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What Is ERP And How To Go About It
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What Is ERP And How To Go About It

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The presentation is for a person to understand what is an ERP and how to implement ERP

The presentation is for a person to understand what is an ERP and how to implement ERP

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  • 1.  What Is ERP? Why ERP? General Perception Ground Realities Product Or Development? Which ERP? ERP Cost How To Do It?
  • 2. What Is ERP? Enterprise Resource Planning Integration Of Business Management Practices & Modern Technology  Enterprise Wide Standard Business Controls & Ops.  Enterprise Wide Integrated Information Systems
  • 3. What Is ERP?  Module Consist Of Programs For A Business Process  Some ERP Applications Are Independent Of Database  ERP Has Controlled Data Base Model / Schema & Tables  Basic ERP For All Standard Business Operations  Industry Specific Solution  Business Intelligence (BI)
  • 4. Functions Of Enterprise Engineering Sales Design Human resourcesInventory Enterprise Production PlanningFinance Controlling Quality Maintenance legal
  • 5. Why ERP ?CHALLENGES• Highly Competitive Markets• Continually Changing Business Environment• Need To Reduce Operating Costs• Need To Integrate Operations • Within Company • Between Dispersed Operations • Between Alliance Partners• Increase Enterprise Financial Efficiency• Increase Operational Efficiency• Improve Customer Service & Response Time
  • 6. Why ERP ? Eliminate Duplication Of  Uniform SOP & Controls Work Across The Board Efficient Customer Response  Timely & Reliable Competitive Bidding Documentation Efficient Inventory & Stock  Increased Transparency & Control Responsibility Shop Floor Optimization &  Enterprise Wide Uniform Production Planning Reporting Reduce Errors & Mistakes  Preventive Approach Rather Improved & Consistent Than Reactive Approach Quality Control  Facilitates Strategic Planning Efficient Invoicing & Ageing  Accurate & Real time Access To Control Data For Timely Decisions Enterprise Wide Standard Discipline
  • 7. General Perception ERP Is Very Expensive High Failure Ratio ERP Is Just To Impress Customers ERP Will Make Employees Redundant & Jobless ERP Means More Work & Procedures ERP Slows Down The Organization ERP Is Just For Manufacturing Organizations ERP Is The Sole Responsibility Of The Management ERP Is Just For The Managers & Decision Makers ERP Is Just For The ERP Implementation Team One ERP Package Will Suit Everybody ERP Package Will Take Care Of Everything
  • 8. One ERP Package Suits Everyone & Will Take Care Of Everything
  • 9. Ground Realities ERP Implementation Is NOT AN IT PROJECT ERP Implementation Is NOT BPR 50-60% Change & 40-50% Technology Complete & Dedicated Management Support Serious Organization Change  Fear Of Change  Effects Everyone In The Enterprise  Change In Roles & Responsibilities  Change In SOP Ownership By All Stake Holders Close Coordination & Collaboration Quick Management Decisions Require Quality Time From Everyone Involved Intensive Training Hardware & Technology Selection & Setup Program Or Project ?
  • 10. Ground RealitiesTop Issues Organizations Face During Enterprise Resource Planning Organization Change 16% Internal Staff Adequacy 8% Project Team 7% Training 7% Prioritization/Resource Allocation 6% People 62% Top Management Support 6% Consultants 5% Ownership (of benefits to others) 4% Discipline 2% Program Management 8% Process Reengineering 4% Stage/Transition 2% Process 16% Benefit Realization 1% Software Functionality 4% Application Portfolio Management 3% Technology 9% Enhancements/Upgrades 2% Data 2% Reporting 1% Knowledge Assets 3%Note: Rounded percentages; not all categories are shown as bars
  • 11. Product Or Development ? In House Development  Off The Shelf Product  Long Time To Deploy  Short Time To Deploy  Highly Flexible  Limited Flexibility  Poor Or No Adaption Of  Adaption Of Best Practices Best Practices  Homogenous Reporting  Inefficiencies Automated  Inefficiencies Eliminated  Lack Of Documentation  Better Documentation
  • 12. Which ERP ?Proprietary Products Open Source Products Bann  Adempiere  Foundation Fujitsu Glovia International  BlueErp  LedgerSMB IFS  Dolibarr  OFBiz J.D. Edwards MicroSoft Dynamics  ERP5  Openbravo NETSUITE  Fedena  OpenERP Oracle eBusiness Suite  GNU Enterprise  Opentaps Peoplesoft  HeliumV  Postbooks Ross Enterprise  JFire  SQL-Ledger SAGE SAP  Kuali  Tryton  WebERP Some Of The ERP Products
  • 13. ERP Cost ERP Software  User Based License – One Time Upfront Cost  Software Maintenance – Yearly Recurring Cost 17 – 22% Hardware  Acquisition – One Time Upfront Cost  Maintenance – Yearly Recurring Cost Data Communication  Depends On Locations & Data Volume  Setup –Upfront One Time  Service – Monthly Recurring Cost Training – Technical & Operations Implementation Cost – Outsourced Or In-house Team Customization – Depends On Situation Incentives, Rewards & Celebrations
  • 14. How To Do It ?
  • 15. How To Do It ?Program Or Project ?A Program Is A Group Of Related Projects ManagedIn A Coordinated Way To Obtain Benefits AndControl Not Available From Managing ThemIndividually
  • 16. How To Do It ? ERP Implementation Is A Program First Project – Ground Work Second Project – Selection Of Product & Technology  Data Volume Estimation  Transaction Volume Estimation  Estimation Of Number & Type Of Users  Coverage Footprint & Road Map Third Project  Hardware Sizing  Disaster Recovery & Business Continuity  Sourcing & Procurement  Installation Of Software & Hardware  Testing & Upgrade / Update
  • 17. How To Do It ? Fourth Project  Existing ICT Infrastructure & Gap Analysis  Revamping / Upgrade Of ICT Infrastructure  Work Stations, Servers, Network etc.  Sizing For Data Communication  Network & Remote Connectivity  Network & Data Security Fifth Project – OCM Sixth Project – Training Need Analysis & Logistics Seventh Project – ERP Implementation  Multiple Teams  Mini Projects
  • 18. How To Do It ? Ground Work Questions To Ask Without Any Product In Mind  Why You Want ERP?  What Are The Management Expectations? Differentiate Between Must Haves & Nice To Have Clearly Define The Objective(s) & Expectations  Integrated On Line Real Time Information Systems  Improve Logistics Or Reduce Time To Deliver By 40%  Cut Down Time For Order To Manufacture Cycle By 20%  Reduce Inventory Cost By 20% - 40%  Reduce Receivable Ageing From Over 90 To 45 Days  Control Credit Limits For Single Distributor Working With Multiple Business Units
  • 19. How To Do It ? Ground Work Discovery Mission - Document As Is Processes Document Gaps Between As Is and Objectives Know & Document “What We Want”  Business Needs & Objectives  Future Business Plan & Vision For At Least 5 Years  Priorities  Organizational Readiness Is BPR Required ? Prepare Comprehensive RFP Evaluate ERP Products For Best Fit Most Importantly Who Will Implement?  Outsource To Implementation Partner  Do It Yourself With In House Team
  • 20. How To Do It ? Well Thought Of Strategy Strategy & Methodology  Big Bang Or Phased  Roll Out For Global Program Implementation Methodology  PMI Framework  AIM By Oracle  ASAP By SAP Common Components Of Implementation Methodology  Program / Project Charter  Team Structure, Roles & Responsibilities  Strategies & Governance Standards  Program Management & Project Plans  Stake Holder Identification & Analysis  As Is, To Be & Fit Gap Analysis  Risk & Issue Management  Technology Infrastructure Design & Deployment  Training Programs & Logistics  Data Preparation, Mapping & Conversion  Quality Gates & Reviews  Steering Committee Formation & Meetings
  • 21. How To Do It ? Typical Team Program Director Project Manager(s) Solution Architect Technology Experts From IT – Certified On Selected Technology  Application Administrator  DBA  Security Expert  Network & Communication  Development Team Functional Experts / Consultants – IT & Non IT  Certified On Respective Module / Technology  Relevant Educational Background  Relevant Industry Experience Integration Manager OCM Team & Change Agents Subject Matter Experts From Business Power Users Or Super Users From Business
  • 22. How To Do It ? Proprietary Methodologies AIM By Oracle  Application Implementation Methodology Phases Of AIM  Definition  Operations Analysis  Solution Design  Build  Transition  Production Ready Made Templates Including Project Plan Guide Lines & Instructions Software Tool
  • 23. How To Do It ? Proprietary Methodologies ASAP By SAP  Accelerated SAP Methodology  ASAP And Global ASAP Phases Of ASAP  Program / Project Preparation  Business Blue Print  Realization  Final Preparation  Go Live & Support  Continuous Improvement Ready Made Templates Including Project Plan Guide Lines & Instructions Software Tool
  • 24. How To Do It ? Typical Emotional Curve I will What will Looking for adopt a the future a new new hold for identity? identity I will just me? I can’t and new wait and stand this behaviors. see… anymore!100% Maybe I will try and change... “Valley of tears” DENIAL RESISTANCE EXPLORATION Initiation & Planning Execution Closing Time Decision Announcement Implementation profits in productivity losses in productivity
  • 25. How To Do It ? Time Cost Quality ScopeTypical Triple Constraint For Any Program Also Applies To ERP Programs
  • 26. Comments Or Suggestion Welcome Atnaumanmajeed@gmail.com