Group Members

Rabbia Irshad Qazi Naveed ur Rehman Umair Butt Mohmmad Salman (L-11264)

Topics

What is an ERP System? Why implement an ERP system? How should ERP systems be

implemented? Conclusion Questions and Answers

What is an ERP System – definitions

Simplistic DefinitionERP - Enterprise Resource PlanningDetailed Definition“a business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420)

Historical system architectures Historically, companies created

“islands of automation”. A hodge-podge of various systems that operated or managed various divergent business processes. Sometimes these systems were integrated with each other and sometimes they weren’t. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.

What is an ERP – Key Characteristics

Integrationseamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information.

PackagesEnterprise systems are not developed in-house

IS life cycle is different1. Mapping organizational requirements to the

processes and terminology employed by the vendor and

2. Making informed choices about the parameter setting.

Organizations that purchase enterprise systems enter into long-term relationships with vendors. Organizations no longer control their own destiny.

Best Practices ERP vendors talk to many different

businesses within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be “industry best practices”.

The general consensus is that business process change adds considerably to the expense and risk of an enterprise systems implementation. Some organisations rebel against the inflexibility of these imposed business practices.

Some Assembly Required Only the software is integrated, not the computing platform on which it runs. Most companies have great difficulty integrating their enterprise software with a package of hardware, operating systems, database management systems software, and telecommunications suited to their specific needs. Interfaces to legacy systems Third-party bolt-on applications

EvolvingEnterprise Systems are changing

rapidly Architecturally: Mainframe,

Client/Server, Web-enabled, Object-oriented, Componentization

Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialized vertical industry solutions, etc.

Typical architectural components

WebInternet

Mobile Wireless e-Mail

Call CenterICM/Telephony

InteractionChannels

MarketingIntelligence

SalesIntelligence

CustomerIntelligence

Call CenterIntelligence

AnalyticalApplications

E-business PlatformTech Stack

Common Data and Object Models, Security, Interfaces, Globalisation

E-Business Foundation

Marketing Sales eCommerce

Interaction History Universal Work Q

1-to-1 Fulfillment

Assignment Engine

EscalationsTCA

Tasks Notes

Resources

Calendar

OSS HR

CRMFoundation

Business Applications

Installed Base Territories

Why implement an ERP System?

To support business goals Integrated, on-line, secure, self-service processes for

businessEliminate costly mainframe/fragmented technologies

Improved Integration of Systems and ProcessesLower CostsEmpower EmployeesEnable Partners, Customers and Suppliers

How should we implement ERP systems

Obtain the right mix of people, processes and technology!!

How should we implement ERP Systems?

People Project Structure Should be aligned to processes

Process Implementation Process (outlined in

detail) Adapt your processes to those of the ERP.

Technology Hardware Software Integrated Systems

Process

1. Definition and Analysis Hold discussions with various

functional personnel to establish the actual number of systems operating at client site, what they are used for, why and how often

Produce the Project Scoping Document outlining current situation, proposed solution and budgeted time

Challenge : REQUISITE EXPERTISE - No two clients are the same

. Design Prepare various functional reports - specifies

current scenario and wish list Prepare Design document which specifies

how the system is going to work Prepare test scripts to be followed on system

testing Map out the interface paths to various

modules

Challenge : INFORMATION SHARING - Availability of staff

3. Build Configure system as per set up

document specifications i.e. transfer conceptual model into reality

Test system to verify accuracy (preliminary tests)

Challenge : TECHNICAL ENVIRONMENT - System functionality

4. Transition Train users on their specific areas Assist in test data compilation and

system testing by users Finalise the Live system and captured

opening balances

Challenge : USER RESISTANCE Understanding and acceptance

data preparation

5. Production Official hand holding Effectiveness assessment Business and Technical Direction

recommendations

Technology

Technology is an enabler, not the driver (it is there to assist the organization to achieve business goals)

It is a means to an end, not the end

• CRM systems focus specifically on

The organization before ERP ( systems)Isolated Information: their own systems

Update issues RedundantInaccurate and different Different in the different databasesCan’t access information maintained by another departmentCan’t of the entire organization

ERP: Bringing the Organization TogetherERP – integrates

(or integrated set of IT systems) so that employees can make enterprise wide decisions by viewing enterprise wide information on all business operations (enterprise wide information)

Keyword in ERP is “enterprise”

ERP systems focus on all processes, departments and operations for the entire enterprise

Sales

Acctg

Enterprise Resource Planning

ERP systems and correlates the data generating an enterprise wide view that is consistent and real-time. involved in sourcing, producing and delivering a company’s product

Complete

Real time

Consistent

Components of ERP Software

Three core components focus on (accounting/finance, production/materials management and HR)

Extended components typically focus on and require interactions with customers, suppliers and business partners

Typically Internet enabled.

Make sure that you know what each component

typically handles.Skipped details

slides follow

CORE ERP COMPONENTS

Accounting and finance component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

Human resource component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities

CORE ERP COMPONENTS

Production and materials management component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control

Extended ERP Components

Extended ERP components include: Business intelligence▪ Tools to help analyze your business information and

better understand it so that you can better understand the business.

Customer relationship management Supply chain management

E-business▪ E-logistics – manages the transportation and storage

of goods▪ E-procurement – the business-to-business (B2B)

purchase and sale of supplies and services over the Internet

Enterprise Resource Planning (ERP)

At the heart of all ERP systems when a user enters or updates information

Enterprise Resource Planning (ERP)

ERP Benefits

1. Having integrated systems helps that many businesses had previously started to use (also didn’t have to fix those old legacy systems)

2. Integrate financial information and customer order information

3. Everyone working with the same information and removes misinformation

4. Standardize and speed up manufacturing processes, as well as reduce inventory

5. ERP addresses the

6. One of the greatest benefits of an ERP system is Provides organizations with information that was previously difficult (if not impossible) to obtain, allowing the organization to perform more efficiently and effectively.

ERP Risks (Costs)

• Costly in terms of One vendor risks: too costly to Company essentially held hostage.

EmployeesDifficult to

Microsoft Business Solutions Great Plains Dynamics

ERP systems provide a mechanism for implementing systems where a high degree of integration between applications is requiredThe Business Case or Value Proposition for implementation must be outlinedTo successfully implement a proper mix of people, processes and technology should be maintained

Conclusion

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