ERP 2.ppt

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ERP 2.ppt

  1. 1. ERP The Development of Enterprise Resource Planning Systems
  2. 2. The Evolution of Information Systems <ul><li>ERP system was not feasible until the 1990’s </li></ul><ul><li>Evolved as a result of </li></ul><ul><ul><li>Development of hardware and software technology needed to support the system </li></ul></ul><ul><ul><ul><li>Computers have gotten smaller and faster </li></ul></ul></ul><ul><ul><ul><li>Moore’s Law </li></ul></ul></ul><ul><ul><ul><ul><li>Performance doubled with each new generation of computers </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Every 18-24 months the # of transistors on a computer chip doubled </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Proliferation of personal productivity software </li></ul></ul></ul>
  3. 3. The Evolution of Information Systems <ul><ul><li>Development of a vision of integrated information systems </li></ul></ul><ul><ul><ul><li>As PC’s gained popularity, managers became aware that important business information was being stored on individual PC/s, but there was no easy way to share the information electronically. </li></ul></ul></ul><ul><ul><ul><li>Servers became more powerful and less expensive and provided scalability </li></ul></ul></ul><ul><ul><li>Possible to view ERP systems as an extension of MRP II (Manufacturing Resource Planning) </li></ul></ul>
  4. 4. ERP Software Emerges <ul><li>SAP </li></ul><ul><ul><li>Formed in 1972 by five former IBM systems analysts </li></ul></ul><ul><ul><li>Systemanalyse und Programmentwicklung </li></ul></ul><ul><ul><li>Systems Analysis and Program Development </li></ul></ul><ul><li>R/3 </li></ul><ul><ul><li>Released in 1992 </li></ul></ul><ul><ul><li>Designed using an open-architecture </li></ul></ul><ul><ul><li>Allows all business areas to access the same database, eliminating redundant data and communication s lags </li></ul></ul>
  5. 5. The Significance and Benefits of ERP Software and Systems <ul><li>Allows easier global integration </li></ul><ul><ul><li>Barriers of currency exchange rates, language and culture can be bridged automatically </li></ul></ul><ul><li>Eliminates updating and repairing many separate computer systems </li></ul><ul><li>Allows management to manage operations, not just monitor them </li></ul><ul><ul><li>Makes the organization more responsive when change is required </li></ul></ul>
  6. 6. Questions About ERP <ul><li>How Much Does an ERP Package Cost? </li></ul><ul><ul><li>Large company might spend from $50 million to $500 million </li></ul></ul><ul><ul><li>Midsize company might spend $10 million to $20 million </li></ul></ul><ul><ul><li>Cost includes several factors </li></ul></ul><ul><ul><ul><li>ERP software </li></ul></ul></ul><ul><ul><ul><li>New Hardware </li></ul></ul></ul><ul><ul><ul><li>Consultants’ and analysts’ fees </li></ul></ul></ul><ul><ul><ul><li>Time for implementaiton </li></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul>
  7. 7. What return can be expected from an ERP investment? <ul><li>Savings in operations expense </li></ul><ul><ul><li>One study indicated that 33% of companies say costs savings in sales order management, and 34% of companies said their ERP systems significantly reduced their personnel needs </li></ul></ul><ul><li>More sales can be generated every month </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Save personnel, suppliers, distributors, and customers much frustration </li></ul>
  8. 8. Why do some companies have more success with ERP than do other? <ul><li>Some executives hope that new software will cure fundamental business problems that aren’t curable by any software </li></ul><ul><li>Some executives and IT managers don’t take enough time for a proper analysis during the planning and implementation phase </li></ul><ul><li>Some executives and IT managers skimp on employee education and training </li></ul>
  9. 9. The Continuing Evolution of ERP <ul><li>The Internet has forced ERP companies to rethink how users get and use their ERP software </li></ul>

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