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Selecting ERP

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Executive Summary

This report has helped in selecting the most appropriate accounting software package for a business of bakery as identified in the scenario. Several measures and outcomes have been detailed within this report.

Table of Contents

  • Executive Summary
  • Introduction
  • Defining the business related processes
    • Business activities and processes
  • Developing business related requirements
    • Processes which are indispensable when engaging in performing them
    • Outcomes required from the resulting processes for achieving objectives of businesses
  • Determining the systems related requirements
    • Possible software features that organization should consider
  • Software Selection
    • Accounting software package vendors
    • Software category
  • Selecting Vendors
    • Comparison and contrast
    • Most suitable vendor
  • References


As evident from the given case scenario, there are several accounting management issues that the selected B-Bakery is facing. There are considerable issues faced by this company even though it has gained success from time to time. However there are accounting information systems as solutions which can be offered to the company in order to ensure that the company does better.

Due to the repetitive nature of various tasks within accounting, there does not exist any surprising that such tasks require automation. With hardware related advancements and technology of software, software for accounting has started becoming prestigious and efficient for particular needs of industry. This paper describes several kinds of accounting software systems in order to have the ability of selecting the best from the same. At first, packages of accounting of accounting software were quiet simplified (Hyvonen et al 2007). Generally, they processes, simply the business related book keeping transactions. Currently, software’s across enterprise as well as accounting are powerful with incredible nature, have complication and have the capability to collect a wide variety of information for supporting multinational firms business decisions operating at a global scale and needs data in several currencies as well as foreign languages (Grabski et al 2011). Specialized packages for accounting software’s furthermore can help in accommodating within particular needs in industrial information driven through certain essential processes of business.

Currently, software systems of accounting are evolving into one more phase as such solutions of businesses are becoming a component of integrated software in enterprise known as the systems for enterprise resource planning (Carpenter et al 2011). For example, finance related functions can have interface with sales, manufacture, distribution, applications for human resources etc. The major current enterprises which have considered to realize the advantages of integrating their systems of information, extend their systems of ERP either up or down the chain of supply.

1. Defining the business related processes

a. Business activities and processes

This section is responsible for discussing the roles and responsibilities of a Baker. In order to discuss this, essential business activities or organization processes will be discussed for showing the understanding over the business (Heikkila et al 2011. Everyone understands the meaning of a bakery. A bakery is a shop which is responsible for producing and selling food baked with flour in ovens such as breaks, cakes, pies and also pastries. There are certain bakeries in the retail sector which also are cafes that serve coffees and also teas to their consumers wishing to undergo consumption of baked products over the premises.

A process of business is a collection of linked roles and responsibilities which search their end within the service or product delivery to clients. A process of business also has been determined as an activity set and tasks which upon completion result in accomplishing the goal of an organization. These are the steps which often are repeated various times at times through several users and ideally through standardization and optimization (Jadhav et al 2009). A process of business either can be automated or can have manual outlook. When manual, the process is obtained without the automation aid or technology assistance. A technology aid, if automated has been put under position to help the users in implementation of process in a manner which is accurate, standardized and even optimized. These are all such processes which need to be undertaken in an appropriate manner within a business of bakery. There are several business processes involved within a bakery business such as the one being discussed in the case study. These processes are inclusive of manufacture, financing, banking, human resource and customer management along with supply chain management (Law et al 2007). The essence here is that all these processes need to be aligned to one other or else they do not result in effective process related orientation. This is the reason why various frameworks for management of business process are related to creating solutions of technology that are independent in industry.

The foremost activity is budgeting. All companies engage in creating budgets that are responsible for dictating how revenue can be used in every day operations and in the future growth pursuit. Every manager in a department provides input over the ongoing operations costs and then budget creation takes place to allow organizations, such as the bakery business to track every revenue and spending. From the previous year, budget, can be compared with the actual results in a year for guideline creations.

Another essential activity is accounting. This is the process to manage the money flow within and external to an organizations (Shang et al 2011). Areas coming under the group of accounting are payable accounts, receivable accounts, pay rolling, crediting amounts of the customers, their collections and accounting of tax. Reports for accounting are responsible for filing the taxes annually, monitoring the costs in the company and maintain the relationships of finances with customers and also the vendors.

Another essential business activity is marketing. Marketing as a process help in developing companies and recognize brand within the market place along with developing pieces of advertisement that the public purchasing can view (Simunek et al 2008). The group of marketing developing marketing plans comprehensively makes use of projections of sales for determining the best manner of using resources in a company for gaining much exposure for the products as well as the organization related with it.

Another business activity is sales that this bakery follows. This is the activity which a team in a firm maintains through directly contacting with the base of the customers. The group of sales entails in reaching out towards prospects which help in expanding the base of the customers.

1. Developing business related requirements

b. Processes which are indispensable when engaging in performing them

The most indispensable process within the firm is first accounting. Running a bakery requires their owners often to have experience within several functions of businesses. Goods or services production, economic forecast conduction, market strategies creation and financial data accounting are only fewer responsibilities of a owner of bakery (Sylester et al 2013). Accounting, above all, plays an essential role within management of small businesses to help track information of finances for functions of businesses. Strong systems of accounting might be the contrast between creation of successful business and bankruptcy filing. The reports of small business related administration results in reporting that new business by two thirds survive for 2 years at the least. A mix of financial accounting is used by businesses of bakery such as the case study selected with regard to business operations in accounting. Accounting management has a focus over business cost allocation towards products as well as services, creation of business functions budgets and prepare business decisions related financial data. Accounting related finances help in preparing statements of finances to list the revenues of sales, expenditure, liabilities, assets and small business cash flow (Weygandt et al 2010). Both kinds are utilized for securing financing externally or reporting business stakeholders related financial performance. Information of accounting allows the bakery owners with regard to business for assessing the effectiveness and efficiency of their operations in business. Financial statement prepared can have comparison to industrial standard or to competitors of leading nature towards determining the way in which the business has performed. Owners might also make use of statements of financial accounting with its related history for creation of trends to analyse and forecast the sales in future.

Another essential indispensable business requirement is marketing within businesses. This also comes forward in the best possible manner when budget is appropriately managed (Brown et al 2003). Perhaps, marketing is the most essential activity within a business as it has a direct influence over profit making and also sales. Major businesses will result in dedicating particular staff as well as departments for the marketing purpose. It is essential to further analyse that the system of marketing cannot get carried out without the relationship with the remaining of the processes of business.

c. Outcomes required from the resulting processes for achieving objectives of businesses

The key outcome that is needed is to ensure that business operations have efficiency. The essential reason in the end is to gain process effectiveness from process efficiency. For remaining competitive, businesses need to boost their efficiency of operations whenever there is a possibility for one. It is essentially essential for operating in an efficient manner as they are often more resource limitations existing. For remaining competitive, soon or late, any organization which does not operate in an efficient manner, is always a failure. The key objective to obtain furthermore is providing employees with security along with access consistency to data. An advantage here is the ability of reacting in a quick manner than the other competitors (Botta-Genoulaz et al 2009). If company related networks are down frequently or are not secured, competitive benefits then become white washed. A network of secure, reliable as well as self-defence has its basis over routers of intelligence providing businesses with agility as maximum through provision of security based access towards intelligence of business. Another objective to be achieved is delivering wherever needed and as required. Employees in a bakery are generally within the business and work within the company and therefore, they require to have appropriate processes and operational efficiency which is not possible without such objectives and business process effectiveness.

Another objective is to result in creating effective processes of business with the collaborative efforts of other stakeholders who work as partners. Certain major enterprises indulge in making business processes of efficient and secure processes a compulsory requirement to do business. For developing efficient processes of businesses meeting the partner’s requirement, it is essential to indulge in process manufacturing with abundant collaboration and security (Chen 2010). This cannot be done in an appropriate manner only when business processes are properly aligned. Another essential objective is streamlining the communications with the consumers. Interaction with consumers in an efficient manner and knowledgeable manner helps in keeping them completely satisfied and there are some things which are much essential. Link is required with IP based communication to the solution of customer relationship management. This is one manner for enhancing communications with customers. This is possible only when there are operational efficiency of business processes.

1. Determining the systems related requirements

a. Possible software features that organization should consider

There are several possible software features which need to be considered when IT investments are taken into consideration. This is not possible without taking into regard the essential features if any (Christauskas et al 2012). These features are first basic functions and then diverse or extended functions of ERP. Current systems of ERP provide integration between several of the main processes of business in an organization such as processing order and fulfilling it, taking into regard manufacturing, purchase and functions of human resources. These help in providing integration which implies that for example, sales people take order within a bakery company with the ability of checking the availability of inventory in an immediate manner. If inventory is present, the system of information will help in notifying whether shipping is done for picking the goods and filling orders. If there is no inventory over one hand then the system of ERP can result in triggering the sub-system of inventory to indulge in production of more products. The relationship present between order of customer and sub-system of manufacturing results in turn in a revision towards schedules of production for accommodation of newer orders (Christensen et al 2012). Resources who are humans might further be involved when the newer order needs more labourers to have assignment over duties. In brief, all the organization related functional areas can utilize similar data for performing the tasks in an efficient manner for meeting the needs of the customers. Further there are extended systems of ERP with their features. The processes of businesses have integration through systems of ERP which are called as functions of back-office as they are concerned primarily with the internalized systems of enterprise. Traditional systems of ERP have a focus over internalized information, which is generate for usage especially through internalized processes such as manufacturing and own makers of decision within an enterprise  (Carpenter et al 2011). The ERP systems today can have extension with online business and other capabilities in front office. Extended systems in enterprise bring more suppliers, consumers and other partners of business such as strategic relations in businesses and investment. The ERP systems today interface with the customers and suppliers by the applications of management of supply chain. The chain of supply for an individual enterprise is extended from suppliers from where it buys the raw materials for the customers in the end. The supply chain of a bakery furthermore is part of a connected chain of supply.

There are several tools also within these systems. These tools help any company such as a bakery business to optimize its chain of supply (Grabski et al 2011). This is done through management of customer relationship. This is not an application instead it is a collectiveness of applications inclusive of order of sales, databases and systems of service for customers as well as packages of finances. The CRM integration collects information from such applications of disparate nature and helps in integrating them for utilization in making decisions. Businesses further make utilization of CRM for analysing customer information. An example can be quoted here that is to look at trends and purchasing patterns. Such analysis can help in improving relations of customers when business makes use of information for better meeting the needs of the customers. The tools of Business Intelligence can also be used (Hyvonen et al 2007). These are software tools for analysis of data which can help managers obtain proper information through the tools of CRM. This can be collaborated with the analysis of BI allowing businesses to serve better, the customers and also influence the line at the bottom. CRM, for example when combined with the BI can help any organization learn better leading towards more profitability and then can result in directing the efforts of sales towards such customers. As an example it can be said that there is a need to redefine these processes.

4. Software Selection

a. Accounting software package vendors

SAP, Tally and Busy are the three software’s selected.

b. Software category

There are three primary categories including low, medium and high. For this case organization’s purpose, mid-range to high-range accounting end system are considered. Upon the growth of transaction processing in complexity and volume, mid to high range package of system software is the appropriate choice (Heikkila et al 2011). Some of the packages for account software of this kind are Dynamics GP of Microsoft, Epicor, Sap Business One, Mas 90 and MAS200 of the Sage. Accpac, Made2Manage and Everest. There package of software ranges from $2000 to above $300,000 in cost while offering various features that are required by the enterprises that are of medium to large sizes. For an example, most of the large corporations undertake business operation internationally and have a need for software that can handle multiple currency transaction. Some of these accounting software packages have the capability to provide conversion of transaction from original currency to other along with writing foreign currencies checks (Jadhav et al 2009). One more example of a customized feature can be involved in the accounting software that is high end consists of ability in splitting commissions between large number of sales representatives. Accounting software system ranging from medium to large are also able to handle many more functions than only accounting. In an addition to providing interfaces and modules in variety, there is an array of options for deployment made available by the vendors of mid to large level systems of accounting to the customers to opt from as per their preferences.

For an example, software can be deployed on computer via hosted solution or web browser. Software of account can be on the expensive side as even the packages that are low end require considerable investment for software installation, conversion of old data for the system that is new, training users and customized features (Law et al 2007). Software is not the primary component of cost, some of the organizations choose to implement services of cloud computing instead of buying the software. This is referred as the hosted solution and it is made available through Accpac and Peachtree. Accessibility of data and program and ease scalability are two of the hosted solution advantages.

5. Selecting Vendors

a. Comparison and contrast

S.A.P. is short for Systems, Applications and Products in the processing of data. Story of sap is shows a steady rise wherein team of five operating in Germany turned into the leading independent providers of software and a workplace employing over 47,000 individuals in over 50 nations. SAP software was first introduced in the year of 1972. It assists enterprises of all categories and domains to perform better (Weygandt et al 2010). The initial ten years puts light on the starting of the organization and subsequent development of initial modules of software from foundation of SAP and the R/2 SAP system brought revenue in the first year of the organization from the consumers out of Germany and appearance on the first trade show. Major market in ERP software is help by SAP.

S.A.P. Advantages

  1. It comprises of functionality and features of various levels, any it is easy for any sort of industry to adopt the functioning of SAP. It is suitable for large enterprises, multinational organizations, and sector of government that follow business plans which are complex
  2. Solution appropriateness for back office processes and flow of work (Law et al 2007).
  3. Extreme flexibility is offered by the ERP solution as at many stages it defined the business plans and the organizations that buy the software can define their architecture rules in SAP,
  4. Automation is provided at three levels that assists in workflow and business processes automation.
  5. Even the organizations that are complex can implement the software and flexibility of integrating database range is present.

S.A.P. Disadvantages

  1. Procedure of SAP implementation is tough and business processes that are easy find the software to be complex (Heikkila et al 2011)
  2. Organizations receive professional services to a higher extent but the cost associated is also high
  3. High flexibility equally increased the factor of risk
  4. Expensive maintenance of the enterprise software
  5. Completion of the deployment process might take years


One software of computer accounting was introduced by Bharat Goenka in early 1980s referred to as Tally. All the other ERP software companies were focusing on the products while Tally was providing services which triggered the shift from products to services (Jadhav et al 2009). Indian market has been made attractive business place due to the 30 years of product development for the market in India. Tally provides with capabilities of delivering complex reports within minutes and efficient speed. Tally is most common accounting software that is used. The ease to use makes the software suitable for implementation in small to large organizations as even the new technology users find it convenient.

Features of Tally

Options of maintenance of inventory and simple stock is provided. Various modules are also present to manage stock such as order purchases, stock query, invoicing and evaluation of multiple stock along with measurement of multiple units (Hyvonen et al 2007). Various data transmission modes are supported as the web features include several protocols.

Tally advantages

  1. Fast speed and reliable: The performance speed is fast even at systems with low configuration. Over 70% small business operate on this software which makes it reliable.
  2. Simple ability to operate: Ease to use improves the organization’s productivity. Many users were attracted by the ease of use and simplicity upon initial release of desktop version. Latest version complies with the accustomed procedures (Christauskas et al 2012).
  3. Multilingual platform and database that is object oriented: Support is present for database with high power, enabling its use on platform of multi user and makes transactions easy at their level.
  4. Complete business support: MIS and dynamic reports of Tally provides view of every business aspect. Control in synchronization of data and features of multi-lingual is considerable.
  5. Easy navigation: Drill down display shows forms and module, link between data flow and modules can be tracked (Sylester et al 2013). Features such as accounts payable, receivable, general ledger, operations of bank and several other functionalities are present.

Tally disadvantages:

  1. Payments cannot be made online
  2. Filling of the tax form is not possible and it can online export the information
  3. Lack of direct path for the auditor or organization to directly audit the business
  4. Basic knowledge of accounting and training is required (Carpenter et al 2011)
  5. There is no customization available for the buyer

b. Most Suitable Vendor

The most suitable package for accounting software with suitable vendor selection is Busy. This software was initially founded in the year 1990 in the Asian region through various computer professionals inclusive of personal computer third party maintenance and peripheral usage along with maintenance of IT projects, customized solution of software’s and turn keys (Shang et al 2011). The company Infotech private limited, Busy has a focus over business software for accounting development as well as marketing under the busy trademark. Which was being undertaken as digital electronics software division. This software is sold and also supported across the nations by business networks of ever increasing nature. Computer training institutes and more and more bakeries have also made use of this software system. Computerized accounting is properly understood through the help of Busy (Simunek et al 2008). This is a software with base of installation across several systems and processes. The reason for which this has been selected is due to its various features. The first feature is the ability of offering multi-location management of inventory. Busy is essential for making multiple location management of inventory with regard to bakery business. When business men have their offices within distinct areas, then they have the ability of maintaining their key record of inventory through use of such software. Another feature is that it is user friendly in nature. Busy is a software which is very easy to utilize as it is very friendly for the users as it allows providing distinct options for each function provided through such software system. Another essential feature is excising base report creation for accounting systems (Sylester et al 2013). Such software helps in creating the reports within base of excise that is the reason why it is essential to produce analysis and also for transferring the same to other people. Furthermore this system allows for sale and purchase analytical processes. This software further provides the data of purchasing and sale which is essential for understanding the trade produced through business and also helps in providing what is require with regard to business. It is further essential for making comparison with previous records.

Another essential facility is the facility of e-mailing and SMS. This system of accounting software helps in providing direct emailing and sending message for people with the requirement of the same. This is also essential for the use of appropriate bakery based business processes and related activities. The advantages therefore are inclusive of easy usage, completing support to business and promoting development of business. Each of these offer such essence that they help in evaluating various prospects as well as significant approaches that can help in aligning and redefining the systematic processes (Weygandt et al 2010). The processes help in focusing over systems of perspectives and appropriate assumptions. These do not only align their selves but also help in alignment of objectives. The objectives are defined in the best possible manner with regard to this software when using accounting based systems. This is possible only when processes have realignment and the bakery process can make use of the same.


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