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How to choose ERP system?

The selection of an ERP system is one of the most significant and the most difficult stage of ERP system implementation. The way to make this task easier is to hire a consultancy agency which can analyse company needs professionally, specify the setup of a new system and propose a specific system. Such an approach to the problem is still rare on our market, as it incurs huge costs and requires great trust in the consultancy agency. In Poland, there are still no companies that provide this type of service and Polish customers eagerly await the appearance of reliable and professional consultancy companies on the local market.

 If a company wants to select a system on its own, the best way to start is to appoint a steering committee for the project team. As its first task, such committee should set goals and define the scope of the implementation project, which is the list of business processes that the implementation project involves. It is necessary to appoint those persons responsible for specific implementation areas i.e. key users and include them in an implementation team. Key users are responsible for to specify and create a detailed list of processes included in the implementation project. Only at this stage, is the specification of criteria for system selection possible.

 It is noteworthy that the specification of accurate criteria for system selection is crucial to a final decision. Unfortunately, there are no universal solutions. Therefore, it is recommended to select a system in two steps.

 At the first stage, the type of ERP application the company requires should be determined. The next stage involves selecting a specific application and its provider.

 Currently, ERP systems are primarily classified based on IDE (Integrated Development Environment) which is or is not incorporated within the system. Closed systems (those which do not incorporate IDE) are provided as a complete application. These are cheaper, and their implementation is relatively easy, involving only user training and system setup. However, such applications are difficult to modify and therefore they should be selected based on their functionality. If the process list is not compliant with the functionality of the closed ERP system, the system should be rejected. The use of closed ERP systems is limited to business organisations with typical business processes (usually small companies).

 For companies that have worked out their own solutions for business processes or have their own concept on how to accomplish their mission, it is recommended to select an ERP application with an embedded IDE. The only example of such an application incorporating their own modern IDE are Microsoft Dynamics products. GARDENS provided by GARDENS-SOFTWARE is the only such product on the Polish market..

 Specific integrated development environment enables you to adjust an ERP application to company requirements. Customisation and creating new functionality are an integral part of the process of implementing such system. The standard functionality of IDE systems provides a basis to develop a unique solution that is ideally-tailored to the customer’s requirements. Such flexibility of the system totally changes implementation methodology and selection criteria. The standard functionality is no longer a decisive factor for selection. The functionality can be modified and enhanced quickly and safely, and consequently at lower cost.

 The typical mistake made when selecting an ERP system including IDE is to apply selection criteria used for closed systems. IDE applications are rejected due to a lack of a standard functionality. However, this approach reveals insufficient competence of the implementation team as the system enables you to implement missing components using the development platform. In such a case, the evaluation of the system's efficiency and the experience of a system provider are the most accurate criteria. The system and its provider should be verified on the basis of the references provided and proposed implementation methodology.

 Implementing an ERP application with IDE is incomparably more complicated than implementing a closed system. Analysing each implementation stage and clear assignment of responsibilities are key factors for success. In order to manage the implementation process efficiently, it is important to specify control point and quality control indicators. It is also worth spending some time on verification of implementation documentation templates. Accurately selected methodology should be based on logically planned stages involving clear responsibilities of the provider and customer with specific tasks and deadlines of each party. When evaluating the documentation, it is necessary to verify it against prevailing standards (FRD, GAP/FIT analyses), check its comprehensibility and time-consumption need for its preparation. The customer may verify the efficiency of IDE and the provider’s experience by asking for a proposal including a prototype of a strategic business process.  The quality and time spent on developing the prototype can constitute two criteria that provide the most accurate evaluation of the proposed system and its provider.

 Summing up, as far as closed ERP systems are concerned, functionality and price are the key selection factors. However, for IDE systems the following selection criteria should be applied:

  • An efficient and optimal ERP platform (flexibility, development and safety)
  • Accurately selected implementation methodology
  • An experienced provider
  • Base functionality compliant to standards
  • Prices and fees.

 

Why open development platform is important?

Nowadays, ERP systems that support business management and operational activities are very complex. Even a small company requires the automated processing of large data files. Business processes are also becoming more and more complicated.

To fulfil all of the requirements of a small company, an advanced ERP system may use even as many as 700 tables and 1,000 window views. That is why; the era of closed applications with limited functionality and complicated versions is sinking into oblivion.

Software providers are not able to pay the maintenance costs of specific functional versions that have been implemented at their customers’ and are based on traditional technology. In the case of such versions, the application is compiled using common low-level languages. Therefore, all leading ERP systems are equipped with their own specialised development platforms.

It is clear that a modern ERP system has to be a platform system. There are several factors that determine the requirement of providing a specialised development environment within an ERP system:

  1. The scale and complexity of required functional business logics. There are no two identical implementation projects, even if such projects are delivered in companies operating in similar industries. The modification of hundreds of functional details is practically impossible during the implementation process. In such a case, the number of application parameters increases and the code has to be reengineered, which requires a lot of effort. Therefore, the platform should provide functionality in the form of objects that are stored in a data base and can be compiled separately when they are retrieved. For each project, it is necessary to enter specific and precise descriptions of all events. Such an approach ensures not only the possibility to customise the application, but also to control and maintain its functional areas.
  2. The flexibility and fast pace of modifications in selected areas, without unnecessary compilation of the application. In order to respond to external factors effectively, each business organisation requires tools for the instant modification of its business processes. For better flexibility, a well-structured ERP system should use its own programming language, and consequently its own complier.
  3. The application language of an efficient ERP system is a multi-level language with simple syntax, which enables implementation consultants to customise the system.
  4. Using a platform it is necessary to integrate multiple applications, data sources, data files etc. The platform should be comprised of general standards of currently available data and communication interfaces, as well as technological solutions such as XML, TCP/IP, COM+, database connections, etc.
  5. The development platform should support the methodology of the ERP system implementation. There are numerous prerequisites of successful implementation process meaning a project completed within agreed deadlines and customer satisfaction. All these prerequisites including standardised requirement notations, pre-implementation analysis, specific object versions, change management, documentation, request management and maintenance activities, can be supported by the native development environment of ERP software.

Factors that reduce time-consumption of creating, developing and implementing an ERP application:

  • Specialised development tools (the system should be based on its own development environment – a platform that is designed for one type of the application, an application capable of processing all of the company’s logistics)
  • The simplicity of the tool (modifications can be entered by implementing consultants)
  • Versatility and integrity (complete development environment – one tool for implementing a consultant and one for a developer)
  • Flexibility (a platform with its own 4GL and complier)
  • Openness and integration (the platform open to standards)
  • A practical approach (a platform that incorporates tools that support the implementation process)

A specialised tool ensures time and cost savings. Using common languages such as '.net' for the development of an ERP application is an obvious mistake. For example, the .net language can be used to write a game or multimedia application, which is a redundant feature for ERP software.

It is considered that ERP applications are designed to process relation data using simple, intuitive user graphical interfaces. As far as the variety of software engineering is concerned, such applications comprise approximately 10 percent of software programs. Therefore, specialised development environments are created without any redundant components, so called “heavy tails”, including excessive tools for common usages.

The possibility to develop system functionality as the company grows is another important aspect. Using the “out-of-the box” software would make system development impossible. When purchasing an ERP system, users should be aware that their functional needs are dynamic, and not all of system requirements can be defined. Thus, a modern ERP system is a dynamic product that is enhanced as the company grows.

In other words, a modern ERP system has to be a specialised production plant that generates business functionality. Unfortunately, the majority of Polish system providers do not provide their own development platforms. Based on the above assumptions, most of local solutions sold as ERP systems can be considered relicts of the past when they are compared to foreign platform-based systems.

The Gardens GAM platform is a unique solution on the Polish market as it fulfils the previously defined constructional assumptions. Presently, it is the only environment designed for ERP application development that can be compared to such platforms as C/AL, Morphix AX incorporated in MS Dynamix or the ABAP platform within the SAP system. Due to modern solutions, Gardens is a system that can become an application standard for medium-sized companies with simultaneous access of up to 1,000 users.

It can be assumed that due to a reasonable price policy and huge potential of system functionalities, the system is likely to become a leader on the Polish ERP software market, even before the euro zone entry. When this goal is accomplished, the company plans to increase Gardens’ share in the European ERP software market.

The Gardens system contains many additional components that give support at the implementation process. Additionally, the platform is to provide methodological support which is a pioneering approach. As constructors of the GAM platform believe, specialised environments for business software development are a new challenge for modern information technology that provides immense capabilities.