Introduction to ERP.ppt
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  • 1. Introduction to ERP
  • 2. History of organizational systems
    • Calculation systems
    • Functional systems
    • Integrated systems
  • 3. Calculation systems
    • 1950-80
    • Single purpose
    • Eliminate tedious human work
    • Examples: Payroll, General ledger, Inventory
    • Technology used: Mainframes, magnetic tapes, batch processing
  • 4. A System/370 Model 145 (1970’s)
  • 5. removable-disk hard drives
  • 6. Hard drives
  • 7. A very nice-looking magtape-drive
  • 8. Magtapes
  • 9. Batch processing
  • 10. Printer 800 lines/minute with 48 character train, 136 columns with 6 or 8 lines per inch spacing
  • 11. Stack of Computer Printout Paper
  • 12. Functional systems
    • 1975-20??
    • Use computers to improve operations
    • Applications: Human resources, order entry, manufacturing resource planning
    • Technologies: Mainframes, PC’s, LAN’s
  • 13. Minicomputer
  • 14. Functional systems
    • Typically contained within a department
    • Islands of automation
    • Applications independently developed and deployed
    • Driving force: availability of mini-computers
  • 15. Functional system applications
    • Human resources System
    • Accounting and finance systems
    • Sales and marketing System
    • Operations management System
    • Manufacturing Systems
  • 16. Human Resources
    • Recruiting
    • Compensation
    • Assessment
    • Development and Training
    • Planning
  • 17.  
  • 18. Accounting and Finance
    • General Ledger
    • Financial Reporting
    • Costing
    • Budgeting
    • Accounts Payable
    • Accounts receivables
  • 19.  
  • 20. Sales and Marketing
    • Lead tracking
    • Sales forecasting
    • Customer management
  • 21.  
  • 22. Operations
    • Order management
    • Inventory management
    • Customer service
  • 23.  
  • 24. Manufacturing
    • Inventory
    • Planning
  • 25.  
  • 26. Types of Organizational information Systems
    • Administrative systems
    • Scheduling / Transaction systems
    • Value oriented systems
    • Reporting and controlling systems
    • Analysis and information systems
    • Planning and decision support systems
    • (From Business Process Engineering by A.W. Scheer)
  • 27.  
  • 28. Problems with function based application
    • Sharing of data between systems
    • Data duplication
    • Data inconsistency
    • Applications that don’t talk to one another
    • Limited or lack of integrated information
    • Isolated decisions lead to overall inefficiencies
    • Increased expenses
  • 29. Solution to disparate systems?
    • Integration
    • Consolidation
    • Right-sizing
    • Business Process Redesign
    • Enterprise wide system
  • 30. Integrated systems or Enterprise Resource Planning System
  • 31. ERP - Definition
    • ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner
  • 32. ERP system: Definition
    • ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
  • 33. What is ERP?
    • Enterprise Resource Planning
    • Support business through optimizing, maintaining, and tracking business functions
    • Broken down into business processes
      • HRM
      • Distribution
      • Financials
      • Manufacturing
  • 34. What makes ERP different
    • Integrated modules
    • Common definitions
    • Common database
    • Update one module, automatically updates others
    • ERP systems reflect a specific way of doing business
    • Must look at your value chains, rather than functions
  • 35. Benefits of ERP
    • Common set of data
    • Help in integrating applications for decision making and planning
    • Allow departments to talk to each other
    • Easy to integrate by using processed built into ERP software
    • A way to force BPR (reengineering)
    • Easy way to solve Y2K problem
  • 36. Vendors
  • 37. Difficulty in implementation
    • Very difficult
    • Extremely costly and time intensive
    • Typical: over $10,000,000 and over a year to implement
    • Company may implement only certain modules of entire ERP system
    • You will need an outside consultant
  • 38. Common Pitfalls
    • Do not adequately benchmark current state
    • Did not plan for major transformation
    • Did not have executive sponsorship
    • Did not adequately map out goals and objectives
    • Highly customized systems to look like old MRP systems
  • 39. Survey of ERP implementations Done by ittoolbox.com in 2004
  • 40. Overview
    • 375 IT and business professionals
    • 52% anticipate budget increases for new ERP implementations/new modules
    • SAP and PeopleSoft/J.D. Edwards were cited as the most popular ERP packages
    • 46% indicated that the main challenge to successful ERP implementations was inadequate definition of requirements and resistance to change
  • 41. How would you characterize your budget for new ERP implementations/new modules deployments for 2004 compared to your budget in 2003?
  • 42. Who is directly responsible for determining your ERP implementations/new modules deployments?
  • 43. Who are the other key decision-makers/influencers in decisions to add new ERP packages/new modules?
  • 44. Do you currently have an ERP package?
  • 45. If your answer is "Yes", which ERP package(s) do you currently use?
  • 46. Are you considering adding new modules to your existing ERP package?
  • 47. If your answer is "Yes", which modules are you planning to add?
  • 48. If you plan to deploy a new ERP package and/or add modules to your existing packages, when would this implementation take place?
  • 49. Who do you partner with for new ERP implementations and additions of new modules?
  • 50. What do you see as the main challenges to successful ERP implementations within your organization?
  • 51. For more details…
    • http://projectmanagement.ittoolbox.com/documents/research/