ERP Implementation

This proposal discusses the background of Tumi Cut business management process, scope of Tumi Cut as a business entity, terminologies for understanding ERP system, 10 brands that provide ERP to SMEs, comparative analysis among them, and recommendation of using Microsoft Dynamics ERP system.

Running head: ERP IMPLEMENTATION
ERP IMPLEMENTATION
Name of the Student
Name of the University
Author note

1
ERP IMPLEMENTATION
Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Enterprise resource planning definition, Benefits and Limitations.................................................3
Reasons of upgrading of the ERP....................................................................................................4
10 brands that provide ERP to SME................................................................................................5
Comparative analysis among them..................................................................................................5
Which brand should be used? Reason.............................................................................................7
CBA.............................................................................................................................................7
SAP Cost benefit Analysis.......................................................................................................7
Microsoft Dynamics ERP Cost Benefit Analysis....................................................................9
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

2
ERP IMPLEMENTATION
Introduction
This proposal will discuss about the background of Tumi Cut business management
process. This proposal will also discuss about the scope of Tumi Cut as a business entity. This
proposal will also discuss about terminologies that will help in understanding functioning of the
ERP system. 10 different brands that provide the service of ERP will be provided in the proposal.
Comparative analysis in between them will also be provided in order to understand the brand that
will be helping in better understanding of the functional process. Recommendation of the brand
will also be provided. Cost benefit analysis of the recommended ERP brand along with that of
SAP will also be provided. This will help in better selection of the ERP system.
Background
Tumi Cut customer fill rates were way below and the entire business organization has a
fill rate of 80%. This is when Tumi Cut decided to replace their legacy system with
implementation of SAP business suite. Since the implementation of the SAP business suite the
main benefit that was received includes better management of the business and roper expansion
of the business organization in the field of better standardization in business execution was
received.
Enterprise resource planning definition, Benefits and Limitations
Enterprise resource planning is defined as the ability that is required for delivering
integrated suite of application that are related to the business management. A common process
along with the business model is portrayed in the scenario. Covering of deep end to end
operational model has been one of the major advantage that provides benefits to the business
organization that will be using ERP. ERP finds its application in the phase of automation

3
ERP IMPLEMENTATION
processing of the project management processes (Harwood 2017). ERP is mainly used by the
HR, distribution team. Supply Chain management system is highly benefitted in the process of
data management of the business organization.
Benefits of ERP usage includes high rate of cost benefit achieving. The cost that is
incurred in the execution of the ERP system is initially high. But the validity of the system that is
received is for a long period. A minimum validity of 7 years can be expected from the ERP
system. On an average, 40% of the ERP system lasts till 15 years (Sun, Ni and Lam 2015).
Another advantage of using ERP includes better increasing visibility in the processing of the
total access points. This ensures that the data that are required for commencement of thee
business gets better and hence analysing of data gets better. The reporting and planning section
gets benefitted in a proper manner and hence the efficiency in the business processing system
increases. One of the major advantage that is received by ERP is data security. ERP is mainly
focused with data transaction process. Hence data security is one of the major aspect that will be
provide by ERP.
The major disadvantages of using ERP is that the initial cost that is required in the
implementation process is very high. Not only is the cost of implementation process high but the
cost of the collaborating different components are very high. Even the maintenance cost of the
entire system is very high. The complexity of the usage process is also very high. Customization
is one of the major advantage of using the ERP system (Ali and Miller 2017). But it is seen that
thee customization process gets out of control. This lack of control includes the aspect that the
upgrading process gets affected in a negative manner.

4
ERP IMPLEMENTATION
Reasons of upgrading of the ERP
The main reasons of upgrading the ERP system incudes having better quality systems.
The ERP systems that is implemented in the business system must be updated in a daily basis.
With updating of the entire system the quality of the work that is received by the business
organization from the ERP system will get better and hence the output that will be received will
be having a better accuracy (Al-Sabri, Al-Mashari and Chikh 2018). Upgrading of the ERP
system will also help in providing higher productivity. Proper understanding of the rate of
productivity will increase and hence the organisation of the complete terminology will get
managed as each the automation level of the ERP system. With upgrading of the ERP system,
automation level also increases. This leads to the fact that the organisation of the tasks that arte
performed by the ERP system gets better. With upgrading of the ERP system roper management
off the integration of different software can also be performed. This ensures the fact that the data
that are generated from the different software can be well analysed. Despite the fact that the cost
incurred in upgrading of the ERP system is high, but after upgrading the system the cost that
will be required in the functioning of the entire IT process will be low.
10 brands that provide ERP to SME
10 brands that provides ERP to the SMEs are Microsoft Dynamics GP, NetSuite ERP,
SYSPRO, Sage Intacct, Odoo, Oracle ERP Cloud, Brightpearl, Sage 100 ERP, Epicor ERP and
FinancialForce ERP. These brands after the one of the best that can be used in functioning of the
ERP system.
Comparative analysis among them
The major vendors that provide ERP system are SAP, Oracle and Microsoft.

5
ERP IMPLEMENTATION
A brief comparison in between these ERP systems will help in understanding the system
that should be chosen for the processing of the functionality of the ERP system in the business
organization.
SAP is considered to be a competitive enterprise resource planning software (Jagoda and
Samaranayake 2017). The main business functions of the business organization can be well
established. Handling of massive roles in the business organizations are the major aspects that
will benefit the functioning of the business organization. In case of Oracle, it encompasses the
entire business management system unlike SAP which deals with specific job roles. No specific
business functions are diversified as per the priority of tasks. Roles of HR, Marketing, service
transportation and other business processes are also facilitated by Oracle. Oracle also uses their
own financial software that are based on the platform of the RDBMS. Whereas in case of the
Microsoft Dynamics, the main advantage that is present includes usage of all the tools that are
based on the platform of Microsoft Dynamics.
The modules in which the SAP ERP functions is project planning, Quality management,
Sale Management, Financial accountant, Pay roll management, E-Recruiting, Supply chain
management, Extensive Customer Service and advanced planning. In case of the Oracle the
application module that is provided in the system includes management of cash, project Portfolio
management, Payables, Business Intelligence, Sales and Landed Cost management (Akhtar
2016). Whereas in case of Microsoft Dynamics module, the dynamic modules that is taken into
consideration includes Account payable, Customer relationship management, Cash and Bank
Management, Sales and Marketing, General Ledger, Expense management. Fixed Asset
Management and Product Information Management. All the tasks are performed with the help of

6
ERP IMPLEMENTATION
the Microsoft Dynamics C5, Microsoft Dynamics AX, Microsoft Dynamics SL, Microsoft
Dynamics GP and Microsoft dynamics NAV. All these are based on the platform of Microsoft.
The cost that is incurred in implementing SAP ERP system includes Substantial cost,
Administrative cost, Labour cost and Regulatory Compliance Cost. The cost of employment of
the SAP ERP is generally higher than the other vendors. Oracle is also not very cost efficient as
the customization process gets costly in case of using Oracle platform. The time that is required
for completion of the ORACLE usage is also very high (Harris and Schultz 2016). Whereas in
case of using the Microsoft Dynamics the cost that will be incurred will be low. This will ensure
that the functional process will also get better as time required for completion of the entire
system deployment is also lesser than the other 2 ERP platforms.
Which brand should be used? Reason
According to me Microsoft Dynamics ERP system must be used over the ORACLE and
the SAP ERP system.
Reasons of using Microsoft Dynamics ERP system are as follows: -
 Microsoft Dynamics ERP is considered as a Scalable technology that will perform future
proof to the investments that will be made. The ease in the process of customization in
Microsoft Dynamics ERP platform will be beneficial (Harris 2017).
 Upgrading of the existing infrastructure enhances the investment process. This is one of
the major advantage that increases the sustainability of the ERP platform.
 The TCO investment is also considerably lower than other ERP vendors.

7
ERP IMPLEMENTATION
CBA
SAP Cost benefit Analysis
Input Cost
Cost-Benefit - INPUT VALUES
Hardware $ 5,000.00
Software $ 48,000.00
Development team salaries $ 23,000.00
Training $ 7,000.00
Total Development Cost $ 83,000.00
Hardware $ 1,000.00
Software $ 2,000.00
Operational Labor $ 1,000.00
Total Operational Cost $ 4,000.00
Approximate salary savings $ 54,000.00
Reduced operating cost $ 60,000.00
Total Benefit $ 114,000.00
Discount Rate Used 6.00%
Cost Benefit
$0.00
$
114,000.00
$
114,000.00
$
114,000.00
$
114,000.00
$
114,000.00

8
ERP IMPLEMENTATION
1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
$0.00
$107,547.1
7
$101,459.5
9 $95,716.60 $90,298.68 $85,187.43
$0.00
$
107,547.17
$
209,006.76
$
304,723.36
$
395,022.04
$
480,209.47
$
480,209.47
$(83,000.0
0)
$0.00
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
$0.00
$
(3,773.58)
$
(3,559.99)
$
(3,358.48)
$
(3,168.37)
$
(2,989.03)
$(83,000.0
0)
$
(86,773.58)
$
(90,333.57)
$
(93,692.05)
$
(96,860.42)
$
(99,849.46)
$
(99,849.46)
$
380,360.02
3.8093
$(83,000.0
0)
$
103,773.58
$
97,899.61
$
92,358.12
$
87,130.30
$
82,198.40
$ $ $ $ $

9
ERP IMPLEMENTATION
$(83,000.0
0) 20,773.58 118,673.19 211,031.31 298,161.62 380,360.02
Break Even Chart
0 1 2 3 4 5 0
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00 NPV of all BENEFITS NPV of all COSTS
Year
D
o
l
l
a
r
s
Figure 1: Break even Chart
(Created by Author)
Microsoft Dynamics ERP Cost Benefit Analysis
Input Values
Cost-Benefit - INPUT VALUES
Hardware $ 3,000.00

10
ERP IMPLEMENTATION
Software $ 27,000.00
Development team salaries $ 12,000.00
Training $ 4,000.00
Total Development Cost $ 46,000.00
Hardware $ 1,000.00
Software $ 2,000.00
Operational Labour $ 1,000.00
Total Operational Cost $ 4,000.00
Approximate salary savings $ 54,000.00
Reduced operating cost $ 60,000.00
Total Benefit $ 114,000.00
Discount Rate Used 6.00%
Cost benefit
$0.00
$
114,000.00
$
114,000.00
$
114,000.00
$
114,000.00
$
114,000.00
1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
$0.00
$107,547.1
7
$101,459.5
9 $95,716.60 $90,298.68 $85,187.43
$0.00 $ $ $ $ $ $

11
ERP IMPLEMENTATION
107,547.17 209,006.76 304,723.36 395,022.04 480,209.47 480,209.47
$(46,000.0
0)
$0.00
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
$
(4,000.00)
1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
$0.00
$
(3,773.58)
$
(3,559.99)
$
(3,358.48)
$
(3,168.37)
$
(2,989.03)
$(46,000.0
0)
$
(49,773.58)
$
(53,333.57)
$
(56,692.05)
$
(59,860.42)
$
(62,849.46)
$
(62,849.46)
$
417,360.02
6.6406
$(46,000.0
0)
$
103,773.58
$
97,899.61
$
92,358.12
$
87,130.30
$
82,198.40
$(46,000.0
0)
$
57,773.58
$
155,673.19
$
248,031.31
$
335,161.62
$
417,360.02

12
ERP IMPLEMENTATION
Break Even Chart
0 1 2 3 4 5 0
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00 NPV of all BENEFITS NPV of all COSTS
Year
D
o
l
l
a
r
s
Figure 2: Break Eve Chart
(Created by author)
From the above data that is generated from the Cost Benefit Analysis can be stated that
amount of time that will be required to fetch the investment is nearly 6 months whereas in case
of using the SAP ERP, the time that will be taken for retrieving the money is nearly 8-9 months.
Hence usage of Microsoft Dynamics is recommended.
Conclusion
From the above conversation, it can be determined that ERP execution will be benefitting
the entire process. This ensures the fact that the organisation of the deliverables will get achieved
in a better method. Despite the advantages that are gained as per the implementation of the ERP

13
ERP IMPLEMENTATION
system, there are disadvantages in the process as well. But the amount of advantages that are
gained are much higher than the disadvantages that are gained from the implementation of the
ERP system. After performing complete functional analysis, it can be stated that usage of
Microsoft Dynamics ERP system will increase the efficiency in the functional process as the cost
efficiency of the entire process is much higher than the other vendors of ERP.

14
ERP IMPLEMENTATION
References
Akhtar, J., 2016. Production Planning and Control (SAP PP) with SAP ERP. SAP PRESS.
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management, 30(4), pp.666-692.
Al-Sabri, H.M., Al-Mashari, M. and Chikh, A., 2018. A comparative study and evaluation of
ERP reference models in the context of ERP IT-driven implementation: SAP ERP as a case
study. Business Process Management Journal, 24(4), pp.943-964.
Harris, R. and Schultz, T., 2016. Teaching ERP Implementation with Microsoft Dynamics Sure
Step. Proceedings of DYNAA, 7(1).
Harris, R., 2017. Teaching Human Resources Management Systems using Microsoft Dynamics
AX. In Proceedings of Microsoft Academic Conference for Higher Education (Vol. 8, No. 1).
Harwood, S., 2017. ERP: The implementation cycle. Routledge.
Jagoda, K. and Samaranayake, P., 2017. An integrated framework for ERP system
Implementation. International Journal of Accounting & Information Management, 25(1), pp.91-
109.
Sun, H., Ni, W. and Lam, R., 2015. A step-by-step performance assessment and improvement
method for ERP implementation: Action case studies in Chinese companies. Computers in
Industry, 68, pp.40-52.