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Enter Prize Resource Planning
 

Enter Prize Resource Planning

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  • In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. When reviewing this diagram demonstrate to the students how each department has its own database separate from all other organizational departmentsAsk your student what types of problems could occur if all departments maintain their own database and systems?Update issuesRedundancyInaccurate information across databasesDifferent formats of information in the different databasesInability to access other department information and not being provided with a 360 degree view of the organizationDifferent customer information in different databasesCustomer contact from multiple departments with different messages
  • An ERP system provides a method for effective planning and controlling of all the resources required to take, make, ship, and account for customer orders in a manufacturing, distribution, or service organization. What happens when sales and marketing departments are working from two different sets of customer information and product information?Would the marketing campaigns be accurate?Would sales be able to deliver the products it sells to its customers?Enterprise resource planning systems provide organizations with consistency.The key word in enterprise resource planning is enterprise.SCM systems focus specifically on suppliersCRM systems focus specifically on customersERP systems focus on everything, all processes, departments, and operations for an enterprise ERP systems encompass everything, including SCM and CRM.ERP enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiencyOne database that supports the entire organization could eliminate many of the issues mentioned on the previous slideHowever, there are also issues could be caused by having one database that supports the entire organization?Not as flexible and far more difficult to changeMight not meet all department needs as well as an individual specific systemMultiple access levels increases security issuesEthical dilemmas from accessing different department information – such as payroll
  • When displaying the sales database example and the accounting database be sure to point out the differences in the dataCorrelating and making sense of these two similar, but different, spreadsheets, is going to be challenging.How can you understand customers when one spreadsheet has customer name and one has customer ID?How can you understand sales reps when one spreadsheet has sales rep names and one spreadsheet has sales rep ID?Date format is different – will this cause problems?One quantity is in units and one quantity has decimal points – what problems will this cause?Unit price and unit cost is rounded to dollars in one spreadsheet and contains cents in another – what problems will this cause?
  • The true benefit of an ERP system is its ability take the many different forms of data from across the different organizational systems and correlate, aggregate, and provide an enterprise wide view of organizational information.The two previous spreadsheets display examples of differences in data that can be fixed by using an ERP system.Without understanding how all of the different divisions, products, departments, etc. are operating you cannot run the business
  • SAP: market leader: #1Oracle: #2 in market share. Has grown, in part, through acquisition 2005: Oracle acquired PeopleSoft 2003: PeopleSoft acquired JD EdwardsOracle has enhanced their ERP product by acquiring the product’s of other companies and then integrating their products with the Oracle product. 2008: Oracle acquired BEA Systems 2007: Oracle acquired Hyperion Solutions 2005: Oracle acquired Siebel SystemsIn June 2003, Baan was sold to SSA Global Technologies. In May 2006, SSA was acquired by Infor Global Solutions of Atlanta, which was a major ERP consolidator in the market.In 2002, Microsoft acquired Great Plains Dynamics. Its products has gone under the name of Microsoft Business Solutions Great Plains Dynamics, as well asMicrosoft Dynamics

Enter Prize Resource Planning Enter Prize Resource Planning Presentation Transcript

  •     Rabbia Irshad(11142) Qazi Naveed ur Rehman(11090) Umair Butt (10987) Mohmmad Salman (L-11264)
  •      What is an ERP System? Why implement an ERP system? How should ERP systems be implemented? Conclusion Questions and Answers
  • Simplistic Definition ERP - Enterprise Resource Planning Detailed Definition “a business strategy and set of industry-domainspecific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and interenterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420)
  •  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.
  • Integration seamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information.
  • Packages Enterprise systems are not developed in-house  IS life cycle is different 1. 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
  • Evolving Enterprise 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.
  • Interaction Channels Analytical Applications Business Applications Web Internet Mobile Wireless e-Mail Call Center ICM/Telephony Marketing Intelligence Sales Intelligence Customer Intelligence Call Center Intelligence Marketing Sales ecommerce OSS HR Installed Base CRM Foundation E-Business Foundation Resources Territories Assignment Engine Tasks Notes Calendar 1-to-1 Fulfillment TCA Escalations Interaction History Universal Work Q Common Data and Object Models, Security, Interfaces, Globalisation Tech Stack E-business Platform
  • To support business goals Integrated, on-line, secure, self-service processes for business Eliminate costly mainframe/fragmented technologies Improved Integration of Systems and Processes Lower Costs Empower Employees Enable Partners, Customers and Suppliers
  •  Obtain the right mix of people, processes and technology!!
  •  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
  • 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
  • 2. 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 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
  • The organization before ERP ( systems) Isolated Information: their own systems Update issues Redundant (jobless) Inaccurate and different Different in the different databases Can’t access information maintained by another department Can’t make of the entire organization
  • 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
  •  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
  •  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
  •  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
  •  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 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
  •  At the heart of all ERP systems when a user enters or updates information
  • 1. 2. Having integrated systems helps that many businesses had previously started to use (also didn’t have to fix those old legacy systems) 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.
  • Difficult to Employees • Costly in terms of One vendor risks: too costly to Company essentially held hostage.
  • Microsoft Business Solutions Great Plains Dynamics
  • Conclusion ERP systems provide a mechanism for implementing systems where a high degree of integration between applications is required The Business Case or Value Proposition for implementation must be outlined To successfully implement a proper mix of people, processes and technology should be maintained