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Reducing the Cost of ERP Software Through Emanation
From ERP infancy to years after the initial installation, the cost of integrating modules can be minimized, controlled, even welcomed.
An ERP can be defined as a collection of modules driven by the nature of its modules. Alternatively a unERP is integrated data driven by functionality. A function can be virtually any business transaction one wants it to be as long as it has all the required elements of – who, what, when, and where.
Because there are typically no modules to integrate in a unERP, integration is not really an issue. As a result, neither are the complexities of integration.
Adding a new function (in lieu of adding a new module) is done using one of the following three emanation methodologies.
Emanation Strategy Number 1
If the new module you want is functionally almost identical to an existing one, it might be as simple as creating a new record to define the basic characteristics of a new transaction entry screen along with a couple of database records required for security and user authorization. From start to finish, the entire module might be created and fully functional in a matter of minutes. In more complex instances it can take perhaps a few hours but definitely not measured in days or months.
Emanation Strategy Number 2
The second scenario might involve the development of a new supporting database used primarily for recording static values. An example of this type of application might be equipment costing whereby the supporting database consists of the static data on each piece of equipment such as the serial number, capital cost allowance rate, description and any other relative but static specifications.
This file would be all the data you want to have on hand and have instant access to but not any data related to normal purchase, maintenance or operating costs. In the unERP, all information with respect to costs is almost always pulled directly from transactions. In effect, the system’s transaction file is not only a transaction file for recording basic accounting purposes but it also the backbone of fixed assets ledger and the equipment costing ledger financial data.
These types of development projects typically take a few days spread out over a very short number of days of possibly weeks but typically not several months or years.
Emanation Strategy Number 3
The much more complex situation is when an interim data collection step is required for the accumulation and summarization of data. Collection of hours is a prime example.
In the unERP time collection is considered a stand alone function, its prime purpose being the collection and accumulation of hours transactions. Hours can be collected for many reasons, employee payroll, billings, job cost equipment cost allocation, hired truckers payroll, equipment usage or any other reason one might want to keep track of time.
With the unERP, time can be recorded in any number of ways, weekly time sheets, real-time on a time clock or daily entries. How it is collected and recorded has little or no bearing on what the hours transactions are ultimately used for. Frequently the same time transactions fulfill multiple functions. If there are three different collection methodologies used simultaneously by the same company, that’s OK too. The time database really doesn’t care.
Time collection procedures always use the primary unERP database files for verification of values for things like names, job numbers and equipment unit numbers but ultimately the hours transactions can take on several uses and do not enter into the mainstream of the system database until it is time to do something strategic with the hours such as process a payroll, so some billings or whatever it is you want to do related to those hours.
The system is designed so that plug-ins like this can easily be incorporated wherever most appropriate within the workflow process. Plug-ins typically take longer to develop than the previous types of projects but these projects are usually completed in the realm of days or weeks, not months or years.
In this instance the added function of time collection is considered a plug in and comes about as close to integration as integration ever gets in a unERP. When data is picked up from other sources, integration as such, generally fits into this category.
About the Author
Ron Bunn, author and joint founder of unERP technologies, is an accountant by trade and an information systems designer and computer programmer by desire. His first personal home computer purchased in the late 1970′s, costing approximately $74,414.00 in terms of to-days dollars, was his launching pad to an exciting and challenging career in information technologies. He lives in Rothesay, N.B., Canada where he continues to spend his time in nurturing the development of new ideas to simplify both accounting and computer system user activities within all levels of administration. ERP Management Software
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