SBM4203: Management Information System - ERP Systems Analysis Report

This report provides a comprehensive overview of Enterprise Resource Planning (ERP) systems, examining their role in optimizing business operations. It begins with an executive summary and introduction, followed by a detailed discussion of the advantages and disadvantages of ERP systems, including cost considerations and the benefits of upgrading. The report then explores the utility of ERP in enhancing business performance and identifies top ERP brands suitable for Small and Medium Enterprises (SMEs), offering a comparative analysis of different software solutions like NetSuite, Sage Intacct, and SYSPRO. A cost-benefit analysis is also included. The conclusion summarizes the key findings and emphasizes the significance of ERP systems in modern business management, supported by relevant references.

Running head: MANAGEMENT INFORMATION SYSTEM
Management Information System
Name of the Student:
Name of University:
Author Note

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Executive Summary
The intention of this paper is to highlight the effectiveness of ERP systems. The advantages and
disadvantages of the system is diverse and vary according to the structure and requirements of
the company. The ERP system enables the companies to develop strategies and measures to aim
for success and materialize them. These aspects have been discussed in the article.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Discussion....................................................................................................................................4
 Advantages of ERP Systems:...............................................................................................5
 Disadvantages of ERP Systems:...........................................................................................5
Utility related to upgrading with ERP.........................................................................................6
Top 10 Brands offering ERP solution to SMEs...........................................................................7
Comparative Analysis..................................................................................................................9
Cost Benefit Analysis................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Introduction
There can be several benefits associated with application systems which help in
optimizing the operations of a company. A company can be small or big but these software can
be customized according to the need. Enterprise Resource Planning (ERP) help in managing and
integrating functions within a company. It is often difficult to decide which software to invest in
for managing function and enhance the system. Innovation and advancement are part of growth
process and embracing such changes will help a company to broaden its prospects. ERP system,
in an organization helps in monitoring the functions within the organization, as well as execute
plans and measures within the framework.
ERP has proved to be efficient and effective in assembling effectiveness of measures and
bring ease within the functionality. Many companies have utilized this to maximize their
production and manage expenses. ERP systems are comprehensive in nature let the companies
manage their system in effective manner.
Discussion
An ERP system allows to achieve the estimated and anticipated results in the cheapest
way possible. In order to succeed, it is important to eliminate disparate system of conduct and
adapt cohesive ways of operation. ERP systems should be chosen by the IT department of the
company according to the requirement and scale. They should conduct research to analyze the
requirements and the kind of aid and support required to implement strategies as well as optimize
performance (Tarigan and Basana 2019). The IT department is most likely to understand the
business operations and functions most perfectly and identify the areas in which support is

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needed to improve current operations. However, there are advantages as well as disadvantages
linked to ERP systems.
 Advantages of ERP Systems: Investing in ERP systems prove to be substantial as it
helps in boosting the efficiency in performance as well as unify costs of IT. This helps in
minimizing costs related to purchase of various systems and software. One software
enables the company to manage costs and investments as well as maintain a centralized
and organization framework within the company (Brehm and Schmidt 2016). This makes
sure that there is transparency and visibility within the workforce and efficiency is
enhanced. If ERP is implemented properly, production facilities and repetitive process of
manual work can be eliminated. The company will therefore be able to reach newer
heights and establish itself in the market.
 Disadvantages of ERP Systems: The software cost for companies which are not too big
can be exceedingly high. Small and medium sized companies are very precise about their
budget and plan their actions based on their feasibility (BYAHATTI . and FAISAL
2015). Spending excessively high amount of money on these software can increase
overall cost of the company operations. The software are not easy to operate and often
difficult to understand and develop proper plans for execution. The companies often need
to invest more to understand and employ experts to handle such software (Greasley and
Wang 2017). If the plan is not completely understood before implementing, it might lead
to tumultuous outcomes. Sometimes the cost of opting for these software can be
substantial investments, whereas, the cost for implementation can be higher than
expected. The cost of workforce might increase as it will require deployment of more
equipped and additional employees who are skilled to handle ERP systems and IT related

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works (Gnevanov and Sharlaimova 2019). As a result, the cost of maintenance will rise
in order to ensure proper implementation of the system. These should be taken into
account before employing an ERP system in any organization.
Utility related to upgrading with ERP
There are several examples of companies being benefitted for including ERP systems in
their organization. This allowed them to enhance their performance. ERP system centralizes their
operations, workforce and important data which are otherwise treated and dealt with manually
(Huang and Handfield 2015). When companies intend to manage their operations and improve
their function, planning of resources within the framework can come of immense benefit. It can
ease down their process of function and help in organizing disparate system of function. ERP
systems are more like assets to the companies. They help the business run efficiently providing
protection to the important information, unification of the processes and maximizing potential
for the company (Nwankpa 2015). Operations which are immediate and planned for future can
be efficiently executed and mapped.
ERP systems ensure convenience and proficiency which are otherwise hard to attain.
Information are easier to access in a system rather than browsing through manual documents.
This ensure privacy and protection to the system as well as the information. Strategic measures
can be charted out for implementation for a tenure of three to five years and regulated and
monitored which they are executed in real (Aloini et al. 2016). ERP system help in increasing
revenue outcomes. Delivery performances can be enhanced and correctional measures can be
taken for bringing necessary changes in the organizational structure. The company will be able to
evaluate the capacity of expansion and envision future prospects of the company (Bajaj and Ojha

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2016). This can help in reducing factors which function as drawbacks such as, reducing
inventories. Supply and management can be synchronized with demand and market conditions.
Top 10 Brands offering ERP solution to SMEs.
 NetSuite ERP
NetSuite is a highly scalable software which is more suitable for large scale and
fast growing business. This provides consolidated solution to the employees, starting
from the highest position in the enterprise structure to the clerical staffs. The software is
highly efficient in processes like revenue management, order management, account of
assets, inventory management and so on.
 Sage Intacct
The software is more suitable for monitoring financial management process. Sage
Intacct is a multinational enterprise which integrates finance and accounting with cloud
technology. It can be customized to enhance productivity and eradicate tedious process of
function which hinders the flow of work in an organization.
 SYSPRO
SYSRO is a software company which focuses on devising business software with
integrated application. The ERP solution which they offer to the companies bear the same
name as the company. This is competent in mapping and monitoring the manufacturing
and distribution process of a company. This proves to be worthy in organizing operations
for an organization and eliminate chances of repetition and malfunctions. This help the
companies in its operation and its growth.
 Odoo

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The software helps in unifying project management and sales and improve planning
material resources by the help of a single tool. It also helps in integrating various sales
channel and solutions for business management.
 Oracle ERP Cloud
The software provides best practices of modern times which match up to the
industry standards. It has 7 software modules which automatizes the core business
processes. This software ensures proper scalability of plans and projects and manage
risks involved. It is a highly comprehensive and cloud based solution.
 Microsoft Dynamics GP
This is an EPR platform which help the SMEs to manage their operations
efficiently. It helps in integrating finance, supply chain, operations and various other
projects. It is built mostly using the widely known features and solutions developed by
Microsoft. It enables the companies to carry out their operations faster and take decisions
which are based on evidences from its operations.
 SAP ERP
It is a widely used ERP platform which is complete in its operations and
functions. It provides access key to data and applications which are analytical. The
software also provides competitive advantage to the companies by offering robust tools to
ease down the business process. Online and Offline access, both are available for the
users with the additional combination of both, through all times.
 Epicor ERP
The company provides solution to the medium and large scale companies. It
harnesses advanced technologies to the process, which ensures access to big data,

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business analytics, mobility and utility of the internet. The functions it performs include
project management, accounting, supply chain, CRM and so on.
 Brightpearl
The company brings together solutions for management of customer data,
accounting, channels, shipment statistics and others. It efficiently integrates various e-
commerce sites like Shopify, Magneto, BigCommerce and other online market places
like eBay and Amazon.
 Sage 100 ERP
The company is recognized as the second largest company focusing on technology. It is
the largest supplier of software to other small businesses. It is also accredited as the third
largest in the world who supplies software. The software organizes and streamlines all
resources of the company using robust ERP toolkit and has exemplary features to manage
the manufacturing and inventories which are included in the operational and financial
functionality.
Comparative Analysis
It is important to choose the software or solution for Enterprise Resource Planning after
proper assessment and evaluation of the issues and future intentions. The IT department of the
company will be able to identify the areas which need assistance and ERP system to manage
(Limantara and Jingga 2017). There are various ERP platforms and systems which are available
in the market which intend to ease down operation of the companies. The Top three companies
which feature in the list are NetSuite, Sage Intacct and SYSPRO.
SYSPRO has its pricing based on number of users and software deployment whereas,
Sage has packages starting from $400 for a month for the small scale businesses which intends to

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transform and undergo change. NetSuite has plans which are customizable according to the
needs and users. The prices rise when they intend to add more modules and features to it.
NetSuite provides options for integrating Web Application and CRM. Third party
applications are also integrated with, which include Bronto, Dell, Boomi, Contivo and others.
Sage integrated with web services, development tools and PaaS. It also connects with
Salesforce.com, Paychex and Global Business Management (Sudhaman and Thangavel 2015).
On the other hand, SYSPRO operates with Web EDI and other applications like Microsoft office
and outlook.
It is very important to provide good customer service support. This ensures successful
implementation of programs and roll out. ERP comprises of a significant component of
organizational strategy, therefore, ERP providers should ensure proper support and assistance to
the companies. NetSuite offers features like training support, ticket booking, email and phone
calls. It also has a knowledge and resource center alongside a blog which provide product demos
and datasheets for assistance. SYSPRO Provides almost the same kind of customer support
which can be accessed from a resource library full of content, FAQs, newsletters, success stories
and so on. Sage Intacct, comparatively has a less resourceful customer support but can be
reached over phone calls and emails. It also has a knowledge portal from which product
information can be accessed.
Cost Benefit Analysis
Costs Benefits
Implementation Improved efficiency

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Training Better service delivery
Hardware and software Reduced redundancy
The cost of implementation can be of two types, direct and indirect. The ideas and
measures which the company intends to carry out may always not have direct implementation.
These can be ensured in some indirect ways which often increase the cost of the company.
Implementation of these strategies will increase efficiency and performance of the company
within the market. Training employees in order to make them efficient in the work that they are
supposed to do might rise expenses of the company (Jain and Sharma 2016). This includes salary
of the trainers who are employed in order to teach the trainees and employees with the right
skills to do the jobs, price of the venue and variable cost. However, this increases the chances of
delivering better services and products in the market. Investments made in training the
employees usually amount to effective results. Cost of Hardware and Software is inversely
proportional to redundancy (Parrotto and Kim 2018). A company investing in proper software
and hardware procure better means of development and hence, optimize production and
performance. ERP systems generally come under this category of expenses made by the
companies. This enhances the operation and chances of overall success.
A company intending to expand and optimize operations, can opt for NetSuite System to
develop an effective ERP. NetSuite overall provides good features and services and can be
efficient for the company intending to reduce redundancy, deliver better service and improve
efficiency.

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Conclusion
ERP has improved performance of many companies. The software which help in
developing efficient plan of action and execution, also allows to check the feasibility and success
rate. In order to choose a suitable system, requirements are to be assessed. These systems are
expensive and require high maintenance too, which are more favorable in large companies.
However, it enable a company to centrally monitor the functioning and keep track of important
data as well. Planning and execution becomes easier as it gets easier to keep track of them and
chart out measures to execute them in the company framework. ERP requires employment of
skilled and equipped engineers who are able to study and understand business statistics. These
knowledge from the software will allow the companies to make changes which are effective to
improve performance.