OM & IS BUSINESS WE ARE Decision Making Enterprise Relationship Planning (ERP) Organizational
Enterprise Resource Planning (ERP) What are ERP the success factors? Why are firms undertaking ERP projects? What is ERP? ...
▪  “ An initiative launched by organizations to better   manage all enterprise-wide business processes   using a common in...
ERP Business Benefits <ul><li>Integrate Financial Information:  ERP ensures that there is a consist and credible set of fi...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture S...
Billing Order Management Inventory Purchasing Supply-Chain Modules Sample SCM System ---------------------- Takes Orders, ...
Billing Order Management Inventory Purchasing Supply-Chain Modules SCM often includes Planning Modules to forecast Sales D...
General Ledger Payables Receivables Asset Management Expenses Financial Modules Sample Financials ------------------------...
Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Enterprise Data Warehouse Global D...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture ...
Enterprise Resource Planning (ERP) <ul><li>The total cost of an ERP Implementation can vary significantly   depending upon...
Factors Impacting ERP Success <ul><li>Loss of Top Management Support:  Commitment by the firm’s top management to the succ...
1) SAP - Market:  43% - Focus:  Solutions with marketing, sales service, and    analytics functionality 2) Oracle (PeopleS...
(Integrated SCM, CRM, and ERP) How are SCM, CRM, and ERP integrated? What are the “data points” for integrating SCM, CRM, ...
The Connected Organization ■  The close “coupling” or integration of these systems ensures   you the businessperson will h...
The Connected Organization General Audience and Purpose of the Three Systems:
The Connected Organization Data Points Where Three Systems Integrate:
Any Questions?
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ERP Presentation

  1. 1. OM & IS BUSINESS WE ARE Decision Making Enterprise Relationship Planning (ERP) Organizational
  2. 2. Enterprise Resource Planning (ERP) What are ERP the success factors? Why are firms undertaking ERP projects? What is ERP? How much does an ERP initiative cost?
  3. 3. ▪ “ An initiative launched by organizations to better manage all enterprise-wide business processes using a common integrated database and shared data management applications and reporting tools.” Definition Enterprise Resource Planning (ERP)
  4. 4. ERP Business Benefits <ul><li>Integrate Financial Information: ERP ensures that there is a consist and credible set of financial information since all of the functional areas use the same integrated system. </li></ul><ul><li>Integrate Customer Order Information: ERP provides a single environment from the time the customer places an order until the customer receives the order – instead of having order information spread across a number of distinct systems. </li></ul><ul><li>Standardize and Speed Up Manufacturing Processes: Many organizations have found it difficult to manage production in the current “merger and acquisition” business environment. ERP ensures that a single standardized process is employed resulting in: increased productivity and reduced head count. </li></ul><ul><li>Reduce Inventory: ERP – along with new IT technologies – has made it possible to better manage both supplier side inventory and retailer side inventories through real-time information sharing with the firm’s value chain trading partners. </li></ul><ul><li>Standardize HR Information: ERP allows the firm to better estimate and track what resources are required to support their business processes – thus optimizes the firm’s needed workforce. </li></ul>
  5. 5. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Help Desk Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample PeopleSoft System
  6. 6. Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service CRM Modules Sample CRM System ----------------------- Marketing, Sales, Customer Support, and Telemarketing
  7. 7. Billing Order Management Inventory Purchasing Supply-Chain Modules Sample SCM System ---------------------- Takes Orders, Fulfills Orders, Manages Inventory Demand Planning Inventory Planning Enterprise Planning
  8. 8. Billing Order Management Inventory Purchasing Supply-Chain Modules SCM often includes Planning Modules to forecast Sales Demand, Inventory Demand, Global Logistics Demand Planning Inventory Planning Enterprise Planning
  9. 9. General Ledger Payables Receivables Asset Management Expenses Financial Modules Sample Financials ------------------------ Receives feeds into AR, AP, GL to provide reports, Also manages Assets
  10. 10. Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Enterprise Data Warehouse Global Data Repository ----------------------- Holds data from all corporate systems, provides several ways to deliver corporate reports, often provides detailed analytics, and detailed KPIs.
  11. 11. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 1 Initiate a Marketing Campaign
  12. 12. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 2 Campaign generates Sales Volume handled by the Sales Channels directly, or through Telemarketing
  13. 13. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 3 Sales Order is captured and processed by the Order Capture module
  14. 14. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 4 CRM, through an interface, sends the Sales Order to the Supply-Chain Order Management module
  15. 15. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 5 Through integration, Inventory is asked to pick/pack/ship the Order to the Customer
  16. 16. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 6 Inventory will automatically generate a sourcing request for more Product as needed
  17. 17. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 7 Additional Product processing (PO, receipt, adjustments) will be controlled by Purchasing, Paying for Product is handled by AP
  18. 18. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 8 Shipped Orders will be invoiced through the Billing module
  19. 19. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 9 Collecting payments on invoices, past due balances, and fees will be controlled by Receivables (AR)
  20. 20. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 10 Many modules send financial transactions through to the General Ledger for reporting
  21. 21. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 11 After shipping, Order Management will keep CRM updated to reflect Customer activity
  22. 22. General Ledger Payables Receivables Asset Management Expenses Billing Order Management Inventory Purchasing Order Capture Support Self-Service CTI Interface Support On-Line Marketing Marketing Tele- marketing Sales Order Capture Self-Service Enterprise Warehouse Enterprise Scorecard Customer Scorecard Customer Behavior Modeling Sample Flow of Data – Step 12 Periodically (perhaps Monthly) data from all systems is transferred to the Data Warehouse
  23. 23. Enterprise Resource Planning (ERP) <ul><li>The total cost of an ERP Implementation can vary significantly depending upon: </li></ul><ul><li>1) The Size and Geographical Distribution of the Company </li></ul><ul><li>2) The Size of the ERP Package (How Many Modules?) 3) The Addition of New Hardware to Support ERP </li></ul><ul><li>4) The Addition of New Systems Software to Support ERP </li></ul><ul><li>5) Consultants’ and Analysts’ Fees (Can be VERY Expensive) </li></ul><ul><li>6) Time Required for Implementation (Disruption of Business) </li></ul><ul><li>7) Training Costs (Both Time and Money) </li></ul><ul><li>A large company may spend from $50 million to $500 million for an integrated ERP system. </li></ul><ul><li>Meta group did a survey of the Total Cost of Ownership (TCO) of ERP (including hardware, software, consulting) at 63 companies (small through large) in a range of industries and found that the average cost was $15 million . The high was $300 million and the low was $400,000. </li></ul>
  24. 24. Factors Impacting ERP Success <ul><li>Loss of Top Management Support: Commitment by the firm’s top management to the successful completion of the ERP project decreases over time. </li></ul><ul><li>Improper Cost Estimation: Ability of the firm to properly identify the TRUE cost and time commitments that will be required by the firm. MOST ERP projects experience cost overruns! </li></ul><ul><li>Realistic Expectations: The assumption that an ERP system will cure fundamental business problems that are not curable by any software application </li></ul><ul><li>Select Proper ERP Implementation: Executives do not take enough time for proper analysis of the ERP impact during the project planning phase. (Requirements?) </li></ul><ul><li>Cultural Impacts: People throughout the organization resist the changes made to business processes to support new ERP system. </li></ul><ul><li>Training Costs: Some firms under budget or skimp on employee ERP system training (People Costs) </li></ul><ul><li>IT Customization and Integration: The IT shop is bogged down in ERP integration </li></ul>
  25. 25. 1) SAP - Market: 43% - Focus: Solutions with marketing, sales service, and analytics functionality 2) Oracle (PeopleSoft and J.D. Edwards) - Market: 22% - Focus: Products available for the entire market, including 21 vertical markets 3) Sage Group - Market: 5% - Focus: Windows-based ERP product – small business enterprises Top ERP Vendors
  26. 26. (Integrated SCM, CRM, and ERP) How are SCM, CRM, and ERP integrated? What are the “data points” for integrating SCM, CRM, and ERP? Connected Corporation
  27. 27. The Connected Organization ■ The close “coupling” or integration of these systems ensures you the businessperson will have the information you need to make timely decisions impacting the overall success of the organization! Why is SCM, CRM, and ERP Important? ■ An organizational enterprise has many core business processes that must operate smoothly, efficiently, and effectively if the organization is to be successful. ■ An organization can only be competitive in their marketplace if there is a “seamless” and “timely flow of “quality” information between systems. ■ Since each system (e.g., SCM, CRM, ERP) typically relies on information as inputs into their system – it makes logical sense the systems need to be closely “coupled” together.
  28. 28. The Connected Organization General Audience and Purpose of the Three Systems:
  29. 29. The Connected Organization Data Points Where Three Systems Integrate:
  30. 30. Any Questions?
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