What Is ERP And How To Go About It

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The presentation is for anyone who want to understand what an ERP is? how to select an ERP Product? and how to implement ERP in an organization

This presentation is specially useful for senior management team members like CEO, CFO and Director Operations who make strategic decisions for the organization.

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What Is ERP And How To Go About It

  1. 1.  What Is ERP? Why ERP? General Perception Ground Realities Product Or Development? Which ERP? ERP Cost How To Do It?
  2. 2. What Is ERP? Enterprise Resource Planning Integration Of Business Management Practices & Modern Technology  Enterprise Wide Standard Business Controls & Ops.  Enterprise Wide Integrated Information Systems
  3. 3. What Is ERP?  Module Consist Of Programs For A Business Process  Some ERP Applications Are Independent Of Database  ERP Has Controlled Data Base Model / Schema & Tables  Basic ERP For All Standard Business Operations  Industry Specific Solution  Business Intelligence (BI)
  4. 4. Functions Of Enterprise Engineering Sales Design Human resourcesInventory Enterprise Production PlanningFinance Controlling Quality Maintenance legal
  5. 5. Why ERP ?CHALLENGES• Highly Competitive Markets• Continually Changing Business Environment• Need To Reduce Operating Costs• Need To Integrate Operations • Within Company • Between Dispersed Operations • Between Alliance Partners• Increase Enterprise Financial Efficiency• Increase Operational Efficiency• Improve Customer Service & Response Time
  6. 6. Why ERP ? Eliminate Duplication Of  Uniform SOP & Controls Work Across The Board Efficient Customer Response  Timely & Reliable Competitive Bidding Documentation Efficient Inventory & Stock  Increased Transparency & Control Responsibility Shop Floor Optimization &  Enterprise Wide Uniform Production Planning Reporting Reduce Errors & Mistakes  Preventive Approach Rather Improved & Consistent Than Reactive Approach Quality Control  Facilitates Strategic Planning Efficient Invoicing & Ageing  Accurate & Real time Access To Control Data For Timely Decisions Enterprise Wide Standard Discipline
  7. 7. General Perception ERP Is Very Expensive High Failure Ratio ERP Is Just To Impress Customers ERP Will Make Employees Redundant & Jobless ERP Means More Work & Procedures ERP Slows Down The Organization ERP Is Just For Manufacturing Organizations ERP Is The Sole Responsibility Of The Management ERP Is Just For The Managers & Decision Makers ERP Is Just For The ERP Implementation Team One ERP Package Will Suit Everybody ERP Package Will Take Care Of Everything
  8. 8. One ERP Package Suits Everyone & Will Take Care Of Everything
  9. 9. Ground Realities ERP Implementation Is NOT AN IT PROJECT ERP Implementation Is NOT BPR 50-60% Change & 40-50% Technology Complete & Dedicated Management Support Serious Organization Change  Fear Of Change  Effects Everyone In The Enterprise  Change In Roles & Responsibilities  Change In SOP Ownership By All Stake Holders Close Coordination & Collaboration Quick Management Decisions Require Quality Time From Everyone Involved Intensive Training Hardware & Technology Selection & Setup Program Or Project ?
  10. 10. Ground RealitiesTop Issues Organizations Face During Enterprise Resource Planning Organization Change 16% Internal Staff Adequacy 8% Project Team 7% Training 7% Prioritization/Resource Allocation 6% People 62% Top Management Support 6% Consultants 5% Ownership (of benefits to others) 4% Discipline 2% Program Management 8% Process Reengineering 4% Stage/Transition 2% Process 16% Benefit Realization 1% Software Functionality 4% Application Portfolio Management 3% Technology 9% Enhancements/Upgrades 2% Data 2% Reporting 1% Knowledge Assets 3%Note: Rounded percentages; not all categories are shown as bars
  11. 11. Product Or Development ? In House Development  Off The Shelf Product  Long Time To Deploy  Short Time To Deploy  Highly Flexible  Limited Flexibility  Poor Or No Adaption Of  Adaption Of Best Practices Best Practices  Homogenous Reporting  Inefficiencies Automated  Inefficiencies Eliminated  Lack Of Documentation  Better Documentation
  12. 12. Which ERP ?Proprietary Products Open Source Products Bann  Adempiere  Foundation Fujitsu Glovia International  BlueErp  LedgerSMB IFS  Dolibarr  OFBiz J.D. Edwards MicroSoft Dynamics  ERP5  Openbravo NETSUITE  Fedena  OpenERP Oracle eBusiness Suite  GNU Enterprise  Opentaps Peoplesoft  HeliumV  Postbooks Ross Enterprise  JFire  SQL-Ledger SAGE SAP  Kuali  Tryton  WebERP Some Of The ERP Products
  13. 13. ERP Cost ERP Software  User Based License – One Time Upfront Cost  Software Maintenance – Yearly Recurring Cost 17 – 22% Hardware  Acquisition – One Time Upfront Cost  Maintenance – Yearly Recurring Cost Data Communication  Depends On Locations & Data Volume  Setup –Upfront One Time  Service – Monthly Recurring Cost Training – Technical & Operations Implementation Cost – Outsourced Or In-house Team Customization – Depends On Situation Incentives, Rewards & Celebrations
  14. 14. How To Do It ?
  15. 15. How To Do It ?Program Or Project ?A Program Is A Group Of Related Projects ManagedIn A Coordinated Way To Obtain Benefits AndControl Not Available From Managing ThemIndividually
  16. 16. How To Do It ? ERP Implementation Is A Program First Project – Ground Work Second Project – Selection Of Product & Technology  Data Volume Estimation  Transaction Volume Estimation  Estimation Of Number & Type Of Users  Coverage Footprint & Road Map Third Project  Hardware Sizing  Disaster Recovery & Business Continuity  Sourcing & Procurement  Installation Of Software & Hardware  Testing & Upgrade / Update
  17. 17. How To Do It ? Fourth Project  Existing ICT Infrastructure & Gap Analysis  Revamping / Upgrade Of ICT Infrastructure  Work Stations, Servers, Network etc.  Sizing For Data Communication  Network & Remote Connectivity  Network & Data Security Fifth Project – OCM Sixth Project – Training Need Analysis & Logistics Seventh Project – ERP Implementation  Multiple Teams  Mini Projects
  18. 18. How To Do It ? Ground Work Questions To Ask Without Any Product In Mind  Why You Want ERP?  What Are The Management Expectations? Differentiate Between Must Haves & Nice To Have Clearly Define The Objective(s) & Expectations  Integrated On Line Real Time Information Systems  Improve Logistics Or Reduce Time To Deliver By 40%  Cut Down Time For Order To Manufacture Cycle By 20%  Reduce Inventory Cost By 20% - 40%  Reduce Receivable Ageing From Over 90 To 45 Days  Control Credit Limits For Single Distributor Working With Multiple Business Units
  19. 19. How To Do It ? Ground Work Discovery Mission - Document As Is Processes Document Gaps Between As Is and Objectives Know & Document “What We Want”  Business Needs & Objectives  Future Business Plan & Vision For At Least 5 Years  Priorities  Organizational Readiness Is BPR Required ? Prepare Comprehensive RFP Evaluate ERP Products For Best Fit Most Importantly Who Will Implement?  Outsource To Implementation Partner  Do It Yourself With In House Team
  20. 20. How To Do It ? Well Thought Of Strategy Strategy & Methodology  Big Bang Or Phased  Roll Out For Global Program Implementation Methodology  PMI Framework  AIM By Oracle  ASAP By SAP Common Components Of Implementation Methodology  Program / Project Charter  Team Structure, Roles & Responsibilities  Strategies & Governance Standards  Program Management & Project Plans  Stake Holder Identification & Analysis  As Is, To Be & Fit Gap Analysis  Risk & Issue Management  Technology Infrastructure Design & Deployment  Training Programs & Logistics  Data Preparation, Mapping & Conversion  Quality Gates & Reviews  Steering Committee Formation & Meetings
  21. 21. How To Do It ? Typical Team Program Director Project Manager(s) Solution Architect Technology Experts From IT – Certified On Selected Technology  Application Administrator  DBA  Security Expert  Network & Communication  Development Team Functional Experts / Consultants – IT & Non IT  Certified On Respective Module / Technology  Relevant Educational Background  Relevant Industry Experience Integration Manager OCM Team & Change Agents Subject Matter Experts From Business Power Users Or Super Users From Business
  22. 22. How To Do It ? Proprietary Methodologies AIM By Oracle  Application Implementation Methodology Phases Of AIM  Definition  Operations Analysis  Solution Design  Build  Transition  Production Ready Made Templates Including Project Plan Guide Lines & Instructions Software Tool
  23. 23. How To Do It ? Proprietary Methodologies ASAP By SAP  Accelerated SAP Methodology  ASAP And Global ASAP Phases Of ASAP  Program / Project Preparation  Business Blue Print  Realization  Final Preparation  Go Live & Support  Continuous Improvement Ready Made Templates Including Project Plan Guide Lines & Instructions Software Tool
  24. 24. How To Do It ? Typical Emotional Curve I will What will Looking for adopt a the future a new new hold for identity? identity I will just me? I can’t and new wait and stand this behaviors. see… anymore!100% Maybe I will try and change... “Valley of tears” DENIAL RESISTANCE EXPLORATION Initiation & Planning Execution Closing Time Decision Announcement Implementation profits in productivity losses in productivity
  25. 25. How To Do It ? Time Cost Quality ScopeTypical Triple Constraint For Any Program Also Applies To ERP Programs
  26. 26. Comments Or Suggestion Welcome Atnaumanmajeed@gmail.com

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