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ERP (Enterprise Resource Planning) systems for Defense and Aerospace

The term enterprise can be defined as describing an organizational unit, organization, or collection of organizations that share a set of common goals and collaborate to provide specific products or services to customers. In that sense, the term enterprise covers various types of organizations, regardless of their size, ownership model, operational model, or geographical distribution. It includes those organizations’ complete socio-technical systems,  including people, information, processes, and technologies.


Growing companies eventually reach a point where spreadsheets no longer cut it. That’s where enterprise resource planning software comes in: ERP systems collect and organize key business information and help organizations run lean, efficient operations, even as they expand.


At its core, an ERP is an application that automates business processes, and provides insights and internal controls, drawing on a central database that collects inputs from departments including accounting, manufacturing, supply chain management, sales, marketing and human resources (HR).


Once information is compiled in that central database, leaders gain cross-departmental visibility that empowers them to analyze various scenarios, discover process improvements and generate major efficiency gains. That translates to cost savings and better productivity as people spend less time digging for needed data.


Cloud-based ERP applications are often embedded with next-generation technologies, such as the internet of things (IoT), blockchain, AI, machine learning, and digital assistants. These advanced technologies deliver data and capabilities that not only enhance many traditional ERP functions; they create new opportunities for increased efficiencies, new services, and deeper insight across an enterprise. Since ERP systems are comprehensive across an enterprise, their management often involves a partnership with the CFO as well as the CIO, COO, and other key executive leaders.


Enterprise resource planning (ERP) software

Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.


ERP systems are designed around a single, defined data structure (schema) that typically has a common database. This helps ensure that the information used across the enterprise is normalized and based on common definitions and user experiences. These core constructs are then interconnected with business processes driven by workflows across business departments (e.g. finance, human resources, engineering, marketing, operations), connecting systems and the people who use them. Simply put, ERP is the vehicle for integrating people, processes, and technologies across a modern enterprise.


Financial management

Financials are the business functions relating to the finance department of an organization and includes modules for financial accounting, subledger accounting, accounting hub, payables and receivables, revenue management, billing, grants, expense management, project management, asset management, joint venture accounting, and collections.


Financials software uses reporting and analytical capabilities to comply with the reporting requirements of governing bodies, such as the International Financial Reporting Standards Foundation (IFRS), Financial Accounting Standards Board (FASB) for Generally Accepted Accounting Principles in the United States (GAAP), as well as for other countries (HGB in Germany and PCG in France, for example).


For public organizations, financials software has to be able to produce periodic financial statements for governing regulators, such as the US Securities and Exchange Commission (SEC) (with reports such as quarterly 10-Q and annual 10-K), European Securities and Markets Authority (ESMA), and others. For these types of financial reports, a narrative reporting tool is used. The person who is ultimately responsible for financials is the CFO.


ERP in Human Resources Management

Human Resources is seen as one of the prime resources of any business organization. As it is one of the crucial resources to run and manage your business operations effectively, it is important that you manage them well by meeting the demands of both organizations and employees without any gaps. From tracking work schedules to ensuring proper accountability of leaves and salary, there are a lot of things that have to be done under Human Resource Management. In order to manage everything with ease, gain better trackability and accountability, the ERP can be the desired solution for businesses of all sizes.


The main goal of ERP Software is to optimize and plan the resources well in order to decrease costs and ensure maximum efficiency. Going through the same concept, the ERP Software integrated with Human Resource Management can ensure smooth management and coordination of demand and supply between organization and workforce. From meeting deadlines to ensuring several KPIs in terms of day-to-day operations, the ERP can do a lot of things in areas of Human Resource Management.


Workforce Tracking: An organization might have thousands of employees, and it may become difficult for them to manage it all manually. To solve various challenges, there needs to be a centralized system through which the data for all the workforce can be managed dedicatedly and maintained on a regular basis. The ERP can hold such a large amount of data and help businesses keep track of employees in a better way.


Performance Management System: This is another key feature that can be utilized well through the use of compiled data stored in the centralized database of ERP Software. Through a proper analysis based on various criteria and key aspects, the ERP Software can also evaluate the performance of human resources.


Workload & Resource Management: This is quite an interesting feature that can effectively manage human resources. Through workload and resource management, businesses can track project completion rates, overtime, availability, unavailability of human resources, and more. It can also be used to track which resource is working on which project or process.


Payroll Management: Salaries being a crucial part of Human Resources Management can be ensured through ERP software as it can keep the active track of leaves applied, incentives, deductions applicable, loans, etc. through a centralized database. ERP can even automate the process of calculating salaries without the requirements of any manual efforts.


ERP software that’s tailored to meet the needs of an individual business pays major dividends, making these systems a critical tool for companies across industries and of all sizes. Many of the world’s best-known and most successful firms have leaned on ERP for the last quarter-century. Now, this software can be configured and priced to meet the needs of all-size businesses.


Put simply, an ERP system helps unify people, core business processes and technology across an organization.


The business value of ERP

It’s impossible to ignore the impact of ERP in today’s business world. As enterprise data and processes are corralled into ERP systems, businesses can align separate departments and improve workflows, resulting in significant bottom-line savings. Examples of specific business benefits include:

Improved business insight from real-time information generated by reports
Lower operational costs through streamlined business processes and best practices
Enhanced collaboration from users sharing data in contracts, requisitions, and purchase orders
Improved efficiency through a common user experience across many business functions and well-defined business processes
Consistent infrastructure from the back office to the front office, with all business activities having the same look and feel
Higher user-adoption rates from a common user experience and design
Reduced risk through improved data integrity and financial controls
Lower management and operational costs through uniform and integrated systems


Aerospace and Defense Industry

The Aerospace and Defense Industry serves, as its name represents, two main markets: Aerospace, which largely comprises the production, sale, and service of commercial aircraft, and Defense, which serves the nation’s need for military weapons and systems designed to operate on land, sea, and in the air. Also included in this industry is the production of general aircraft (mostly for business use) and space vehicles, such as satellites, for both military and commercial use.


Aerospace and Defense have been one of the industries most affected by the COVID-19 pandemic, particularly the commercial aerospace sector. As these companies are scrambling to cope with the pandemic’s impact on their business, they are looking for ways to streamline operations, reduce costs, increase profits, and compete in a new reality.

Computer-aided design and manufacture (CAD and CAM) has brought about major changes in aircraft production. The time required for operations has been cut; often by more than half.

Investment in research and development (R&D) has introduced new materials and advanced ways for improving the understanding of aerodynamics. In turn, this helps improve the performance and efficiency of aircraft.

Aerospace and defense manufacturing organizations are often complex. And because of this complexity, their demands for system functionality are many, including:

  • Finance: A/R, A/P, G/L, financial reporting, and product costing
  • Logistics: Purchasing and sales
  • Inventory control: Raw materials, finished goods, bulk stock, kanban, and materials resource planning (MRP)
  • Product engineering: Bills of material (BOMs), work centers, tasks, and routings
  • Production control: Material issues and receipts, production completion, labor capture, and planning


ERP market

The global ERP software market size is expected to reach USD 93.34 billion by 2028, exhibiting a CAGR of 9.2% during the forecast period. The market size stood at USD 46.30 billion in 2020 and USD 50.31 billion in 2021.


The market is divided into software and services based on components. In terms of revenue, the software category accounted for the largest share. The market is divided into SMEs and large companies based on the size of the company.


Large businesses accounted for the majority of the ERP software market share. Factors such as enhanced operational efficiency, lower manufacturing costs, and central data collecting for wide distribution are likely to boost demand for the product among major organizations.


The market is divided into three categories based on deployment such as cloud, on-premises, and hybrid. Cloud-based ERP is expected to hold the greatest market share during the forecast period.
The market is divided into financial management, human capital management, supply chain management, customer management, inventory and work order management, and others based on business function.


Major Companies in the Market: Oracle Corporation (Texas, U.S.), Infor (New York, U.S.), The Sage Group plc (Newcastle upon Tyne, U.K.), Unit 4 (DA Sliedrecht, Netherlands), Epicor Software Corporation (Texas, U.S.), Workday, Inc. (California, U.S.), SYSPRO (Sandton, South Africa), Acumatica (Washington, U.S.), Ramco System (Chennai, India), QAD Inc. (California, U.S.)



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