ERP
•Download as PPT, PDF•
3 likes•2,099 views
1. The document discusses Enterprise Resource Planning (ERP) systems, including their history, components, implementation challenges, and critical views. 2. ERP systems emerged to integrate disparate business functions and processes, improve supply chain management, and provide real-time information to managers. 3. Major ERP vendors include SAP, Oracle, and BAAN. Successful implementation requires fitting the software to business needs, change management, and ongoing maintenance and upgrades.
![The Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (20)
Similar to ERP
Similar to ERP (20)
More from mubarak2009
More from mubarak2009 (20)
ERP
- 1. ORGANISATION TRANSFORMATIONS Enterprise Resource Planning (ERP) Joe O’Mahoney
- 4. 1. The Context of ERP
- 9. 2. Supply Chain Management (SCM)
- 10. Importance of Supply Chain Management
- 12. Push v Pull Supply Chains
- 14. 3. What is ERP?
- 17. Chaos v Hub & Spoke
- 19. Typical ERP Components Sales and delivery applications Service applications Central Database Reporting applications Financial applications Manufacturing applications Inventory and Logistics applications HRM applications Customers Suppliers Management Employees
- 20. ERP Client / Server Model
- 22. 4. Managing ERP
- 28. Design & Implementation of ERP Create Interfaces and Enhancements Establish Reporting Establish Archiving Management Establish Archiving Management Perform Final Test Establish Global Settings Establish Company Structure Establish Master Data Perform Final Test Create Go - Live Plan Create User Documentation Set Up Production Environment Train Users Establish System Administration Transfer Data to Production System Support Productive Operation Optimize System Use Set Up System Environment Train Project Team Define Functions and Processes Design Interfaces and Enhancements Project Preparation Quality Con- ceptual Design Quality Appli- cation System Quality Pro- duction System Check Check Check Project Management System Maintenance and Release Upgrade Organization and Conceptual Design Detailed Design and System Set-Up Preparations for Going Live Productive Operation Copyright, SAP AG.
- 33. 5. Real world ERP
- 37. R/3 Business Architecture R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Manage-ment PM Plant Main-tenance Integrated solutions Open systems Client / server architecture Designed for all types of business Multinational Comprehensive functionality
- 38. SAP R/3 Implementation Times < 3 months 4 - 6 months 7 -9 months 10 - 12 months 13 - 15 months 0 10 20 30 40 50 % 16% 24% 21% 16% 9% Small companies Medium-size companies Large companies > 15 months 14%
- 39. 6. Critical Views on ERP
- 44. e.g. Cisco Source: Cisco ERP steering Committee Report, October 20, 1994 Cisco’s total ERP implementation costs = US$15 million Hardware 32% Headcount 14% System Integration 38% Software 16%
- 49. Appendices
- 50. ERP Market Share ERP Providers Product Name 1997/10~1998/9 2001 SAP AG SAP R/3 37% 29% PeopleSoft PeopleSoft 7.5 8% 6% Oracle Oracle Applications 8% 10% Baan Baan IV 6% 5% JD Edwards One world 5% 7% System Software Associates BPCS Client/Sever 5% 5% Other 31% 38%
- 51. SAP R/3 Installation by Industry SAP HIGH TECH & ELECTRONICS 11.3% SAP CHEMICALS 9.5% SAP CONSUMER PRODUCTS 10.3% Consulting & Professional Services 6.0% SAP RETAIL 6.3% SAP PHARMA - CEUTICALS 3.4% SAP PUBLIC SECTOR 3.4% SAP OIL & GAS 3.2% Metal, Paper & Wood Products 2.8% Services 3.1% SAP HEALTHCARE 2.3% SAP BANKING 2.0% SAP MEDIA 2.3% Others 11.5% SAP UTILITIES 3.9% SAP AUTOMOTIVE 4.8% SAP TELECOM - MUNICATIONS 3.4% SAP ENGINEERING & CONSTRUCTION 10.5%
- 52. R/3 Implementations by Org Size SAP R/3 installations by customer size, as of June, 30th, '98 (16,191 R/3 installations) 1000 - 2500 500 - 1000 200 - 500 16.9% 15.1% 12.4% 19.4% 36.2% Company size in USD mill. revenues > 2500 < 200
Editor's Notes
- MRP: Out of manufacturing MRP II: integrated with financial systems
- data-driven development, stressed improving early phases in development; 4GL and software prototyping permitted more rapid development; CASE and object oriented (software re-use)
- An EVENT is a condition that has business relevance customer order production order customer payment receipt Decision Making Software – i.e. “should I take this order?”, rather than “how can I take this order?”
- The rise of JIT
- Core Applications Financials – records and manages accounting data including applications such as general ledger, accounts payable, accounts receivable, budgeting and asset management. HR – Tracks employee information Manufacturing – production planning and execution such as demand forecasting production scheduling, job cost accounting, bill of materials, shop flow management, shop floor execution, and quality control Project Management – plans schedules, and tracks project costs, contracts, and resources. Extended ERP Business Intelligence – collects information for systems used throughout the enterprise CRM – provides an integrated view of customer data and interactions so companies can work more effectively SFA – improves the effectiveness of the sales process SCM – plans schedules, controls, and optimizes the supply chain E-Logistics – Manages the transportation and storage of goods throughout the supply chain. E-Procurement – Assist corporate buyers with the specification and acquisition of goods from suppliers using tools such as online catalogues, auctions, and requests for quotes (RFQ) PLM – allows manufacturers to produce and share product planning, design, manufacturing and distribution information with suppliers to improve development of products and fielding of product offerings. Internet Transformation Portals – enable users to access multiple applications via a single point of entry with a browser Exchanges – creates a web based environment in which multiple internal and external users can use applications such as B2B e-marketplaces, e-procurement, and SCM to automate the business relationship between trading partners Mobile access – provides means for users with handheld devices such as PDA’s and Web enables telephones to connect to the internet with enterprise applications.
- Master Data: data relating to individual objects that remain unchanged for an extended period of time, in contrast to transaction data. Contains info that is used in the same way for similar objects. E.g., MD of a supplier including name, address and banking information or MD of a R/3 user containing name, authorization, default printer, etc.
- Post implementation review: Clear diagnosis about use of system. To be performed regularly. (evaluation of software, helps maintain integrity of package) Remove remaining “bugs”. Establish “maintenance organisation”, responsibilities. Simplify structure and processes. Turn “nice to have” into the real thing. Join the club: Establish/maintain contact with other user companies, help out if necessary. Continue user training. Maintain knowledge networks and repositories. Upgrade when needed But not too frequently/not every version. Bring in a consultant to provide external evaluation of progress.
- ERP system reporting capabilities are not cheaply employed by all users, and there is often a “seat” cost, since ERP system prices are typically based on the number of system users.
- Above 60% of the ERP systems are products of the top five providers BAAN Provides a gateway with personalized interface for role-based access of business information Portal uses XML to access applications data and databases Content includes alerts, online analytical processing (OLAP) views, reports, messaging, and data searches Information can be brought to the desktop from a variety of data sources, including different Web addresses, different application, folders, documents or messages. Collaboration provides a toolset of a dynamic commerce business model across the supply chain Users can reconfigure applications as relationships change including dynamic addition of users, roles, business objects, and business processes Oracle Vision – enterprises are best served by a single business application built on a coherent data model implemented with a single database – Oracle Combines traditional ERP functionality with a variety of other enterprise application ranging from business intelligence and CRM to SCM and B2B marketplaces. Architecture – e-business suites based on three-tier software architecture including a desktop tier with a browser-based interface, a middle tier with the application server and a database tier. Applications – Core ERP applications as well as newer, collaborative e-business application such as SCM and CRM. Human Resources – maintains employee data and workforce management features for monitoring and administering employee oversite, training, time management, and payroll. Also provides benefits administration with access to information via browser. Financials – general ledger, receivables, payables, and inventory – global consolidation and reporting in multiple currencies – analytic functions helping cash flow, analyzing profitability, and tracking project performance – helps managers improve profitability track global property and equipment assets, handles capital spending, depreciation, and tax accounting – administers corporate travel guidelines. Manufacturing – handles processes and project manufacturing process with supply chain information and process management Projects – managed project basis including costing, billing, contracts, resource planning and tracking and project-based manufacturing with expenses and time management. Business Intelligence – data from all application integrated with Oracle Business Intelligence (BIS)( to allow management to make informed decisions based on performance measurements, operating alerts and management reports. PeopleSoft Internet Architecture without client software thus eliminating a significant source of complexity and cost – web enabled client device accessing internet architecture has software and configuration it needs. Applets and Dynamic Link Libraries (DLL) or browser plug-ins are not necessary for the browser based client architecture Inbound and outbound HTTP request, internet Application Server uses three different servlets executed by Java-based Web server. These are called : Presentation Relay – dedicated to queriers and transactions Integration Relay –third party requests Portal Servlets – act as a relay for HTML and Wireless Markup Language and XML Contains all the application data and metadata with application object definition SAP Is in the midst of a multi year program to adapt its software architecture and product offerings to the internet while making its applications perform more accessible and flexible. mySAP.com – implementation of SAPS Internet strategy Portal infrastructure based on TopTier Software mySAP Financials – accounting tools including general ledger, sub-ledgers, revenue and cost accounting and job and project accounting mySAP Human Resources – maintains employee information, payroll processes, time management, legal reporting, structure and policy information – manages organizational development analysis, recruitment, differential compensation for expartriates, compensation planning, training, and knowledge management – also provides analytics and works with protals with access to web. mySAP Mobile Business – links to mobile devices with WAP mySAP Product Life Cycle Management – helps plan manage and control product development including bill of materials, resource data, and quality control mySAP SCM – assists with planning with demand and order forecasting, design event management, performance measuring procurement, manufacturing and fulfillment integration mySAP Business Intelligence – Gathers information to support analysis tools and decision making including data warehousing, reporting and analysis, data modeling, target publishing and knowledge management mySAP E-Procurement – improves requisitioning and purchasing allowing strategic sourcing and direct materials with links to e-marketplaces mySAPCRM – provides single view of customer data and interactions facilitating sales and service mySAP Portals – enables employees to interacte with application and and view data using a single browser based view mySAP Marketplace – allows companies to operate exchanges with business applications such as procurement, business document exchange, development, inventory management, demand aggregation and shipping J.D.Edwards major mid-market ERP systems provider known for highly integrated packages Flagship product – OneWorld – set of enabled collaborative commerce applications portal providing single point entry Recast itself as a provider of collaborative commerce
- R/3 is a development from R/2 which ran on mainframes. In mainframe computing, all the computing is done on a single computer. Users are then allowed to share the computing resources (e.g., via time sharing---the mainframe computer. The user will be at a terminal without computing capabilities. That’s primitive! Over time, the users began have increasing computing capabilities locally. We needed to shift some of the processing to the user’s computing facilities… what to do? Client server computing to the rescue! Here clients and servers are linked so that the computing and storage can be distributed between… the client and the server … the client and the server? Client refers to the user’s computer; server to some other computing source that provides computing resources, software, or data.
- Prominent implementation failures: Dell (SAP R/3), Aerogroup (SAP R/3), Boeing (Baan), Kellogg (Oracle).
- Cost (average of $15 million : £10 million) Average cost overrun 179% The (some) hidden costs Training Lss of productivity Integration and testing Data conversion Data analysis Consultants ad infinitum Replacing your best and brightest people Implementation teams can go forever Waiting for ROI (Return On Investment) Cost of data conversion for 'dirty' data
- Cisco also lost a lot of qualified staff and had to buy others in to make up for the shortfall
- But, was Virgin naïve?