final tier 1 and tier 2 erp presentation
TRANSCRIPT
8/10/2019 Final Tier 1 and Tier 2 ERP Presentation
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ERP Solutions A Guide to Understanding Your Choices
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3
Objectives
'$is guide $as been copiled to provide Copan) * t$e answers to
soe pressing +uestions related to ERP, selection and ipleentation-
.$o are t$e best o( breed0 vendors and applications in t$e ERPar1et 'ier " # 2
5ow do t$ese vendors and applications ran1 against one anot$er
.$at are Copan) *6s copetitors doing
.$at so(tware selection and ipleentation approac$ could be
considered (or Copan) *
.$at 1ind o( options e7ist (or outsourcing t$e 8inance and 5R(unctions
*For purposes of this document, ERP solutions will include Financials and Human ResourcesHR! modules
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4
Vendor/Application Overview
The “Best of Breed” FinancialApplication Vendors
Vendors, Rank Total Revenue
Total Revenue ($M)
!!!
Oracle Applications 9:";;
SAP %;<3 ,
PeopleSo(t "3;; ,
=>?> Edwards c 944
@aan b <42 ,
eac SartEnterprise Solutions,, <93
Bawson So(tware 2<;
reat Plains So(tware "3%
Platinu So(tware 2&;
a! Primaril" used in themanufacturing industr"
#! Four thousand $orld installs and %&& 'ne$orld installs
* (ndicates )+ otal Re-enue
T i e r
T i e r
"
@ased on our e7perience and a recent scan o( t$e ERP environent: t$e (ollowing
application vendors are aong t$e best o( breed0 pac1ages-
The “Best of Breed” #RApplication Vendors
T i e r
" T i e r
ou a) decide to select one coon ERP s)ste (or bot$ 8inancials and 5R in order toiniiDe integration issues> 5owever: t$ere a) also be benets to selecting twodiFerent vendors (or eac$ o( t$ese areas based on t$e specic (unctionalit) re+uired>
Vendors, Rank % Total Revenu
Total Revenue
($M) !!&
Oracle A pplications 9";;
SAP %:;<3
PeopleSo(t ":3;;
=? Edwards 944
Bawson 2<;
C)borg &G
P?S 22>%
* (ndicates ) re-enue
All re-enue.gures arefor total sales, not /ust HR
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%
Vendor/Application Overview
The 'R 'nvironent
Gartner Group0 1une 2) )0 ERP 3agic 4uadrant
'$e (ollowing is a grap$ical view o( t$e ERP environent based on researc$ per(ored b) t$eartner roup t$roug$ t$e rst +uarter o( "999> artner6s latest ERP Hagic Iuandrantsurrounds vendors t$at are positioning t$eselves (or li(e a(ter t$e )ear 2;;;0 t$roug$ EJbusiness and (ront oKce initiatives>
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&
Vendor Overview
'$e ar1et dictates t$at alt$oug$ nic$eapplication pla)ers provide dept$ ineeting industr)Jspecic needs: e>g>advertising sales t$e enterpriseapplication bu)ing decision is generall)driven (ro a copan)6s operation6sdivision: w$ic$ is a1ing t$e decisions
about core EAS> '$ere(ore: traditionalEAS vendors see onl) a sall aount o(copetition (ro vendors in t$is part o(
t$e ar1et>
artnerroup J Enterprise Application 5olutions within the
3edia and Entertainment (ndustr", Perspecti-e 633E0$$07P0&8
M*' +ndustr% Ma-or 'R Vendors .e% oints
/racleL 5as t$e leading role in t$e ERP ar1et: it is one o( t$e
$eaviest verticall) integrated copaniesJ $al( o( t$e H#Ecopanies interviewed in "99G $ad selected Oracle as t$eirprovider
L !ts strengt$ depends on its reputation (or database solutionsin t$e data anageent la)er o( t$e organiDation
L !t can provide solutions and services in ultiple la)ers o(t$e edia organiDation6s ission critical business processes
L !ts databases and apps are utiliDed in content storage andanageent: content searc$ and retrieval and .ebJbasedservices developent and digitall) based enterprisestrateg) developent
eople0oftL 5as a ar1etJ(acing approac$ w$ic$ targets over a doDen
industries: $owever H#E is not one o( t$e> '$e) $aveade soe strides in t$e H#E arena w$ic$ $as largel)been dependent on t$e strengt$ o( t$e core application>
0AL 5as a true ediaJ(ocused oFeringL SAP custoers $ave traditionall) endured long
ipleentations> .$ile SAP $as (ocused on decreasing t$eoverall ipleentation tieline: t$e) will need to aster itin order to be success(ul in t$is industr)
12 'd3ardsL 5as per(ored well because t$e) are 1nown (or (ast
ipleentationsL 5as relied $eavil) on t$e strengt$ o( its inventor):
ware$ouse and product anageent applications to targett$e l and usic distribution processes o( t$e
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'ier " vs> 'ier 2
')picall) oFer ore(unctionalit) andMe7ibilit)
@etter able to supportultiJcopan): ultiJlocation and internationalre+uireents
@etter nancial andorganiDational stabilit)
Hore trained/s1illedresources in t$ear1etplace
5ave larger R#? budgets:staF and resources tobetter service custoers
'$ese vendors $ave oreature t$reeJtier clientserver arc$itecture
5ave a $istor) o(supporting t$e in(orationtec$nolog) needs o( globalorganiDations
Several outsourcingoptions e7ist (or t$esepac1ages
'$e (ollowing tables oFer an overview o( t$e strengt$s and wea1nesses o( 'ier " and 'ier 2vendors and t$eir pac1ages>
Tier 2Tier 1
0tren4ths
!ntended t is (or largercopanies
enerall) longer
ipleentation tie andore resources re+uired
Additional support staFre+uired J to aintainapplication and provideuser support
enerall) ore e7pensivet$an 'ier 2 vendors
reater (unctionalit) a)not alwa)s be use(ul orneeded
5eaknesses
'arget ar1et is generall)N"; J N";;H revenues
So(tware costs are
generall) less e7pensive enerall) s$orter
ipleentation and (ewerresources re+uired
8ewer additional supportstaF re+uired
Pac1ages are (airl) eas) tolearn and use and o(ten donot re+uire custoiDation
0tren4ths
8ewer s1illed resources int$e ar1etplace
VendorJprovided custoer
service is t)picall) wea1 Bess nancial and
organiDational stabilit)
Bess (unctionalit):Me7ibilit)
Biited support (or ultiJcopan): ultiJlocationand internationalre+uireents
ot all odules are wellintegrated into t$e ERPsuite
8ew 3rd part) productsare built to wor1 wit$ 'ier2 applications e>g>e7isting AP!6s
5eaknesses
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'ier " Strengt$s/.ea1nesses
0A
'$e (ollowing table lists soe o( t$e 1e) strengt$s and wea1nesses (or select tier "vendors>
Oracle $as accelerated serviceet$odologies
?atabase ar1et leader HediaAsset Hanageent
";; .ebJbased: userinter(ace is b) browser: (roan)w$ere
Q" ERP vendor (or CRHapplications
";; Oracle tec$nolog)Jbased good t (or Oracledatabase users
8inancials: OrderHanageent: 8rontJOKce:Projects and eJCoerceareas
8astest growing tier " vendorQ2 in sales: strong sales in>co6s
49 ar1et s$are (orapplications in t$e H#Eindustries
Bow cost entr) point:8inancials license (or N<%:;;;
5osting options t$roug$Oracle @usiness onJline
.
e a 1 n e s s e
s
S t r e n g t $ s
Created accelerated SAPet$odolog) (oripleentations wit$iniddle ar1et
";; .ebJbased: userinter(ace is b) browser
SAP $as a Hedia !ndustr)Solution currentl)> Currentl)over 3%; custoers in t$eHedia # Entertainent!ndustr)>
8ull integration between t$e8inancialAccounting/Controllingodules and logisticsodules
SAP oFers a odular s)ste:scalable: open and Me7ible:allowing copanies to tailor itspecicall) to t$eir needs
SAP oFers a variet) o( tools todevelop specic or nonJstandard reports
!ntegration to t$ird part)products is available e>g>5)perion: HS e7cel
Bogical Mow o( in(orationnavigation
OrganiDed training oFering
People@oo1s docuentationJonline access to t$e entirelibrar) o( applicationPeople'ools guides
EFectiveJdating a1esaintenance uc$ ore
eFective and eKcient All reporting can be done
wit$in PeopleSo(t
Har1et leader (or 5Rsolutions: Me7ible inter(aceswit$ Ceridian and A?P
PeopeSo(t Select enablessaller copanies to realiDerapid ipleentation
Entertainent ar1et leadere>g> studio productions andusic
One .orld is (ull) webJenabled
Ver) strong suppl) c$ainanageent and distributionsolutions
Rapid ipleentation c)cles
Easil) ipleented
Ver) Me7ible a(ter initialipleentation
E7cellent nancial(unctionalit)
'rue integration o( allodules
Strong report writer
One .orld is a (ull)integrated: plat(or
independent solution
12 'd3ardseople0oft
o specic vertical solution (ort$e Hedia and Entertainentindustr)
Cople7 database structure
Bac1 o( strong services ar tosupport +ualit) products
?iKcult to custoiDe
ot userJ(riendl)
Old version supported (or onl)"G ont$s a(ter t$e newversion is released
CostJ initial investent:ongoing support
Cople7 table structure
Bac1 o( vertical (ocus on t$eHedia # Entertainent space
Bac1 o( ar1eting eFort toproote ar1et position andsolution strengt$s
One .orld relativel) newonl) &;; installs
/racle
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'ier 2 Strengt$s/.ea1nesses
'$e (ollowing table lists soe o( t$e 1e) strengt$s and wea1nesses (or select tier 2vendors>
Starting to ove upar1et creating a orerobust and coplete ERP
Ac+uisition o( !COtrol !nc>anu(acturing and 5uanresources so(tware toincrease its suite o(solutions
5ig$ volue o(installations on Hicroso(tSIB Server
OFers two t)pes o(solutions- a BAJbasedPervasive/ @trieve s)steor a client/server s)ste
Vast nuber o( reports:w$ic$ can be altered wit$eas)JtoJuse lters
?o not $ave t$e R#? tocreate vertical solutions:t$ere(ore t$e) do notspecialiDe in particularindustries or ar1et nic$e
?iKculties to upgrade(ro BAJbased s)ste toa client/server s)ste
Support servicese7clusivel) via VAR: notreliable
6reat lains Starting to ove up
ar1et creating a orerobust and coplete ERPpac1age
?o not $ave t$e R#? tocreate vertical solutions:t$ere(or t$e) do notspecialiDe in particularindustries or ar1etnic$e
latinu OFers several nancial
pac1ages at various pricepoints
?istinct BA andClient/Server products
'argeting publicJsectorand services verticals (ornew SartStrea sales
Barge BA custoer base
Bac1 o( developent overpast couple o( )ears>Strateg) unclear as itrelates to recentac+uisitions>
6'A7
. e a 1 n e s s e s
S t r e n
g t $ s
2% )ear old copan) wit$large devoted install baset$at will result in (re+uentupgrades
Solid overall pac1age t$atts ost (unctional needs
5istor) o( troubleJ(reeipleentations
Copre$ensive 5Rodule (eatures Anal)tics:@enets Adinistration:Copensation and 'urnover Hanageent
?edicated vertical (ocuson service organiDationswit$ strong re(erenceclients
Code not easil)custoiDable
enerall) ore e7pensivet$an ot$er 'ier 2pac1ages
8a3son
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'ier 2 Strengt$s/.ea1nessescontinued
'$e (ollowing table lists soe o( t$e 1e) strengt$s and wea1nesses (or 5R onl)>
.eb J ?eplo)able
Proling and Hodelingdata via builtJinreporting (eatures
Pa)roll inter(ace toe7tract data (ro 5Rand @enets database
Securit) proles
restrict/allow accessdown to eld level
Sall copan) J N2%illion
Report writers areavailable at additionalcost
20 !protu and
Powerpla) Report.riters available
OnJBinedocuentation
Screen la)outs to(acilitate conversion
?elivered reporting
and decision support(or odelingcapabilities include-salar) budgeting:Me7ible benetenrollent
L Relativel) sallcopan)
7%or4
. e a 1 n e s s e s
S t r e n
g t $ s
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6eneral +nforation9Tier
Vendor:Application 0tatistics /racle eople0oft 0A 12 'd3ards
"> Application ae Oracle Applications 8inancialHanageent/ 5RHS
R/ 3 One .orld
2>
Current Version "">;3 <>% Rel>G in I2: 2;;; 4>&@ <>3>3>"
3> ears in business G "2 incorporated in "9G< 2< 2%
4> Annual revenues N 9:";; H N":3;; H N%:;<3 H One .orld
%>
8inancial stabilit) Public Public Public Public
&> uber o( eplo)ees / A &;;; "9:3;& %;;;
<>
uber o( installations <:;;; 3;;; custoers Appro7> 2;:;;;total client base ";:;;;
appro7> &;;'ne$orld onl)total client base 4:;;;
G> 8re+uenc) o( upgrades e7t release- ""i: Harc$ 2;;; "2J"G ont$s between ajorreleases
Hajor release ever) & to 9ont$s>
Hajor Release ever) si7ont$s
9>
Operating s)ste plat(or Tni7: ' All '/ SIB or T!*/ ORACBE ABB
";>
Prograing language Oracle ?eveloper Various E7cellentdevelopent toolset
APA@/ 4 Various: E7cellent?evelopent toolset
"">
Cost- overall one tie
application
N 4 U %/ active user: readJonl)
users at uc$ less Hiniu
cost o( N &;
N ";; J N";H NG; J N";H / A
"2>
Support $ours # t)pe o( support
Tp to < * 24: $otline or online 24/ < lobal Support Centerp$one: Custoer
Connection web
Various options o( local:$otline and onJline support
up to 24/ <>
Various options o( local and$otline support up to 24/ <
"3>
'raining Support 'raining in all locations:
ultiple (orats
!nstructorJled endJuser and
tec$ training onsite options
available
es ES
"4>
OKce location C and ever) ot$er ajor cit)5I in San 8rancisco: CA
lobal 'eanec1: = is localoKce
Several oKce locationsincluding Hana$attan and
Parsippan): ew =erse)
lobal: Rut$er(ord = is localoKce
"%>
Vertical SolutionJHedia o Counications: Retail: and
Service !ndustr) solutions
8ull) !ntegrated: SAP Hedia 8ull) integrated
Vendor/Application Overview
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Vendor/Application Overview
Vendor:Application 0tatistics 6reat (lains 8a3son (latinu) 6'A7
">
Application ae ?)naics C/ S !nsig$t !! Platinu ERA SartStrea,: Hillenniu Series:
E7pert Series: Clarus
2> Current Version ?)naics %>% !nsig$t !! ABB'A*
3> ears in business "G 2% "% 3;
4> Annual revenues "34>9 Hillion scal W99 N2<; Hillion scal X99 N2&; Hillion pro (ora "999 <93 Hillion scal 699
%> 8inancial stabilit) Public Copan) Private Copan) Public Copan) Public Copan)
&> uber o( eplo)ees ";;; Over ":<;; Over ":&;;
<>
uber o( installations "<:;;; custoers 2:%;; custoers 4:;;; custoers 3:%;; custoers worldwide
G> 8re+uenc) o( upgrades / A / A / A / A
9> Operating s)ste plat(or .indows ' .indows ' .indows ' .indows ': Tni7: !!P: A!*:Solaris
";> Prograing language C =ava: HS Active*: Botus ?oino:
=ave Script 5'HB
V@A CO@OB # c/ c
""> Cost- overall one tie application N3;:;;; U N";;:;;; / A N<%:;;;J N23;:;;; N%;:;;; JN2%;:;;;
"2> Support $ours # t)pe o( support Varies depending on custoerselection
/ A Online: telep$one: or (a7supportJ 24/ < support
AppCare: ValuCare:PrieCare: Answerlin1
Electronic Support #lobal Custoer A ccess
Bine 'elep$one SupportJ
24 $ours/ < da)s a wee1
"3> 'raining Support reat Plains Tniversit) / A ?ublin: !reland !rvine:
Cali(ornia and S)dne):
Australia: Epicor
/ A
"4> OKce location ort$ ?a1ota TS location H inneapolis and Bondon 5 ead+uarters-
!rvine: Cali(ornia
5ead+uarters- Har1$a:
Canada
Jore t$an 9; oKces in "&
countries
"%>
Vertical Solution J Hedia O/ A Oo Ces Oo
6eneral +nforation9 Tier "
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/ne5orld 9 12'd3ards
/racle Applications
/ne5orld 9 12'd3ards
0AR:;
eople0oft
Vendor 9 'Rs%stes
/racle Applications
" ; < =
Functionalit% 9 'R s%stes " ; < =
eople0oft
0A R:;
/verall ratin4s 9 'Rs%stes
e5orld 9 12 'd3ards
/racle Applications
" ; < =eople0o
ft
0A R:;
>ser erceptions
'as% to use 9 'R s%stes
/ne5orld 9 12'd3ards
/racleApplications
" ; < =eople0
oft
0A R:;
Vendor/Application Overview
Key * ) 09owest 5core, : Highest 5core*his information was compiled #" 7ata Research 7PU, andwas ta;en from e-alu+it<com, a we#site where users rate-arious s"stems< his information has not #een ta#ulated ormaintained #" Arthur Andersen 99P>* 'nl" a few of these -endors ha-e #een included in our presentation< All tier ) -endors included in our presentationcan #e found in these graphs
'$ese ran1ings are based purel) on custoer (eedbac1> '$e ve categories- Overall Ratings:8unctionalit):Value (or Hone): Ease o( Tse and Overall Vendor are t$e basic indicators (orcustoer satis(action wit$ so(tware applications>
ne5orld 9 12 'd3ards
Value for one% 9 'R s%stes
eople0oft
/racleApplications
" ; < =
0A R:;
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Selection # !pleentationApproac$
Y Selection / 8it Anal)sis process J preJselect two vendors
R8P (or copetitive bid
Re(erences
?eo
Y Rapid !pleentation Approac$
?eterine breadt$ and dept$ o( odules/(unctionalit) to be ipleentedwit$in * ont$s
Hinial: i( an): custoiDations
?eterine copan) resources available to assist/ Wown6 application
Y Resource Support
!' resources are dependent upon vendor pac1ages/developent tools enerall): database: application and developent s1ills ust reside wit$in
organiDation i( aintained inJ$ouse
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Outsourcing Alternatives
Advantages and disadvantages of an Application Service Provider (ASP)
ASPs $ave an) advantages and disadvantages: depending on acopan)6s business strateg)>
Advantages include t$e (ollowing-
8aster rapJup tie
Bower ongoing total cost o( owners$ip
!ndustr)Jspecic ipleentations E7tensive Zteplating0
Ongoing access to s1illed resources
Siplied and predictable pricing- subscription: usage: andvolueJbased
o up(ront capital costs
Access to (ull c)cle applicationservices
E7tensive teplating0
Access to current tec$nolog)
?isadvantages include t$e (ollowing-
Bess business diFerentiation based on business processes
Boss o( business process and application Me7ibilit)
C$anges to business processes or application custoiDation areincreental costs
'ransitioning (ro one ASP to anot$er can be diKcult and e7pensive
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Outsourcing Alternatives
A0 /utsourcin4 0uar%
!n general: advantages o( an ASP (ocus on speed and lower total cost o(owners$ip w$ere as t$e disadvantages (ocus on loss o( control and Me7ibilit)>Copanies w$o are considering oving to an ASP ust consider t$e value t$e)place on control and Me7ibilit) o( t$eir business processes and applications>ASP6s can be an eFective strateg) to anaging enterprise business applicationsand/or business processes as long as t$is approac$ is consistent wit$ t$e
business strateg)> Copanies w$ic$ use t$eir business processes to diFerentiatet$eselves in t$e ar1et place s$ould be cautious in oving to an ASP>
A coon isconception b) copanies oving to an ASP is t$at t$e copan)no longer needs to be involved> '$is is a ajor ista1e on t$e copan)6s part>An) outsourcing relations$ip ust $ave soeone assigned (ro t$e copan)6s
organiDation to anage t$e ASP> '$is anageent activit) s$ould includeestablis$ing and onitoring service level agreeents to ensure t$e ASP isproviding t$e level o( service agreed to in t$e contract> '$e copan) anagerust also onitor and trac1 t$e nuber o( c$ange orders and wor1 re+uestedbe)ond t$e scope o( t$e contract w$ic$ t$e outsourcer will c$arge t$e copan)(or under a series o( c$ange orders> '$e outsourcer will need a single point o(contact wit$in t$e client organiDation to (ull t$e copan)6s obligations under t$eoutsourcing agreeent as well>
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Outsourcing Alternatives
Value of Functions /utsourced
L !ndependent process and reportingL @etter resource allocation and leverage o( over$eadL Read) access to s1illed resources and intellectual capitalL Scalable and Me7ible tec$nolog)L Standard $ig$ +ualit) 8#A processes
L Cross trained: 1nowledgeJbased wor1 teasL CentraliDed tec$nical $elp des1
L 5ouses nancial applications ERP in a secure tec$nicalenvironent
L !nternet/intranet browser based solutionL Siplied !' anageent so(tware upgrades
L Standard: $ig$ +ualit) tec$nical services
ValueResponsiilit%
Unique Transactions
Process & Reporting
L 8rees anageent to (ocus on strategic issuesL Custoer service/supplier orientation to 8#AL Supported b) independent $ig$l) s1illed business anal)st
and subject atter e7perts
L Hitigates resource availabilit) and turnover ris1 in localecono)
StrategicManagement
Reporting
Analysis
F&A
Subject
Matter
Expertise
Technology n!rastructure Management
Applications Management
Transaction Processing
'$ere are an) c$oices available (or outsourcing> 8or e7aple: soe outsource providers can oFer services t$at range (ro providingsubject atter e7perts to anaging a tec$nolog) in(rastructure> Ot$er outsource providers a) be liited to onl) certain areas> 8ore7aple: t$e ERP vendors generall) provide application anageent and/or tec$nolog) in(rastructure anageent and do not providebusiness process outsourcing> '$e (ollowing provides t$e values associated wit$ eac$ o( t$e various areas t$at a) be outsourced>
'RA0
+T/
Businessrocess
/utsourcin4
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Outsourcing Alternatives
/ption A Business /n98ine (B/8)
Pa) (or licenses
Rent $osting service separatel) at N&9%/user/ont$
/ption B Applications “Rental” throu4h B/8
N ";:%;;/ont$ (or "; users
" J 3 )ear contract including- licenses: ?@A support: G;;Jnuber application support:teleco: installation and service level agreeent
5osting Conguration- @OB o[oads all tec$nolog) support (ro t$e client: rig$t up tot$e entrance to t$e local BA>
Oracle?atabase
Client Facility
BOL Provides
G/LG/L
A/R A/R
A/PA/P
H/R H/R
BISBIS
User Provides
RouterRouter 8A?
Bro3seron 7
5A?
?edicated
Server
/racle
Applications Management
Technology n!rastructure Management
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Outsourcing Alternatives
eople0oft
PeopleSo(t understands t$at not all organiDations want to invest substantial resources toac+uire t$e talent: 1nowledge: and s1ills needed to deliver all t)pes o( services internall)>PeopleSo(t and t$eir Certied Outsourcing Partners provide a variet) o( outsourcingsolutions>
7orio provides enterprise application subscription and anageent solutions (or idJar1et copanies> Capabilities include secure $osting: <724Jcustoer care: and ongoingapplication anageent support> An Application Service Provider ASP: Corio is bac1ed b)leiner Per1ins and its PC@ =ava 8und>
re0/>R7' ART?'R (r0) provides sealess: endJtoJend outsourcing solutions (or idJ
siDed and large corporations in a variet) o( industries> rSP $as been success(ull)outsourcing PeopleSo(tXs 5uan Resources 5R Hanageent applications since "99&: andalso supports t$e nancial application> reSOTRCE PAR'ERXs outsourcing odel includesintegration: e7tensive application anageent: and transaction processing services Jper(ored in tande wit$ rSPXs copre$ensive !' in(rastructure> '$e underl)ing !'in(rastructure includes- data center and networ1 services: $osting: and E?!> reSOTRCEPAR'ERXs uni+ue Solutions Center is a stateJo(Jt$eJart (acilit) dedicated to t$e PeopleSo(tPractice> rSPXs 5R and 8inancial business process e7perts are available at t$e SolutionsCenter to consult wit$ clients on a dail) basis> '$is Center provides a single point o( contact(or all PeopleSo(tJrelated services and support>
>0internet3orkin4: an Application Service Provider ASP: will oFer .ebJenabledapplications services using its !nternet Hanaged Application Port(olioSH iHAP> '$e copan)also delivers and anages !nternetJbased outsourcing solutions (or custoer service andsales (orce autoation: data ware$ouse and electronic coerce>
Applications Management
Technology n!rastructure Management
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Outsourcing Alternatives
0A R:;8or sall and ediuJsiDed copanies in particular: outsourcing services in connection wit$ t$e use o( t$e SAP S)ste is a costJ
eFective: eKcient alternative (or ta1ing advantage o( odern !' solutions> !n addition to traditionall) outsourced !' services des1topanageent: plat(or operation: networ1 anageent: outsourcing o( SAP so(tware services is now growing in iportance> SAPXscertied Outsourcing Partners provide services (or )our SAP Solution w$ile acting as a liaison between users and SAP>
Bene@ts '$e benets t$at a sall or ediuJsiDed copan) can derive (ro outsourcing are obvious-J Concentration on core business processes- !t is not necessar) to invest a great deal o( tie and one) in ac+uiring specialiDed e7pertise
(or t$e operation o( t$e R/3 S)ste instead: eplo)ees are (reed to concentrate on core business processes>J reater Me7ibilit)- '$e copan)Xs !' organiDation gains greater Me7ibilit): depending on t$e t)pe and scope o( outsourcing>J @oosting per(orance- 5ig$J+ualit) services (ro specialists boost per(orance o( t$e relevant processes>J StateJo(Jt$eJart services- '$e custoer enjo)s stateJo(Jt$eJart services: owing to t$e tec$nological copetence o( SAPXs outsourcing
partners and SAP>J E7cellent value (or one)- '$e custoer gets e7cellent value (or one) b) leveraging t$e s)nergies oFered b) SAPXs Outsourcing
Partners>
The 0A /utsourcin4 ro4ra SAP $as tailored an outsourcing progra to benet custoers>
ualit% Assurance throu4h7ooperation 3ith 0A SAP runs an Outsourcing Certication Progra to support and train copaniest$at want to oFer R/3 related services as SAP Outsourcing Partners>
/utsourcin4 0ervices 0upported % 0A SAP Outsourcing Partners receive special assistance (ro SAPXs Service # SupportOrganiDation>
rice and 8icensin4 Models .it$in t$e scope o( t$is progra: SAP oFers its Outsourcing Partners attractive price and licensing odelst$at eet t$e particular re+uireents o( t$e outsourcing ar1et>
+pulses for roduct 2evelopent '$e SAP Outsourcing Progra includes a plat(or designed to ensure t$at e7perience Mows (ropractical outsourcing wor1 bac1 into ongoing product developent eForts at SAP>
#i4h9ualit% 0ervices '$e certication o( SAPXs Outsourcing Partners gives custoers t$e securit) o( rel)ing on $ig$J+ualit)outsourcing services approved b) SAP> 8urt$erore: it $elps t$e assess w$at is available in t$e ar1et> '$is iniiDes ris1s w$ileletting custoers operate t$eir R/3 S)ste wit$ ZBowest Cost o( Owners$ipZ>
0A R:; A 0afe +nvestentaturall): R/3 users: especiall) in sall or ediuJsiDed copanies: will also prot (ro t$e continuous developent o( t$e R/3 so(tware>
'$e R/3 S)ste is read) (or t$e euro: (ull) ear 2;;; copliant: and is e+uipped (or eJcoerce on t$e !nternet> '$e R/3 S)ste can beeasil) custoiDed to eet a copan)Xs uni+ue needs: no atter $ow large or sall it is> 'oget$er wit$ t$e Service # Support oFerings o(SAPXs Outsourcin Partners and SAP itsel(: t$is sa(e uards custoersX investent into t$e R/3 S ste on a lon Jter basis>
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Outsourcing Alternatives
12 'd3ards
8or soe organiDations: it a1es sense to let soeone else $andle )our !' applicationenvironent: (reeing up tie and resources (or )ou to (ocus on w$at )ou do best- running )ourbusiness> =>?> Edwards6 ERP Outsourcing lets )ou (ocus on )our strategic business initiativesw$ile providing )our organiDation wit$ pro(essionall) anaged: networ1 delivered enterpriseso(tware applications>
.$en )ou subscribe to ERP Outsourcing: )our organiDation gains access to =>?> Edwardsapplication suites over a secure networ1 lin1 to an oFJsite coputer center> '$is Zsinglecontact: single contractZ solution provides )ou wit$ continuous s)ste and application support>.it$ ERP Outsourcing: )ou get t$e benets o( =>?> Edwards enterprise so(tware (or a 7ed:
ont$l) perJuser (ee: w$ile avoiding t$e $eadac$es o( !' s)ste anageent and operations>
.it$ ERP Outsourcing: )ou can e7pect-
5elp (ro +ualied (unctional specialists: eliinating )our !' staF s$ortage worries
Predictable: scalable costs: w$ic$ iproves !' nancial anageent
Signicantl) less upJ(ront capital investent
RoundJt$eJcloc1 operations and custoer support
'$e abilit) to avoid s1ill and tec$nolog) obsolescence
Applications Management
Technology n!rastructure Management
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Appendi7
Bud4et Module 2ata
ro-ect Mana4eent 2ata
?e3 Release 2ata
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@udget HoduleOracle
'$e (ollowing pages detail soe specic (unctionalit) o( t$e @udgeting odule b) tier " vendors>Oracle eneral Bedger gives )ou a variet) o( tools to create: aintain: and trac1 )our budgets: including t$e abilit) to upload budget
aounts (ro )our spreads$eet so(tware> !( )ou $ave Hicroso(t E7cel: )ou can use B ?es1top !ntegrator to create budget spreads$eets inE7cel: view and odi() )our budget in(oration: t$en upload revised budget in(oration to eneral Bedger autoaticall) (ro t$osespreads$eets>
eneral Bedger budgeting (unctionalit) includes t$e (ollowing-
"> ?ene a budget to represent specic estiated cost and revenue aounts (or a range o( accounting periods> ou can create as an)budget versions as )ou need (or a set o( boo1s>
2> ?ene budget organiDations to represent t$e departents: cost centers: divisions: or ot$er groups (or w$ic$ )ou enter and aintainbudget data>
3> Entering budget aounts> '$ere are several et$ods )ou can use to enter )our budget aounts-Cop) budget aounts (ro an e7isting
budget>− Enter aounts directl) into t$e budget: replacing an) e7isting budget aounts> ou can also use budget rules to calculate and
distribute aounts autoaticall) across several periods>
− Create and post budget journal entries to aintain an audit trail o( )our budget entries>
− ?ene budget (orulas to calculate budgets based on ot$er budget aounts or on actual account balances>
− ?ene Hass@udget (orulas to allocate revenues and e7penses across a group o( cost centers: departents: or divisions>
− 'rans(er budget aounts (ro one account to anot$er>
− Create a Hicroso(t E7cel budget spreads$eet using t$e B ?es1top !ntegrator6s @udget .iDard: and upload t$e budget in(orationinto t$e B>
− Tpload budget aounts (ro t$e budget inter(ace table>
4> Calculate budget aounts to update budget balances (ro )our budget and Hass@udget (orulas>
%> Per(or online in+uiries to review budget in(oration>
&> Tse t$e 8inancial Stateent enerator to design a wide variet) o( reports t$at include budget in(oration> '$ese reports can includebudget: actual: variance and variance percentage aounts>
<> ?ene and run a consolidation to consolidate budget balances between sets o( boo1s>
G> 8reeDe )our budgets to prevent accidental or unaut$oriDed c$anges> ou can (reeDe a part or all o( a budget>
9> 'ranslate budget balances to create budget versus actual reports in )our reporting currenc) using t$e 8inancial Stateent enerator>
8or added budgeting and anal)sis (unctionalit) )ou can use Oracle6s 8inancial Anal)Der product> 8inancial Anal)Der is a distributedapplication (or nancial reporting: anal)sis: budgeting: and planning> @) integrating a central source o( anageent data wit$ power(ulanal)tical tools: t$e s)ste enables organiDations to eet t$eir critical nancial objectivesYto control costs: anal)De per(orance:
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@udget HodulePeopleSo(t
@udget HodulePeopleSo(t
7oprehensive Bud4etin4 'nvironentPrepare: review: and approve budgets in a coon: secure budgeting environent>
Fleile 0%ste 2esi4nHanage t$e Mow o( budget data according to )our organiDationXs needs>
Roust /8A 'n4ine Cobine data (ro essential ledgers wit$ data rules to control budget developent>
7entraliCed 2ata 0tora4eEnsure consistenc): securit): and control b) entering and anaging budgeting data in a centraliDed: relational database>
0trealined, 5orkDo39'naled rocessesAutoaticall) grant access to budget data: send notications to t$ose w$o prepare and review budgets: and update t$e status o( t$ebudget c)cle>
'nhanced Multicurrenc% Trackin4Convert to and (ro ultiple currencies: using realtie translation>
Multiple 'dit and >pdate ToolsConvenientl) c$ange and update budget ledger data directl) in t$e database: saving )ou tie>
Full% +nte4rated 'nterprise 0olution
!ncorporate in(oration (ro copleentar) PeopleSo(t applications> Create projectJbased budgets using data (ro PeopleSo(t Projects:(or e7aple>
PeopleSo(t @udgets odule leverages t$e power o( online anal)tical processing OBAP to $elp create budgets t$at are accurate:eaning(ul: and t$oroug$>
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@udget Hodule =? Edwards
=>?> Edwards 8inancial Hodeling and @udgeting gives )ou t$e in(oration )ou need to a1e realistic plans and budgets>.$et$er )ouXre a1ing longJrange plans t$at re+uire $ig$Jlevel Zw$at i(Z projections or s$ortJter (orecasts t$at need projectJlevel budgets: t$is s)ste a1es it eas)> Capabilities allow )ou to-
Y @udget at an) level on )our c$art o( accounts JJ product level: business unit level: ajor categor) o( account: or specicaccount
Y Autoaticall) update t$e budget wit$ $ot lin1s (ro spreads$eet progras
Y View actualJtoJbudget gures on a )earJtoJdate or periodJtoJdate basis: or an) ot$er tie (rae
Y Convert enterprise budgets into )our (unctional currenc)
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Project HanageentOracle
'$e (ollowing pages detail soe specic (unctionalit) o( t$e Project Hanageent odule b) t$etier " vendors>Oracle Projects is a central part o( t$e coplete so(tware solution (or projectUoriented copanies: providing )ou wit$ a Me7ible approac$to dening and structuring projects: tas1s: and budgets b) w$ic$ to onitor project status>
Oracle Projects consists o( t$ree products-− Oracle Project Costing− Oracle Project @illing− Oracle Personal 'ie and E7pense
/racle ro-ect 7ostin4 Provides )ou wit$ t$e abilit) to dene projects: wor1 brea1down structures: and budgets record and reportcosts against projects and integrate wit$ ot$er Oracle Applications: including Oracle Purc$asing: Oracle Pa)ables: Oracle eneral Bedger:and Oracle Assets to account (or costs>
/racle ro-ect Billin4 Provides )ou wit$ t$e abilit) to dene revenue and invoicing rules (or )our projects generate revenue createinvoices and integrate wit$ ot$er Oracle Applications to process revenue and invoices> Oracle Project @illing includes all o( t$e(unctionalit) o( Oracle Project Costing and additionall) integrates wit$ Oracle Receivables>
/racle ersonal Tie and 'pense Ha1es it eas) (or )our eplo)ees to record and subit t$eir tiecards and e7pense reports:w$et$er t$e) are in )our oKce or on t$e road> Tsing t$e ?isconnect Client tec$nolog) o( Oracle Power Objects: labor and e7pense detailsare collected in a @laDe database on t$e eplo)ee6s PC or noteboo1 coputer: and uploaded into t$e Oracle Projects !nter(ace 'able att$e end o( t$e tie period> Oracle Personal 'ie and E7pense is copletel) integrated wit$ Oracle Project Costing and Oracle Project@illing: to provide a coplete cost collection and billing solution (or projectUdriven organiDations>
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Project HanageentPeopleSo(t
PeopleSo(t Project Hanageent is an integrated suite o( enterprise applications designed to a7iiDe t$e protabilit) o( )our projects> @)cobining all project data into a single repositor): )ou gain eas) access to critical in(oration>
PeopleSo(t Project Hanageent $elps )ou-
— !denti() and capture all project costs: (ro initial estiates t$roug$ actuals
— Hanage all resources associated wit$ eac$ jobJJeven in ultiple sites: countries: and languages
— 'rac1 aterials: labor: and over$eadJJto sta) on tie and budget
— Calculate nancial indicators related to billing: sales: earnings: interest: per(orance: and copleted projects
— View upJtoJt$eJinute project status and +uic1l) respond to issues>
+nte4rate Eour ro-ect Mana4eent Across the 'nterprise
PeopleSo(t Project Hanageent integrates a wide range o( PeopleSo(t applications: as well as t$ird part) project anageent s)stes:providing a true enterpriseJwide solution (or )our project anageent> PeopleSo(t Project Hanageent is a centraliDed repositor) (orprojectJoriented nancial: distribution: and labor in(oration> Our solution includes t$e (ollowing odules- PeopleSo(t Projects: PeopleSo(tPurc$asing: PeopleSo(t Pa)ables: PeopleSo(t E7penses: PeopleSo(t Asset Hanageent: PeopleSo(t !nventor): PeopleSo(t 'ie and Babor:PeopleSo(t Pa)roll: PeopleSo(t @udgets>
Maintain ro-ect +nforation 3ith 'asePeopleSo(t Project Hanageent iniiDes data entr): strealines t$e addition and aintenance o( projects: and provides continuousupdates o( project status: project sc$edules: and costs>
+prove 2ecision9Makin4 throu4h 0trate4ic Anal%sis
PeopleSo(t Project Hanageent provides )ou wit$ t$e nancial tools to a1e strategic decisions> 0RollJupZ capabilit) enables anagers toanal)De business projects b) ultiple diensionsJJcustoer: geograp$): industr): business unit: etc> Z.$atJi(Z scenarios enable )ou toevaluate t$e nancial ipact o( various business conditions: suc$ as reorganiDation: erger: ac+uisition: or divestiture>
'stalish Accurate ro-ect Bud4ets
PeopleSo(t Project Hanageent incorporates PeopleSo(t @udgets to strealine )our project budgeting process> .$et$er )ou need toprepare cople7: ulticurrenc) budgets: or anage an establis$ed budget: )ouXre in control o( )our nancial operations> ou canleverage $istorical budgets and project data to create ore accurate budgets>
Bill for All ro-ect 7ostsPeopleSo(t Project Hanageent leverages PeopleSo(t @illing as a solid Zbilling engineZ (or projectJdriven organiDations> !prove cas$ Mowb) creating ore accuratel) billed ites> Accelerate t$e billing process t$roug$ autoation: suc$ as electronic data interc$ange E?!:
and counicate t$e cost ites o( t$e project to )our clients t$roug$ eas)JtoJread invoices>
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Project HanageentSAP
Project objects and business areas involved (or a ultiJ(aceted networ1: o( w$ic$ project anageent is one part> '$e SAP R/3 ProjectS)ste PS atc$es t$is networ1 o( relations$ips b) peritting an) lin1 )ou need between project anageent and coercial
in(oration processing> Project planning and control becoe an integral part o( )our business organiDation and anageent regies> '$ecopre$ensive (unctions available in t$e SAP R/3 S)ste guarantee reliable support during all p$ases o( an underta1ing and eet t$ere+uireents t)pical o( projects o( all t)pes: $owever cople7>
ou can use t$e Project S)ste in an) diFerent areas: suc$ as-Y !nvestent anageentY Har1etingY So(tware and consulting servicesY Researc$ and developentY Haintenance tas1s: s$utdown planning
Y Plant engineering and constructionY Cople7 a1eJtoJorder production
5ork Breakdo3n 0tructures '$e central structures in t$e Project S)ste are wor1 brea1down structures .@S and networ1s: wit$ t$eir attendant activities andilestones> ou can also use t$ese structures in conjunction wit$ sales orders (or sales and distribution: and wit$ @OHs (or production andprocureent: to odel cople7 projects in t$e s)ste>
7ost, revenue, @nancial, schedule, and resource ana4eent ou can use t$e Project S)steXs grap$ical inter(ace to create structures +uic1l) and easil)> Cost and sc$edule planning becoes orerened as t$e project becoes ore detailed> !ntegration wit$ ot$er odules in t$e SAP R/3 S)ste enables )ou: (or e7aple: to planresources in cooperation wit$ Purc$asing: !nventor) Hanageent: and Haterial Re+uireents Planning> ou can assign $uan resourcesb) individual eplo)ee or b) group> '$e Project S)ste c$ec1s and onitors availabilit) o( (unds: capacities: and aterials: ensuring t$att$ere is enoug$ o( eac$ (or t$e project to be carried out> ou can restrict and control project e7penditure using t$e tools (or approving andreleasing project budgets>
ro-ect inforation s%ste '$roug$out project processing: t$e s)ste oFers a Me7ible: $ig$Jper(orance in(oration s)ste: w$ic$ lets )ou tailor t$e la)out anddegree o( detail o( reports to suit )our own re+uireents> Bistings and grap$ical anal)ses suppl) all t$e in(oration )ou need on t$ebudget: planned and actual costs: revenues: coitents: pa)ents received and ade: sc$edules: and resources> Standard inter(acesprovide t$e twoJwa) counications base re+uired (or (urt$er planning and calculations in additional s)stes and at local level>
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Project Hanageent =? Edwards
=>?> Edwards delivers (ull projectJc)cle anageent: (ro covering a projectXs adinistrative and logistical projectre+uireents to trac1ing and controlling costs> '$is is accoplis$ed t$roug$ t$e project anageent suite o( applications:
w$ic$ includes (unctionalit) (or subcontract anageent job costing: c$ange anageent and contract and service billing>
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ew Release ?ataOracle
'$e ERP vendors are continuousl) updating t$eir applications> '$e newest release in(oration (oreac$ o( t$e ajor ERP vendors is included on t$e (ollowing pages>
Oracle version ""i is to be released Spring: 2;;;> '$e (ollowing (eatures and en$anceents will be included in t$is release>
− ew user inter(ace to iprove ease o( use utiliDes ore tabs and better grouping o( data: allows users to reove options (rot$e screens i( not needed
− Order Entr) is rewritten to support (ast Order Entr) (or better @/C support: plus an) (unctional iproveents
− !nternet Procureent will be copleted> Huc$ o( t$is e7ists now: but t$e coponents are basic purc$asing odule: sel( servicere+uisitions: catalog (unctionalit) wit$ an advanced searc$ engine: @usiness !ntelligence S)ste @!S (or procureent: .ebsuppliers: and t$e Oracle E7c$ange 3;; vendors: online and signed up to bid on reverse auctions: R8PXs and will a1ecatalogues available t$ru internet lin1s
−
Advanced Planning and Sc$eduling t$is is a constraints Jbased tool (or anu(acturing and distribution copanies: supportingplanning bot$ inside t$e plant and interJplant>
− !proveents to t$e @usiness !ntelligence S)stes @!S w$ic$ provides a reporting and onitoring Zdas$boardZ (or operational:anageent and e7ecutive users> @!S solutions (or 8inancials: Procureent: Operations: and 5/R> '$is includes cannedZ@usiness ViewsZ into t$e database: based upon best practices> @!S is a webJbased tool>
− !proveents to 8inancials to better enable globaliDation> '$is is being done in part because t$e arc$itecture allows copaniesto run a ver) large : ulti copan): ultiJsite: ulti>>>>> enterprise (ro one instance o( t$e s)ste>
− CRH\\ Oracle $as G;; developers wor1ing on t$e (ront oKce applications> '$e) $ave a ver) coplete vesion: but current(unctionalit) $as soe large $oles> Release ""i lls an) o( t$e $oles and delivers a ver) strong (ront oKce suite> 3;individual odules bro1en down into (our categories Har1eting: Sales: Service and Call Center
− $e#0ena#led= Release "" current version is a 3 tiered arc$tecture> '$e logic w$ic$ used to be largel) on t$e PC in t$e ZclientJserverZ version: $as been oved to t$e iddle tier: or Application Server> '$is leaves onl) a ver) t$in client: w$ic$ $andles t$edispla) (unctions> '$is client so(tware is basicall) a browser: and it can run on !nternet E7plorer or on etscape> !n our currentipleentations we ipleent new users b) sending t$e an eJail wit$ t$e browser and t$e rig$t pointer to t$e applicationloaded up> '$e) just double clic1 and t$e) are read)> '$ere is no Oracle so(tware to be loaded on t$e client PC> '$at is w$at iseant b) ";; web enabled> All o( t$e Oracle applications run t$at wa)> ou can run t$is over )our own networ1: or dial in wit$)our browser (ro $oe or a reote oKce> '$e Zsel( serviceZ applications run t$e sae wa): but t$e screens are designed (ort$e ZnonJsubscriberZ> '$is eans t$at no training is re+uired and it supports ver) siple (unctions (or an)one to use>
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ew Release ?ataSAP
Version 4>& is sc$eduled (or a Itr " 2;;; release>
?e3 visual desi4n SAP a1es t$e visual design o( all SAP user inter(aces Zobvious at rst glance>Z 8or t$is reason: SAP is wor1ing wit$
t$e worldXs ost renowned visual design e7perts>
?e3 interaction desi4n Beveraging advanced interaction tec$nolog): SAP applications $ave been strealined and now use screeneleents li1e trees: tables: and tabs wit$ drag and drop (unctions> '$is signicantl) reduces t$e nuber o( screens a user processes toper(or a wor1 tas1>
Role9ased, personal interface Tsers can create (avorite lists o( t$eir ost needed transactions> Also: screens displa) just t$e(unctions: elds: and subscreens t$e user needs in a specic user scenario> Eac$ user can set a transaction t$at t$e s)ste will open (ort$e autoaticall) ever) tie t$e) log on> Tsers can also dene t$eir own de(ault values (or input elds to avoid $aving to enter data inelds t$at alwa)s $ave t$e sae value>
'n-o%0A 9 Redesi4ned Transactions '$e ost widel) used transactions in t$e (ollowing application areas $ave also been redesigned-
@asis Accounting
Bogistics 5uan Rsources
Cross Applications Coponents SAP !ndustr)
Reports ade easier for occasional users '$e R/3 Reporting user dialogs $ave been iproved (ro t$e ground up using newtec$ni+ues (or inter(ace design and developent: a(ter (arJreac$ing studies into w$at anal)ses SAP custoersX eplo)ees loo1 (or>
6raphical controls ew grap$ical controls in screens provide an) options (or organiDing reports uc$ ore Me7ibl) and attractivel)>
Reportin4 functions A tree in t$e navigation area o( t$e screen $elps )ou see w$ic$ level in t$e $ierarc$) )our anal)sis re(ers to> oucan also see t$e navigation c$aracteristics and drilldown pat$s c$osen>
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