TIRTA ERP

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ERP specially designed for AMDK Companies

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TIRTA ERP

  1. 1. TIRTA ERP (TIRTA Enterprise Resource Planning) Wildan Maulana wildan.m@openthinklabs.com © 2010, OpenThink Labs. All Rights Reserved
  2. 2. Let's Talk about ERP First © 2010, OpenThink Labs. All Rights Reserved
  3. 3. ● What is an ERP System? ● Why implement an ERP system? ● How should ERP systems be implemented? © 2010, OpenThink Labs. All Rights Reserved
  4. 4. What is an ERP System – definitions Simplistic Definition ERP - Enterprise Resource Planning Detailed Definition “a business strategy and set of industry-domain- specific applications that build customer and shareholder communities value network system by enabling and optimising enterprise and inter- enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420) © 2010, OpenThink Labs. All Rights Reserved
  5. 5. Historical system architectures 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. © 2010, OpenThink Labs. All Rights Reserved
  6. 6. What is an ERP – Key Characteristics Integration seamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information. © 2010, OpenThink Labs. All Rights Reserved
  7. 7. What is an ERP – Key Characteristics Packages Enterprise systems are not developed in-house ● IS life cycle is different 1.Mapping organisational requirements to the processes and terminology employed by the vendor and 2.Making informed choices about the parameter setting. Organisations that purchase enterprise systems enter into long-term relationships with vendors. Organisations no longer control their own destiny. © 2010, OpenThink Labs. All Rights Reserved
  8. 8. What is an ERP – Key Characteristics 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. © 2010, OpenThink Labs. All Rights Reserved
  9. 9. What is an ERP – Key Characteristics 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 ● Best of Breed Strategy © 2010, OpenThink Labs. All Rights Reserved
  10. 10. What is an ERP – Key Characteristics Evolving Enterprise Systems are changing rapidly ● Architecturally: Mainframe, Client/Server, Web- enabled, Object-oriented, Componentisation ● Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialised vertical industry solutions, etc. © 2010, OpenThink Labs. All Rights Reserved
  11. 11. Typical architectural components Interaction Web Mobile Call Center e-Mail Channels Internet Wireless ICM/Telephony Analytical Marketing Sales Customer Call Center Applications Intelligence Intelligence Intelligence Intelligence Business Marketing Sales eCommerce OSS HR Applications Installed Base Resources Territories Assignment Engine CRM Foundation Tasks Notes Calendar 1-to-1 Fulfillment TCA Escalations Interaction History Universal Work Q E-Business Foundation Common Data and Object Models, Security, Interfaces, Globalisation Tech Stack E-business Platform © 2010, OpenThink Labs. All Rights Reserved
  12. 12. Tech Stack - Internet Computing Architecture Application 2 Tier Application Application Application Application X 3 Tier Databas e Application Application Browser Java Application Server Browser © 2010, OpenThink Labs. All Rights Reserved
  13. 13. Why implement an ERP System? ● 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 © 2010, OpenThink Labs. All Rights Reserved
  14. 14. How should we implement ERP systems Obtain the right mix of people, processes and technology!! © 2010, OpenThink Labs. All Rights Reserved
  15. 15. How should we implement ERP Systems? ● 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 © 2010, OpenThink Labs. All Rights Reserved
  16. 16. Process 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 © 2010, OpenThink Labs. All Rights Reserved
  17. 17. Process 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 © 2010, OpenThink Labs. All Rights Reserved
  18. 18. Process 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 © 2010, OpenThink Labs. All Rights Reserved
  19. 19. Process 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 © 2010, OpenThink Labs. All Rights Reserved
  20. 20. Process 5. Production ● Official hand holding ● Effectiveness assessment ● Business and Technical Direction recommendations © 2010, OpenThink Labs. All Rights Reserved
  21. 21. Technology ● Technology is an enabler, not the driver (it is there to assist the organisation to achieve business goals) ● It is a means to an end, not the end © 2010, OpenThink Labs. All Rights Reserved
  22. 22. 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 © 2010, OpenThink Labs. All Rights Reserved
  23. 23. The BI Questions © 2010, OpenThink Labs. All Rights Reserved
  24. 24. Business Intelligence Questions (1) 1.Finance & Sales : ● How much revenue do we generate by region, month,route, depot, vehicle and product category ? ● Which product categories generate the highest revenue and is this constant over time ? ● How does our performance compare to the total AMDK market ? ● Are we growing faster or slower than our competitors ? ● Reference : ● Finacial KPI, http://www.slideshare.net/thejupaul/financial-key- performance-indicators?src=related_normal&rel=86961 © 2010, OpenThink Labs. All Rights Reserved
  25. 25. Business Intelligence Questions (2) 2.Logistics & Purchasing ● How do our distributors score in terms of product assortment, price, and delivery performance ? ● How can we further optimize our distribution costs ? ● How much cost we spend for our vehicles from gasoline, maintenance cost and km dimensions © 2010, OpenThink Labs. All Rights Reserved
  26. 26. Business Intelligence Questions (3) 3.Customer Service ● How many complaints do we handle ? ● What kind of complaints do customers usually have ? ● What's the average case load by service rep ? © 2010, OpenThink Labs. All Rights Reserved
  27. 27. Business Intelligence Questions (4) 4. Marketing and Product Management ● How does the lifetime value of the 100 customers compare to the bottom 100 ? ● How can we segment our customers based on RFM (recency, frequency, monetary) analysis ? ● Do we have customer data that can be used to indicate future profitability or churn ? ● Can we predict future revenues for a new customer based on existing customer profiles and characteristics such as zip code, age or gender ? © 2010, OpenThink Labs. All Rights Reserved
  28. 28. Business Intelligence Questions (5) 5. Human Resource Management © 2010, OpenThink Labs. All Rights Reserved
  29. 29. References ● Richard Byrom,ERP Implementation Fundamentals © 2010, OpenThink Labs. All Rights Reserved
  30. 30. Q&A Thanks! ^_^ © 2010, OpenThink Labs. All Rights Reserved

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