The paper 'Enterprise Resource Planning System, Best-of-Breed Software Application" is a great example of a business assignment. The Enterprise Resource Planning (ERP) applications offer a single solution consisting of a range of functionality that supports the businesses processes (Shetty & Mohan 2015). Usually, ERP solutions are sourced from one supplier. An example of a company that uses ERP is Sony Corporation, a multinational electronic company headquartered in Mintao, Japan. Sony uses Microsoft Commerce Server for customer management, customer authentication, data mining, payment management, and product catalogue setup. Quite the reverse, BOB Solutions refers to an implementation of a range of specialist applications.
In isolation, the BOB applications offer the functionality necessary for meeting certain user requirements. They are specific software program for a particular requirement or application. An example includes NetSuite, which is used for financial planning. Others include CIS (Customer Information System) and 7NISC’ s CapsXL+ financial accounting, which are used by WIN Energy, a rural electric cooperative based in Vincennes, Indiana (Wolven 2015). ERP solutions have the potential to increase efficiency and decrease costs. It also provides consistent information and faster information processing, hence reduces the trouble of paperwork.
ERP systems are also adaptable to the changes in the business environment. Still, implementing and replacing the ERP systems lead to increased negotiating power of suppliers. This makes them less customisable. Indeed, this is why Sony Corporation selected ERP over BOB (Dantes & Hasibun 2011). Unlike in using the BOB solutions, businesses that use ERP systems deliver integrated and pattern processes across multiple areas of the value chain. Additionally, because they need a single database, unlike BOB solutions, the cost of data warehousing are relatively low (Sumner 2007).
They also offer greater convenience, as data sharing between various modules is easy. Because they are sourced from a single vendor, the total cost of ownership is lower. In the case of BOB solutions, businesses have to handle many vendors and databases, which is riskier and more complex. On the other hand, BOB solutions offer the optimal solution for specific business sectors. When the existing applications are popular, they can be retained. This is why WIN Energy adopted BOB over ERP. Additionally, the new applications are implementable along with them.
Unlike ERP, a challenge of implementing the BOB solutions is integrating them in order to create a solution capable of addressing end-to-end processes (Sumner 2007). This also implies that unlike ERP systems, a business can have the most efficient and feasible solution for each business process. Therefore, Sony Corporation experiences greater flexibility in terms of substituting and altering certain elements by using BOB solutions. 1.b) Discuss the strategy of, and expected benefits for, an organization that have chosen an ‘ Enterprise-wide’ Enterprise Resource Planning (ERP) system (300 words) The ERP system has several advantages to an organisation, which implements it.
Its key advantages emanate from the idea that it is sourced from a single vendor, as well as its nature of being based on a single database for many processes of business operations like accounts, sales, as well as production (Parthasarathy 2010). Organisations that use ERP systems are provided with a capacity to deliver integrated and pattern processes across many areas of the value chain. This also implies that organisations that use URP are provided with complete visibility in all the significant processes, as well as the multiple departments of an organisation.
Since the ERP systems offer better company-wide visibility, they enable fast and efficient collaboration across multiple departments in an organisation.
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