRPII is the “second” version of the materials requirements planning system. MRP ("first version") stands for Material Requirements Planning, in Russian translation “materials requirements planning”. The entire logistics industry is based primarily on the MRP concept, while this concept appeared back in 1950, and within 20-30 years it became outdated, since it did not contain very important moment, namely “cost reduction” of supply chains. This “theory” reached Russia too late, so there are no software solutions in domestic business based on material requirements planning. The main task MRP is planning the supply of materials, creating chains of transportation and transition of one task to another, transferring the production schedule into the so-called “chain of requirements”, planning requirements, synchronizing the company’s actions over time. MRP 2 (MRP II) is actually the same as “planning”, except for the first and second words - in the second version, material was replaced by manafucturing, and requirements was replaced by “resource”. Even in the very concept of the two concepts, the difference is visible: the first MRP involved only planning of material requirements, while the second MRP required planning of production resources. MRP II is a planning strategy that includes both financial and operational planning. The main foundation here is monetary planning. MRP II includes the following stages (they should also be present in ERP practice):

  • Sales and Operation Planning (SOP);
  • demand management (Demand Management - DM);
  • modeling (English version - Simulation);
  • input/output control (I/OC);
  • control at the production workshop level (Shop Floor Control - SFC);
  • distribution resource planning (Distribution Resource Planning - DRP);
  • product specification (Bill of Materials - BM);
  • drawing up a production plan (Master Production Scheduling - MPS);
  • performance measurement (PM);
  • planning of material requirements (Material Requirement Planning - MRS);
  • warehouse management (Inventory Transaction Subsystem - ITS);
  • scheduled deliveries (Scheduled Receipts Subsystem - SRS);
  • capacity planning (Capacity Requirement Planning - CRP);
  • logistics or MTS (English version - Purchasing);
  • planning and control of production operations (Tooling Planning and Control - TPC);
  • financial management (Financial Planning - FP).

Concept of ERP and ERP systems

ERP(English abbreviation of the words EnterpriseResourcePlanning, translated as “enterprise resource planning”) is a systemic and organizational strategy for combining various areas of the production process and its management, such as asset management of production and financial operations, human resources management, organization of financial management, and at the same time this process is focused on constant balancing and maximum optimization of all available resources of a given enterprise using a specially developed general package of application software programs that can create and display a general data model and maintain all necessary processes for all areas of activity of the enterprise where this system is used. An ERP system is a specific software package that optimizes and helps implement the overall strategy ERP.

History of ERP development

This system and the ERP concept was proposed and formulated by analyst Gartner in the 90th year of the 20th century. It represented a vision of the evolution of the MRP II and CIM techniques. (from the beginning to the mid-90s of the 20th century, a small number of successfully sold ERP systems appeared on the information products market), which were actively in demand by large organizations and business structures. Among such information packages, the most famous were the developments of the Dutch company Baan, also companies SAP, Oracle, JDEdwards(part of Oracle), PeopleSoft. Thus, a market for services for the implementation of ERP systems into business systems began to form. The bulk of information packages were offered by Big Four companies. But already in the first years of the 21st century, there was a merger of suppliers of these products, which produced a significant number of ERP systems for all forms of ownership for both small and medium-sized businesses. Today, the most famous manufacturers of this software are companies SageGroup And Microsoft .
To date the implementation of an ERP system is a necessary condition for the activities of any public company. In this regard, since the late 90s of the last century, ERP systems have been a prerequisite for the successful operation of any industrial enterprise, and today these software systems are used by almost all large organizations, regardless of their form of ownership, in all countries of the world, and in all industries.

History of the development and creation of ERP systems

Abbreviation ERP was introduced at one time by a famous analyst Gartner LeeWiley in 1990, in the process of researching the development of production resource planning for large enterprises. Wiley, on the basis of logical conclusions, came to the conclusion that it is necessary to create multi-user systems that can be produced in large quantities, that can ensure optimal management of all available resources of the enterprise, and also cover the entire field of activity of a given organization, which relates to both the main activities aimed at release of the final product, as well as coordinating the process of purchasing raw materials, marketing the final product, moving the finances of the enterprise, and of course the personnel involved in the production cycle.

At the very beginning of the 90s, this concept became widely known with the support of large manufacturers of application software systems. These were software systems SAPR/3, which were released in 1992. An expanded enterprise materials management package was also released SAPR/2. Company OracleApplications, creates in these years, based on a software package of its own development in the late 80s, its own product based on the integration and reengineering of previously released applications.

Already closer to the mid-90s of the 20th century, a market for the implementation of ERP systems was practically formed. At the same time, both the manufacturers of this software and numerous consulting companies provided consulting services and further promotion of the systems. For comparison in the company AndersenConsulting in 1996, more than three thousand consultants were involved in the implementation of the system R/3, in company SAP- about 2800 consultants worked in PricewaterhouseCoopers there were 1800 of them, and the company Deloitte& Touche 1,400 people are involved in promoting this information product. If we take the figures from the late 90s, then from 50 thousand R/3-10% of consultants worked in SAP.

By the end of '98 the company PricewaterhouseCoopers, describing the picture of the ERP systems market, used a new lexical phrase to more accurately characterize the process - BOPSE, which determined the main suppliers ERP. These were Oracle, SAP, Baan, Peoplesoft, and company JDEdwards. Of course, there were other players in the market for the provision and implementation of ERP systems, such as QAD, Lawson, RossandSolomon, GreatPlains, but at the same time they were non-BOPSE.

According to the state of affairs, by 1998, approximately 60% of all transnational corporations to systematize and optimize your activities implementedSAPR/3.

At the very beginning of the 90s, ERP systems were mainly implemented in industry by machine-building enterprises as systems that implement MRPII component, but already starting Since the second half of the 90s, the implementation of ERP systems has become widespread. It (implementation) has become especially noticeable in the service sector, also by numerous energy sales companies, as well as telecommunications enterprises. ERP systems began to be implemented non-profit organizations, as well as government authorities.
At the same time, due to a significant increase in the number of modules and applications in ERP systems, as well as the expansion of their functionality, the attitude towards ERP systems as global software for organizations of all types of activities began to change. At the same time, this information product begins to replace other application programs aimed at solving similar problems, but not having all the capabilities of ERP.

By the beginning of 2000 in the packageERPadditional functions are introducedCRMAndPLM. These applications can be considered as standalone and universal systems for back-office processes and also as a resource management system. In addition, the capabilities of CRM systems allow you to manage external relationships between the enterprise and the front office, and the PLM software package allows you to manage the intellectual property of the enterprise or other person who established it.

With the global expansion of the Internet and the practical development of the functionality of Internet resources and web browsers at the turn of the 90s and early 00s, all major Manufacturers have re-equipped ERP systems with the ability to connect to the Internet. One of the first to make this innovation was the company SAPin '96. These were attempts to implement the implementation of some functionality, and the first to fully organize global Internet access to the system in 1998 was the company Oracle. And already in 2000, a web interface for the package appeared Peoplesoft.
At the end of 1999, the development and implementation of the first ERP system, which was freely distributed on the Internet, began - this Compiere. Following it, other free ERP packages appeared. Perhaps the most famous and widespread among them are OpenERP, ADempiere,ERP5,Openbravo(forksCompiere) .

Already in the early 2000s, the integration of ERP system software providers took place. For example, we can note the facts - the beginning of 2000, companyMicrosoftintegrated the company into its structuresGreat Plains. The result of the merger can be considered the release of a software package MicrosoftDynamicsG.P.. It is also necessary to note the integration of companies Damgaard And Navision. The result of the merger can be considered software development MicrosoftDynamicsAX, as well as the package MicrosoftDynamicsNAV. Then the merger of companies proceeded at a faster pace, so at the beginning of 2003 the company Peoplesoft buys a company JDEdwards for $1.7 billion, thereby taking second place in the ERP market. The share of this holding became almost 12%. Considering that The market volume of this software package in 2004 was $23.6 billion, then one can imagine the effectiveness of such transactions. This step allowed Peoplesoft get ahead Oracle, and just give in a little SAP. But the market is a market, and at the end of 2004 the company Oracle carried out the takeover PeopleSoft, acquiring it for $10.3 billion.

The ERP system market is growing steadily; already in 2006, licenses for the right to use this software were sold worth $28 billion. It should be noted that the increase in just one year was 18%. In 2005, the market was segmented by ERP system manufacturers as follows: company SAP occupied 42% of the market, Oracle- 25%, company SageGroup just over 7%, company Microsoft less than 7%, Infor approximately 6%, however, market dynamics had already reduced by 2010 leading leadSAPAndOracleup to market coverage rates of 24% and 18%, and the share Microsoft, at the same time, increased significantly and amounted to 11%. Since the second half of the first decade of the 21st century, ERP systems have been equipped with support functions service-oriented architecture. This enabled most major systems to automatically call virtually any function using a standardized method. This made it possible to reduce system costs for overcoming inter-system inconsistencies for organizations that used systems from several manufacturers. New platforms and ready-made proposals for implementing composite applications have also appeared on the market. In addition, since the mid-2000s, many ERP systems have appeared that are provided by subscription (for example, this NetSuite And Plex), and then the main suppliers made it possible for customers to use their systems on a subscription basis.

Basic principles of ERP

If we take the main characteristic feature of the ERP strategy, then it is necessary, first of all, to note the possibility of a fundamental approach to the use of a single model of a transactional system, which can be applied to the main number of operations and all current business processes occurring in the organization. Moreover, these systems can be applicable for any functional and territorial separation of processes occurring in a production or other process, regardless of the reason for their occurrence and origin, the system will make it possible to integrate information from all operations performed into a common information base for subsequent system processing and obtaining results in real time , as well as highlighting balanced plans.

Another distinctive feature of the ERP system is the possibility of replication. This principle makes it possible to use one software package for any enterprise and organization, while for each of them it is possible to apply different settings and set the necessary extensions. This distinctive feature is one of the main conditions for the implementation of ERP systems. Also, another reason for the global use of replicated ERP systems, instead of individual software development, is the opportunity to apply the best established practices using methodreengineeringbusiness processes according to the solutions used in the ERP system. Of course, a customer can request an individual ERP system, tailored only to the specifics of his production or organization, but such an approach is extremely rare today.

In connection with the global implementation of ERP systems, as well as their implementation in completely different territorial entities, in organizations and enterprises with completely different profiles, support for multiple currencies and languages ​​applicable in a single software system is required. In addition, there is a need to support many organizational units of a single process (this could be several legal entities, or several enterprises of one holding company, or disparate suppliers of one manufacturer, or geographically remote branches of one holding company), as well as the use of several charts of accounts, and fundamentally different ones, so these can be various schemes for tax deductions, accounting - all this is a necessary condition for the use of ERP systems in transnational holdings and corporations.

System of modular implementation of ERP systems

The convenience of implementing ERP systems is that they can be integrated into the production support process in stages. You can put into operation one or several modules with different functionality one at a time. Moreover, this process can be carried out at any stage of activity, while installing not all software (modules), but only those packages that are relevant for the organization or production today. The modularity of using ERP systems makes it possible to obtain solutions based on the use of several ERP systems at once, and you can select the best for yourself from each system. Today, there is approximately a common differentiation by modules for all manufacturers, as well as their grouping - this is usually: personnel, finance, operations.

Already since the 90s, system add-ons have been introduced as modules for all major ERP systems without exception. customer service, opportunity personnel management, various projects, as well as the opportunity production cycle management. But then all these modules began to be delivered as separately supplied information products within the framework of ERP systems, but at the same time maintaining the basic requirements of continuity within the framework of existing business application packages. However, this did not in any way affect the efficiency of using the ERP system as a whole.

The universality and global applicability of ERP systems in completely different areas of activity imposes on them the requirement to be as universal as possible, and at the same time organize support for industry-specific requirements. Of course, all large systems already include in their software ready-made modules and extensions “tailored” for various industries, and the buyer only has to order a ready-made additional update package. Among such packages we can highlight systems for mining industry enterprises, public administration sector organizations, engineering and manufacturing industries, retail trade, education and medicine, distribution, financial organizations and banks, insurance companies, telecommunications and energy enterprises, and many other economic sectors.

Finance

Loadable financial modules, such as the general ledger, can clearly be considered the main component of an ERP system. At the same time, there is a module that allows you to generate periodic financial statements, as well as create due diligence (official integrity) using the financial modules of the ERP system.

Today, the number of additional financial modules and ERP blocks is huge. But, nevertheless, they can be systematized and the main four directions can be identified. This is, first of all:

  • accounting: general ledger, current accounts for both receipt (accounts receivable) and accounts for payment (accounts payable), consolidated budget;
  • accounting and management, controlling: accounts for accounting costs and income of enterprises and organizations, for accounting for production or consumption products, for ongoing projects, as well as a system for calculating the cost of manufactured or consumed products;
  • treasury: system for managing the liquidity of the enterprise and its products, cash management. It includes the ability to control bank accounts and cash management, a system of interaction with banks in which the accounts of an enterprise or organization and all existing divisions and branches are located, management of loans and other borrowings;
  • financial and managerial: management of fixed assets of the production process, investment management management system, management of financial control and management of possible risks of the enterprise.

At the customer's request, it can be included in the ERP system financial planning module, as well as managing key production efficiency indicators.

ERP Module – Personnel

The main difference between ERP, as a strategy for the development of an enterprise or organization, from various applications for MRP II or automation programs for determining employee income is the integration of information about the enterprise’s labor resources for effective planning and management of all economic operations, taking into account information about the potential capabilities of the personnel involved. The second distinctive feature is the ability to most accurately determine and identify costs as they arise and combine them with information about the necessary compensation of the working personnel involved in them.

It is this module that guides the development strategy of the enterprise, taking into account the method of managing the personnel of the organization and the enterprise as human capital, and already within the framework of this concept it is possible to determine and implement the functional features of these modules. They display specifics of personnel management, maintaining information about the possible professional skills of each employee, it is possible to plan training in connection with changes in the production cycle, career building etc. Based on all this information, which is systematically processed in these modules and built strategic management throughout the organization, financial management is calculated, as well as key performance indicators.

The main HR management modules are:

  • Personnel selection system;
  • Personnel accounting system;
  • Accounting for total working time;
  • System of remuneration, payment of bonuses;
  • Work order management system;
  • Compensation and payroll system;
  • Personnel assessment system;
  • Organization of calculations of the productivity of the enterprise's labor resources;
  • Organization of pension accounting for employees;
  • Management system for employee training.


ERP Module - Operations

These built-in modules help to adjust the activities of enterprises in creating and selling products and services offered. In addition, they have all the necessary functions to optimize these processes. Despite the specific disunity of various areas of business, several areas of operational modules can be distinguished:

  • Logistics: these modules coordinate supplies, regulate relationships with various suppliers, manage all deliveries and transportation of goods, coordinate warehouse work and inventory management, track the inventory of fixed assets;
  • Production: these modules carry out production planning, accounting of manufactured and sold products, system management of all production programs of this organization;
  • Providing: these modules carry out management of technical maintenance of production complexes, planned and routine repairs of equipment, planning of capacity development, management of transport potential;
  • Sales: these modules coordinate the pricing policy, configure and process incoming orders, build a sales system, product promotion and organization of after-sales service.

In addition to these blocks, there are some modules that are offered as separate software, but at the same time they are easily integrated into the overall package of the ERP system (the following blocks can be distinguished - E.A.M. For maintenance and repair, PLM For specifications management, CRM for sale APS And MES For production management, product distribution).

Modern Market of ERP Systems

According to the company PanoramaConsulting, which conducted an analysis based on accounting data for ERP systems for 2010, all ERP system manufacturers can be divided into three groups:

  1. SAP (24%), Oracle (18%), Microsoft (11%);
  2. Epicor, Sage, Infor, IFS, QAD, Lawson, Ross - 11% for all;
  3. ABAS, Activant Solutions, Baan, Bowen and Groves, Compiere, Exact, Netsuite, Visibility, Blue Cherry, HansaWorld, Intuitive, Syspro.

Total cost of ERP systems

The situation in the Russian market differs from the global one (2010):

  • SAP - 50.5%,
  • 1C - 26%,
  • Oracle - 8.2%,
  • Microsoft - 7.4%,
  • Galaxy - 2.4%

The total cost of the software implemented was $650 million.
On the Ukrainian market for this software:

  • SAP - 43.4%,
  • “Information technologies” - 15.7%,
  • 1C - 13.9%,
  • Oracle - 11.7%,
  • Microsoft - 6.1%

The total cost of the software sold was $46.64 million.

Oracle ERP

Oracle has taken the path of developing various modules designed to solve specific problems. Many modular Oracle systems are combined into specific business packages, which in turn are further integrated and “adjusted” to suit the customer’s needs.

To solve your needsERP systems module “Oracle E-Business Suite” was created. The ITERANET company was the first company in the CIS when it implemented the Oracle system for the needs of the ITERA holding in 2000. Every year (since 2000) ITERANET employees attend over 5-10 events of Oracle partner events, are sponsors and partners of the events, and at each conference ITERANET specialists are the leading speakers of the events. We are a certified partner in the field of sales and implementation of Oracle E-Business Suite systems; our CIS department has established work in the field of integration/implementation, construction, and automation of processes based on Oracle E-Business Suite in order to create ERP systemsOracle.

The system developed on Oracle is used by such institutions as the Ministry of Internal Affairs of the Russian Federation, the FSB of the Russian Federation, Sberbank of Russia, the Central Bank of the Russian Federation (CBRF), FSNP (Federal Tax Police Service), Beeline (VimpelCom), Promstroybank, Comstar, Bank of Moscow, and many others . As we already wrote, Oracle occupies about 18% of the market for integrated enterprise systems.

Oracle E-Business Suite (abbreviatedOEBS) beforehadNameOracle Applications. OEBS is one of the few solutions that includes all the necessary functionality for managing logistics, distribution and sales, marketing, customer service, personnel (HR), production, finance, interaction with suppliers, and many other modules.

Oracle E-Business Suite integrates perfectly with other Oracle solutions, due to which you can very quickly expand the functionality of the ERP system within the company, thus your company gains mobility and independence when expanding production. A distinctive feature of Oracle is its full coverage of both specific life cycles and processes at the lowest level of action, as well as a powerful reporting system for directors and managers, which allows them to see the entire business picture. When implementing Oracle ERP on the customer's premises, it is necessary to determine the current corporate information system, determine ways to develop the information system, and draw up full map business processes, you need to draw up business requirements from the customer for the information system and determine in which places the corporate information system can automate processes.

All these actions are carried out by ITERANET together with representatives of the customer. Based on the diagnosis of existing business processes and the customer’s business requirements, technical documentation is compiled, which is based on the Oracle AIM (Application Implementation Method) methodology. Based on this methodology and the final documentation, the customer will be able to make his own changes and give recommendations for modernizing the project before starting work on the implementation of OEBS.

Subsequently, the stage of implementation of Oracle E-Business Suite begins together with customer representatives. All work is agreed upon in advance, has a clear schedule, all stages have a specific deadline and performers, and during implementation the risks of delay are taken into account. During the implementation stage of Oracle ERP, and in the future, ITERANET specialists train customer personnel to work with solutions, conduct seminars and lectures to improve the qualifications of customer employees.

Main modular sectors of Oracle E-Business Suite

  • Manufacturing control
  • Finance
  • Lifecycle management
  • Logistics management
  • Project management
  • Maintenance and Repair Department
  • Business Performance Management (CPM)
  • Materials management
  • Customer Relationship Management
  • Personnel management system
  • Financial service

Oracle E-Business Suite software

Managing relationships and interaction with the client base

The module is responsible for relationship management Customer Relationship Management (CRM), it includes the following solutions:

  • Oracle Channel Revenue Management
  • Oracle Marketing
  • Oracle Order Management
  • Oracle Service

Service management

To manage services, there is a Service solution, which is responsible for providing customer information services via telephone, email, contact center, “smart support”, etc. It includes the following solutions:

  • Advanced Inbound Telephony
  • Advanced Outbound Telephony
  • Advanced Scheduler
  • Spares Management
  • TeleService
  • Depot Repair
  • Interaction Center
  • iSupport
  • Mobile Field Service
  • Scripting
  • Service Contracts
  • Email Center
  • Field Service

Financial management

This is one of the most interesting modules of the OEBS system. Oracle E-Business Suite Financials is fully responsible for the financial part of your company, taking full responsibility for all cash flow inside and outside the company (financial analytics, reports, lending, salaries, asset management, management of “treasury” or valuable items, financial life cycle assets, etc.) The following modules are included in Oracle E-Business Suite Financials:

  • Financial Control & Reporting
  • Asset Lifecycle Management
  • Procure-To-Pay
  • Cash & Treasury Management
  • Governance, Risk and Compliance
  • Credit-To-Cash
  • Financial Analytics
  • Lease and Finance Management
  • Travel and Expense Management

Human asset management or human capital management (Human Capital Management)

The HCM module includes solutions that allow you to establish contact within the company, the so-called Team Building. There are modules for the personnel service (HR department), and human resource management, reporting, modeling processes of load on human resources, and Talent Management. The following programs are included in HCM:

  • Workforce Service Delivery
  • Global Core Human Capital Management
  • Talent Management Applications
  • Workforce Management
  • HR Analytics

Project Portfolio Management

This solution allows you to fully manage projects, interaction within the company to resolve projects, assign responsible persons, build reports and analytics on the success of the project, manage the purchase of goods/materials within the project, there is monitoring and preparation of project documentation. Full list of applications inside PPM:

  • iProcurement
  • Supplier Lifecycle Management
  • Oracle Contract Lifecycle Management for Public Sector
  • iSupplier Portal
  • Oracle Procurement & Spend Analytics
  • Services Procurement
  • Sourcing
  • Oracle Spend Classification
  • Oracle Supplier Network
  • Procurement Contracts
  • Purchasing
  • Oracle Supplier Hub
  • Landed Cost Management

Supply chain management

ITERANET company is the strongest player in the domestic market in the field of supply chain management (Supply Chain Management). This solution integrates modules into the company that allow you to establish a supply chain and delivery processes, processes for managing logistics steps, and optimize planning and purchasing. SCM (Supply Chain Management) includes the following Oracle solutions:

  • Advanced Procurement
  • Business Intelligence and Analytics
  • Value Chain Execution
  • Value Chain Planning
  • Order Orchestration and Fulfillment
  • Manufacturing
  • Asset Lifecycle Management
  • Product Value Chain Management

Value chain planning

This Value Chain Planning solution is intended to optimize business processes in order to reduce the cost of the final product, or to reduce production costs. VCP integrates well with other solutions, as well as with JD Edwards EnterpriseOne. Value Chain Planning includes the following modules:

  • Advanced Planning Command Center
  • Value Chain Planning for JD Edwards EnterpriseOne customers (PDF)
  • Advanced Supply Chain Planning
  • Strategic Network Optimization
  • Collaborative Planning
  • Service Parts Planning
  • Demand Management
  • Real-Time Sales and Operations Planning
  • Demand Signal Repository
  • Global Order Promising
  • Rapid Planning
  • Inventory Optimization
  • Production Scheduling
  • Predictive Trade Planning and Optimization

Creating value

Value Chain Execution is an additional solution similar to value chain planning, but differs from it in the software component. VCE (Value Chain Execution) allows you to manage inventory, transportation, company mobility, and inventory accounting. Value Chain Execution includes the following software solutions:

  • Transportation Management
  • Inventory Management
  • Landed Cost Management
  • Mobile Supply Chain
  • Global Trade Management
  • Warehouse Management

1C ERP

It is worth understanding that despite the fact that the 1C company has PPM (manufacturing enterprise management) and 1C: Enterprise solutions, they do not completely solve ERP problems. However, the cost of the license and technical hardware is much cheaper than that of competitors from Oracle or SAP. At the same time, the 1C program code is mastered faster and is more understandable in domestic specifics, which makes it possible to integrate various 1C solutions within the company much faster. At the same time, the insufficient functionality of SPP or 1C Enterprise is compensated by many other programs that can form one ERP cluster. The ITERANET company is one of the oldest “players” in the 1C solutions market. Since we are a system integrator, we did not follow the “franchisee” path, but along the path of integrating technical equipment, and in addition we can integrate and modernize 1C modules, since we have a large staff of programmers. Our main difference is an integrated approach to solving problems, while our opponents have to use the services of contractors to solve non-traditional issues. We can afford to solve absolutely any issue on our own when implementing ERP systems based on 1C for the customer.

From June 8 to June 16, 2013, a conference was held in the Dominican Republic, at which the proposals of the undisputed leader in the field of workplace automation, the 1C company, were discussed in detail. This time, developments were proposed to help corporate clients. In particular, the latest solution was presented " 1C: Enterprise Management (ERP) 2.0 ". The release of the beta version of this program is planned for the summer of 2013, but conference participants have already been familiarized in detail with the possibilities and prospects for implementing this solution.

A new solution has been implemented on the currently sensational platform “ 1C:Enterprise 8.3" In fact, it is a unique and newest improvement of the software, which is currently used everywhere not only in Russia, but also in the CIS countries. Representatives of almost all major organizations work with these programs. And the scale and number of projects whose goal is to improve work and automate a huge number of jobs is simply amazing. The ability to evaluate years of experience using past versions of the program allowed programmers to create software that not only makes working with it even easier, but also allows you to achieve the desired results even in very large projects.

Let us dwell on the fact that all the developments that are produced by the 1C company invariably enjoy well-deserved popularity among consumers, including the ERP solutions of this company. After all, they serve as the personification of reliability, ease of use, availability and quality. Various modifications of systems and solutions for various industries offered for enterprise management are widely used in the Russian Federation, Kazakhstan, Belarus and Ukraine. Half a million client licenses have been sold to work with these products. And the total number of people whose activities were automated using " 1C: Manufacturing Enterprise Management", currently has more than six million. Company representatives regularly conduct monitoring to determine customer satisfaction with the use of their company's software products. And according to the results of this monitoring, more than ninety percent of all users rate the program as "good" or "excellent."

More than a hundred of the most famous specialists worked on the improvement and development of the software solution "1C: Enterprise Management (ERP) 2.0", and a special expert committee was created to assess the quality; it included the largest partners of the 1C company, as well as numerous heads of departments of the largest Russian concerns and industrial enterprises.

The attention of the developers, among other things, was focused on solving those functionality that is most needed by large enterprises, despite the difference in areas of activity and the technical complexity of implementing individual production processes.

It was this fundamental and detailed approach that made it possible to provide even greater capabilities to the new ERP solution and open the way to use in more and more new areas of application compared to previous versions of the program.

Functional features of 1C ERP

In relation to the management of production processes, previously the quality of planning depended entirely on the accuracy of regulations; the current accounting system will eliminate this dependence. And for planning production processes it will be possible to use the information presented in resource specifications.

There are two levels in production management using software. The first level is the level of the logistician, that is, the chief dispatcher of the enterprise. The second level is the shop level, that is, the local management level.

At the first level, where planning is carried out by the chief dispatcher, a production schedule is developed. All production orders are queued according to priority and deadlines. They are then entered into a production schedule, which in turn takes into account the availability of production capacity and the availability of material resources required for a specific order. After this, each order is divided into stages and planning intervals. Then each of the intervals is assigned to a separate fulfillment department that will work on this order.
At the second level of production process management, the production schedule is monitored by shop floor dispatchers, the purpose of which is to create a schedule for the work center in a dedicated department. Local dispatchers also manage deviations. Divisions have the right to choose one, the most acceptable management model. Thus, depending on it, a schedule can be drawn up for all centers that ensure the operation of the enterprise or for bottlenecks in the production process, according to the TOC methodology (when the maintenance of an option is ensured in which a number of work centers are automatically determined by determining the type of total load on equipment). In the third version of the work, a schedule may not be drawn up at all, then a simplified scheme for calculating the load on equipment is in effect and control is carried out for the total duration of the production stage.

At individual stages of production, the manufacturer monitors compliance with standards through route sheets.

A “semaphore” warning system is being introduced in production. It allows the dispatcher to determine the production control zone, which will reduce labor costs. Unfavorable and problematic areas of production will be identified. Thus, this tool allows specialists providing control of the production process to make a forecast of unfavorable developments of the situation. Thus, the number of unpleasant situations regarding delays in production, delays in batches of products, and production disruptions will be reduced.

Equipment maintenance and repair also requires control automation.
All operating objects are divided into certain classes, depending on specific characteristics, similarity of composition, passport data, operating hours, the need for repair work, and similar operating conditions. The state in which the object is located, its location in a certain period of time and its affiliation are taken into account. Maintenance of these objects can be carried out with detail down to the repair unit.

The introduced system makes it possible to constantly monitor objects, taking into account their condition, identify defects and developments, which makes it possible to plan in advance measures aimed at proper and timely repair of equipment.
It is also possible to link controlled operating objects to a production workshop. In this case, repair work must be taken into account in production planning, since during the repair work, individual work centers become unavailable for production purposes. In turn, it is possible to attract any production resources to carry out repairs. Moreover, production can be involved in meeting the needs of personnel involved in equipment repair.

As a result, it is obvious that when combining the subsystem involved in managing repair work and the production subsystem, the user receives the ability to create a unified system for meeting the needs of the enterprise. Moreover, that system will include the activities of the entire enterprise, on the basis of which the final cost of servicing operating facilities will be derived.

Monitoring and analyzing performance indicators

What can a new solution bring to this area of ​​the enterprise’s activity? It contains unique mechanisms that will allow you to easily build a hierarchy of goals and indicators, monitor individual indicators, deciphering the source data, and also analyze financial results in each area of ​​the enterprise’s activities.

The advantage of using the 1C:Enterprise 8.3 platform is that users will have quick access to all indicators from any mobile device running on the Android system.

Financial flow management

The program also provides new opportunities for financiers of large enterprises. The system has introduced the ability to maintain tabular data entry, as well as their subsequent correction, while maintaining the history of changes made. Various tools have been introduced that allow you to automatically calculate all budget items, as well as decipher them to their original values. Moreover, each article uses up to 6 levels of analytics.
Now it is possible to use not one, but several sources when calculating each of the indicators. You can calculate them in the on-screen version of maintaining and editing the budget. This improved structure makes it possible to generate financial forecasts and analyze the implementation of planned indicators.

The software solution increases the functionality of keeping records of all company operations, in particular the issuance of loans and borrowings; operations carried out using plastic cards become transparent. It is also possible to maintain a payment calendar and establish full control over ongoing operations. Tools have been added to the system that allow the formation of payment agreements for future dates, coordination of the expenditure of monetary assets, and conducting a planned inventory of the company's current accounts and cash registers.

The settlement management system also compares favorably with other versions of the program.
The program allows you to maintain separate management and regulated accounting. Also exercise control over debt limits, and it is carried out automatically. It makes it easier to carry out inventory, including regarding mutual settlements. As a result of its activities, this part of the program displays several types of reporting, in particular statics and analysis of the status of mutual settlements with all contacting enterprises.
Regarding carrying out activities within the framework of regulated accounting, it should be noted that the solution allows you to conduct automated accounting without additional time and effort. When reporting, a version of the unified chart of accounts is used. The rules that underlie the reflection of company operations are set up independently. Those facts of economic accounting that are reflected in the operational accounting block are detailed in terms of significance and relevance in accordance with the primary documents, and then recorded in regulated accounting. Various reporting forms are automatically updated using Internet resources. It is also possible to record the activities of those enterprises that have brought some of their divisions to an independent balance sheet.
The program is equipped with a customized methodological model that allows you to conduct reporting according to IFRS without any extra effort. It includes posting templates, charts of accounts, and financial reports. It makes it possible to reflect transactions in accounting, create separate documents for standard transactions, and register financial and non-financial indicators.

Thanks to the latest software developments, it is possible to maintain a certain warehouse structure, hierarchy. Even in large warehouses it is possible to carry out a systematic inventory without the need to stop their work even for a short period of time. It is possible to organize mobile workplaces for warehouse workers. Additional ability to reserve material assets within orders.
Regarding procurement, it is noted that it is possible to select suppliers based on the results of an in-depth analysis of the proposed terms of cooperation. You can also control emerging needs and the quality of their satisfaction.
It is possible to increase the level of sales through analysis of ongoing events, competent formation of prices and price lists.

There is also a function for constantly monitoring the level and composition of sales and customer orders.

The user in relations with clients can conduct dossier of each regular customer, enter loyalty cards. And also carry out constant analysis of the work of managers and sales representatives.

As for calculating the cost of manufactured products, constant monitoring is carried out over the amount of resources spent, based on operational accounting data. Cost estimation is carried out in several currencies, which are initially set by the user. Costs for all types of activities are taken into account.
The proposed software has a number of important technological advantages.
It provides the user with reliability, scale and performance of systems, organization of work with staff and clients in real time, the ability to log into the system using communication devices running on Android, and the ability to configure a customized interface. The user can enable individual parts of the solution without changing the configuration.

Despite the obvious advantages of the new version of the program developed by 1C, there are no plans to remove previous versions of the program from service, since they are successfully used by many enterprises. The company claims that if a decision is made to completely migrate to a new version of the program, all users will be notified of this at least 3 years before the termination of service.

SAP ERP

Characteristics of the SAP ERP (production resource management) system

SAP ERP system and automation of production management strategy

The abbreviation ERP stands for Enterprise Resource Planning is an integrated package that includes many functions of management and planning systems for all resources of organizations and enterprises in whose systems this software package is installed. The ERP system, in its essence, is fundamentally different from conventional accounting systems, which make it possible to conduct only a narrow focus of activity, as for example with numerous accounting programs, the ERP system allows you to provide full information support for the enterprise development strategy.

In order for you to have a complete understanding of all the business processes occurring in the company, you need an ERP system that has the ability to most accurately and clearly display the real picture of everything that happens within the production process. It can clearly show the vector of direction of the enterprise's movement. This is very convenient, as for a manager he sees all the problems that arise and ways to overcome them, while he absolutely needs to keep all the information in his head, the ERP system summarizes and systematizes all incoming information and issues it as requests are generated.
The head of a company can monitor the activities of the entire company he manages in real time. Moreover, the scale of the organization in which this system is installed is completely unimportant; its capabilities of covering incoming information are almost limitless. The ERP system allows you to make forecasts both for the overall activity of the enterprise and to obtain information on the most insignificant nuances of the activity of each link of the enterprise. The efficiency of processing information and its in-depth study allows the company's management to significantly free up time for streamlining their activities, time management, determining a development strategy, or simply relaxing.

By implementing ERP systems, you can get the following benefits:

  • The required amount of work is significantly reduced, due to the fact that the system does not require additional and repeated entry of the same type of information into the computer’s memory;
  • The control system for all processes occurring at the enterprise is significantly improved;
  • When using an ERP system, the quality of analytical research of incoming data increases, this significantly increases the efficiency of doing business in modern conditions of doing and developing business;

Recently, Russian business has significantly increased its interest in ERP systems. Today, many enterprises in the Russian economy have reached the necessary stage of production development, when one of the dominant development factors is the introduction of a global information system into the production process. At the same time, the development of the entire business as a whole depends on its quality of work. If the management of a business tends to lag behind the speed of its development, and at the same time, the increase in the share of presence in the market has a negative trend due to the lack of well-established business processes - all this together will certainly lead to significant problems. Therefore, only an ERP system with a clearly structured company development strategy can become a reliable foundation for the company’s development.

In the development of any enterprise there are periods of intensive development. At this moment, the company's expenses are growing quite systematically and tend to constantly increase. Income in this development trend, after some time reaches its maximum level and then stabilizes for a long time. This macroeconomic model indicates that the production cycle, as it grows, tends to lose margins. It is at such a moment that the thin thread connecting the profitability and costs of the production process breaks. And in the end, a dynamically developing company with gigantic turnover, which has all the attributes of successful business, actually ends up in a deep minus at the end of the reporting period. Of course, when a business in the 90s of the 20th century had a liquidity indicator of 100, or even 200%, then with such indicators there was no need to control the entire production cycle. Today, every percentage of additional profit is given only through strict control and systematization of information, which only a specially developed computer program can provide.
Since the active implementation of ERP systems abroad in the 90s of the last century, statistics on the use of this information platform in relation to the time spent by company management to find the optimal algorithm of action in a given situation have been monitored. So, according to research, ERP systems can free up time by 20-80% compared to other methods of obtaining the necessary information. ERP brings the main direction of movement of the entire production process to the direction that makes it possible to extract the main income. That is, almost any operation that finds its justification in the system and is evaluated by the program in terms of its impact and efficiency.

In 1976, SAP GmbH released its first system that made it possible to plan and manage enterprise resources. This step seemed to mark the beginning of a new era of business management, systematization and management. The release of this program became the starting point for the opening of the ERP systems market. Today, almost 63 years later, SAP continues to hold the leading position in the market for such software. At the same time, she created an almost new model of integrated solutions in matters of management and strategic business planning, and we can say that the words “ERP” and “SAP” have now become synonymous.

The SAP R/2 ERP system released at that time (the first generation of software in this area) made it possible to process and centralize processing of incoming data in real time. Already the second generation of this software - SAP R/3- made it possible to rely not only on the data received, but to focus on the analysis of ongoing business processes. The essence of the system was to constantly standardize ongoing business processes within the enterprise, and at the same time significantly increase their efficiency. Today, those systems have been replaced by a completely different business solution of a new generation with new capabilities - SAP ERP. These techniques are based on numerous developments from previous generations of programs, as well as the unlimited possibilities of the Internet. Business capabilities of SAP "Enterprise Resource Management" (SAP ERP) make it possible to cover all areas of the enterprise's activities - from financial to management accounting of the company's development activities. A new function has been introduced: personnel management, conducting operational activities and implementing corporate services. In addition, the software package includes powerful analytical tools that can significantly improve the efficiency of the analysis of the information received.
ERP systems of the first and second generations mainly solved the problems of increasing efficiency and optimizing internal processes taking place in the company, and the latest generation of ERP has significantly expanded its functionality and is designed to solve complex business scenarios that include not only internal processes occurring in the enterprise , but also the business processes of all business partners of a given company, from suppliers to buyers of the final product. This system allows you to significantly increase the productivity of all participants in the production process and at the same time organize the maximum return from all integration elements for a given business.

Assessing the possible risk of implementing SAP ERP software

Advantages

Using an ERP system makes it possible, using just one software shell instead more scattered At the same time, this software can easily manage all areas of the enterprise’s activities - finances, personnel, operations. At the same time, the ability to load additional modules that complement the operating capabilities of the system leaves similar user programs aimed at solving narrow professional tasks out of competition. All areas of the enterprise's activities are covered by the ERP system.
ERP systems have the ability to both restrict access to information and completely isolate individual modules from general viewing. Such measures are aimed at countering emerging external threats, for example, the possibility of industrial espionage within the framework of the enterprise, as well as preventing and detecting internal threats, in particular theft.
Working in conjunction with a CRM system, a system for determining the level of quality control, the ERP system integrated into a single information space is aimed primarily at meeting the needs of the company that installed it, as a means of maximum automation in business management.

Flaws

Despite all the advantages of using this information package, there are significant difficulties in implementing ERP systems into the work system of business structures at various levels; the reasons for this phenomenon can be systematized and highlighted:

  • Insufficient level of trust of company owners in this type of product, as a result of weak support on their part in support of this project;
  • Resistance of certain departments and agencies in providing information relating to the activities of certain business entities and for this reason, significantly reduced confidential information reduces the effectiveness of the system;
  • Insufficiently trained and qualified personnel, as well as poor policies for regularly updating and keeping the database system up to date in the ERP.
    Possible restrictions on the use of ERP systems:
  • Today, due to the fairly high cost of the ERP system package, small and medium business cannot afford to buy this software. And also keep on your staff a qualified specialist who would be responsible for systematic work with ERP;
  • Despite the fact that the program can be purchased in parts, its acquisition is nevertheless quite an expensive purchase for many businessmen;
  • Like any program, an ERP system can produce inaccurate data or even fail if there is suddenly a “weak link” in the system - associated with a negligent partner or a certain department responsible for providing information;

I would especially like to note the limitations associated with the problem of compatibility of actions with previously installed systems.

There is a misconception that ERP systems are difficult, and sometimes impossible, to fit a company’s specific document flow or to take into account all existing business processes. In fact, before implementing an ERP system, there is first a long period of describing the company's unique business processes. And finally, after entering all the data, An ERP system is a created projection of a company in virtual space.

Software Applicability Analysis

SAP ERP Analysis

SAP ERP, after a detailed consideration, is a special ERP information system (Enterprise Resources Planning - which provides complete planning of all enterprise resources). This information shell is designed to fully automate all types of company activities:

  • Maintaining management and accounting records;
  • strategic planning taking into account business aspects;

In recent years, a new concept of ERP systems based on the platform has emerged Netweaver: “the system does not cover all areas of the enterprise’s activities, but must provide services based on processing data obtained from software from various manufacturers.

SAP today is busy developing and implementing automated systems that allow you to manage all internal processes of an enterprise.

  • Among them are:
  • Accounting analysis and control system;
  • System of analysis and control of enterprise trade;
  • Production cycle analysis and control system;
  • System of analysis and control of financial activities;
  • Personnel management analysis and control system;
  • Analysis and control system, warehouse management, audit activities;
  • and many other processes that optimize the operation of the enterprise as a whole.

Applications can be easily adapted to the legal framework of any country. In addition to selling software, SAP offers numerous and qualified services for its implementation in the real sector of the economy, while it uses its own methodology for promoting an information product ( At first the system was called ASAP - Accelerated SAP, today - ValueSAP).
Today, SAP's main ERP system is officially called SAP ERP ECC (Enterprise Core Component). The capabilities of the latest generation Enterprise Resource Management (SAP ERP) software make it possible to cover all areas of the enterprise. Among these areas we can highlight: financial and management accounting, an automated personnel management system, an information module responsible for the operational activities of the enterprise, as well as analytical reports on the activities of corporate service departments. But the main area of ​​applicability of this software can be considered the generation and provision of detailed analytical reports. For the formation of which special tools have been introduced. As of today, the latest version The current version of the SAP ERP system, which is officially sold by distributors and supported by the company, bears the index - 6.0.

SAP ERP system in Russia

The SAP ERP system includes a certain set of functional elements presented in different modules, which are adapted to Russian conditions of applicability and implemented in accordance with Russian legislation. The software structure includes all kinds of interactive reports:

Balance sheet for creating reports in material accounting;

Various printed forms are built in:

  • Form-Template - “invoice”;
  • Form-Template - invoice TORG-12;
  • Form-Template - “a package of standard forms of material accounting (form M-4 “Receipt Order”);
  • Form-Template - M-11 "Limit-fence card";
  • Form-Template - M-15 "Invoice for the release of materials to the side";
  • and many other “Form-Templates” for the economic activities of the enterprise.

In addition, the Russian version includes elements of dialog transactions; they are not present in the regular version of the program released for Germany. IN previous versions ERPs released before the program with index 6.0, with the integrated Russian Add-On package (Russian localization), had to be installed additionally, and already from version 6.0 the Russian Add-On package was included in the general package as “Functionality specific to the Russian Federation”. The software package for Russia is developed by SAP CIS.

Functional Software Model - SAP ERP

The SAP ERP system consists entirely of a set of modules that can be integrated into one common package and that support almost all business processes occurring in the production or other cycle, while all modules are integrated with each other and can exchange information in real time.
The SAP Transaction module is an application program that performs a certain business process in the enterprise management system (this could be posting funds to current accounts, or posting an invoice, generating a certain report, etc.) This module carries out operational supervision of data, and performs a logically complete and defined set of actions. (from a technical point of view, this is a kind of “shortcut” necessary to call a utility program in ABAP/4).

The entire System is divided into separate modules, and each module also consists of a certain number of transactions that should cover a certain part of the operation of the enterprise. The boundaries of the modules are essentially very arbitrary; data is continuously exchanged between them; in addition, individual program modules may well have common settings, work tables with integrated data, and the option of sharing an ABAP/4 program is quite possible.

Module - Finance (FI)

This part of the software is intended for organizing the financial statements of an enterprise organization or other form of activity. It includes:

  • Functions for generating reports on debtors, creditors and auxiliary accounting;
  • Functions for generating reports and entering into the General Ledger (ledger);
  • Functions for generating accounts receivable accounts;
  • Functions for generating reports “Accounting for Creditors”;
  • Functions for generating financial management reports;
  • Functions for generating reports “Special Register”;
  • Functions for generating reports “Consolidation”;
  • Integrated information system for accounting and reporting on financial activities.

Controlling (CO) module

This Module makes it possible to keep track of the costs and profits of the enterprise as a whole, and for each individual link of the production cycle.

It includes:

  • Possibility of generating a report “Accounting for costs by places of their occurrence (cost centers)”,
  • Possibility of generating a report “Cost accounting for orders”;
  • Possibility of generating a report “Cost Accounting for Projects”;
  • Carry out “Cost calculation”;
  • Carry out “Profitability (results) control”;
  • Possibility of generating a report “Control of profit centers (profit centers)”;
  • Possibility of generating the report “Accounting for production, Controlling the activities of the enterprise.”

Module - Asset Management (AM)

In fact, this module is necessary for accounting for fixed assets of an enterprise and methods for managing them.
The main elements of this module:

  • Block " Technical management basic means of production";
  • Block “Maintenance and repair of production equipment”;
  • Block “Investment Controlling and Asset Sales”;
  • Block “Traditional fixed asset accounting”;
  • Block “Replacement of fixed assets and depreciation of equipment and fixed assets”;
  • Block “Company Investment Management”.

Module - Project Management (PS)

This module has an applied focus. The PS module supports structural planning, management of all production cycles, tracking and coordination of long-term projects with any level of complexity.
Main elements of the PS module:

  • Possibility of coordinating the direction “Control of financial resources and resources”;
  • Possibility of coordination of the “Quality Control” direction;
  • Possibility of coordination of the direction “Management of temporary data”;
  • Project Management Information System,
  • Common modules.

Module - Production Planning (PP).

This Module is mainly used to organize long-term planning and set control functions for all activities of the enterprise as a whole. The main elements of this module:

  • Production orders,
  • Technological maps,
  • Specifications (BOM),
  • Material Requirements Planning (MRP),
  • Product costing,
  • Work centers (places),
  • Continuous production planning.
  • Sales Planning (SOP),
  • Production Planning (MPS),
  • Production Control (SFC),
  • Kanban (Just in time),
  • Cost accounting by processes,
  • Mass production.

Module - Materials Management (MM).

This module supports supply and inventory management operations in the organization of enterprise activities, and this module is also applicable in various business operations carried out by the enterprise. Main elements of the module:

  • Organization of materials acquisition;
  • Organization of inventory management;
  • Organization of warehouse management;
  • Systematization of control of enterprise accounts;
  • Organization of stock assessment of necessary materials;
  • Organization of certification of supplier services and goods;
  • Processing of data on work and services performed;
  • Creation of a database for an enterprise inventory management information system;

Module - Sales (SD).

This module is very important; it brings clarity to the policy for implementing the final product of the enterprise; in addition, it solves the problems of distributing the final product, organizing sales, and determining the systematics of deliveries and final invoicing.
Main elements of the module:

  • Organization of pre-sales support in production,
  • Ability to generate a “Query Processing” report;
  • Possibility of generating a report “Processing of proposals”;
  • Possibility of generating the “Order Processing” report;
  • Possibility of generating the report “Processing of deliveries;
  • Organization of invoicing (invoicing);
  • Block “Sales Information System”.

Module - Quality Management (QM).

This module integrates the entire company information system and also controls the quality management system. In addition, it has built-in functions that provide activities aimed at planning the quality of goods and services of a given company, checking and monitoring the quality of products at all stages of their production, as well as during their procurement.

Main elements of the module:

  • carrying out quality checks;
  • organization of quality planning;
  • information support for product quality control (QMIS).

Module Maintenance and repair of enterprise equipment (PM).

This module is indispensable in the process of cost accounting and at the stage of planning resource consumption for routine maintenance and scheduled repairs of fixed assets.

Main elements of the module:

  • generating a request for “Unplanned repairs”;
  • generating a “Service Management” request;
  • generating a request for “Planned preventive maintenance”;
  • creating a report “Maintaining specifications”;
  • Organization of an information system for maintenance and repair of fixed assets.

Module - Human Resource Management (HR).

This is a fully integrated system that is designed to plan and manage the work of all personnel involved in the company’s activity cycle. Main elements of the module:

  • Administration of personnel activities;
  • Analysis and calculation of employee salaries;
  • Personnel temporary data management system;
  • System for calculating employee travel expenses;
  • Definition of benefits;
  • System of invitation and recruitment of new personnel;
  • Organization of work to improve the qualifications of working personnel;
  • Organization of the process of optimal use of the enterprise’s workforce;
  • Organization and holding of seminars and training events;
  • Organizational and time management;
  • block for processing information about personnel taxonomy.

Module - Information Flow Management (WF).

This module, as an integrated unit, in its role connects application modules with the built-in technologies of the ERP system, as well as all service tools and tools of this information product. The ability to manage the entire flow of operations (workflow) with the ability to automatically control all business processes using a pre-defined analysis algorithm according to predetermined and prescribed procedures and rules. In addition, this module has an office system with its own built-in e-mail, as well as a company document management system, a loaded universal classifier, and the ability to integrate with any CAD system. If a specific event occurs in the system, then at the same time the protocol of this event is launched and the corresponding process is turned on. The module includes a flow manager for the operations performed by the system and at the same time initiates an incoming Workflow Item. The system then combines the incoming data, then the documents are merged, and the information is processed according to a certain built-in logic circuit.

Module - Industry Solutions (IS).

This module integrates built-in application modules SAP, SAP R/3, as well as additional specific programs specifically for each industry. Today they have been developed and can easily be integrated into a single modular package industry-specific business support solutions:

  • Package of industry applications “aviation and space”;
  • Package of industry applications “defense industry”;
  • Package of industry applications "automotive industry";
  • Package of industry applications “oil and gas industry”;
  • Package of industry applications "chemical industry";
  • Package of industry applications “pharmaceutical industry”;
  • Package of industry applications “engineering industry”;
  • Package of industry applications “consumer goods”;

electronic and non-production sphere:

  • Package of industry applications "banking";
  • Package of industry applications “insurance”;
  • Package of industry applications “state and municipal management”;
  • Package of industry applications “telecommunication technologies”
  • Package of industry applications “utilities”;
  • Package of industry applications “healthcare”;
  • Package of industry applications “retail trade”.

Module - Basic system.

This module serves as the basis for the SAP R/3 information system. It properly guarantees full integration of all application modules and complete independence from the hardware platform on which the software is installed. Also, the basic system makes it possible to organize work in a multi-level architecture distribution system - “client-server”. The SAP R/3 software shell can fully operate on the following servers:

  • Windows NT
  • UNIX,
  • AS/400
  • S/390

In addition, SAP R/3 can easily integrate with other DBMSs, such as:

  • Oracle,
  • Informix,
  • Microsoft SQL Server

Users can work in the OS:

  • Macintosh
  • Windows
  • OSF/Motif

A basis is a special module. Its functionality is much broader than the information provided. The performance of the system as a whole depends on its functioning. Basic module administrators are responsible for full responsibility for the overall functioning of SAP.

Basic module tasks:

  • Initial registration of all settings and configuration of all built-in performance parameters of the system as a whole;
  • Building an administration system for all built-in databases;
  • As necessary, updating the system software and installing the necessary module update packages and corrections;
  • Organization and implementation of transfers to the productive system;
  • The main administration of the project is the main input and assignment of all roles to users participating in the organization of work on this project;
  • Organizing the process of backing up intermediate and final data on ongoing operations;
  • basic setup of the interaction of individual systems involved in the process of data analysis and processing;
  • Organization of system control, with a description of the software task - to identify and identify emerging problems in advance and take all necessary measures to eliminate them;
  • Organizing access to integrated modules and systems for SAP support services;
  • Analysis of generated errors and their elimination;

Today, the SAP ERP system is the most extensive software shell among similar information packages. Therefore, almost all leaders of the world economy have chosen it as their corporate production management system. At the same time, according to statistics, approximately 30% of all companies purchasing the SAP R/3 system are not economic giants at all, but firms with a turnover of less than $200 million per year. And the whole point is that the SAP ERP system has the ability to configure the entire system specifically for the enterprise or company that acquired it. Each client who purchased this software will have the impression that by purchasing it, he will work with the most individualized version, which is configured with his production cycle parameters.

SAP ERP - configurable system

Indicators of a certain level of a system include the way it is configured; the wider the offered configuration options, as well as the implementation of all general system settings without further rewriting it, the higher the overall technical level of this system is rated, of course. Based on this defining parameter, the SAP ERP system constantly occupies one of the leading places in the world. In addition, in each specific case, the user practically does not change the initial settings of the system, and this is done by the developers; they configure SAP for the client, taking into account all the features of the production cycle of his business. (Abaper is a specialist programmable system in the ABAP/4 language).

In today's situation in the global economy, for dynamic development it is necessary to move away from outdated methods of company management. It is necessary to move from analytics using a pencil and notepad to modern systems of analysis and strategic development. This transition can be made using tool technology - for SAP ERP business engineering Business Engineer. The capabilities of this module allow you to develop a competent disposition, balance of power and possible actions aimed at achieving the goal of dynamic development of the enterprise. Intelligent settings of the SAP ERP system and the open user interface Business-Engineer allow you to create economically literate industry solutions based on data on the state of affairs in the enterprise. The system allows you to develop several action templates, calculate intermediate results and calculate the final result.

The Business-Engineer Package includes three modules:

  • SAP ERP business configurator, a system that supports certain technologies for creating and automatically maintaining models in the dynamics of enterprise development with an individual configuration function;
  • SAP ERP reference model – contains an organizational model, a process generation model, a data processing model, a model for applying and distributing functions, and a model for creating business objects;
  • The SAP ERP repository is a dynamic bank of incoming data for reference model requests, a bank of industry models and a database of created enterprise development models.

A very professionally developed Business-Engineer package operating in interactive mode significantly improves the quality of modeled enterprise business processes and simplifies the process of configuring the SAPERP system.

SAP ERP work flow diagram

Let's look at the conceptual apparatus of this system.

  • The system (central authority) is a common server with all kinds of application development for connected modules, as well as a DBMS.
  • A client (client) is an independent part of the R/3 system. Each client has its own data model (including master and dynamic data, created charts of accounts and certain settings). The system usually has from one to several clients.

In fact, for each client, you can lay down every element of production - be it a workshop, a branch, or a separate production. In this case, ABAP/4 programs and reporting forms will necessarily be common to the entire client system.

Business Engineering in SAP ERP

Repository– a data bank of all built-in ABAP programs, with a detailed description of the structure of all entered data, diagrams and tables that are periodically accessed by programs. The repository is common to all clients in the system.

Transport protocol– a program service that allows you to transfer data between all clients of the system.

Released request– this is a certain number of files with certain information.

Release– this is an internal term in SAP that defines “approval”, sending data to work.

Landscape- this is a collection of a certain number of systems, between which it is possible to transfer basic settings and necessary programs. Typically SAP sets up the following landscape:

1 - development system. This system includes 3 clients;

300 – a landscape in which you can change current settings and load programs. All changes are included in the transfer creation request schema.

400 is a landscape in which nothing can be changed. Scheme of use - preliminary testing of programs and general system settings.

200 - landscape - sandbox (Sandbox). Test mode for experimenting with variable settings. Allows you to track the dynamics of transactions, works without requests.

2 - quality control landscape. Only two clients are used:

500 - user training and working out illustrative examples;

600 - verification, reconciliation, correctness of actions and settings.

3 - productive system (a system that works to produce the final and desired result)

A server is a specialized, fairly powerful and at the same time reliable computer, which is designed for long-term storage and systematic processing of data dynamically transmitted over the network from all end users.

A Database Management System (DBMS) is installed here - a comprehensive program that provides storage of all data in the form of tables, with the ability to dynamically replenish and process, organizing user requests for all kinds of initial combinations. Work inside the DBMS is carried out at the level of the SQL programming language (StructuredQuery Language). Also, the DBMS stores business data and all final system settings, a repository and full texts of programs in the ABAP/4 programming language are installed.

SAP is an Application Server - this is a program that runs on the server, and which carries out all the necessary and requested actions to work on the data of all registered users.

It is better to explain it with this diagram - the logic of working with SAP ERP:

General organizational structure and user composition

  • Role (separate) – determines the capabilities and list of actions of a given user in the system.
  • Role (group) – includes all individual roles.

All Roles in the system are mandant-dependent; they must be created and registered.

The role contains:

  • all prescribed additions to the general user menu;
  • all objects of authority are indicated - all valid user operations are specified;

One user can have several assigned roles, but the settings are specified for each (at the level of the logical operation “OR”). If there are inconsistencies in the commands, the system may display a message stating that the user has “Insufficient authority.”
An authority profile is a written and compiled role. The entire system works only with user profiles.

All “User Groups” groups are divided into corresponding subgroups:

  • “User groups by functionality/applications” defined
  • User groups by system use status: administrators, developers and users.
  • Groups of users with certain restrictions on access to database systems;

Economic feasibility of efficiency when using an automated SAP ERP system

Knowing, forecasting, defining a strategy - these are the three pillars for every business leader. With their help, all business models are built. The time has come when it is impossible to develop a competent development strategy without using ERP systems. Speed, accuracy, validity - three words that most accurately characterize the effect of strategic development from the use of these systems.

The overall benefit of the project from the implementation of ERP systems is clear. There is a full-scale streamlining of all information about all processes of the enterprise, all its divisions and branch network. Moreover, it does not matter at all where the branch is located (even on the other side of the Earth), all information issued upon the corresponding request will arrive in real time and change following the dynamics of changes in the entire system. ERP systems can work better than many analysts; the only condition for the success of their work is professionally trained service personnel and the full amount of information entered into the system.

Ease of transformation, the ability to connect and remove information modules following changes in the specifics of actions - this is the competitive advantage of these systems. In addition, full coverage of the enterprise’s activities makes it possible to more accurately monitor the situation and more quickly respond to it. At the same time, the time of the company’s employees is significantly freed up, which in turn is a potential for overall development, and therefore potential for the growth of the company. Employees can save up to 20% of their time when using ERP systems.

However, the fairly high cost of these application information packages stops business owners from purchasing them. At the same time, annual support of programs also costs some money, and not small ones at that. It is also necessary to include in the expense item the creation of the necessary infrastructure that would ensure the functionality of the entire system.
Despite this, those companies that have already installed ERP systems note that there has been a fundamental change in the development of production. All processes of the enterprise’s economic activity are constantly adjusted or completely rebuilt, and at the same time, costs are reduced, against the backdrop of a significant increase in profitability.

For smaller companies, SAP GmbH has launched other information products on the market with a lower and fixed price. Of course, no one will tell you the details of the transactions and the prices for installing SAP ERP at large production complexes, but according to many analysts, the costs of installing, maintaining and upgrading them pay off very quickly, which is due to the truly working models of business offers issued by the system from the processed data of the systems of these companies.

SAP ERP Implementation Summary

The main benefit of implementing SAP ERP in many business projects is that this action leads to a re-evaluation of all existing business processes.

Analysis of ongoing business processes provides an invaluable opportunity to rethink and change established rules and procedures for doing business. Sometimes such movement is carried out due to the fulfillment of the initial conditions that are necessary for the initial implementation of the system. However, as experience shows, successful use of this system is possible only if the company’s employees understand the need for change and actively support the ongoing update process. Therefore, it is recommended, as part of this project, to involve the majority of employees in both the development and methods of planning processes that will significantly improve the management process at the enterprise.

A very important clarification - the implementation of the system improves discipline and increases accuracy in the execution of business processes. Of course, these processes improve many indicators of production processes, but there is a downside - this is excessive formalization. Analysis and modeling of business processes do not in themselves bring any economic benefits. Therefore, it is important not just to carry out an analysis and develop a certain business model, but to bring it to at least one client or manufacturer who would benefit from it. And from the implementation of which he would receive invaluable benefits. Once the system is operational, then we can note the fact that a standardized business process development system can be applied. This will significantly save time and material resources for the development of the enterprise as a whole, and therefore material benefits for each employee.

Other systems, programs and platforms for creating and implementing ERP

  • 1C:Enterprise 8.0
  • CIS "Flagman"
  • System21 Aurora (Business/400)
  • MFG/PRO
  • BSManager CRM/ERP
  • Complex "BUKHTA"
  • OrganicERP
  • iRenaissance
  • Infor SyteLine ERP
  • Microsoft Dynamics AX
  • Microsoft Dynamics NAV
  • Oracle E-Business Suite
  • SAP Business Suite
  • IFS Applications
  • SAP Business One
  • Ultima ERP
  • IT Enterprise
  • ERP AVA
  • SAP R3
  • SIKE ERP
  • Compass
  • Microsoft XAL
  • Millennium B.S.A.
  • MONOLITH SQL
  • Scala
  • Galaxy
  • HansaWorld Enterprise
  • AVARDA.ERP
  • Spectrum:ERP
  • Comtec for Business
  • ASTOR
  • Business Control
  • Global ERP
  • Oracle JD Edwards EnterpriseOne
  • CIS Lexeme
  • Sage ERP X3
  • Virtuoso
  • PayDox
  • info:COM
  • Smart Retail Suite
  • Technoclass
  • OPTiMA-WorkFlow
  • NOTEMATRIX
  • Accounting. Analysis. Control
  • Business Suite
  • Lawson M3 ERP
  • CIS "ILADA"
  • proLOG software package
  • INTALEV: Corporate management
  • LITTER
  • ALTIUS – Construction Management
  • TRONIX
  • DeloPro
  • MACONOMY

More and more enterprises of various sizes around the world are striving to implement a powerful management tool known as an ERP system into their work. Its use is intended to establish effective control and planning of all business processes that are strategically important for the organization, and to optimize the functioning of the main production and auxiliary facilities.

Concept of ERP and ERP system

The ERP business strategy (EntERPrise Resource Planning) represents the integration of all divisions and processes of the organization: production facilities, financial, personnel and customer departments and many others. This combination is primarily aimed at optimizing the distribution of various resources within the enterprise.

If previously this was a purely marketing concept, today an ERP system is most often understood as a class of specialized software. In a broad sense, it is a methodology for planning and managing all enterprise resources. Historically, the ERP strategy was formed on the basis of its predecessors:

  • MRP - material requirements planning.
  • MRP II - production resource planning.

In contrast, an ERP system can be used for very large enterprises, often geographically distributed. In this case, we are talking about corporate resource planning, since it pays attention not only to production, but also to comprehensive financial planning. An essential feature of the ERP system is also the possibility of its use in absolutely any enterprise, regardless of the specifics of the work, including those not engaged in production activities. Considering it as a software product, it should be noted that it is equipped with a more powerful set of technical tools that facilitate or replace the decision-making process.

Purpose of an ERP system in an enterprise

In order to decide on fundamental changes in the activities of their company related to the implementation of a management information system and the implementation of a new business strategy, management must clearly understand the necessity of this step, which should be expressed in the following key points:

  • unwillingness to accept the current state of affairs;
  • the existence of a need to use modern technologies to strengthen the position of a business entity in the market in a competitive environment;
  • expecting to receive significant benefits from implementation.

First of all, the use of an ERP system is intended to facilitate the successful implementation of a similar business strategy, the implementation of which should ensure effective planning and management of enterprise resources. To do this, it is necessary to optimize the work of its departments, namely to achieve maximum consistency between them and reduce administrative costs. This can be achieved through the benefits provided by the information system. This:

  • Increasing the transparency of business processes.
  • Solving problems with organizing and finding the necessary information.
  • Increasing the reliability and relevance of data.
  • Increasing the speed of document flow between departments.
  • Organization of a single information space between the head office and remote branches.
  • Reducing the time required to fill out documentation and eliminating possible errors.
  • Increased speed of decision making at all levels.

An ERP system ensures an increase in the competitiveness of an object not only through the introduction of more efficient business processes into its work. Its use should also lead to a reduction in the overall costs of the enterprise. Advanced planning, modeling and analysis tools help optimize the resources of production activities, the financial sector, as well as the work of warehouses, transport and other departments.

Main features of work

In different companies, even those engaged in the same business, all business processes can proceed completely differently. The standardized work scheme offered by an enterprise management information system may differ significantly from what was previously used here. For this reason, considering it only as a software product is fundamentally wrong, since its implementation requires the company to undergo large-scale internal changes in the form of reorganization of existing business processes.

The conceptual features of these systems are directly related to their essence. Let us remember that the ERP methodology involves the consolidation of all vital divisions of an enterprise to organize the effective management of its resources. Such a combination is implemented within the information system through the presence of a single publicly accessible database. Information enters the repository only once, and subsequently can be repeatedly processed and used by various internal and external consumers. Compared to real life, in this case there is a reduction in the time and effort spent by enterprise employees on decision making. It should also be noted that the ERP system is not an automated technological process management system, but an integrated information system based on their abstract model, information into which is entered by real people.

The structure of the database, as well as the operation of the software package as a whole, must be arranged in such a way as to reflect the activities of all departments without exception. This approach makes it possible to monitor the totality of resources and business processes of an enterprise in almost real time, and therefore to carry out operational and strategic management of them.

One of the main tasks of ERP systems is to optimize the planning process and control over the implementation of the plan. Built-in intelligent algorithms greatly simplify its solution for its users. For example, planning and management of a manufacturing enterprise has many specific features associated with the heterogeneity of its components. Thus, at one plant there can be workshops operating both continuously and discretely. From this point of view, the implemented ERP-class system must be universal and contain a wide range of specialized modules.

Since modern enterprises today are often geographically distributed, it is very important that branches remote from the main office are provided with full access to general information. This is realized by the most advanced network technologies involved in the development of ERP systems, which also provide for the delimitation of user access rights to data stored in their information.

Functionality of ERP-class systems

Speaking about functions, we must not forget that any ERP-class product is an enterprise management system as a whole. The range of its capabilities will primarily depend on the scale and operating characteristics of the facility for the needs of which it is used. Let's consider the classic set of functions:

Production

  • Maintaining design and technological specifications of manufactured goods or performed services in order to determine the amount of required materials and labor cost standards.
  • Drawing up production plans.
  • Planning and management of the technical capacities of an enterprise in various approximations: from individual units to workshops and production associations.

Finance

  • Operational accounting, financial, management, tax accounting and controlling.
  • Management of enterprise assets, including fixed assets, securities, bank accounts, etc.
  • Comprehensive enterprise planning and control of its results.

Logistics

  • Formation of planned indicators for the required volumes of materials, raw materials, parts, components in accordance with production plans.
  • Supply and sales management: accounting for counterparties, maintaining a register of contracts, supply chain management, implementation of warehouse planning and accounting.

Personnel

  • Management of the personnel selection process.
  • Operational personnel and time records, maintaining staffing tables, calculating salaries.
  • Workforce planning.
  • Maintaining sales plans.
  • Management of pricing in various types of markets in order to form an adequate overall strategy for the enterprise, a transparent policy for calculating the cost of goods: taking into account discounts and special sales conditions.
  • Planning and control of ongoing advertising and marketing activities.

Projects. Reporting

  • Providing a wide selection of standardized accounting, financial and management reporting forms, as well as a flexible mechanism for creating custom ones.
  • Drawing up a general strategy: step-by-step planning of the time frames, material, financial and human resources necessary for successful implementation.
  • Monitoring of key project performance indicators.

Which companies can use ERP systems?

At first glance, it may seem that systems of this class are intended exclusively for large-scale production, since they are more characterized by a high complexity of the structure of resource flows and processes various types. However, there are situations where the use of MRP or MRP II classes may not be enough for a small enterprise. Today on the market you can purchase software products with various capabilities. Depending on the scale of the enterprise at which they can be effectively used, heavy, medium and light solutions are distinguished.

As for non-manufacturing organizations, ERP class systems are also applicable to them. For such enterprises, not too broad functionality will be enough. At the moment, there are small integrated or local varieties of systems that can meet the needs of trading companies or organizations operating in the service sector. It should also be noted that many developers also offer industry-specific products to their clients.

About classification methods

The most obvious way in which all ERP enterprise management systems can be classified is the scale of the organization where they can be applied. From this point of view, depending on the number of jobs, it is customary to identify solutions for:

  • Large corporations (over 10 thousand people).
  • Medium corporations (from 1 thousand to 10 thousand people).
  • Medium enterprises (from 100 to 1 thousand people).
  • Small enterprises (less than 100 people).

An important feature of the systematization of such information products is functionality. Depending on the volume of tasks being performed, there is the following generally accepted division into:

  • Large integrated.
  • Medium integrated.
  • Financial and managerial.
  • Local.

The local option is usually a unified boxed information product with a narrow focus, which has a relatively low overall cost. Most often, it covers one or more blocks in the field of finance of an organization or its accounting activities. Such systems are suitable for small manufacturing or trading companies.

Integrated information systems, depending on the scale of the target object, can be medium or large. They cover all business processes corporate structures, namely interaction with suppliers and consumers, production of the final product, flows of materials and finances, relations with personnel, supply, storage and sales, project implementation and many others.

Modern market of ERP systems

All software products presented on the domestic market today can be divided into two main categories: Russian and imported. The differences between them lie not only in the place of creation, but also in functionality.

Powerful Western developments serve as standards for what is commonly called ERP-class systems. The most striking examples of these are products from SAP, Oracle, PeopleSof, SAGE, Baan, Microsoft Business Solution. All of them can be used on target objects of any level, including very large ones. However, their use by Russian companies can often be difficult due to the possible occurrence of the following problems:

  • Unpreparedness of enterprises for a serious reorganization of existing business processes. It is difficult to exaggerate the scale of such changes. Business processes of foreign enterprise management systems are radically different from those commonly used in our country.
  • There is an insufficient number of specialists capable of implementing the project of introducing an imported ERP system in Russia with the required level of quality.
  • The high cost of using such solutions.

Despite the general lag behind their Western counterparts, modern Russian developments are gradually increasing their functionality. They are fully adapted to the work of domestic enterprises. And they can be successfully implemented if in a particular case a wide coverage of business processes is not required, but it is enough just to establish accounting for certain areas of activity using an ERP system. Examples of advanced domestic developments are products from 1C and Galaktika companies.

Looking to the Future - ERP II

The ERP II concept, which appeared some time ago, was the result of improving the ERP methodology. Enterprise resource planning and management remain among the main tasks here. However, the rapid development of the Internet, which initiated the emergence of a new methodology, left its mark, making traditional business partly electronic. ERP II is a combination of a classic enterprise management system with specific network commerce solutions.

It has now become extremely important to interact with your counterparties online. There are two important areas for this: and customer relations. Intracompany information ceases to be just that, goes out into the external environment and becomes the basis for cooperation with other business entities. The new concept in this case is formulated as management of resources and external relations of the enterprise. In addition to the ideological reorientation, ERP II systems received their own technological features.

Solving the issue of choosing a system

Choosing software of this level is an extremely responsible process. An incorrect decision on this issue, especially for large-scale projects, can entail significant time and money costs in the absence of the expected result.

Effective implementation of a large-scale system, which, for example, should ensure the effective management of a manufacturing enterprise, will necessarily require business process reengineering. It is important to prevent a situation in which, upon completion of the program implementation procedure, it collects unused data or does not solve the necessary problems. For this reason, it is better to invite a team of experts proven in this matter to cooperate.

There is a certain list of criteria on the basis of which the project team, in agreement with the administration of the target company, can make an optimal, cost-effective decision on the issue of choosing a software product:

  • Compliance of the technical and functional capabilities of the system with the main goals of the enterprise.
  • The total cost of ownership must fit within the budget allocated for these purposes. In addition to the cost of purchasing the system, this includes operating and other types of indirect costs.
  • The implemented ERP-class information system must meet all generally accepted technical requirements, which means it must be scalable, reliable, resistant to possible failures, and have anti-virus and anti-hacker protection.
  • The supplier must guarantee subsequent maintenance and support of the installed software.

The process of implementing ERP class systems

The implementation of ERP systems at enterprises accompanies the implementation of strategies of the same name. This procedure, depending on the scale of the target object, usually lasts from several weeks to several years. An organization can carry out implementation on its own or use the help of companies specializing in this. The main stages of this process can be distinguished:

  1. Primary organization. Here it is necessary to determine strategic goals, objectives and indicate the expected effect of implementation for a specific organization. Based on this data, it will be possible to draw up a technical plan for the project.
  2. Project development. At this stage, an analysis of the current activities of the organization takes place: its promotion strategy, business processes. Based on its results, a system model is built, and appropriate clarifications are made to the work plan.
  3. Project execution. Since the rules for conducting business processes are dictated by the implemented ERP system, they are transformed here in accordance with unified requirements. If necessary, reporting forms and algorithms for transferring data from previously used accounting programs are developed. If at the previous stages it is revealed that the system functions for the object are insufficient, it is improved. Finally, user training and preliminary testing are carried out.
  4. Start-up. During use, possible errors and malfunctions are identified and eliminated.

An ERP-class management system today is not just a copy of expensive software installed on all computers in an organization, but also the main driving force of a promising business strategy. Its selection should be made based on the existing needs and capabilities of the target object. The further success of the entire business as a whole depends on the correctness of the decision made and the implementation of subsequent implementation steps.

Top five leaders in the global ERP market:

Microsoft Business Solutions

Russian ERP systems:

"BOSS" system

Galaxy system

System "MAGNAT"

System "Kh3"

System "1C:Enterprise"

System "Parus8".

Problems of implementing Western solutions:

Lack of enterprise readiness for implementation;

Poor implementation project management;

A shortage of funds revealed during the implementation process due to the initial vague pricing policy for software and services.

Benefits of implementationERP-systems:

Reduced operating and management costs by 15%

Working capital savings 2%

Reduction of implementation cycle 25%

Reduced business costs 35%

Reduction of insurance level of warehouse stocks by 20%

Reduction of accounts receivable 12%

Increase in turnover of funds in calculations by 25%

Increase in inventory turnover 30%

Improved utilization of fixed assets 30%

Integration of various activities of the company;

Using the best methodologies;

Possibility of organizational standardization;

Elimination of information asymmetry;

Access to information in real time;

Providing simultaneous access to data for planning and control purposes;

Possibility of interaction and cooperation within the organization;

Ensuring interaction and cooperation between organizations.

Implementation problems:

IT staff need time to plan and evaluate the project's scope, costs, and schedule for completing the plan. It is important to make sure that the process is managed by a specialist who is well versed not only in computer technology, but also in business processes, and who is also able to see the project as a whole, and not its components.

It is important to understand that the ERP system must be somehow connected with the primary business process software, which is engaged in preliminary data processing. Otherwise, transferring information will take too much time and be very ineffective.

Hidden costs tend to appear during the initial processing of real data by the system. This is due to the fact that existing information needs to be converted into the format of the new system. However, during the conversion process, data may become outdated, requiring additional effort to update it. To minimize such costs, it is worthwhile to allocate personnel in advance, whose responsibilities will include checking the efficiency of the entered information, and, if necessary, updating it.

The system should be tested before it is launched. It is best if, before implementation, the head of the project works for some time with a demo version of this product, used in a narrow, not particularly important area of ​​​​work.

Employees serving specific business processes should also conduct their testing, since after the system is implemented, it will be quite difficult to completely change its functionality in any of the specialized areas.

A very important aspect is staff training. It is wrong to think that personnel only need to be taught how to use the new system. People need to be prepared for the changes that global adoption brings, motivated to give back, and accept new forms of control. No matter how much money is invested in automation, it will not achieve its goal if it is rejected by staff.

You should not assume that it is possible to cope with such a voluminous array of work using only your own assets. Even the most intelligent specialists may encounter unfamiliar conditions and issues that will require an outside expert to resolve. Therefore, another cost item will be consulting fees.

Main stages of implementationERP-systems:

    origin, initiation, leadership persuasion;

    Diagnosis of project problems. Formulation of system requirements (with a consultant);

    organizing and conducting a tender for the selection of a system, selection of a consultant.

    conclusion of a contract, project organization, team selection, development of project documentation.

    team training.

    preparing and entering BOM and ROU etc. into the system;

    business modeling, in parallel with paragraph 6

    testing of the design solution (system). Corrections and improvements.

    launch of the system into operation, stabilization period.

Recently, interest in integrated business process management systems has been growing in Russia. It is due to many factors, including active support from the government for the introduction of modern technologies into the Russian economy. In particular, there is an objective need to automate the functioning of an enterprise to optimize management and control processes. ERP systems can take on such problems within an enterprise.

ERP (Enterprise Resource Planning) is an integrated system based on a wide class of disciplines and areas of activity related to technologies for creating and processing data for managing internal and external resources of an enterprise. Simply put, ERP is an enterprise resource management system. This term was first used by the consulting company Gartner Group in the early 90s. Since then, the ERP concept has gone through many stages of development.

The main tasks solved by ERP systems are:

General and structured planning of enterprise activities;

Company financial management;

HR management;

Accounting for material resources;

Accounting and management of supply and sales;

Operational management of current activities and monitoring the implementation of plans;

Document flow of the enterprise;

Analysis of business results.

At a certain stage of development, a business is faced with the need to automate the processes and functions of the company, especially if we're talking about about a large corporation or holding. Then there is a need for specialized software that can organize the management process as efficiently as possible. ERP systems are based on the principle of creating a single repository of the enterprise’s information base accumulated in the process of doing business, in particular, financial information, data related to production, personnel, etc.

Modern business practice requires, as a rule, an individual approach. This fully applies to accounting and planning. Therefore, the most effective software is adapted directly to the complex tasks of a specific enterprise. The cost of such development is quite high due to the individual approach and implementation features, but, as a rule, the economic effect justifies the costs.

The process of implementing an ERP system at an enterprise is a technically complex undertaking that takes a long period of time. In addition to installing software and training staff, one should take into account the psychological factors of introducing a new system into the corporate culture, as well as the importance of the smooth functioning of each link.

ERP concept.

Historically, the ERP concept has become a development of the simpler concepts of MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning). The software tools used in ERP systems allow for production planning, modeling the flow of orders and assessing the possibility of their implementation in the services and departments of the enterprise, linking it with sales.

Functions of ERP systems.

ERP systems are based on the principle of creating a single data warehouse containing all corporate business information and providing simultaneous access to it by any required number of enterprise employees vested with appropriate authority. Data changes are made through the functions (functionality) of the system. The ERP system consists of the following elements:

Model of information flow management (IP) in an enterprise;

Hardware and technical base and means of communication;

DBMS, system and application software;

A set of software products that automate IP management;

Regulations for the use and development of software products;

IT department and supporting services;

Actually users of software products.

Main functions of ERP systems:

Maintaining design and technological specifications that determine the composition of manufactured products, as well as the material resources and operations necessary for their manufacture;

Formation of sales and production plans;

Planning the requirements for materials and components, timing and volumes of supplies to fulfill the production plan;

Inventory and procurement management: maintaining contracts, implementing centralized procurement, ensuring accounting and optimization of warehouse and workshop inventories;

Planning of production capacities from large-scale planning to the use of individual machines and equipment;

Operational financial management, including drawing up a financial plan and monitoring its implementation, financial and management accounting;

Project management, including milestone and resource planning

The difference between ERP systems and electronic document management systems(EDMS) is that, as a rule, in ERP documents are machine-readable, and they are not “maintained”, but “posted” - after they have completed their life cycle, that is, they have been created, discussed, verified, agreed upon , approved, etc. And the EDMS supports such a life cycle of human-readable documents in the enterprise.

Advantages.

The use of an ERP system allows you to use one integrated program instead of several separate ones. A single system can manage processing, logistics, distribution, stocks, delivery, display invoices And accounting.

The information access control system implemented in ERP systems is designed (in combination with other enterprise information security measures) to counter both external threats (for example, industrial espionage), and internal (for example, theft). Implemented in conjunction with CRM-system and quality control system, ERP systems are aimed at maximizing the needs of companies for business management tools.

Flaws.

The main difficulties at the stage of implementing ERP systems arise for the following reasons:

The distrust of company owners in high-tech solutions results in weak support for the project on their part, which makes the implementation of the project difficult to implement.

Departmental resistance to providing confidential information reduces the effectiveness of the system.

Many problems associated with the functioning of ERP arise due to insufficient investment in personnel training, as well as insufficient policies for entering and maintaining the relevance of data in ERP.

Restrictions.

Small companies cannot afford to invest enough money in ERP and adequately train all employees.

Implementation is quite expensive.

The system may suffer from a "weak link" problem - the effectiveness of the entire system may be undermined by one department or partner.

Compatibility issue with legacy systems.

There is a misconception that sometimes ERP is difficult or impossible to adapt to document flow company and its specific business processes. In fact, any implementation of an ERP system is preceded by the stage of describing the company’s business processes, most often associated with the subsequent stage business reengineering. In essence, the ERP system is a virtual projection of the company.

 


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