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Rabbia Irshad(11142) Qazi Naveed ur Rehman(11090) Umair Butt (10987) Mohmmad Salman (L-11264)
What is an ERP System? Why implement an ERP system? How should ERP systems be
implemented? Conclusion Questions and Answers
Simplistic DefinitionERP - Enterprise Resource PlanningDetailed Definition“a business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420)
Historically, companies created “islands of automation”. A hodge-podge of various systems that operated or managed various divergent business processes. Sometimes these systems were integrated with each other and sometimes they weren’t. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.
Integrationseamless integration of all the information flowing through a company – financial and accounting, human resource information, supply chain information, and customer information.
PackagesEnterprise systems are not developed in-house
IS life cycle is different
1. Mapping organizational requirements to the processes and terminology employed by the vendor and
2. Making informed choices about the parameter setting.
Organizations that purchase enterprise systems enter into long-term relationships with vendors. Organizations no longer control their own destiny.
Best Practices ERP vendors talk to many different businesses
within a given industry as well as academics to determine the best and most efficient way of accounting for various transactions and managing different processes. The result is claimed to be “industry best practices”.
The general consensus is that business process change adds considerably to the expense and risk of an enterprise systems implementation. Some organisations rebel against the inflexibility of these imposed business practices.
Some Assembly RequiredOnly the software is integrated, not the computing platform on which it runs. Most companies have great difficulty integrating their enterprise software with a package of hardware, operating systems, database management systems software, and telecommunications suited to their specific needs. Interfaces to legacy systemsThird-party bolt-on applications
EvolvingEnterprise Systems are changing rapidly Architecturally: Mainframe, Client/Server,
Web-enabled, Object-oriented, Componentization
Functionally: front-office (i.e. sales management), supply chain (advanced planning and scheduling), data warehousing, specialized vertical industry solutions, etc.
Web
Internet
Mobile
Wirelesse-Mail
Call Center
ICM/Telephony
Interaction
Channels
Marketing
Intelligence
Sales
Intelligence
Customer
Intelligence
Call Center
IntelligenceAnalytical
Applications
E-business PlatformTech Stack
Common Data and Object Models, Security, Interfaces, Globalisation
E-Business
Foundation
Marketing Sales ecommerce
Interaction History Universal Work Q
1-to-1 Fulfillment
Assignment Engine
EscalationsTCA
Tasks Notes
Resources
Calendar
OSS HR
CRMFoundation
Business Applications
Installed Base Territories
To support business goals
Integrated, on-line, secure, self-service processes for
business
Eliminate costly mainframe/fragmented technologiesImproved Integration of Systems and Processes
Lower Costs
Empower Employees
Enable Partners, Customers and Suppliers
Obtain the right mix of people, processes and technology!!
People Project Structure Should be aligned to processes
Process Implementation Process (outlined in detail) Adapt your processes to those of the ERP.
Technology Hardware Software Integrated Systems
1. Definition and Analysis Hold discussions with various functional
personnel to establish the actual number of systems operating at client site, what they are used for, why and how often
Produce the Project Scoping Document outlining current situation, proposed solution and budgeted time
Challenge : REQUISITE EXPERTISE - No two clients are the same
2. Design Prepare various functional reports - specifies
current scenario and wish list Prepare Design document which specifies
how the system is going to work Prepare test scripts to be followed on system
testing Map out the interface paths to various
modules
Challenge : INFORMATION SHARING -Availability of staff
3. Build Configure system as per set up document
specifications i.e. transfer conceptual model into reality
Test system to verify accuracy (preliminary tests)
Challenge : TECHNICAL ENVIRONMENT- System functionality
4. Transition Train users on their specific areas Assist in test data compilation and system
testing by users Finalise the Live system and captured
opening balances
Challenge : USER RESISTANCEUnderstanding and acceptancedata preparation
5. Production Official hand holding Effectiveness assessment Business and Technical Direction
recommendations
Technology is an enabler, not the driver (it is there to assist the organization to achieve business goals)
It is a means to an end, not the end
The organization before ERP ( systems)Isolated Information: their own systems
Update issues Redundant (jobless)
Inaccurate and different
Different in the different databases
Can’t access information maintained by another department
Can’t make of the entire organization
integrates (or integrated set of IT systems) so that employees can make enterprise wide decisions by viewing enterprise
wide information on all business operations (enterprise wide information)
Keyword in
ERP is
“enterprise”
ERP systems focus
on
all processes,
departments and
operations for the
entire enterprise
ERP systems and correlates the data generating an enterprise wide view that is consistent and real-time. involved in sourcing, producing and delivering a company’s product
Complete
Real time
Consistent
Three core components focus on (accounting/finance, production/materials management and HR)
Extended components typically focus on and require interactions with customers, suppliers and business partners
Typically Internet enabled.
Make sure that
you know what
each component
typically handles.
Skipped details
slides follow
Accounting and finance component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management
Human resource component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities
Production and materials management component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control
Extended ERP components include: Business intelligence
▪ Tools to help analyze your business information and better understand it so that you can better understand the business.
Customer relationship management
Supply chain management
E-business▪ E-logistics – manages the transportation and storage of
goods
▪ E-procurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet
At the heart of all ERP systems when a user enters or updates information
1. Having integrated systems helps that many businesses had previously started to use (also didn’t have to fix those old legacy systems)
2. Integrate financial information and customer order information
3. Everyone working with the same information and removes misinformation
4. Standardize and speed up manufacturing processes, as well as reduce inventory
5. ERP addresses the
6. One of the greatest benefits of an ERP system is Provides organizations with information that was previously difficult (if not impossible) to obtain, allowing the organization to perform more efficiently and effectively.
• Costly in terms of One vendor risks: too costly to Company essentially held hostage.
Employees
Difficult to
Microsoft Business
Solutions Great Plains
Dynamics
ERP systems provide a mechanism for
implementing systems where a high degree
of integration between applications is
required
The Business Case or Value Proposition for
implementation must be outlined
To successfully implement a proper mix of
people, processes and technology should be
maintained
Conclusion
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