DISCUSSION ON THE ERP SYSTEM

Running head: DISCUSSION ON THE ERP SYSTEM
DISCUSSION ON THE ERP SYSTEM
Name of the Student
Name of the University
Author Note

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DISCUSSION ON THE ERP SYSTEM
Abstract
The study has discussed about the ERP system, what it means, what are different modules of the
systems, commercially available solutions, state of this system/technology in UAE / GCC market,
how the technology or the information system is helping the company or the entity to achieve its
objectives. From the analysis it is clear that ERP system is an advanced system that is applied in the
organizational process for achieving various organizational services such as the market, finance,
human resources and various functionalities required by the organization and the selection of the
ERP service is completely depends on the organizational choice and requirements.

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DISCUSSION ON THE ERP SYSTEM
Table of Contents
Introduction to the selected information system:.................................................................................3
Commercially available solutions:.......................................................................................................5
State of this system/technology in UAE / GCC market:......................................................................5
How the technology/information system is helping the company/ entity to achieve its objectives:....6
Key conclusions and contributions of the study:..................................................................................6

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DISCUSSION ON THE ERP SYSTEM
Introduction to the selected information system:
ERP, or enterprise resource planning, is a modular software system which integrates various
functional aspects of an organization that is required for designing a complete integrated system for
an organization. An ERP system contains core software elements that is often referred to as
modules that manages important aspects of business of any organization such as finance and
accounting, HR, production and materials management, customer relationship management (CRM),
and supply chain management. Although ERP provides support for various functional elements, it
depends on the organization that what services are required for the business and based on that the
organization needs to choose that accordingly. The choice for the ERP packages depends on the
requirement on the organizations and services that are important for the organization.
ERP is not the same as the traditional software solutions for the enterprise that has different
software for different enterprise services. Although vendors often describe the traditional approach
to be more productive, it is not as efficient as the ERP system which integrates all the necessary
information at one place. The distinguished feature of the ERP system is that it has a common
database that is managed in central server and the same database is shared by all the modules.
Hence it is not required for the organization to manage each database differently for each of the
software services. The central database as shared by all makes the process less complicated and
often improve the accuracy of the system.
Implementation of the ERP system:
ERP is implemented in various way. It is possible to develop ERP with in-house
infrastructure or organization might opt for the cloud implementation or even opt for the hybrid
implementation which combines both of the approaches. The hybrid implementation such as such as
with platform as a service and infrastructure as a service is often preferred by the organizations for
its productivity and efficiency. Although previously ERP implementation was complex and
expensive due to the advanced hardware and the software requirements, with the application of
cloud implementation the process has not only improved, it is now accessible to many small and
medium organizations and this is the reason that the ERP system has become so popular in the
industry.
ERP technologies:
Databases
There are various database technologies available for the developer to implement ERP
system for the enterprise. A DBMS is an essential and integrated part of the ERP system as it holds
the data for the system and it then provides interaction between the system and the users. The
interaction is essential for data query as requested by the user. The most preferred DBMS is the
MSSQL as it is open source, authentic and most consistent among the commercially available
solutions.
PostgreSQL:
PostgreSQL, another important DBMS, is powerful option when it comes in ERP trouble
shooting and along with that it also offers server management studio and server profile. It is no
doubt one of the most powerful and advanced technology that is included in the ERP technologies
lists. Along with that PostgreSQL contains various indexing techniques, full-text search, and Elastic
search capabilities, which is very significant for the users of the ERP system.
MSSQL:

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DISCUSSION ON THE ERP SYSTEM
Microsoft’s SQL which is considered as one of the standard ERP databases. It is basically
deployed for the storing and retrieving of the data as required by the applications. Low cost of
installation, enhanced performance, and better security features makes this technology very popular
among the ERP developers.
ORACLE SQL:
The Oracle SQL is considered for various tasks like upgrading the data, saving it, and
retrieving it, especially when the requirement is super intense speed. SQL provides the automated
backup which ensures easy accessibility and also helps in eliminating data with efficiency.
Programming Technologies
NET and ASP.NET:
These two frameworks are favourite choices of the developers as these two frameworks
include less code and also offers better code reuse which helps in reducing both the time as well as
the cost for developing of the ERP system. It consists of various set of tools which are required for
web and desktop development, such as WPF and Winforms which helps in creating excellent
interfaces in less time.
Java:
Java, similar to the .NET framework is ideal for the development of the ERP system that is
aimed for the web or desktop or both at the same time. The frontend for the desktop version is
developed with the swing. When the web version is deployed with the same java backend
framework, there are various choice available for the web development framework and also
provides consistent experience across various browsers and platforms.
Ruby:
Ruby is another popular choice for the backend development. Ruby offers modules as well
as class extensions as it has self-hosting feature and its quick database makes it ideal for the CRM.
These two reasons make it popular among the choices for the CRM development. However, Ruby
does not have huge community support as it is supported by only one community. Hence, it is hard
to maintain. Along with that there are not many Ruby developers available in the market due to lack
of jobs and hence there is huge demand for the Ruby developers.
Python:
Python, which is the simplest language available for developing the backend server. It is
considered for developing the byte-code for large-scale applications and it also offers high-end
abstraction in the development of the ERP model.
PHP:
Although PHP was the first server side language, now there are other alternative such
as .NET, Java, and Ruby which has almost replaced the PHP in terms of choice for ERP backend
development. Hence it is not preferred to choose PHP for the development purpose.
Frontend Technologies
JavaScript:
It is especially best choice if the ERP system is deployed in the cloud.
AngualrJS:
It is a great framework when the backend for the ERP system is developed with the java or
the C# for developing responsive web applications that is supported across various browsers and

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DISCUSSION ON THE ERP SYSTEM
various devices with enhance experience. AngularJs is considered for developing these kind of
applications.
React:
It is another popular choice for the development of the backend of the ERP system. One of
the best feature of this framework is that the code that is developed for the website is also applicable
for the mobile app development which reduces the overall cost for the development as well.
Vue.JS:
It is a progressive framework that is one of the best choice for the development for the user
interface. It helps in creating single page application which is powerful enough for an alternative to
the desktop version of the desktop application. It provides flexibility in designing codes which
makes it a perfect choice for the developers.
Commercially available solutions:
There are various commercial ERP solutions available for the enterprise and each of them is
developed for managing different enterprise functionalities. Those solutions are:
 Accounting and finance
 Business intelligence and reporting
 Sales and customer management
 Purchasing and supplier management
 HR and payroll
 Inventory management and warehousing
State of this system/technology in UAE / GCC market:
Considering recent market of the ERP solutions it has been seen that Gulf countries has seen
a vast amount of growth in this sector. It has been assessed that gulf countries especially UAE has
been projected to exhibit CAGR over 13% during the year of 2017-22. Comparing with other gulf
counties UAE has seen huge pace in the ERP market. In UAE such amount of growth has been
observed as small and medium sized organizations is increasing in this country and due to the rising
initiatives of the government such as UAE Vision 2021 and Smart Dubai. Also the ERP market has
been rising in the gulf countries due to the adoption of cloud computing and for boosting the
economy of these countries. Furthermore it has been also analysed that the use of the ERP systems
will increase more in upcoming years due to growth in the manufacturing sector of these gulf
countries and the BFSI sector of this country is also one of the main reason behind the increment of
ERP solutions. SAP is global market leader in providing ERP solutions and currently these gulf
countries are one of the most important market for them.
In 2018 many gulf countries has introduced the VAT system on the products which is one of
the major source of income for these countries. This VAT on the products is collected in almost
every stages of the supply chain. It has been assessed that colleting VAT in every stage of the
supply chain is difficult and also time consuming. For solving this problem in this case ERP
solutions can be a big factor. Implementation of the ERP software can manage the VAT collection
in an efficient and flexible way. For collecting the VAT efficiently, implementation of the cloud
services is very much important and for that the ERP systems are crucial. These gulf countries are
very much interested in the ERP solution for the VAT system as this can be easily accessed through
smart devices by using internet. Also, this cloud ERP software needed very less amount of time for
deploying.

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DISCUSSION ON THE ERP SYSTEM
From a recent research it has been assessed that in the Middle East Gulf countries the market
of cloud computing is expected to grow from $887.5 million to $2404.5 million by the end of 2020.
Thus for this huge adoption of the cloud computing vast amount of ERP implementation is also
needed in this countries. This cloud architecture is mainly adopted for the supply chain lines and
finance of the business of the small and medium size organizations. With the implementation of
ERP solution faster innovation can be achieved for a truly secure environment for a business. The
ERP solution is also very much popular in these gulf countries as this solution can help the business
and the organizations to digitize and improve the core processes of the businesses. Most of the gulf
countries are in now in developing stage and onsite implementation of the ERP can be costly for the
small and medium size organisations. Thus in this case the cloud ERP solutions is very much
popular in these countries.
How the technology/information system is helping the company/ entity to
achieve its objectives:
Although the ERP system offers various benefits, majority of its application is the
distribution of the information and standardization of the information which is required for
developing information integrity. ERP is often considered for the cross-development business
process as it is effective in sharing information within the organization compared to the separate
information systems implemented for different enterprise applications. Along with that ERP system
is more effective and efficient in the data analysis as it has advanced data analytical tools and also
the modern ERP systems include newer technologies for the data analysis and this makes the ERP
systems a powerful enterprise application widely implemented across the industries.
Application of the ERP software:
 Boosts in efficiencies with support for automation in the data collection;
 enables business growth by providing support for managing business processes that are
increasingly complex;
 helps in reducing risk through support for better compliance;
 promotes collaboration using the process of data sharing and providing integrated
information;
 provides better business intelligence and customer service capabilities; and
 Improves the efficiency of the supply chain management.
Some ERP systems has even integrated the next-generation capabilities, such as AI, IoT and
advanced analytics, to help in the advancement of the digital transformation. Businesses typically
need an ERP system when there is a need to outgrow spreadsheets and disparate, and especially
when there is a need to support development for growth in the organization through the advanced
data analytics the ERP system is required due to its advanced data analytics tool and its ability to
manage various enterprise resources efficiently. As it is common with many technology products,
the exact definition of the ERP system significantly differs from vendor to vendor. Hence the
standard definition of ERP system is often difficult to describe, especially at the enterprise level.
Key conclusions and contributions of the study:
ERP system has various benefits that is not offered when those integrated systems are
implemented differently. Along with that when the enterprise systems are implemented differently
or in separate modules, it is often complex and expensive. However implementation of the ERP

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DISCUSSION ON THE ERP SYSTEM
system is less complex, especially when implemented in the cloud infrastructure. Although in-house
implementation is available, it is more complicated and requires advance hardware and software.
Hence for the medium and for the small scale industries, the cloud implementation is often
preferred.
Due to its advance analytical tools and advance resource planning and the resource
management, ERP systems is becoming more popular in the industry and it is also becoming
popular in the GCC market too. A lot of companies are adopting this technology and establishing
the ERP as the primary information system in the organization.
Along with the powerful data analytic tools the ERP system is also efficient in storing and
sharing information across the enterprise with information standardization. This is another
important application of the ERP system.
However, it is important to note that although the ERP system offers various benefits, it has
several drawbacks too. One of the main drawbacks of the system is that it is difficult to maintain.
Along with that employees who are in charge of the system need proper training to properly manage
the system and derive various advance feature offered by the system. Hence organizations need to
train its employee properly for deriving success through the application of the ERP system.
However, the investment is justified compared to the benefits that it offers.
Hence from the analysis it is concluded that the ERP system has both advantages and
drawbacks as well. However, if those drawbacks are properly managed, it is possible to ensure
success in the resource planning and in the resource management. Hence both of these aspects have
to be properly managed for the successful ERP implementation.

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DISCUSSION ON THE ERP SYSTEM
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