Evaluation and Recommendation of ERP System for Gracious Industries

This report provides a comprehensive evaluation of Enterprise Resource Planning (ERP) systems for Gracious Industries, a private limited company seeking to enhance its operational efficiency and competitiveness. The report begins by outlining the key business processes of the company, including ...Read More

REPORT ON ENTERPRISE PLANNING RESOURCE SYSTEM
FOR GRACIOUS INDUSTRIES
Name of the Student
Name of the University
Author note
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Executive Summary
The study would assess a private sector gracious industry (PGI) company resource planning
(ERP) scheme. The sector needs software to store and collect data so that it can easily maintain
its daily procedures and thus resist competition on the market. The sector needs to do this. You
thought that you had to invest in software that could bring your company to the next level. The
report is prepared so as to include the company's business procedures, significant monitoring
hazards, ERP description and comparative characteristics and functions of several ERP suppliers.
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Table of contents
Table of contents..............................................................................................................................3
Introduction......................................................................................................................................4
Business Processes.......................................................................................................................4
Major Control Risks for the Business Processes.........................................................................5
System Requirements......................................................................................................................6
Features of Cloud-Based ERP Systems.......................................................................................7
Functionalities of Cloud-Based ERP System..............................................................................8
Advantages of Using Cloud-based ERP systems........................................................................9
Challenges of Using Cloud-based ERP system...........................................................................9
Three Cloud-based ERP Vendors and Their Products..................................................................10
1. Oracle ERP cloud...............................................................................................................10
2. SAP ERP.............................................................................................................................10
3. Sage Intacct.........................................................................................................................11
Comparison of the features and functionality of Oracle ERP cloud and Sage Intacct..................11
Choice of ERP Software Package..................................................................................................12
Conclusion.....................................................................................................................................12
References..................................................................................................................................13
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Introduction
ERP systems are used for many years, but with cloud-based ERP systems they have
gained popularity. In order to improve efficiency, increasing number of businesses started
implementing cloud-based ERP systems. Here we will discuss graceful electronics, company
requirements in company procedures and significant control hazards. System requirements were
recognized by discussing characteristics and characteristics to be considered before the first ERP
system has been put into effect. Three top ERP suppliers that offer cloud-based ERP systems
were recognized and their product was noted. The most cost-efficient and efficient software for
good electronics is used to compare characteristics. Business Requirements
In order to operate the company efficiently on the market and to resist the current competition, a
gracious industry has to define its company procedures as well as significant business control
hazards.
Business Processes
The business process for a company is described as a set of chained duties or operations
which lead to a product or service being delivered. Upon completion of these duties and
activities, they assist an organisation in its duties.
Business procedures can be described for graceful sectors as:
1. Product development: This method includes product planning and design as outlined in Baxter
(2018). This is the basis for the whole chain until the item or services have been delivered. This
method will assist graceful companies to maximize the client value, particularly through their
fresh green products. The key to product development is to transform an concept into a product.
The requirements for research and development are translated into production demands at this
point.
2. Accounting management: The accounts of the company must be administered very carefully.
All legal compliance and reporting of budgets, cash flow statements and balance sheets must be
met. It is essential. In this phase, there is no possibility of an mistake. Even a smaller error could
cause the business to lose enormously. Before making any choice to the advantage of the
business, contingent logic shall be established.
3. Procurement: The demands for production are converted into supplier demands in this phase.
Not only does it involve the purchase but also the selection of suppliers, cost negotiation and
payment conditions. This method allows us to search for the most efficient possibilities. This
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enables also to detect the possible deficiencies that may arise during project completion and to
take protective and corrective action in good time. As Brewer (2017) proposed, an efficient
procurement approach will assist save the business a lot of time and operating costs and material
costs.
4. Production: This method produces the real product and produces all the paperwork pertaining
to the production of the product. Based on these papers, quality tests and compliance with
customer demands is verified. The handling of production disturbances in manufacturing
industry is one of the fundamental variables for project success, as explained by Bokrantz
(2016).
5. Sales and order handling: the sales of the item are taken into account at this point. If it can not
be sold, the production of a product is useless. Company shall use a formal method of directed
sales. Tactics should be used by salespeople to maximize revenues of the business. At this point,
documentation is just as essential.
6. Distribution and logistics: All such papers shall be retained, together with the distribution of
products to wholesalers and distributors by different logistics techniques, in these process
packing slips, inspection sheets, invoices, bill of lading.
7. Customer support: Support for the extraction of peak value of the item should be given to the
client. This assistance is given in an educated and responsive manner. Before and after sales, it is
the company's duty to fulfill its clients. Customers expect their views and issues to be solved in
every manner possible.
Major Control Risks for the Business Processes
The risk for business processes outlined by Kerzner (2017) can be defined as the
probability of failing to attain the objective of the project. Two significant elements of a major
risk in the business process
1. The likelihood of an case happening.
2. What are the effects of this case?Major control risks for the business processes are
Accounting risks: it is likely that in financial statements some data may be mistaken. This
can happen because of system failure. This can lead to unexpected losses of assets. The
managers have to maintain a control system. To prevent such system mistakes, the system must
be updated periodically.
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2. Economic risk: It is feasible that either manufacturing costs may be increased or sales will be
lowered as the economy changes frequently and suddenly. The business must also keep an eye
on manufacturing and prices in both situations.
3. Operational risk: such control hazards are connected with the day to day failure of the
company's activities. Such failings can hinder the day-to-day operations of graceful sectors.
4. Legal risk: new regulations or new norms may disrupt company operations and incur
additional costs in the event that every dispute is resolved.
5. Reputational risk: enterprise may lose reputation on the market if it is responsible for any
activities that customers on the market may consider to be dishonest or incompetent. To preserve
its brand image in the market, the organization must monitor all these procedures or procedures.
6. Competitor risk: current market rivalry may benefit from the company's current situation over
graceful electronics. Competitors may have introduced the latest technology to assist them
achieve an edge over graceful systems that still lack the application of newer information-based
techniques.
7. Compliance risk: this risk includes the opportunity for companies to break laws and
regulations to enhance their procedures and boost productivity.
8. Credit risk: Under the worst case, clients who ow cash to pay for gracious equipment may fail
in any event. Credit risk: This has to do with the hazards of receivables.
System Requirements
The case study could be inferred from the graceful electronic need to invest in software
for business resource planning (ERP), which will assist the business increase its performance and
market share to achieve an advantage compared to its market rivals.
Enterprise Resource Planning (ERP) is a cryptographic protocol that integrates all of a
enterprise's core activities into a single united platform, created and enforced. ERP consists of
separate modules focusing on multiple organizational departments eg accounts, human resources,
manufacturing, acquisition, production and distributionIt is recommended that good electronics
implement ERP system based on the cloud.
Cloud-based ERP systems are based on the concept of Software as a Service (SaaS),
meaning software that is utilized as a service, does not belong to any specific organization, so
that users can access ERP software offered via the internet by the various providers. These
systems are generally accessed via an internet or web connection via a popular browser. This is a
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more flexible option for organisations, since it fits the organization's budget readily. ERP
supplier selection should be made an important decision to successfully implement ERP in good
electronics.
ERP systems for simple organization operations are supplied via software as a service
and are not owned by the organization, as previously discussed. In Scavo (2012) an article says
that some ERPs may be classified as cloud by the service provider but that ERP systems are
genuinely hosted. True cloud ERP systems can be obtained over the internet via a popular
government web or internet browser. This system allows easier access and saves the business a
lot of time and costs when implementing this software service.
Features of Cloud-Based ERP Systems
An efficient cloud based ERP system must have following features:
1. Useful: the use of a healthy ERP system based on the cloud needs to be simple. To make
its job simple, an organization uses the ERP system. If it is hard to use and complex to
comprehend, an ERP system will not work. The system should be sufficiently simple to
obtain insight into the accessible data within minutes.
2. Efficient and responsive: Efficient and rapid enough to provide the information and
reports needed for strategic decision making when and when necessary, should be the
system introduced by the ERP. No delay or lag in the scheme should occur.
3. Scalability: the implemented cloud-based system should increase along with the
organisation's development. The cloud-based ERP system is simple to scale as demand is
put on it because of the robustness of the cloud systems. This function increases the cost-
effectiveness of the implementation of cloud based systems. Existing system modules can
be added as necessary.
4. Low degree of customisation: it is essential to use the cloud-based software to be
implemented with little or no customization. Integration into current apps without much
customization should be simple. Interoperability should be there in the software so that
many changes need not be made to make it compatible with the existing software and
applications.
5. Training and support: it is essential that customers are well educated and understand how
to utilize these technologies in order to benefit fully from the ERP system based on the
cloud. The support shall either be given by a seller or incorporated into the software in
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order to be simple, efficient and efficient to use. After applying cloud-based ERP systems
for its organization, users are taught by the supplier.
Functionalities of Cloud-Based ERP System
There are several functionalities in the cloud base ERP system, the most important of which
are explained below
1. Management of clients: this helps graceful electronics to monitor their clients and any
relationships with them. It helps to collect all client data and to deal with it from the start
to the moment. The customer records can be accessed with a simple click. Order
management: this feature helps to finalise quotations, create orders, maintain these orders
for future references as well as update the orders if any changes are made in the orders.
This makes retrieval of information regarding any order very fast and efficient.
2. Management of prices: it does not require a well-developed and formalized scheme that
keeps track of the pricing of its products. Pricing management is not simple. Various ERP
systems based on the cloud have this price leadership functionality.
3. Catalog management: this Cloud-based ERP system capability helps to monitor the range
of products produced by the business. This characteristic helps graceful electronics
monitor anything they sell. This characteristic also helps classify products according to
the company's requirements..
4. Management of inventories: it takes much time to manage the company's enormous
inventories on paper or excellent sheets. Furthermore, there may be many human errors,
but cloud ERP systems enable firms to handle inventory in real time with one click.
5. Accounts as well as billing management: the above cloud-based ERP platform function
supports cash flow management. This enables payments and payments to be traced and
managed. Additional characteristics can be added to the scheme such as email
notifications to remind clients about fees. Customer support management: No matter how
dedicatedly gracious electronics will provide product or services to its customers,
customers may also have some or the issue with products produced by the company. This
feature will help to track customer complaints and will help to provide the solution to
their problems timely.
6. Corporate analytics: this is one of the key characteristics of an ERP system based on the
cloud. This enables businesses learn about the company's business data and take informed
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choices. This makes it very simple for businesses to make strategic decisions. This also
helps to produce reports rapidly and effectively as necessary.
7. Marketing management: cloud-based ERP systems help monitor all advertising
campaigns, digital advertisements and television advertisements the business used to
boost its sales of its product.
8. Distribution and logistics administration: this function helps to monitor what is and where
to ship. Long sheets of car number, amount, product type, destination etc. should not be
maintained. Cloud-based ERP systems are supported by distribution and logistics
management.
Advantages of Using Cloud-based ERP systems
ERP systems with cloud based compared to other ERP systems have a number of benefits.
The following are the benefits:
1. As Marston (2010) argues, ERP cloud-based systems are less cost-effective for their
application.
2. ERP systems based on the cloud are introduced very rapidly without a lot of time. In a
very short time, new services may also be included.
3. The operating and maintenance expenses of the ERP system are very small.
4. Resources to be used in the implementation of traditional costly ERP systems can now be
used for focusing on the organization's core competencies.These are systems are user
friendly and can be used anywhere and anytime.
5. The use of these technologies also ensures process uniformity in multiple business
divisions.
Challenges of Using Cloud-based ERP system
Although the implementation of the ERP cloud-based scheme has always been helpful for the
organization, the business may experience difficulties during the implementation of the ERP
cloud-based scheme. As stated below, these difficulties are:As described by Engebresthson
(2012) companies are worried about the security of their confidential data over the cloud.
1. Periodic cloud-based ERP system subscription charges payable to the cloud provider may
be costly t times.
2. Cloud based ERP systems performance is entirely based on internet connectivity
accessibility and velocity.
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3. Perhaps the new cloud-based ERP system cannot operate interoperable with current
organisation applications and software.
4. In accordance with environmental needs, power norms and information norms, the cloud
based ERP system provider selected should be able to introduce the software as a service.
Three Cloud-based ERP Vendors and Their Products
Three cloud based ERP vendors along with their products are as mentioned below
1. Oracle ERP cloud: This seller offers a flexible pricing strategy that enables you to
operate the software anywhere, anytime and only for the functions you use. There are
also numerous characteristics in this software (Oracle India, 2019). The products
provided by the Oracle ERP cloud are the data collected from the official website:
Financials: revenue management and expenses
 • Contracting, procurement and vendor management • Contracting project management:
company-grade solution for project-cantered companies that assist the implementation of
the project.
 Enterprise performance management: plan, narrating reports & economic records• Supply
chain management: supply chain planning, inventory, logistics etc. • Net Suite:
Accounting, human capital, CRM etc. • Risk management: sophisticated risk-controlled
safety and fraud surveillance.
2. SAP ERP: This offers fully compliant economic and accounting alternatives. It also
offers sales, CRM installations, HR installations, supply chain management etc (SAP,
2019).
The products provided by the SAP ERP cloud are as per the data collected from the official
website:
 Sap S/4 HANA cloud: AI-supported automation, electronic support for UX intercoms,
company procedures of the next generation, fast execution etc. • Sap S/4 HANA: AI-
supported automation, onsite solution, greatest capacity for modification, next generation
company process etc.
 SMB and middle enterprises ERP: integrated solution for tiny and medium-sized
enterprises: finance, supply chain, CRM and sales, ETA, fast deployment, cloud, hybrid
cloud, on-site.
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3. Sage Intacct: The accounting of this software is central. Inventory management and
other equipment can be added to the software. The management of this danger is not
possible (Sage Intacta, 2019). According to the data collected from Sage Intact's official
website, the products it offers are:Core financials: automated and multidimensional data
analysis
 Dashboards and reporting: quick, high-performance economic and operational,
 Billing: automated income and accounting.
 Planning and budgeting: strong and simple to implement and use planning and budget.
 Platform: Constructed of sales and ADP embedded development instruments.
 Flexible extra modules
 Advanced functionality.
Comparison of the features and functionality of Oracle ERP cloud and Sage Intacct
To select the best ERP supplier, it is necessary to compare the functionality and
characteristics of ERP vendors which provide tools for their service. The following is a
comparative of Oracle ERP cloud and Sage Intact functions and characteristics based on the
products they give their customers.
Oracle ERP cloud (OEC) offers economic services such as the management of income and
expenses. In addition, Sage Intact (SI) offers business analysis for automated financial services.
1. OEC supplies procurement, such as contracting, etc., and software while the SI software
package lacks the procurement facility.
2. For project-centric companies, OEC offers a corporate solution which helps to carry out
projects. Si has dashboards and reports available.
3. OEC offers artificial intelligence risk management while such functionality is not
accessible in SI.
4. With narrative and financial reporting as well as dashboards and SI reports, the OEC
offers corporate resource management.
5. OEC offers supply chain management including inventory, logistics, etc. whereas the
software package provided by SI to its customers does not show these functions.
6. OEC offers accounting, human resources and CRM functions while SI has extra
organizational support modules.
7. OEC and SI are both versatile and easy to expand to include fresh modules.
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8. These programs can readily be scaled in order to grow with the development of their
customer's orgnosis.
Choice of ERP Software Package
The use of Oracle ERP Cloud to effectively and efficiently handle its organization
activities is highly recommended. This decision was produced based on the high-class
functionality and functionality provided by oracle ERP and sought by every organization. ERP
offers everything from accounts and finances to procurement and manufacturing. Oracle also
helps to facilitate supply chain management, as well as other activities, such as management of
human resources and CRM. The OEC's narratives reports help inform policy decision-making. In
addition, it is one of the most searched for risk management and private data security via the
cloud. It will be nice if graceful electronics selected Oracle ERP cloud to better activities and the
picture of their brand on the market, based upon the above statements.
Conclusion
This study identifies company procedures and risk factors for gracious electronics and
describes key elements of the cloud-based company resource scheduling scheme. The cloud-
based ERP system features and functionalities are noted. The benefits provided by ERP cloud-
based systems are listed. The study also includes challenges that businesses often face when
implementing cloud-based ERP systems. Cloud based ERP systems are now more common and
have surpassed cots, accessibility, mobility, usability, and scalability in premise ERP systems. It
is evident from the Literature Review that today, due to its benefits over premise ERP systems,
companies have chosen cloud-based ERP. Some businesses advocate the implementation of ERP
cloud schemes, while others stress the difficulties of ERP cloud systems. Many businesses
concentrated on risk such as data security, but several patches of ERP cloud suppliers have been
built into enhancing technology to safeguard organizations ' information using ERP systems in
the cloud. The Cloud ERP systems were mostly used by small and medium-sized companies in
comparison to bigger companies. Future research could be done in this region to develop and
implement personal clouds for various companies, instead of shared clouds on the Internet.
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References
Baxter, M 2018 Product design
Bokrantz, J, Skoogh, A, Ylipaa, T &Stahre, J 2016‘Handling of production disturbances in the
manufacturing industry’ Journal of Manufacturing Technology Management, vol. 27, no. 8,
pp.1054-1075
Brewer, B &Arnette, AN 2017‘Design for procurement: What procurement driven design
initiatives result in environmental and economic performance improvement?’ Journal of
Purchasing and Supply Management, vol. 23, no. 1, pp. 28-39
Engebrethson. R 2012‘Comparative analysis of ERP emerging technologies’
Kerzner, H 2017 Project management: a systems approach to planning, scheduling, and
controlling
Oracle India (2019), Explore Oracle ERP Cloud ProductsAvailable at
www.oracle.com/in/applications/erp/products.html [Accessed on 17 Sep, 2019]
Sage Intacct (2019)The #1 Accounting Software Products
in Customer Satisfaction by G2 CrowdAvailable at www.sageintacct.com/accounting-software-
products [Accessed on 17 Sep, 2019]
SAP (2019) Become an Intelligent Enterprise with Intelligent ERP solutions from SAPAvailable
at www.sap.com/india/products/erp.html [Accessed on 17 Sep, 2019]
Scavo, F, Newton, B& Longwell, M 2012‘Choosing between cloud and hosted ERP’
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