Enterprise Resource Planning<br /> “A process or approach which attempts to consolidate all of a company's departments and functions into a single computer system that services each department's specific needs.”<br />
A Brief History of E.R.P.<br /><ul><li>During the 1960’s, Inventory Control was the main focus.
ERP term first employed by research firm Gartner Group (1990) as extension of MRP </li></ul>ERP= MRP II + Other Functions<br /><ul><li>In the 1980's the concept of MRP-II evolved.
ERP systems had a boost in sales in the ‘90s due to the Y2K problem
ERP II-next generation ERP systems</li></li></ul><li>Why Make the Transition?<br /><ul><li>Inventory Reduction
Standardize HR information</li></li></ul><li>Modules Of an ERP<br /><ul><li>Customer Relationship Management</li></ul>Manages the enterprise's relationship with its customers<br /><ul><li>Human Resource Management</li></ul>Streamlines the management of human resources and human capitals.<br /><ul><li>Finance and management</li></ul>Gather financial data from various functional departments<br /><ul><li>Supply chain management</li></ul> Includes the controlling the direction of resource movement<br /><ul><li>Sales</li></ul> Implements functions of order placement, scheduling etc<br /><ul><li>Marketing</li></ul>ERP marketing module supports lead generation, mailing <br /> campaign and more. <br />
Implementing Enterprise Resource Planning<br />The six main steps of an ERP project:<br />Vendor Selection<br />Business Strategy Formation<br />Application Configuration<br />Testing and End-user Acceptance<br />Training<br />Rollout<br />
ERP systems Implementation Project Organization<br />
The Benefits of ERP<br /><ul><li>Visibility on all operations and future path.
Data conversion</li></ul>Hidden Costs of ERP<br />
Calculating Return on Investment (ROI)<br />Obtaining Support from Major Executives and Third Parties<br />Major Business Process Reengineering (BPR)<br />ERP Is Cost Prohibitive<br />Scope Creep<br />Difficulty of Training End Users<br />ERP Challenges<br />
Small non-government and small government – near to none.</li></ul> ERP’s used locally<br />Jaffer Brothers, Mobilink, Shell, IBA, Tapal, Unilever, PIA, UBL, Civil Aviation, Siemens etc.<br />
Interview with Jaffer Brothers<br />ERP uses a single database. Did the database ever crash? And do you have any backups?<br />“I have never seen one crash. But we have strong Disaster Recovery Management Plans in place in case of any disaster such as bomb blast, natural calamities, viruses and other network problems.”<br />Are people resistant to the new ERP systems? How do you overcome that challenge?<br />“People are reluctant to use new ERP solutions, which is a natural human behavior. Now for this we have two tools:<br />Incentive (Push) approach<br />Stick (Pull) approach”<br />
Facts on ERP<br /><ul><li>61.25% of ERP implementation projects fail.
50% of ERP software projects are terminated somewhere along the implementation process.
75% are rated poor by the users (of those that are implemented and reached the operational phase)
6% out of 500 companies felt that </li></ul> there ERP systems were effective.<br /><ul><li>Among 63 companies surveyed </li></ul>the average TCO was $15 million <br />