Lecture 2 ​
ERP research and practice
ERP
is a suite of enterprise business applications including, at least one of the following: manufacturing, supply chain, or customer relationship managment
ERP solutions should be capable of satisfying >= 75% of business application requirements for target customers ($500M+ in annual revenues). ERP applications functionality in mission critical, and solutions are therefore regarded as core IT investments.
ERP types ​
| Tier 1 | Tier 2 | Tier 3 |
|---|---|---|
| SAP | Epicor | ABAS |
| Oracle | Sage | Activant Solutions Inc |
Tier 1 ERP
Designed for the needs of large businesses. Built with complexity in mind. Generally take a long time to implement, has a lot of features and costs a high price.
Tier 2 ERP
Less complex than Tier 1. Are a good fit for mid size companies. Less costly.
Tier 3 ERP
Least complex and costly. Do not offer too much functionality.
Vertical = Focused on the needs of a single industry.
Horizontal = Opposite of vertical: general system for many industries.
The higher the tier, the easier it is to verticalize the ERP. Because it has less functions it is easier to tailor to a specific industry.