ERP software is one among the widely recommended software packages for improving the operational efficiency of an institution. This ERP software is an integrated application of software modules for enhancing the performance of resources in an organization. It is a perfect solution for controlling and managing versatile departments of a company. Better planning of production, inventory control, marketing, sales and human capital management are some of the key benefits of using ERP software. Implementation of ERP software helps company owners in gaining maximum profit by better utilization of resources. It cut downs total cost and assists in reducing inventory shortages and material wastes.
Today, ERP software is widely used in versatile industrial fields including schools, hospitals and real estates. Choosing ERP Software- as-a-Service for improving resource performance provides lots of benefits when compared to that of traditional ones. In SaaS method, the software package is usually rented or licensed for a specific period of time interval. Now, let's see in detail the benefits of using ERP Software-as-a-Service (SaaS) model for business purpose.
Low cost implementation of software is one among the main advantages of using ERP SaaS. At present, many small and medium sized companies are choosing SaaS method for improving their resource management. It provides company professionals with full software solutions so that there is less dependence on vendor. Implementation of ERP SaaS helps in reducing over all incremental infrastructure costs. Reduction of capital expenditures and IT salaries assists company owners in managing their business at affordable cost. When comparing to that of traditional ERP software, SaaS needs only less time for implementation.
Quick implementation of SaaS saves manpower, time and money. While choosing an ERP SaaS for resource management, you need to pay either monthly or annually. This on-going payment as per usage helps company owners in better tracking of their business profit. Cancellation of subscription without losing a huge amount of money is another key advantage of using ERP SaaS. At present, many of the small sized companies are using SaaS subscriptions based on metered usages for improving their business sector.
ERP SaaS equipped with latest technologies is an ideal companion for business owners to compete in today's global market sector. SaaS software packages mainly focus on technology budgets and helps in fulfilling the dream goal in business field. It provides essential requirements in beholding properties like reliability, security and scalability. Immediate access to vital functions like maintenance of equipments, accessing of latest updates and software packages are other key advantages of using SaaS software package.
Vendors of SaaS can monitor real time information about the usage of their application. It helps in providing better support and assistance to users according to their business functions and goals. Application of ERP SaaS software in resource field is easy and very much user friendly in operation. There is no need to purchase any additional servers for maintaining the functions of SaaS software. It is entirely accessed through web services and cannot be customized according to real time data and information.
Believe it or not, most people, including so-called industry experts and academics, are confused between a "strategy" and a "plan".
In most cases, most people think that they are talking about corporate strategy, when in actual fact they are merely talking about corporate planning.
Let me explain.
When you have a strategy, what you want to do is usually to create some kind of competitive advantage over your competitors, or you pre-empt the market, so that you can win as many customers over as possible.
While you also plan to beat your competitors and win customers, the key differences here lie in the ability of your competitors to react and respond, and how you are then going to respond to your competitors' responses.
Simply take an anecdote from the great martial artist, Bruce Lee. Bruce Lee was observing some Karate exponents training to make their fists harder by hitting and breaking rocks. Curious about the practice session, Lee asked the Karate exponents, "Isn't it very easy to learn to break rocks? Rocks don't hit back!"
My point is: are you taking the assumption that your competitors are not responding back to your strategy? If yes, then you merely have a plan, not a strategy.
Strategy as a Game
Beyond the world of business, most people would associate a strategy with that of warfare. I prefer to illustrate strategy using more peaceful means such as playing chess, or better still, taking penalty kicks in a soccer game.
In a soccer tournament, if the 2 competing teams are not able to establish and a loser, the teams will take turns to kick a ball into a goal from just 12 yards away. The only obstacle between the opposing player and the goal posts is the goalkeeper.
Since it will depend on pure reflex actions, the goalkeeper would have to guess which direction the player is kicking the ball. The teams would also develop a strategy by guessing what is on the goalkeeper's mind, and hope to send the goalkeeper diving in the wrong direction.
This strategy is usually dynamically evolving until all the necessary players have taken their shots at goal. Usually, the first player will choose a direction, either left or right. Then his coach and teammates observe which direction the goalkeeper dives, and then formulate another decision to go left or right.
Some times, if the goalkeeper seems to figure out the pattern that the opposing teams are kicking the balls, the next opposing player may just send the ball down the centre. The reason being that the goalkeeper will be diving either left or right for sure. However, if the ball is sent to the centre, it catches the goalkeeper completely off guard.
So how does the above apply to the game of business?
The most often quoted example is when companies try to establish what Michael Porter terms as cost leadership. The resulting actions from competitors are likely to slash prices as well, thereby resulting in a price war. While in most cases, the companies that are the strongest financially can outlast the rest in a price war, usually no one emerges as the winner, not even the customers.
Besides those who went out of business in a price war, the survivors usually suffered great reductions in their profits as a result. Customers lose out when companies cut corners with lower product and service quality as the competing companies slug it out.
The underlying threat to all businesses is not the price wars, nor the fierce competition that exists. Rather the consistent threat is the propensity of competitors to adopt "copy cat" strategies, which makes everybody a loser.
Take the example of the dog gone dot.coms.
Most dot.coms operate under the premise of getting as many eyeballs as possible. Whether the eyeballs are there just to browse or to purchase something is a separate issue. The key thing is to get the eyeballs, since Amazon, Yahoo, eBay, eToys and other dot.com pioneers are getting millions of eyeballs each day.
However, when there are many dot.coms using different means to compete for eyeballs, the eyeballs become diluted, especially with the less established up-and-comers.
Without anticipating what will happen in the market, the dot.coms bombed.
Establishing Win-Win Strategies
Strategy is not just about analysing competitors' responses. It is also about how common interests can be aligned, so that all parties can benefit from this type of arrangement.
The entire I.T. industry is the epitome of such strategic alliances. Microsoft can only release its latest versions of Windows when Intel produces a better chip. Microsoft can be so successful when the major personal computer manufacturers agree to ship their computers with pre-loaded Windows systems. Although it has its own MS SQL database, the Windows system is compatible with other databases such as IBM's DB2, Oracle, Informix etc. Even SAP, which is supposed to the one one system that manages everything, runs on Windows as well. The result is a win-win situation for all. While Microsoft may lose some of its MS SQL sales, it gains in terms of its Windows sales. By leveraging on the world's most popular operating system, software manufacturers are sap pp course online able to reach out to a lot more computer users in the world. Even bitter enemies such as Netscape partners with Microsoft to compete with the Internet Explorer.
However, such strategic alliances are actually very fragile, especially for smaller companies. If, for example, there are 2 courier services in town, and each one of them specialises in the eastern and western part of town respectively. The 2 courier services decide to partner, so that they can get more clients. If the Eastern courier gets a business for the Western courier, he will pass over the contact and perhaps get a referral fee, and vice versa.
You may be inclined to find that such win-win arrangements should be long lasting. However, the opposite may just be the case. If the Western courier happens to have 5 times more business than the Eastern courier, the Eastern courier may be tempted to "steal" some of these contacts and expand to the west. This will of course make the Western courier very upset, and that may be the end of the partnership. Such considerations may the reasons why certain businesses are not inclined to form alliances.
In the case of Microsoft, it will be less inclined to venture into hardware manufacturing, partly because by doing so, it will