Page 1 FEB-2010 Management information System: ERP What is ERP System Presented to : Dr. Mahmoud Youssef Presented By : Omar Khaled Wael Omar Sherif Aly

Page 1FEB-2010 Management information System: ERP

What is ERP System

Presented to : Dr. Mahmoud Youssef

Presented By : Omar Khaled

Wael Omar

Sherif Aly

Ismail Shanab

Sherif Abdallah


A- Introduction

Overview

B- What is ERP System

C- SPIRIDON implementation – Siemens Egypt

1- What is Spiridon 2- Project Plan3- Change Why, What & How4- Change Lifecycle5- Benefits


Introduction

The initials ERP originated as an extension of MRP (Material Requirements Planning; later

(manufacturing resource planning) and CIM (Computer Integrated Manufacturing). It was

introduced by research and analysis firm Gartner in 1990. ERP systems now attempt to

cover all core functions of an enterprise, regardless of the organization's business or

charter. These systems can now be found in non-manufacturing businesses, non-profit

organizations and governments.

ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem

(real or imagined) in their "legacy" systems. Many companies took this opportunity to

replace such information systems with ERP systems. This rapid growth in sales was

followed by a slump in 1999, at which time most companies had already implemented their

Y2K solution.

ERP II, a term coined in the early 2000s, is often used to describe what would be the next

generation of ERP software. This new generation of software is web-based and allows both

employees and external resources (such as suppliers and customers) real-time access to

the system's data.

EAS — Enterprise Application Suite is a new name for formerly developed ERP systems

which include (almost) all segments of business using ordinary Internet browsers as thin

clients.


Introduction

Best practices are incorporated into most ERP vendor's software packages. When

implementing an ERP system, organizations can choose between customizing the

software or modifying their business processes to the "best practice" function delivered in

the "out-of-the-box" version of the software.

Prior to ERP, software was developed to fit individual processes of an individual business.

Due to the complexities of most ERP systems and the negative consequences of a failed

ERP implementation, most vendors have included "Best Practices" into their software.

These "Best Practices" are what the Vendor deems as the most efficient way to carry out a

particular business process in an Integrated Enterprise-Wide system. A study conducted

by University of Applied Science surveyed 192 companies and concluded that companies

which implemented industry best practices decreased mission-critical project tasks such

as configuration, documentation, testing and training. In addition, the use of best practices

reduced over risk by 71% when compared to other software implementations.

The use of best practices can make complying with requirements such as IFRS, Sarbanes

Oxley, easier.


A- Introduction

Overview





What is ERP ?

Enterprise Resource Planning (ERP) is a business management system that integrates all facets

of the business, including planning, manufacturing, sales and marketing. ERP systems are

originated to serve the information needs of manufacturing companies. Over time though, they

have grown to serve other industries, including financial services, customer good sector, supplier

chain management and human resource sector. With this growth, ERP systems, which first ran

on mainframes before migrating to client or server systems, are now migrating to the Web and

include numerous applications. ERP is a product that helps automate a company's business

process by employing an integrated user interface, an integrated data set, and an integrated code

set.

ERP business software integrates the information used by an organization's many different

departmental functions into an unified computer system. It is designed to model and automate

many of the basic processes of a business organization, from finance to the manufacturing

management, with a goal of integrating information across the company and eliminating complex,

expensive links between computer systems that were never meant to 'talk' to each other. It uses

web as a platform to bring customers, vendors, suppliers, manufacturers and employees

together.

To be considered an ERP system, a software package must provide the function of at least two

systems. For example, a software package that provides both payroll and accounting functions

could technically be considered an ERP software package.


What is ERP ?

Examples of modules in an ERP which formerly would have been stand-alone applications include:

Product lifecycle management, Supply chain management (e.g. Purchasing, Manufacturing and

Distribution), Warehouse Management, Customer Relationship Management (CRM), Sales Order

Processing, Online Sales, Financials, Human Resources, and Decision Support System.[citation

needed

Ideally, ERP delivers a single database that contains all data for the various software modules that

typically address areas such as:

Manufacturing

Engineering, bills of material, scheduling, capacity, workflow management, quality control, cost

management, manufacturing process, manufacturing projects, manufacturing flow

Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning,

supplier scheduling, inspection of goods, claim processing, commission calculation

Financials

General ledger, cash management, accounts payable, accounts receivable, fixed assets

Project management

Costing, billing, time and expense, performance units.

Human resources

Human resources, payroll, training, time and attendance.


A- Introduction

Overview





What is Spiridon ?

SAP is a multinational software development and consulting corporation, which provides enterprise

software applications and support to businesses of all sizes globally.

Started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's

third-largest independent software vendor. The original name for SAP was German: Systeme,

Anwendungen, Produkte. It means "Systems Applications and Products." The goal of the company

was to provide large enterprise customers with the ability to interact with a corporate database in

real-time. Today, the company states that its goal is "to offer the industry's most comprehensive

portfolio of business performance and optimization solutions for companies of all sizes."

Spiridon is a global program for harmonizing processes in the Siemens Local Companies supported

by a highly integrated IT platform on the basis of SAP ERP standard software.

Standardization of processes and information structures across all operating units, countries and

business systems ensure vertical optimization and horizontal integration, enabling Siemens to take

advantage of internal synergies more quickly and minimize its global IT costs.

Siemens was quick to recognize the challenges and opportunities provided by globalization. The

company, which is active in many different markets in more than 190 countries, aims to pool its

services and skills in all sectors and regions and combine them into successful,profitable and

innovative solutions

The success of Spiridon proven methodology for program delivery has become an area of interest

and model for other listed companies in automotive,energy, food and mechanical engineering.


May

June

July

August

September

Week 1 Week 2 Week 3 Week 4

Process

Workshop

3

Integration

Test

4

GO LIVEGO LIVE

April

PU

Training

8

PU

Training

1113

Initial Workshop

14 15

Project

Preparation

5

OctoberData Migration

19 26

End-user

Training

28

Test Data

Migration

November

122 Days to Go

Project Plan


Change Why & What

Why?Ensure company and staff are ready for changes in the work style

Implementation of a standardized process or ERP solution i.e. Spiridon which

is used widely in ME region.

Common platform for all Divisions for daily business to improve quality, flexibility,

integrated process and reduced processing cost

- WHAT?Work Profile/Job Description (Addition/Deletion))

Work Flow/Process Documentation (Revision)

Signature Regulation

Organizational Structure

* Signature Regulation: To ensure that the companies signature regulations are met when using

the new SPIRIDON system different methods have to be used:

Physical Procedures

Vouchers, Forms and Stamps

System Authorizations


Change How

- How?Communication method

Awareness program Educate staff about what is coming

Seminar/Workshop for focus group

Newsletter (Involvement of Cluster MEA Communication Team) General information about SAP and SPIRIDON

Intranet - information on SPIRIDON in the intranet

Access to Share point Available to Project Team and Power Users Information on complete project structure, plan, etc Documentation on Spiridon


Change Lifecycle

Change LifecycleChange Lifecycle

DynamicsDynamics of Change over time of Change over timeDynamicsDynamics of Change over time of Change over time

SustainingSustainingSustainingSustainingAcceptanceAcceptanceAcceptanceAcceptanceQuestioningQuestioningQuestioningQuestioningAwarenessAwarenessAwarenessAwareness


• Unclear on scope, rationale, and nature of change• Unrealistic expectations• Rumors• Seeking information

• Change announcement• Project vision/desired state document

• Ensure compelling business reasons are clear to all employees

• Set expectations and begin preparing people to change

Response

Tools

T actics

The awareness phase is the period people recognize that the change is going to occur.

Awareness Phase


Questioning Phase

• Realization of the effort and complexity• Uncertainty and confusion• Fear of the unknown• Concern over personal impact

• Communications - E-Mail, Newsletter, Other• Question and answer sessions• Focus group, workshops

• Clearly define the change• Communicate personal impact• Allow for 2-way communication opportunities

Response

Tools

T actics

The questioning phase is the period people begin to assess whether the benefits of the change outweigh the struggle of the transition.


Acceptance Phase

• Recognition of personal benefits• Value to the organization is understood• Comfort achieved• Willing to use the technology

• Performance measures• Training• Progress reporting

• Influence people to try to accept the new way of doing things• Emphasize benefits• Develop skill required

Response

Tools

T actics

The acceptance phase is the period in which the people are beginning to support the change by experimenting with the new technology.


Sustaining Phase

• Change internalized• Supporting behaviors demonstrated• Improved performance

• Rewards and recognition• Progress reports• Performance measures• Success stories

• Reinforce the desired behavior in the changed organization• Promote the internal rationalization of new behaviors to

establish new culture• To encourage sustained acceptance and internalization of

the new culture

Response

Tools

T actics

The sustaining phase is the period in which people have effectively adapted to the change and are working efficiently with the new technology.


Benefits

Benefits

People clearly understand the vision, and the role of the change in achieving that vision

Resistance to change is proactively managed

Performance levels are maintained during the transition period, and significantly enhanced after the transition period

People understand the change activities that are underway, and have realistic expectations of the impact of those changes

The change initiative gains momentum throughout all levels in the organization

The business benefits of the change initiative are realized

Less System maintenance work

Consistent Standard and Control

Cost & time savings

SuccessfulImplementatio

nof ERP system

Result



Thank for Listening . . . .

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Page 1 FEB-2010 Management information System: ERP What is ERP System Presented to : Dr. Mahmoud Youssef Presented By : Omar Khaled Wael Omar Sherif Aly