This is a presentation on ERP (enterprise resource planning) I made for my Info Mang class..enjoy!

1. E.R.P.
Saturday, November 05, 2011

3. “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.”

4.  During the 1960’s, Inventory Control was the main focus.
 ERP term first employed by research firm Gartner Group (1990)
as extension of MRP
ERP= MRP II + Other Functions
 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

5. Why Make the Transition?
 Inventory Reduction
 Improved Cash Management
 Increased Revenue and Profits
 Reduced Transportation and Logistics Costs
 Reduced Information Technology (IT) Costs

6.  Customer satisfaction
Business development-new areas, products and services
Ability to face competition
Efficient processes to push the company to top gear
Present software does not meet business needs
Legacy systems difficult to maintain, Y2K problem and Euro Currency
Obsolete hardware/software-difficult to maintain

7. Five major reasons why companies
undertake ERP
 Integrate Financial Information
 Integrate customer order information
 Standardize and speed up manufacturing
processes
 Reduce inventory
 Standardize HR
information

8. Modules Of an ERP
Customer Relationship Management
Manages the enterprise's relationship with its customers
Human Resource Management
Streamlines the management of human resources and human capitals.
Finance and management
Gather financial data from various functional departments
Supply chain management
Includes the controlling the direction of resource movement
Sales
Implements functions of order placement, scheduling etc
Marketing
ERP marketing module supports lead generation, mailing
campaign and more.

9. Implementing
Enterprise Resource Planning
The six main steps of an ERP project:
• Vendor Selection
• Business Strategy Formation
• Application Configuration
• Testing and End-user Acceptance
• Training
• Rollout

10. ERP systems Implementation Project
Organization

11. The Benefits of ERP
 Visibility on all operations and future path.
 Paperless work environment
 Performs ‘what if’ scenarios and analysis
 Ability of the Company to Optimize Newer Technologies and Products
 Y2K Compliant Systems without Rewriting Legacy Code
 Consolidation and Centralization of Corporate Data
 Abundance of Tools and Services

12. More benefits…
 Identifying faults and planning improvements
 Creates a plan automatically that guarantees there will be no violation of
resource constraints
 Provides an ideal platform to perform businesses globally and regionally.
 Support and Upgrades from Vendors; better Inventory management

13. Hidden Costs of ERP
 Training
 Integration and testing
 Customization
 Data conversion

14.  Calculating Return on Investment (ROI)
 Obtaining Support from Major Executives and Third
Parties
 Major Business Process Reengineering (BPR)
 ERP Is Cost Prohibitive
 Scope Creep
 Difficulty of Training End Users

15. How ERP Is Evolving
Extended ERP
Inclusion of Sales-force Automation Applications and
Supply Chain Management Software
Outsourcing ERP

16. Market Leaders

17. Market Leaders
•SAP and Oracle are the top two ERP
vendors
•SAP rank highest by capturing 32%-
39% of the market

18. Local Perspective
 Large non-government – most use ERP,
 Large government – very few use ERP,
 Medium non-government – 20% approx.
 Medium government – 5% approx.
 Small non-government and small government – near to none.
ERP’s used locally
Jaffer Brothers, Mobilink, Shell, IBA, Tapal, Unilever, PIA, UBL, Civil
Aviation, Siemens etc.

19. Interview with Jaffer Brothers
• ERP uses a single database. Did the database ever crash? And do
you have any backups?
“I h a v e n e v e r s e e n o n e c r a s h . Bu t we
h a v e s t r o n g Di s a s t e r Re c o v e r y
Ma n a g e me n t P l a n s i n p l a c e i n
c a s e o f a n y d i s a s t e r s u c h a s b o mb
b l a s t , n a t u r a l c a l a mi t i e s ,
v i r u s e s a n d o t h e r n e t wo r k
p r o b l e m s .”
• Are people resistant to the new ERP systems? How do you
overcome that challenge?
“P e o p l e a r e r e l u c t a n t t o u s e n e w
ERP s o l u t i o n s , wh i c h i s a n a t u r a l
h u ma n b e h a v i o r . N o w f o r t h i s w e

20. Facts on ERP
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
there ERP systems were effective.
Among 63 companies surveyed
the average TCO was $15 million

21. Questions.