The role of erp for global businesses

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  • Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  • Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  • Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  • Organizations be it public or private, large or Small, manufacturing or service, domestic or international etc always strive to find a better solution to improve the way their organization is operating.In this tough economic situation more than ever organizations are digging deeper to find a way that organizational cost can be minimized and performance can be improved. One of the best possible option is considering the best technology implementation. Among other technologies Enterprise Resource Planning System is getting better attention.Obviously there is no question that information is an organizational resource. Unmanaged, abundant and disorganized information on the other hand is a cost. Selecting the right technology to manage it will increase productivity and decrease costs.Organizations implemented different types of technologies to manage their information since the invention of computers and expansion of Internet technology. Different application software systems have been developed and implemented for each piece of organizational activity. As a result organizations improved their performance, customer service, competitive advantage and achieved a greater advantage over those which didn’t. Understanding the underlying advantage, organizations always looking for a better technology to plan their resources. These days there is a strong demand for a solution that connects organizational parties faster, link all organizational units, integrate business functions/ processes, generates consolidated reports, control costs, and speeds time to decision.What is ERP? ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.Most Common ERP Modules An ideal ERP system is when a single database is utilized and contains all data for various software modules. These software modules can include:Manufacturing: Some of the functions include; engineering, capacity, workflow management, quality control, bills of material, manufacturing process, etc.Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash management, etc.Human Resources: Benefits, training, payroll, time and attendance, etcSupply Chain Management: Inventory, supply chain planning, supplier scheduling, claim processing, order entry, purchasing, etc.Projects: Costing, billing, activity management, time and expense, etc.Customer Relationship Management: sales and marketing, service, commissions, customer contact, calls center support, etc.Data Warehouse: Usually this is a module that can be accessed by an organizations customers, suppliers and employees.
  • The role of erp for global businesses

    1. 1. THE ROLE OF ENTERPRISE RESOURCE PLANNING (ERP) FOR EFFECTIVENESS THE OF GLOBALIZED BUSINESS BY ASMAMAW MENGISTIEWashington DC, USAEmail – asmamaw.mum@gmail.comAUGUST, 2010<br />
    2. 2. Introduction<br />What is ERP System?<br /><ul><li>Definition of ERP:</li></ul>“The ERP is an application that provides a unified system. The different data processes and sources from the different departments of an organization or institution are integrated in one comprehensive system with the ERP software.” Source: ERP 100 Success Secretes, Glen Godfrey2008, P. 55<br /><ul><li>ERP refers to a view of a company and all its parts as connected whole, rather than small silos of activity.</li></li></ul><li>Introduction<br />What is ERP Software?<br /> “… is a management system that integrates all the different aspects of the business,…”<br />Source: Oracle Apps DBA, BanerjeeJoyjeet, 2008.<br />It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores. <br /><ul><li>ERP relates to the integrated software infrastructure that supports the entire company business process. </li></li></ul><li>Most Common Modules in ERP<br />
    3. 3. Most Common Modules in ERP<br />Manufacturing  <br /><ul><li> Engineering,
    4. 4. Bills of material,
    5. 5. Work orders,
    6. 6. Scheduling,
    7. 7. Capacity,
    8. 8. Workflow management,
    9. 9. Quality control,
    10. 10. Cost management,
    11. 11. Manufacturing process,
    12. 12. Manufacturing projects,
    13. 13. Manufacturing flow </li></li></ul><li>Most Common Modules in ERP<br />Supply chain management  <br /><ul><li> Order to Cash
    14. 14. Inventory,
    15. 15. Order entry,
    16. 16. Purchasing,
    17. 17. Product configuration,
    18. 18. Supply chain planning,
    19. 19. Supplier scheduling,
    20. 20. Inspection of goods,
    21. 21. Claim processing,
    22. 22. Commission calculation </li></li></ul><li>Most Common Modules in ERP<br />Financials  <br /><ul><li> General ledger,
    23. 23. Cash management,
    24. 24. Accounts payable,
    25. 25. Accounts receivable,
    26. 26. Fixed assets </li></li></ul><li>Most Common Modules in ERP<br />Project management  <br /><ul><li> Costing,
    27. 27. Billing,
    28. 28. Time and expense,
    29. 29. Performance units,
    30. 30. Activity management </li></li></ul><li>Most Common Modules in ERP<br />Human resources  <br /><ul><li> Human resources,
    31. 31. Payroll,
    32. 32. Training,
    33. 33. Time and attendance,
    34. 34. Benefits </li></li></ul><li>Most Common Modules in ERP<br />Customer relationship management  <br /><ul><li> Sales and marketing,
    35. 35. Commissions,
    36. 36. Service,
    37. 37. Customer contact,
    38. 38. Call-center support </li></li></ul><li>Most Common Modules in ERP<br />Access control  <br /><ul><li> System Administrator
    39. 39. Management of user privileges
    40. 40. Developers and other Super Users</li></li></ul><li>ERP Application Software Comparison<br />Source: <br />
    41. 41. What is Globalization<br />What is Globalization?<br />
    42. 42. What is Globalization<br />Globalization Defection:<br />“Globalization refers to those processes that have made the world increasingly interconnected through important technological innovations in transport and communications, facilitating a spread of goods, services, information, capital, labor and knowledge across international boundaries worldwide.”<br />Source: Globalization, Regional Development and Local Responses, Leendert de Bell, 2005<br />
    43. 43. Enterprise Resource PlanningERP and <br />Globalization<br />Business Drives for Globalization<br /><ul><li> Pressure to exploit new markets
    44. 44. Lower manufacturing costs
    45. 45. Flexibility to ship products
    46. 46. improve customer service
    47. 47. Reduce time from order to fulfillment</li></ul>Source: Aberdeen Group <br />
    48. 48. Enterprise Resource PlanningERP<br />Problems of Distributed Applications System<br />Manufacturing<br />Financials<br />Receivables<br /> App. 1<br />HRM<br />App. 5<br />Purchasing<br />App. 2<br />Fixed Asset<br />Procurement<br />Marketing<br />Projects<br />CRM<br />App. 3<br />App. 4<br />Supply Chain<br />Services MGMT<br />Logistics<br />BI <br />
    49. 49. Enterprise Resource PlanningERP<br />Integrated ERP System<br />CRM<br />Project <br />MGMT<br />BI<br />Analytics & Reporting<br />Payables<br />Receivables<br />Financial <br />Accounting<br />HRM<br />Marketing<br />Purchasing<br />Quality <br />MGMT<br />Fixed Asset<br />Projects<br />Procurement<br />HRM<br />Marketing<br />Service/<br />Maintenance<br />CRM<br />Sales<br />Logistics<br />Supply Chain<br />Services MGMT<br />Manufacturing<br />
    50. 50. Enterprise Resource PlanningERP<br />Benefits of ERP System for Global Businesses<br /><ul><li> The right people (authorized employees) get the right information at the right time and at the right place. (Particularly for global businesses there is no time and place restrictions).</li></li></ul><li>Enterprise Resource PlanningERP<br />Benefits of ERP System for Global Businesses<br /><ul><li> Single source of truth – Data integrity
    51. 51. Easy for system control - Efficiency
    52. 52. Cost reduction which will result in increase in profit
    53. 53. Better and faster inventory management</li></li></ul><li>Enterprise Resource PlanningERP<br />Benefits of ERP System for Global Businesses<br /><ul><li> Real time operations
    54. 54. Integrated information of all parties (vendors, clients, employees, agents, distributors etc)
    55. 55. Integrated business operation locally and internationally
    56. 56. Process improvement with the use of workflows.
    57. 57. Paperless office environment</li></li></ul><li>Enterprise Resource PlanningERP<br />What Drives ERP System Implementation for Global Businesses<br /><ul><li> Globalization and virtualization
    58. 58. The knowledge economy
    59. 59. Rising customer expectation and business growth rate
    60. 60. Competition</li></li></ul><li>Enterprise Resource PlanningERP<br />ERP System Shortcomings for Global Businesses<br /><ul><li> Higher initial investment
    61. 61. Integration complexity
    62. 62. Long term implementation phase
    63. 63. Mostly, single vendor dependency</li>

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