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Knowledge hub · 4 guides

ERP

One system for finance, supply chain, manufacturing, HR and procurement, all sharing one set of data.

What it is

Enterprise resource planning (ERP) software runs the core of a business: the general ledger, purchasing, inventory, manufacturing, orders, and often HR and payroll. Because every module shares one database, a sale updates stock, revenue and the forecast at the same moment.

ERP projects are among the biggest IT investments a company makes. Today's systems are mostly cloud-based, and the rule of thumb is to adopt the software's standard processes (“fit to standard”) and keep customisation to a minimum, so upgrades stay easy.

Explainer

One core, many modules

Shared database

One source of truth

  • Finance
  • Procurement
  • Inventory
  • Manufacturing
  • Sales & orders
  • Supply chain
  • HR & payroll
  • Reporting
Every module reads and writes the same data. That single source of truth is the whole point of ERP, and it's why data migration is the hardest part of any project.

Explainer

The shape of an ERP project

  1. 1

    Discover

    Goals, scope and business case.

  2. 2

    Design

    Fit to standard; decide the real gaps.

  3. 3

    Build

    Configure, extend and migrate data.

  4. 4

    Test

    Integration and user acceptance testing.

  5. 5

    Go live

    Cut over, often at a period end.

  6. 6

    Hypercare

    Weeks of close support after launch.

Vendor methods (SAP Activate, Oracle's and Microsoft's Success by Design) all follow these phases. Data migration and testing take longer than almost anyone plans for.

Guides

Guides in ERP

SAP S/4HANA

SAP's current ERP, built on its in-memory HANA database, and the successor to SAP ECC.

  • Large and multinational enterprises
  • Complex manufacturing, supply chain and asset-heavy industries
  • Existing SAP ECC customers
Typical project: 9–18 monthsSee vendors

Oracle Fusion Cloud ERP

Oracle's SaaS ERP, strongest in finance, with updates for every customer each quarter.

  • Finance-led ERP replacement
  • Oracle E-Business Suite or JD Edwards customers
  • Organisations ready to adopt standard SaaS processes
Typical project: 6–12 monthsSee vendors

Oracle NetSuite

The cloud ERP for fast-growing and mid-size companies: live in months, not years.

  • Growing companies moving off entry-level accounting tools
  • Subsidiaries of larger groups
  • Wholesale, distribution, software and services businesses
Typical project: 2–6 monthsSee vendors

Workday

Cloud HR, payroll and finance on one data model, used by many large employers.

  • Large employers modernising HR
  • Global workforces on a single HR record
  • Universities, professional services firms and public bodies
Typical project: 6–12 monthsSee vendors

At a glance

GuideBest fitPricingTypical project
SAP S/4HANALarge, complex and multinational businesses, especially in manufacturingSubscription, usually through RISE with SAP (software, hosting and support in one contract)9–18 months
Oracle FusionFinance-led transformation in large enterprisesSubscription per module and user6–12 months
NetSuiteGrowing mid-size businesses and multi-entity subsidiariesAnnual subscription: a base licence plus users and modules2–6 months
WorkdayHR-led transformation, and finance for services and public bodiesAnnual subscription, usually based on employee count6–12 months

Glossary

Key terms

Fit to standard
Adopt the software's built-in processes and only change what truly sets you apart.
Chart of accounts
The list of ledger accounts every transaction posts to.
Cutover
The planned switch from the old system to the new one, often over a weekend.
Hypercare
A period of extra support right after go-live.
Two-tier ERP
A large ERP at headquarters and a lighter one in subsidiaries.
Clean core
Keeping custom code outside the ERP so upgrades stay painless.

Also worth reading

Other areas

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IT service companies with these skills on their profile, every fact labelled with its source.

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