ERP dictionary

# BMS

16.12.2024

BMS, or Business Management Systems, is one of the foundations of contemporary business. However, this concept is better known under a different acronym – ERP, or Enterprise Resource Planning. Both refer to enterprise resource planning and management of its operations, and also describe various types of extensive IT systems. However, to fully understand what a BMS is, you need to know dozens of other terms, because without their knowledge, BMS systems will be as understandable as ancient grimoires.

Concepts

It is worth starting the dictionary of terms related to BMS with the absolute basics, which are:

Business Management Systems (BMS): The name of the department in Mindbox dealing with business management systems for our clients, mainly ERP solutions, but also others e.g. CRM, DMS, BI etc.
Enterprise Resource Planning (ERP): A software system that integrates business processes like accounting, sales, manufacturing, procurement, and inventory into a single unified system.

However, the above cannot be understood without knowing the following terms:

Business Intelligence (BI): Technologies and practices used to collect, analyze, and present business information to make informed decisions.
Business Process Management (BPM): A methodology that involves analyzing, optimizing, and improving business processes to enhance efficiency and effectiveness.

It is also worth getting acquainted with the specialized definitions of working conditions for BMS systems – thanks to them, you will be able to better understand what the supplier of this type of solution wants to convey to the client:

Account Payables (AP): A company’s short-term liabilities or obligations to pay suppliers for goods or services received. In Epicor Kinetic – the module related to handling suppliers and purchase invoices.
Account Receivables (AR): The money owed to a company by customers for products or services delivered. In Epicor Kinetic – a module related to customer service and sales invoices
Change Request: A formal proposal to modify a system, process, or product to accommodate new requirements or fix issues.
Country Specific Functionality: Features or requirements that are designed to comply with the specific legal, regulatory, or market conditions of a country.
Full-Time Employment: A type of employment where an individual works a standard number of hours per week, typically 40 hours.
Human Resources (HR): The department responsible for managing an organization’s workforce, including recruitment, training, and employee relations.
Human Capital Management (HCM): A strategic approach to managing and optimizing an organization’s human capital, including talent acquisition, development, and retention.
Project Management Office (PMO): A centralized team or department that oversees and supports project management practices and standards across an organization.

The following concepts are used to evaluate the effectiveness of BMS systems:

Gap: A discrepancy between existing functionalities and desired capabilities, typically identified during requirements analysis.
Key Performance Indicator (KPI): A measurable value that indicates how effectively an organization is achieving its business objectives.
Standard: A defined and agreed-upon norm or guideline that sets specific requirements or criteria for processes, products, or services.

It is worth discussing one concept separately: Proof of Concept (PoC), because it has two meanings:

Demonstration of a ready-made system prepared for the customer’s needs, most often including customer data, customer-specific customizations, parameterized processes, and configured print patterns.
Sample, a simplified implementation of a solution, which is to prove that a given solution will meet the customer’s expectations. Sometimes it is used in the sales process to demonstrate the effectiveness of the proposed solution and compliance with expectations. In the sales process, it most often concerns only a critical fragment of the solution, because often the implementation of the whole thing takes many hours of work and there is no possibility of implementing it in its entirety without signing a contract. Not to be confused with POC implemented as part of the project.

Briefly speaking, in the first sense, PoC refers to a specific element of the system; in the second sense, it is proof that the system works.

Process

It is impossible to talk about BMS without knowing the processes involved in the idea, preparation and implementation of this type of system. Below we present the most important concepts from earliest to latest:

Business Activity Query: A query used to analyze and report on business activities based on transactional data.
Development: The process of creating, building, or modifying software or systems to meet specified requirements.
Extract, Transform, and Load (ETL): A data integration process that extracts data from multiple sources, transforms it for analysis, and loads it into a data warehouse.
Quality Control (QC): A process that involves testing and verifying products or services to ensure they meet specific quality standards.
Quality Assurance (QA): A set of activities and processes aimed at ensuring that products or services are of high quality and meet the specified requirements.
Software Integration Tests: Tests that verify whether different software modules or systems interact and work together as expected.
User Acceptance Tests: Final testing phase where users verify that the system meets all business requirements and functions correctly.

Narzędzia i metody

BMS consists of many smaller tools that together build a unified system for managing the entire company. Below is a list of tools, programs and modules that can be included in the BMS system or are used during their design or implementation:

Advanced Planning System (APS): A software tool that helps in planning and optimizing manufacturing and supply chain operations.
Applicants Tracking System (ATS): A software solution that helps organizations manage the recruitment and hiring process by tracking and organizing applicants.
Application Studio Management: A module in Epicor Kinetic for designing system customization and writing code
Assets Management: In ERP systems – module dedicated to managing fixed assets
Azure DevOps: A suite of development tools and services by Microsoft that support software development, CI/CD, and project management.
Conference Room Pilot: A pre-implementation test where key users simulate a real-world environment to validate that a system meets business needs.
Configure, Price, Quote (CPQ): A software tool that helps companies quickly configure products, determine accurate prices, and generate sales quotes for customers.
Customer Relationship Management (CRM): A system used to manage interactions with customers, track sales, and optimize relationships to increase customer satisfaction and business performance.
Data Management Tool: A software application used to effectively manage and organize large data sets. In the case of Epicor Kinetic, the name of the software used to import data into the system
Document Management System (DMS): Software that helps in managing, storing, and tracking electronic documents and digital images of paper-based information.
Electronic Data Interchange (EDI): A standardized method for electronically exchanging business documents, such as invoices and orders, between companies.
Functional Requirements Specification: A document describing the specific capabilities and functions a system must have to meet business needs.
General Ledger (GL): A complete record of all financial transactions in an organization, forming the basis for financial reporting. All transactions in the accounting entry from other Epicor Kinetic system modules go to the General Ledger.
Manufacturing Execution System (MES): A software system that manages and monitors the production process on the factory floor.
Material Resource Planning (MRP): A system for planning and controlling manufacturing processes, including inventory management, scheduling, and production planning.
Percentage of Completion: A method of measuring and recognizing revenue or project progress based on the percentage of work completed.
Product Data Management (PDM): Software that manages product-related data and ensures that all stakeholders have access to accurate product information.
Product Information Management (PIM): A system that centralizes and manages product information to ensure consistency and accuracy across channels.
Product Life Management (PLM): A system that manages the entire lifecycle of a product from inception through design, manufacturing, and disposal.
Service Connect: a tool in iScala and Epicor Kinetic used to build interfaces with external software. It can read XML files, CSV files, Excel files. It usually works in the background without user participation
Solution Design Specification: A document outlining the architecture and detailed design of a system or software solution.
SQL Server Reporting Services (SSRS): A server-based report-generating software system from Microsoft that allows users to create, manage, and distribute reports.
Stock Control: In ERP systems module dedicated to Inventory (warehouse) management.
Supply Chain Management System (SCM): Software that helps organizations manage their supply chain processes, from procurement and production to delivery and returns.
Transport Management System (TMS): A software system designed to help manage transportation logistics, including routing, scheduling, and tracking shipments.
Warehouse Management System (WMS): Software used to control and manage warehouse operations such as inventory tracking, picking, and shipping.
WiseTeam System: Likely a project or team management software, specific to an organization’s processes.

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ERP dictionary

Concepts

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Narzędzia i metody

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