Essay: ERP Model For RealTech - Recommendations With SAP R3.

1. Identify and differentiate four types of ERP software applications that provides integrate and efficient management of the business operations.

2. Propose one specific ERP software application can be used by the RealTech to integrate and coordinate information in every area of the business. Justify your answer.

3. Explain the main features of the proposed application that suit the RealTech business functions.

4. Discuss how the new system help ease the transition for the organization.

5. Discuss how the new application can help the main functional areas of the RealTech
operations: Marketing and Sales, Supply Chain Management, Accounting and Finance, and
Human Resources.

Introduction to RealTech and Enterprise Resource Planning

An information system organization known as RealTech has the specialization in making and positioning innovative system of information and several technologies. The strategy of the organization is to help the organization by connecting with innovative technologies and trends (Schniederjans & Yadav, 2013). The main motive is to provide the best service to the customers. Recently, the organization is utilizing a supply chain management as a client server application. However, they are having problems in integrating the functions of the business. The objective of this report is to provide a suitable ERP model for RealTech.

The following report outlines a brief introduction on RealTech and Enterprise Resource Planning. Four basic types of ERP software are explained with proper description (Nour & Mouakket, 2013). The report also contains the description of the most suitable ERP application software for RealTech with proper reasoning. The report further covers a general conclusion and specific recommendations for RealTech organization.

Enterprise Resource Planning or ERP is the procedure of integrating the main functions of a business through software. The functions of the business consist of marketing and sales, planning of production and products, manufacturing, finance and management of inventory (Hung et al., 2012). It is also referred to as a sub part of the business management software.

The ERP software helps an organization to integrate the various activities of a business through single software. The main advantage of this ERP software is that it is extremely simple to implement and at the same time extremely cost effective (Ahmad & Cuenca, 2013). There are various types of Enterprise Resource Planning software present in the market. The four basic types of ERP software are as follows:

1. a) SAP
2. b) Oracle
3. c) Microsoft Dynamics
4. d) JD Edwards

SAP: The full form of SAP is Systems, Applications and Products. This is the most simple and elementary ERP software. SAP is the leading business software provider in the whole world. Approximately 86000 customers in over 120 countries in the world run it (Rajnoha et al., 2014). The main advantage of SAP is its flexibility and scalability. There are various versions of SAP like the R3 version, B1 version. All these versions help the organizations in specific ways.

Oracle: Oracle is the second largest ERP software after SAP. It is also easy to implement and operate in the business (Monk & Wagner, 2012). Oracle has the benefit of fastest integration of business functions. The other advantage of this ERP software is that it is extremely cost effective. This is the reason it is easily acceptable by the organizations.

Four Basic Types of ERP Software

Microsoft Dynamics: This is the third popular ERP software that works best the supply chain management, customer relationship management and finance department. It also has two versions, namely, Microsoft Navision and the Microsoft Axapta 2009 (Leon, 2014). Both the versions are efficient. However, Microsoft Navision is more accepted by organizations.

JD Edward: This is the fourth popular ERP software. It is the integrated collection of several applications. It was once a part of Oracle ERP software but later got separated and now is known as an individual ERP software (Hasibuan & Dantes, 2012). The main advantage of this software is its cost effectiveness and simplicity.

The above table shows the simple comparison between the four basic types of ERP software.

RealTech is in a dilemma in choosing the perfect Enterprise Resource Planning software for their organization. The problems that RealTech is facing are extremely common. SAP will be the best solution for their problem (Hoch & Dulebohn, 2013). The full form of SAP is the Systems, Applications and Products. SAP is the simplest and elementary ERP software. SAP is the leading business software provider in the whole world. Approximately 86000 customers in over 120 countries in the world run it. The main advantage of SAP is its flexibility and scalability. There are various versions of SAP like the R3 version, B1 version. All these versions can help the organizations in specific ways (Kwak et al., 2012). The best version for RealTech will be the R3 version of SAP. There are several features and benefits of SAP R3. They are as follows:

1. i) It can run on several databases and operating systems.
2. ii) It allows customization.

iii) It helps to mitigate risks in the organization.

1. iv) It improves management of the organization.
2. v) It provides flexibility and scalability (Hasibuan & Dantes, 2012).
3. vi) It improves efficiency.

RealTech is facing a problem where they cannot keep their information integrated in a system. The Supply Chain Management is outdated and it does not help with modern technologies. SAP version R3 will be the perfect solution to their problem. It can run on any operating system and database. It improves the efficiency of the organization (Rajnoha et al., 2014). RealTech have to improve their efficiency to match with their competitors. Therefore, SAP version R3 would be the best ERP software for them.

RealTech is suffering through a serious problem. They are not able to integrate their business activities in a single system. They have several business functions like marketing, sales, finance, accounting, human resources and supply chain management. Integration of ERP with marketing and sales is mandatory for RealTech. The main reason for this integration is the customer satisfaction (Kwak et al., 2012). Marketing of any organization is directly proportional to the sales of the organization. When the customers will be satisfied with the products, they will definitely accept the organization. Delay in the delivery, poor quality of the products, wrong calculation in inventory stocks is very common and huge for any organization. All these issues can be solved with the integration of marketing and ERP software.

Most Suitable ERP Application Software for RealTech: SAP R3

ERP plays an important role in the Supply Chain Management. SCM involves the supply of products and services with respect to the amount of products consumed by the consumers. It has many important functions integrated in it like the supply of products, movement of raw materials, storage of raw materials and inventory management (Hoch & Dulebohn, 2013). Enterprise Resource Planning helps in the functions of the supply chain management to integrate them in single system. The integration will help RealTech in various problems.

Accounting is one of the complex sections in an organization. all the complex budget related data is calculated in the accounting and finance section. Any type of error and issue can create a major loss in the organization. RealTech is a big organization and it has to deal with bulk amount of data every day (Monk & Wagner, 2012). Integration with ERP will be extremely helpful for them. The main advantages of this integration are that it will eradicate all the duplicate data, will improve the pace of exchanging of data, increase accuracy in data and will help to keep the flow of data ad processes in a single streamline.

HR is another important part of an organization. It is the department of RealTech that deals with the staffs and employees of the organization. All the details related to personnel are dealt in this department (Leon, 2014). The integration of human resources with ERP helps to reduce the complexity of calculating and storing the bulk amount of details of the employees and workers.

Conclusion and Recommendations

Therefore, from the above discussion it can be concluded that, RealTech is an organization that is suffering from various problems. The main problem of them is that they are not able to integrate their business functions in single system. The above report recommends them one of the ERP software to integrate their activities. The SAP ERP software with version R3 is recommended to them for their problem. The report provides a brief description on the software proposed to RealTech for their problem.

References

Ahmad, M. M., & Cuenca, R. P. (2013). Critical success factors for ERP implementation in SMEs. Robotics and Computer-Integrated Manufacturing, 29(3), 104-111.

Hasibuan, Z. A., & Dantes, G. R. (2012). Priority of key success factors (KSFS) on enterprise resource planning (ERP) system implementation life cycle. Journal of Enterprise Resource Planning Studies, 2012, 1.

Hoch, J. E., & Dulebohn, J. H. (2013). Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review, 23(1), 114-125.

Hung, W. H., Ho, C. F., Jou, J. J., & Kung, K. H. (2012). Relationship bonding for a better knowledge transfer climate: An ERP implementation research. Decision Support Systems, 52(2), 406-414.

Kwak, Y. H., Park, J., Chung, B. Y., & Ghosh, S. (2012). Understanding end-users’ acceptance of enterprise resource planning (ERP) system in project-based sectors. IEEE Transactions on Engineering Management, 59(2), 266-277.

Leon, A. (2014). Enterprise resource planning. McGraw-Hill Education.

Monk, E., & Wagner, B. (2012). Concepts in enterprise resource planning. Cengage Learning.

Nour, M. A., & Mouakket, S. (2013). A classification framework of critical success factors for ERP systems implementation: A multi-stakeholder perspective. In Competition, Strategy, and Modern Enterprise Information Systems (pp. 98-113). IGI Global.

Rajnoha, R., Kádárová, J., Sujová, A., & Kádár, G. (2014). Business information systems: research study and methodological proposals for ERP implementation process improvement. Procedia-social and behavioral sciences, 109, 165-170.

Schniederjans, D., & Yadav, S. (2013). Successful ERP implementation: an integrative model. Business Process Management Journal, 19(2), 364-398.