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  • Application client --- network ----- application server HTML ---- network ---- application server
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    1. 1. Enterprise Information Systems and ERP systems Jing Shao
    2. 2. What is ERP System Letter meaning: Enterprise Resource Planning Systems Resource: All resources in an organization, including: capital, equipment, material, intelligence, and so on. What and how to Plan Definition : ERP systems is a software solution that addresses the enterprise needs. It takes the process view of an organization to meet the organizational goals and tightly integrates all functions in that organization.
    3. 3. 1. Data exchange blocks; Software applications built to run on different operating systems cannot be connected to run together on the same operating system. We need to re-entry data from one system to another system in order to exchange information, thus leading to data inconsistency; 2.     Stove-piped operations and stove-piped systems; Why Enterprise Have to Use ERP Systems ------- Problems in enterprise information system
    4. 4. Why Enterprise Have to Use ERP Systems ------- Problems in enterprise information system (continue…) <ul><li>Authorization; </li></ul><ul><li>It is not always the cast that the more communication, the better organizational performance </li></ul><ul><li>business process reengineering. </li></ul><ul><li>Examine the business process, question the necessity step by step </li></ul>Analyze the purpose of those processes Reengineering steps Old processes Expect Optimistic Pessimistic P1 P2 P3 Q1 Q2 Q3 Price and demand curve
    5. 5. Solution Integrated enterprise information systems It is a set of communication channels in a business organization, combined together in such a way as to form one network by which information is gathered and disseminated. ======ERP System Widely integrated information systems covering all functional areas. It integrates database, applications, interfaces, tools, and business process reengineering ( BPR ).
    6. 6. Departments Customers Suppliers ERP system Server Network (data exchange) ERP Working Theory
    7. 7. What ERP Systems Can Offer to an Enterprise? – Benefits <ul><li>ERP creates value through </li></ul><ul><li>1. integrating activates across a firm, </li></ul><ul><li>2. Implementing best practices for each business process </li></ul><ul><li>3. Standardizing processes within organizations </li></ul><ul><li>4. Creating one-source data </li></ul><ul><li>5. Providing on-line access to information </li></ul><ul><li>-- -facilitate better organizational planning, </li></ul><ul><li>communication, and collaboration . </li></ul>
    8. 8. Advantages and Disadvantages Hidden costs of implementation     Under budgeted training expense     Changing needs More efficient system planned Cost of computing Less freedom and creativity     Imposition of how people do their work More efficient methods Best Practices Harder to make corrections Greater accuracy Data Integration   across users   Less flexibility Improved understanding System Integration Con Pro Factor
    9. 9. ERP Modules <ul><li>Reasons of designing ERP systems in Modules </li></ul><ul><li>1. Obtain specific functionality </li></ul><ul><li>2. Cost </li></ul><ul><li>3. Implement the system in bits rather </li></ul><ul><li>than bring entire massive system online </li></ul><ul><li>at one time </li></ul>
    10. 10. M o d u l e s 75.4% Distribution/logistics 81.5% Financial Control 86.9% Purchasing 87.7% Order entry 88.5% Production Planning 89.2% Materials management 91.5% Financial and Accounting Degree of module used by companies Module
    11. 11. Market Trend and Vendors <ul><li>Market: </li></ul><ul><li>60 percent of Fortune 500 companies had adopted ERP systems before 2000. </li></ul><ul><li>The market spending was $13.4Billion in 2003 </li></ul><ul><li>The predicted market spending is $15.8 Billion in 2008 </li></ul><ul><li>Vendors: </li></ul><ul><li>over fifty vendors, such as SAP, Oracle, Baan, and J.D. Edwards </li></ul>
    12. 12. Ways to Developing ERP System Inflexible Fast, less expensive, efficient Full vendor system At the mercy of the provider, no control, and subject to price increases Least risk, least cost, fastest, least subject to vendor change Application service provider If expand, long run time and cost higher Less risk, relatively fast, least expensive Selected vendor modules Slower, usually more expensive Retain flexibility while keeping vendor expertise Customized vendor system Difficult to link modules, slow, potentially inefficient Theoretically gain best of all systems Best-of-breed Difficult to develop, Expensive, slow Gain commercial advantages combined with organizational fit In house system with vendor supplements Most difficult to develop, most expensive, Slowest Best fit with organizational needs Develop in-house Disadvantages Advantages Method
    13. 13. ERP System Selection Risks <ul><li>The cost, time, and risk of an ERP project depends on following factors: </li></ul><ul><li>Project management ability; </li></ul><ul><li>Experience with this type of environment; </li></ul><ul><li>Experience with the programming environment; </li></ul><ul><li>Experience with the language or system used; </li></ul><ul><li>Familiarity with modern programming practices; </li></ul><ul><li>Availability of critical equipment, software, and programming language; </li></ul><ul><li>Completeness of project team; </li></ul><ul><li>Personnel turnover; </li></ul><ul><li>Relative control of project manager over project team. </li></ul>
    14. 14. Questions from Last Discussion <ul><li>How the business processes are modeled in ERP systems ? </li></ul><ul><li>2. How ERP system installed in an organization? Is it simple replace old separated operation systems or it can be combined with old systems? </li></ul><ul><li>3. How to combine ERP system with business process? </li></ul>
    15. 15. Measurement of ERP Project <ul><li>• Intangible factors </li></ul><ul><li>increases in market share </li></ul><ul><li>improved customer service </li></ul><ul><li>better corporation image </li></ul><ul><li>employee satisfaction </li></ul><ul><li>supply chain integration </li></ul><ul><li>ability to support e-business operation </li></ul><ul><li>• Hidden outcomes </li></ul><ul><li>change how people do their jobs </li></ul><ul><li>• The changing nature of information technology </li></ul><ul><li>high dynamic technology and long-term project for implementing ERP </li></ul>
    16. 16. ERP Project Management <ul><li>Cost </li></ul><ul><li>time </li></ul><ul><li>Tool – Critical Path Method </li></ul><ul><li>Right system </li></ul>
    17. 17. Critical Success Factors in ERP <ul><li>1. Clear understating of strategic goals </li></ul><ul><li>2. Commitment by top management </li></ul><ul><li>3. Excellent implementation project management </li></ul><ul><li>4. Great implementation team </li></ul><ul><li>5. Successful coping with technical issues </li></ul><ul><li>6. Organizational commitment to change </li></ul><ul><li>7. Extensive education and training </li></ul><ul><li>8. Data accuracy </li></ul><ul><li>9. Focused performance measures </li></ul><ul><li>10. Multisite issues resolved </li></ul>
    18. 18. Open Source ERP <ul><li>Reasons of Choosing open source ERP </li></ul><ul><li>1. cost </li></ul><ul><li>2. Free redistribution </li></ul><ul><li>3. Available source code </li></ul><ul><li>Available providers </li></ul><ul><li>There are about 20 vendors providing open source ERP systems. For example: </li></ul><ul><li>1. Open MFG </li></ul><ul><li>2. FISTERRA </li></ul><ul><li>3. ERP 5 </li></ul><ul><li>4. Compiere </li></ul>
    19. 19. Compiere Open Source ERP <ul><li>Architecture </li></ul><ul><li>Compiere is a 100% pure Java solution based on Oracle database technology, and it is working on database independence. </li></ul><ul><li>client application component is written entirely in Java </li></ul><ul><li>The application server component is implemented in Java based on J2EE technology using the JBoss server infrastructure. </li></ul>
    20. 20. Functionality <ul><li>Business processes rather than traditional </li></ul><ul><li>departments drive Compiere's design. </li></ul>quote-to-cash, requisition-to-pay, partner relationship management, supply chain management, performance analysis, web store Seven Modules:
    21. 21. Quote-to-Cash
    22. 22. Requisition-to-Pay
    23. 23. Customer relations management
    24. 24. Partner Relations Management
    25. 25. Supply Chain Management
    26. 26. Performance Analysis
    27. 27. Web Store
    28. 28. Thank You