E.R.P.Saturday, November 05, 2011
“A process or approach which attempts to consolidate all  of a companys departments and functions into a single     comput...
   During the 1960’s, Inventory Control was the main focus.   ERP term first employed by research firm Gartner Group (19...
Why Make the Transition? Inventory Reduction Improved Cash Management Increased Revenue and Profits Reduced Transporta...
 Customer satisfactionBusiness development-new areas, products and servicesAbility to face competitionEfficient proces...
Five major reasons why companies           undertake ERP Integrate Financial Information Integrate customer order inform...
Modules Of an ERPCustomer Relationship Management  Manages the enterprises relationship with its customersHuman Resource...
Implementing            Enterprise Resource Planning            The six main steps of an ERP project:• Vendor Selection• B...
ERP systems Implementation Project          Organization
The Benefits of ERP Visibility on all operations and future path. Paperless work environment Performs ‘what if’ scenari...
More benefits… Identifying faults and planning improvements Creates a plan automatically that guarantees there will be n...
Hidden Costs of ERP Training Integration and testing Customization Data conversion
   Calculating Return on Investment (ROI)   Obtaining Support from Major Executives and Third    Parties   Major Busine...
How ERP Is EvolvingExtended ERPInclusion of Sales-force Automation Applications and  Supply Chain Management SoftwareOu...
Market Leaders
Market Leaders      •SAP and Oracle are the top two ERP      vendors      •SAP rank highest by capturing 32%-      39% of ...
Local Perspective   Large non-government – most use ERP,   Large government – very few use ERP,   Medium non-government...
Interview with Jaffer Brothers• ERP uses a single database. Did the database ever crash? And do  you have any backups?“I  ...
Facts on ERP61.25% of ERP implementation projects fail.50% of ERP software projects are terminated somewhere along theim...
Questions.
ERP
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ERP

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This is a presentation on ERP (enterprise resource planning) I made for my Info Mang class..enjoy!

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ERP

  1. 1. E.R.P.Saturday, November 05, 2011
  2. 2. “A process or approach which attempts to consolidate all of a companys departments and functions into a single computer system that services each departments specific needs.”
  3. 3.  During the 1960’s, Inventory Control was the main focus. ERP term first employed by research firm Gartner Group (1990) as extension of MRP ERP= MRP II + Other Functions In the 1980s the concept of MRP-II evolved. ERP systems had a boost in sales in the ‘90s due to the Y2K problem ERP II-next generation ERP systems
  4. 4. Why Make the Transition? Inventory Reduction Improved Cash Management Increased Revenue and Profits Reduced Transportation and Logistics Costs Reduced Information Technology (IT) Costs
  5. 5.  Customer satisfactionBusiness development-new areas, products and servicesAbility to face competitionEfficient processes to push the company to top gearPresent software does not meet business needsLegacy systems difficult to maintain, Y2K problem and Euro CurrencyObsolete hardware/software-difficult to maintain
  6. 6. Five major reasons why companies undertake ERP Integrate Financial Information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize HR information
  7. 7. Modules Of an ERPCustomer Relationship Management Manages the enterprises relationship with its customersHuman Resource Management Streamlines the management of human resources and human capitals.Finance and management Gather financial data from various functional departmentsSupply chain management Includes the controlling the direction of resource movementSales Implements functions of order placement, scheduling etcMarketing ERP marketing module supports lead generation, mailing campaign and more.
  8. 8. Implementing Enterprise Resource Planning The six main steps of an ERP project:• Vendor Selection• Business Strategy Formation• Application Configuration• Testing and End-user Acceptance• Training• Rollout
  9. 9. ERP systems Implementation Project Organization
  10. 10. The Benefits of ERP Visibility on all operations and future path. Paperless work environment Performs ‘what if’ scenarios and analysis Ability of the Company to Optimize Newer Technologies and Products Y2K Compliant Systems without Rewriting Legacy Code Consolidation and Centralization of Corporate Data Abundance of Tools and Services
  11. 11. More benefits… Identifying faults and planning improvements Creates a plan automatically that guarantees there will be no violation of resource constraints Provides an ideal platform to perform businesses globally and regionally. Support and Upgrades from Vendors; better Inventory management
  12. 12. Hidden Costs of ERP Training Integration and testing Customization Data conversion
  13. 13.  Calculating Return on Investment (ROI) Obtaining Support from Major Executives and Third Parties Major Business Process Reengineering (BPR) ERP Is Cost Prohibitive Scope Creep Difficulty of Training End Users
  14. 14. How ERP Is EvolvingExtended ERPInclusion of Sales-force Automation Applications and Supply Chain Management SoftwareOutsourcing ERP
  15. 15. Market Leaders
  16. 16. Market Leaders •SAP and Oracle are the top two ERP vendors •SAP rank highest by capturing 32%- 39% of the market
  17. 17. Local Perspective Large non-government – most use ERP, Large government – very few use ERP, Medium non-government – 20% approx. Medium government – 5% approx. Small non-government and small government – near to none. ERP’s used locally Jaffer Brothers, Mobilink, Shell, IBA, Tapal, Unilever, PIA, UBL, Civil Aviation, Siemens etc.
  18. 18. Interview with Jaffer Brothers• ERP uses a single database. Did the database ever crash? And do you have any backups?“I h a v e n e v e r s e e n o n e c r a s h . Bu t we h a v e s t r o n g Di s a s t e r Re c o v e r y Ma n a g e me n t P l a n s i n p l a c e i n c a s e o f a n y d i s a s t e r s u c h a s b o mb b l a s t , n a t u r a l c a l a mi t i e s , v i r u s e s a n d o t h e r n e t wo r k p r o b l e m s .”• Are people resistant to the new ERP systems? How do you overcome that challenge?“P e o p l e a r e r e l u c t a n t t o u s e n e w ERP s o l u t i o n s , wh i c h i s a n a t u r a l h u ma n b e h a v i o r . N o w f o r t h i s w e
  19. 19. Facts on ERP61.25% of ERP implementation projects fail.50% of ERP software projects are terminated somewhere along theimplementation process.75% are rated poor by the users (of those that are implemented andreached the operational phase)6% out of 500 companies felt that there ERP systems were effective.Among 63 companies surveyedthe average TCO was $15 million
  20. 20. Questions.

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