Enterprise resource planning

1. Enterprise
Resource
Planning

2. Enterprise Resource Planning
THE PRACTICE OF CONSOLIDATING
AN ENTERPRISE’S PLANNING,
MANUFACTURING, SALES AND
MARKETING EFFORTS INTO ONE
MANAGEMENT SYSTEM.
COMBINES ALL DATABASES
ACROSS DEPARTMENTS INTO A
SINGLE DATABASE THAT CAN BE
ACCESSED BY ALL EMPLOYEES.
ERP AUTOMATES THE TASKS
INVOLVED IN PERFORMING A
BUSINESS PROCESS.

3. Customer Relationship Management
Supply Chain Management

4. How Do ERP System Work ?

5. ERP Stakeholders
• Creditors
• directors
• employees
• government
• Owners
• Suppliers
• unions
• The community from which the business
draws its resources.

6. ERP Components
FINANCE HR MANUFACTURING AND
LOGISTICS

7. Before ERP

8. After ERP

9. Who are ERP vendors

10. Why ERP?
To integrate financial data
To standardize manufacturing
processes.
To standardize HR information.

11. ERP Project and Time
• Real transformational ( 1 to 3 years )
• Short implementations (3 to 6 months)
The important thing is not to focus on how
long it will take but to understand why you
need ERP and how you will use it to
improve your business

12. Total Cost of Ownership of ERP
From 63 companies surveyed showed :
• The average TCO was $15 million .
• The average TCO per user was $53,320.
• It took 8 months after the system was in to
see any benefits.
• but that the median annual savings from
the system was $1.6 million per year.

13. Hidden Costs
of ERP
Training
Integration and testing
Data conversion
Data analysis
Consultants
Replacing best and brightest staff after implementation
Implementation teams can never stop
Waiting for ROI (Return on Investment)

14. Benefits of ERP Systems

15. Benefits of ERP Systems
Improving integration,
flexibility.
Fewer errors.
Improved speed and
efficiency.
More complete access
to information.
Lower total costs in
the complete supply
chain.
Shorten throughput
times.
Sustained involvement
and commitment of
the top management.

16. Benefits of ERP Systems
Reduce stock to a
minimum
Enlarge product
assortment
Improve product quality
Provide more reliable
delivery dates and higher
service to the customer
Efficiently coordinate
global demand, supply
and production

17. Risks with ERP Implementation
Expensive (can costs 100 thousands to millions of dollars)
Time-consuming (can take months to years)
Great risk for the organization
Transfer of Knowledge
Acceptance with the company

18. Best Practices and what ERP
holds for the Future

19. ERP
Implementation
Biggest IT project that most companies
ever handle.
Changes the entire company.
Has repercussions in all departments and
divisions of the organization.
It is essential that all the key players
understand the scope of the project.
This is an IT-RelatedProject.

20. Best Practices of
ERP
Implementation
A Business Strategy aligned with Business Processes
Top-Down Project Support and commitment
Change Management
Extensive Education and Training
Data Clean up and Data Integrity
Implementation is viewed as an ongoing process

21. A Business Strategy aligned with Business Processes
• Business strategy that will give you a
competitive advantage
• Analyze and map your current business
processes
• Develop your objectives
• Evaluate your business strategy and ERP plan
before you commit to software acquisition
and installation.

22. Top-Down Project Support and commitment
• CEO(chief executive officer)
• support implementation costs
• champion the project.
• demand full integration and
cooperation.
• Most knowledgeable and valuable staff

23. Change Management
• Changes in business procedures,
responsibilities, workload.
• As a result, ERP implementations are
times of high stress, long hours, and
uncertainty.
• Mid-level managers must
• facilitate continual feedback from
employees.
• provide honest answers to their
questions.
• help resolve their problems.

24. Extensive Education and Training
• General education about the ERP system
for everyone.
• Massive amount of end users training
before and during implementation.
• Follow-up training after the
implementation.
• 10 to 15% of total ERP implementation
budget for training will give an
organization an 80% chance of a
successful implementation.

25. Data Cleanup and Data Integrity
• Clean-up data before cut-over.
• Near enough is no longer good enough.
• To command trust, the data in the system
must be sufficiently available and
accurate.
• Eliminate the old systems, including all
informal systems

26. Implementation is viewed as an ongoing
process
• Ongoing need for training and software
support after implementation.
• Ongoing need to keep in contact with all
system users and monitor the use of the
new system.
• Ongoing process of learning and
adaptation that continually evolves over
time.

27. ERP
Implementation
Phases
Concept/initiation
Development
Implementation
Closeout/Operation and maintenance

28. ERP II

29. Is it A conceptual framework for next-generation
enterprise system?

30. • The development of Enterprise
Systems (ES) have progressed
through almost fifty years in a
constant interaction between
changing business requirements,
technological and organizational
maturity and software vendors
capabilities.

31. ERP II
ERP II systems is a new concept introduced by
Gartner Group in 2000 in order to label the
latest extensions of the ERP-systems.

32. • solution for building of complex
information systems in large and
medium-sized companies
• ERP II makes it easy to integrate all
business information in a unified
information environment and automate
processes in finance sales customer
relationship management procurement
inventory management and production
the business logic of the system
provides inopportunity to generate
standard reports

33. ERP II Architecture

34. A Revolutionary Change

35. A Revolutionary Change
• Technology
• Technology goals aligned with internal business processes and those of
diverse partners, customers, suppliers, and distributors.
• Business Process
• Implementation cannot be made without a change of business processes.
• People
• ERP II implementation success depends on the business community’s cultural
acceptance of the system.

36. ERP to ERP II
• The most apparent change
from ERP to ERP II is a change in focus
from one that is totally enterprise-
centric and preoccupied with internal
resource optimization and transactional
processing to a new focus on process
integration and external
collaboration. ERP II application
deployment strategies relates to
information that is exchanged between
two or more businesses over the
Internet.

37. • Such a system can quickly, accurately and consistently operate an
entire organization. It delivers information in an instant to the
people who need it. It manages the access to that information by
establishing security roles and ratings that define which
employees can use certain pieces of information. It also
addresses the issue of multiple office locations by making the
solution web-based, so employees can access the system no
matter where they may be.
•
Businesses are utilizing the Internet more and more. It is no
longer just a tool for e-mail, research and single transaction
commerce. It is quickly becoming a tool for globalizing a business
– a tool that allows an organization to tie together its employees,
its suppliers and its customers. It enables the free flow of
information and the next generation of solution will be built
upon it.

38. • ERP II supports work through client
application and through the web client
on desktops and portable devices which
provides several advantages you get
access to all system functions by the
internet and interaction efficiency with
affiliates partners and customers will
significantly increase you can easily
integrate 1c ERP 2.0 with any
information system Enterprise Portal
specialized software a shop or bank.

40. Advantages of ERP II
• it has many advantages over most extant ERP systems which typically address Finance
and Administration issues with an emphasis on serving logistics, supply chain, and
warehousing functions.

41. Advantages of ERP II
• allows demonstrably greater flexibility with
respect to integrating functions between
departments and even industries.

42. Advantages of ERP II
system is a much more “Web-friendly
”application that makes better use of the
Internet, especially as a means for support.

43. Advantages of ERP II
• brings to the feast is that it can engender
increased user participation, because it
should simplify dealings among site owners
and potential buyers.
• In turn, that can eliminate a large
percentage, if not all, of the difficulties that
used to result from the exchange of
insufficient or incorrect communications.

44. • Thousands of implementations of solutions based on :
• Distribution professional services
• Food industry
• Chemical industry
• Consumer goods industry
• Engineering industry
• many other sectors

45. END