July 17, 2011
This paper is an attempt to understand why TS Group chose JDE over SAP, SYSPRO, and Microsoft Dynamics. Within this paper all four ERP products (JDE, SAP, SYSPRO and Microsoft Dynamics) are evaluated for their strengths and weaknesses. From this evaluation a hypothesis is made as to why TS Group preferred the JDE ERP system. Considering any consultants available for these products, an argument is presented as to which constituents (stakeholders) had the most influence on this decision.
TS Group ERP Systems Decision
TS Group purchased an ERP software solution from JD Edwards (JDE) in order to accomplish the same results as Motorola with respect to “one day closing” of their monthly consolidated financial accounts, as well as to remain competitive in their market (Lee, C. Y. J., and Lau, M. S. R., 2005). What senior executives wanted to achieve with the new ERP was the following: Quick access to financial statements, sharing of data among other applications, and decision making support with accurate and timely information (Lee, et al, 2005). Discussion
In evaluating the four systems, the three criteria stated above where the metrics by which a decision would be made, as well as which company catered best to manufacturing, distribution and CPG. A summary of the strengths and weakness of each company and their software follows. I. JDE ERP (EnterpriseOne):
Integrated system designed to add value in assisting midsize companies in “…managing finances, projects, suppliers, assets, manufacturing and fulfillment” (Mutt, N., 2011). It provides “…native industry functionality for …CPG (especially agriculture and consumables), general manufacturing and distribution…” (Hestermann, C., Pang, C., and Montgomery, N., December 17, 2010, p. 20). A. Strengths
1. Financials: Accurate financial operations and reporting. Enhanced data reliability with concurrent design of general ledger batches from source data improves competitive edge. Allows for quick response to changes to restructure financial procedures and improve accuracy in financial reporting (Oracle Data Sheet, 2008). 2. Interoperability: Seamless data flow between systems. Allows for disparate processes to be incorporated into the technology with other applications and across the enterprise. Allows linking of multiple systems (PeopleSoft, 2003). 3. BI Application: Creates a strategic advantage by providing timely information for better decision making due to quick conversion of information into action, thereby reducing costs, improving growth and increasing profitability (Oracle Datat Sheet, 2009). B. Weakness
The User Interface (UI) of EnterpriseOne is “not yet as flexible and intuitive as some competing solutions…” and they lack full SOA as a “multitenant SaaS ERP” (Hestermann, C., et al, December 17, 2010, p. 21). II. SAP (Business All-in-One)
Is wide-ranging and flexible business management software with built in best practices aimed at midsize enterprises, especially in Healthcare, High Tech, and Aerospace and Defense, for integrated management solutions in “...financials, human resources, procurement, inventory, manufacturing…sales and marketing” (TechTarget, 2011). A. Strengths
1. Financial: Provides “…real-time data analysis that can help predict business outcomes” supported by “…analytical reporting that includes standard, analytical, and ad hoc reporting” (Top10ERP, 2011). 2. Supply Chain: Strategic integration of all functional units within the supply chain to “…simulate and implement comprehensive tactical planning and sourcing decisions based on a single, globally consistent model” (Top10ERP, 2011). 3. Customer Relations: Supports marketing, sales and services. Marketing: enhanced marketing resources; customer targeting, leads and campaigns to increase ROI. Sales: Manage sales territories, contacts and accounts....