Let’s start with the question, what is
an ERP system application? According to Wikipedia, “Enterprise
resource planning (ERP) systems integrate internal and external management
information across an entire organization. ERP systems automate this activity
with an integrated software application. Their purpose is to facilitate the
flow of information between all business functions inside the boundaries of the
organization and manage the connections to outside stakeholders.”
Primarily a system for manufacturers
(although there are many other broad-based information systems marketed as ERP
in other industries), ERP is available from a wide range of vendors in a number
of different forms to fill the needs of all types and sizes of manufacturing
companies.
ERP solutions can be categorized in a number
of different ways—by the size of the solution or the market share of the
supplier; by the specific vertical industry that the system is designed to
support; or according to the technology platform it runs on.
By Size
The two “800 pound gorillas” of ERP
system examples are SAP and Oracle, with the most market share—between the
two taking in about half of the total dollars spent on ERP. Next in line, and
there are differing opinions about actual revenue and relative position, are
Microsoft (Dynamics GP and Dynamics AX), Infor (SyteLine, VISUAL, and a number
of other solutions), CDC, Epicor, IFS, QAD, Consona, and many more.
By Technology
In years past, there used to be a significant
division in ERP solutions based on the operating environment (hardware /
operating system / database) in which they functioned. Much of that distinction
has disappeared or become irrelevant with the near universal adoption of
web-based architecture and Windows or browser presentation layer and user
interface. Nevertheless, ERP solutions can be categorized by server platform
and database, although many solutions can be implemented in several
environments. For example, there are versions of SAP’s products that operate on
mainframe systems, UNIX or Windows/Intel platforms. Many of Infor’s products
use the IBM Systemi (AS/400)
platform and integral DB2 database (Infor XA, Infor LX, Infor Prism, Infor
System21) but other Infor products reside on WinTel platforms (VISUAL,
Syteline).
Probably the most significant technology
differentiator is database system but here again many products will work with a
choice of databases, most often Oracle or SQLServer (Microsoft). Many ERP
buyers prefer to limit the number of technology suppliers they want to deal
with, simplifying the support and maintenance tasks. Microsoft is the winner in
those accounts as companies almost inevitably standardize on Microsoft Office
products, prefer the Microsoft SQLServer database, and gravitate toward an “all
Microsoft” solution including the platform for their ERP system.
By Industry
There are two major divisions in terms of
industry applicability, with many products adding capabilities to “bridge the
gap” and serve both markets. Initially, ERP evolved in support of the
“discrete” side of manufacturing—companies that deal with hard goods fabricated
and assembled from individual parts. The “process” side of manufacturing,
working with materials and products that are or contain liquids and powders
(materials and products that pour) felt left out and eventually got their own
ERP solutions specifically designed to support their needs. More recently,
discrete-oriented ERP solutions continue to add process capabilities (the
ability to handle “recipes”, potency, continuous processing schedules, product
grading, etc.). Examples of process industry solutions include Infor Prism and
CDC Ross ERP.
Specific industries benefit from ERP
solutions designed to support industry-specific needs. Examples include
Encompix for engineer-to-order manufacturing; Axis for metals, wire and cable;
Cimnet for printed circuit board manufacturing; DTR for plastics manufacturing;
and Relevant for Department of Defense contractors.
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