Attached

| December 6, 2015

Attached is a sample paper that nicely compared MS GP 10 and SAP ECC 6.0 in the area of HR.

 

Note: that topic is   Bill     of Materials (manufacturing) / GP10

 

13 pages

Attachments:

Comparative Analysis Xxxxxxxx Yyyyyyyyy ITM 619 xx/xx/xxxx Dr. Webb Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 1 Introduction ………………………………………………………………………………………………………………………………..2 Software Platforms…………………………………………………………………………………………………………………..2 Microsoft……………………………………………………………………………………………………………………………..2 SAP ……………………………………………………………………………………………………………………………………..2 Human Resources…………………………………………………………………………………………………………………….3 SAP, Human Resources…………………………………………………………………………………………………………..3 Microsoft, Human Resources………………………………………………………………………………………………….4 Comparison…………………………………………………………………………………………………………………………………5 Table 1: Comparison of Systems…………………………………………………………………………………………………5 Interpretation…………………………………………………………………………………………………………………………..7 Considerations…………………………………………………………………………………………………………………………….8 Culture of the firm/Nature of the business…………………………………………………………………………………..8 Interconnectivity ………………………………………………………………………………………………………………………8 Costs (short term and long term)………………………………………………………………………………………………..8 Conclusion…………………………………………………………………………………………………………………………………..9 References ………………………………………………………………………………………………………………………………..10 Appendix A………………………………………………………………………………………………………………………………..11 Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 2 Introduction This project is the analysis of two different ERP systems, Microsoft Dynamics GP10 and SAP ERP Release 6.0. Software Platforms Microsoft Microsoft Dynamics GP10 is the 2010 release of this line of Microsoft’s ERP system. There are 4 different offerings in the Dynamics product line: SL, NAV, GP and AX. Dynamics SL is the ERP offering that handles basic project management and accounting across multiple divisions of a firm. It is targeted specifically to government contractors, distribution firms, and construction management corporations (Microsoft, 2011). Dynamics NAV is a comprehensive ERP suite that is targeted at mid-size companies. It incorporates more than just the basic PM and accounting functions that SL offers, but is most cost effective for the mid-sized company that needs an ERP solution (Microsoft, 2011). Dynamics GP, the system discussed in this analysis, is used by more than 41,000 customers throughout the world. Like NAV, it moves beyond basic financials and operations functions, and is a complete ERP solution. Microsoft touts this system as requiring lower implementation, and long term maintenance costs, than similar SAP or Oracle products (Microsoft, 2011). Dynamics GP offers financial, human resources, project management, supply chain, sales and marketing, manufacturing, and services information functionalities (Microsoft, 2011). It also offers basic business intelligence reporting. Dynamics AX is Microsoft’s Cadillac program. It is the complete ERP solution for larger corporations. It is tailored for global corporations, as well as state of the art manufacturing firms, and several other industries. AX offers all of the functionalities of GP and more in-depth business intelligence reporting, as well as information on environmental sustainability, since the green movement in the US has really taken hold (Microsoft, 2011). SAP The SAP ERP Central Component (ECC) is the follow up to SAP’s R/3 system. The SAP ERP is part of the SAP Business Suite, which is a software suite designed to help companies optimize their business functions (SAP, 2011A). The SAP ERP system consists of 4 different modules: Financials, Human Capital Management, Operations and Corporate Services. Financials offers core accounting and financial processes to enable firms to accurately track expenses, revenues, receivables, profit and various other accounting/finance functionalities (SAP, 2011B). Human Capital Management contains the human resources, payroll, talent management (recruitment, training, promotions, etc.), and workforce analysis functions (SAP, 2011B). Operations contains functions for the purchasing, research and development, manufacturing and sales and service divisions of the firm. (SAP, 2011B). Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 3 The final module, Corporate Services, assists with the management of assets, including real estate, enterprise, project portfolios, environmental health and safety, and travel management functions (SAP, 2011B). Human Resources The area(s) chosen for comparison in this paper are contained in the ‘Human Resources’ functions of each package. Human resource departments handle the employee side of the business. These departments handle recruitment and hiring of new employees, terminations, promotions, and payroll administration. Most importantly, HR departments handle compliance with federal standards such as obtaining I-9 forms from immigrants, ensuring the offering of COBRA to all terminated or resigned to employees, and establishing procedures to prevent harassment or discrimination suits. Continuing on this front HR departments also handle administration of benefits, such as workplace retirement plans, life and health insurance, and various other functions (such as tuition reimbursement) (Winning, 2009). The role of human resources has changed over the years. Originally, the HR department was viewed as an extension of the executive policies of a firm. It would stand in the way, as a roadblock of sorts, of the movement of companies into the future. HR employees/departments were merely those who presented and filled out all of the necessary paperwork associated with personnel management and benefits administration. Now, the HR department is becoming a source of strategic advantage. The HR department is an adaptable, ever changing department focusing on employee relations and performance management and training, all of which are focused on growing employees to benefit the company (Heathfield, 2011). This comparative analysis will focus specifically on the creation of departments, divisions, and job (or positions) within the firm, as well as the creation of employees to fill those open positions. SAP, Human Resources The SAP system provides many different capabilities for the Human Resources Departments to use in performing their tasks. SAP focuses on aligning the strategic objectives of the firm with the actions of the workforce, and on achieving high levels of process efficiency. It provides capabilities in 3 functional areas (SAP, 2011C): 1) Talent Management – The SAP system provides many different options for the recruiting and development of a company’s workforce. Under talent management the company can recruit employees to the company. They can also monitor employee performance, as well as enter performance reviews into the system. Utiliz
ing this information, companies that run SAP can utilize the succession management application which enables the firm to track high performing/high potential employees. 2) Core HR and Payroll – This provides the very basics of HR functions. It has modules such as benefits management, attendance and time reports, and payroll and legal reporting. This functional area would be meeting the very basic needs of an HR department. Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 4 3) Workforce Analytics – These analytics include functions such as workforce planning where the HR department can plan future workforce needs and obtain information such as turnover rates in the workforce. This also enables the firm to create benchmarks for the workforce to compare against industry standards and see where the firm is relative to the competition. Finally, the workforce analytics area enables the firm to ensure that their business activities are aligned with their strategic objectives by monitoring the actions of the workforce. Microsoft, Human Resources Microsoft focuses less on the alignment of strategic objectives, and more on accessing the potential of the workforce by ensuring everything is operating as efficiently as possible. Microsoft touts GP10 as excelling in 3 areas beyond just the basic HR functions (Microsoft, 2011B): 1) Enhanced HR tools – Through the recruitment application it streamlines the recruiting and hiring process wasting as little time as possible in the entering and transferring of data. This also assists in the identification of applicants for potential positions. It also enables the firm to implement and practice fair and consistent hiring practices, which will keep the firm out of any EEO compliance issues. 2) Advanced Health and Wellness Functions – These functions enable the firm to keep tabs on the health of the workforce and look out for any disturbing patterns. This will enable firms to urge employees to seek medical advice and also keep the workforce as healthy and productive as possible. Utilizing this system also ensures compliance with Worker’s Compensation and long term disability requirements by providing reminders for follow up reports with employees and their doctors. 3) Information Accessibility – By centralizing all of the data, the HR department will be able to quickly and efficiently gain access to workforce information. It enables supervisors to manage teams more effectively by evaluating skill sets and building diverse, powerful teams. Additionally, centralized data allows for easier benefits enrollment for employees by giving employees access to open enrollment and allowing them to make their own changes to their benefits. Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 5 Comparison When running through SAP and the Microsoft system, there were many similarities and a few differences. In terms of overall functionality both systems were generally the same. For instance with the creation of employees it gives you all of the basic necessities for creating the employee, there are however some smaller differences in the general process of creating the various items. Please see table 1, located below, for a comparison of the two systems. Additionally, Appendix A contains some screenshots for comparison of the two systems. Table 1: Comparison of Systems General SAP ECC 6.0 Microsoft Dynamics GP10 Interface More training necessary. In the SAP system, users really need to understand what to do beforehand. It’s not like Microsoft where the user can just pick it up and begin creating divisions, etc. Intuitive – the folder scheme is set up as an easy point and click atmosphere. Setup very much like a Windows interface. Menu’s pull up immediately when you click on a functionality (like Human Resources or Financial) Creation of functions Once the user is in the correct module its much more methodical. The system walks the user through step-by-step in the creation of the various departments, divisions, companies, etc. Windows tend to pop up with the majority of information in the first window. However, it wouldn’t necessarily require users to go through the process of clicking on different buttons to get different options Reports Use crystal reports to export to various file types (such as excel or word) Exports directly to MS office files without use of any intermediary system Ease of HR use Has the ‘Manager’s Desktop’ which allows for managers to quickly pull up information and reports on employees Standard, intuitive set-up allows for HR managers to quickly navigate through windows Creating Divisions SAP ECC 6.0 Microsoft Dynamics GP10 Name Organizational Unit Division Creation Can create multiple units at one time Create one division at a time Division Information After units are created, have to go back and edit the data after the fact Advantage of one at a time is that all information (address, codes, phone #’s, etc.) is entered when Division is created Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 6 Table 1, cont’d. Creating Departments Name Business Unit Department Creation Can create multiple units at one time One at a time Dept. Information Go back and edit after creation to get information about unit in the system Created one at a time, and can immediately go into extra information Organizational Charts Much easier, business units create under the different divisions by selecting the Org. Unit and then clicking create There is no option for adding a department to a division immediately, and you need to go in later and re-organize to do it Create a position Process One piece of information at a time, begin with title of position and then move to description, etc. All information needed pops up with first window unlike SAP, everything is up immediately instead of progressing through windows Creating Employees Process SAP walks the user through up to 10 infotypes where all initial employee information is entered Brings up the screen with all required information displayed Entering Additional Information The Infotypes pretty much walks the user through all information that needs to be added. More user friendly once the menu’s have been properly navigated User may click on additional information buttons to add other, non-required info such as salaries, etc. Assigning to a Position Name Vacant Position Position Seats Filling position Assign a holder to the vacancy with a start and end date Fill the seat with a start and end date Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 7 Interpretation As can be seen from the above table, the majority of differences lie in the creation of items and the amount of information able to be entered initially. Microsoft tended to bring up all required information on the first window, whereas SAP would walk the user through each window methodically. Each one has its benefits, SAP was easy once the menu was navigated properly but Microsoft made it much easier to get to the initial menu. Additionally, when using SAP the user goes through all windows to have the opportunity to enter a lot of the information for employees, but if this much isn’t needed they will be skipping windows and wasting time. Beyond that, differences are just in naming of the various functions (positions vs. seats, organizational units vs. divisions, etc.) and visual presentation. The one presentation that I noted, and was impressed with, was SAP’s organizational chart showing various departments, divisions, positions, and employees (see Appendix A for screenshots). The core functionalities of each are generally the same, because much of the information is necessary for compliance and for general administration of payroll and benefits regardless of what type of firm is using the package. Additionally, both systems provide options for adding spousal and family information, as well as other general information about an employee (such as disabled status, skill sets, training, etc.). This was as I expected, because as mentioned before, Human Resources across firms are generally the same with differences lying in the types of benefits or different compensation meth
ods. Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 8 Considerations While both systems will fill the general needs of any firm (in terms of HR), there are several factors that should be considered when implementing an ERP system. Culture of the firm/Nature of the business The culture of the firm and the nature of how they do business is a critical factor when deciding whether or not to implement an Enterprise Resource Planning system. As seen in several of the case studies discussed this semester, the way in which a firm does business affects how and if an ERP system can be implemented. ERP systems, for the most part, operate on best practices methodologies, but if the firm has achieved a competitive advantage, or a key differentiator, through their business methodologies then a best practices approach most likely will not work. Firms will need to evaluate how much customization the ERP system will need in order to obtain a system that allows the firm to maintain their own best practices. Failing to consider the nature of the business may lead to potential catastrophes during implementation. Interconnectivity The firm must also consider how easily the ERP system can be modified or communicate with other systems, or have bolt-on programs added to the system. Many implementations don’t involve the full roll out of features in the ERP suite, so legacy systems may remain in place, at which point the ERP system would need to be modified to feed information into and pull information from these systems. Both Dynamics and ECC support bolt-ons, and are also to be customized through programming language (in the ABAP language for SAP or Dexterity for Dynamics) (Wikipedia, 2011). These customizations, however, drive up the cost of implementation and also increase maintenance and upgrade costs because software manufacturers typically don’t support customizations (since they are after market). Costs (short term and long term) The final factor to be considered is that of the cost of having the system. This cost includes the implementation cost, licensing fees, training, and long term maintenance costs. Implementations are very time consuming and thus extremely costly, both in terms of internal manpower required (if done right) and budgeted costs for external consultants and programmers. Additionally, there are licensing fees that are charged by the software firm (such as SAP, Oracle, or Microsoft). On top of this is the cost of training the workforce in the use of the system and spending the time to make the necessary cultural changes to push the use of a centralized database/ERP system for information storage. Finally, there are the long term maintenance costs which can run upwards of 20 – 25% of the total cost of software package. This means that after 4 – 5 years of paying maintenance fees the firm has effectively purchased a new software package (upgrades are typically included in the cost, to entice firms to sign these contracts). Overall implementation and maintenance of an ERP system is extremely expensive, so managers must consider whether or not the ERP will add value and, most importantly, if they can afford it. Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 9 Conclusion Each system has its own strengths and weaknesses in overall functionality. The SAP system is much more difficult to navigate and should be treated as more of a command based program than point and click. Dynamics is truly point and click, which is a much more user friendly option. The advantage to SAP is that once a user is trained on the system, and understands how to use it, it is a much more powerful program. This is as expected, because SAP has been producing ERP systems for over 40 years, while Microsoft wasn’t even founded until 1975 (Microsoft, 2011A). In terms of the scope of the comparative analysis, both platforms are very similar in the creation of divisions, departments, jobs and employees. The few main differences involve where and when detailed information about each item is entered and the ability to create multiple units at one time (SAP) vs. placing all necessary information in the system up front (Microsoft). Managers must consider several factors prior to choosing an ERP system. While the factors discussed above don’t comprise an exhaustive list they are 3 of the most important factors that any manager should consider when implementing an ERP system. As long as these factors (plus others) are considered, managers could choose either system based on personal preferences, because functionalities are very similar. Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 10 References Heathfield, S.M. (2011) What does a HR Manager, Generalist or Director Do? Retrived on 4/14/2011 from http://humanresources.about.com/od/jobdescriptions/f/hr_job_mgr.htm Microsoft (2011A) Facts about Microsoft. Retrieved on 4/18/2011 from http://www.microsoft.com/presspass/inside_ms.mspx Microsoft (2011B). Human resources management in Microsoft Dynamics GP. Retrieved on 4/18/2011 from http://www.microsoft.com/en-us/dynamics/products/gp-hr-management.aspx SAP (2011A). SAP Business Suite. Retrieved on 4/17/2011 from http://www.sap.com/solutions/business-suite/index.epx SAP (2011B). ERP Software from SAP. Retrieved on 4/17/2011 from http://www.sap.com/solutions/business-suite/erp/index.epx SAP (2011C). SAP ERP HCM. Retrieved on 4/17/2011 from http://www.sap.com/solutions/business-suite/erp/hcm/featuresfunctions/index.epx Winning , E. (2009) When is an HR department necessary? Retrieved on 04/13/2011 from http://www.ewin.com/articles/whnHR.htm Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 11 Appendix A Comparative Screenshots Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 12 Creating Divisions Microsoft SAP Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 13 Creating Positions Microsoft SAP Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 14 Employee Creation Microsoft SAP Microsoft Dynamics & SAP ECC6.0 Comparative Analysis 15 Pos

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