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Introduction to erp
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- 2. History of organizationalsystems Calculation systems Functional systems Integrated systems
- 3. Calculation systems 1950-80Single purpose Eliminate tedious human work Examples: Payroll, General ledger, Inventory Technology used: Mainframes, magnetic tapes, batch processing
- 4. A System/370 Model145 (1970’s)
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- 7. A very nice-lookingmagtape-drive
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- 10. Printer 800 lines/minutewith 48 character train, 136 columns with 6 or 8 lines per inch spacing
- 11. Stack of ComputerPrintout Paper
- 12. Functional systems 1975-20??Use computers to improve operations Applications: Human resources, order entry, manufacturing resource planning Technologies: Mainframes, PC’s, LAN’s
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- 14. Functional systems Typicallycontained within a department Islands of automation Applications independently developed and deployed Driving force: availability of mini-computers
- 15. Functional system applicationsHuman resources System Accounting and finance systems Sales and marketing System Operations management System Manufacturing Systems
- 16. Human Resources RecruitingCompensation Assessment Development and Training Planning
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- 18. Accounting and FinanceGeneral Ledger Financial Reporting Costing Budgeting Accounts Payable Accounts receivables
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- 20. Sales and MarketingLead tracking Sales forecasting Customer management
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- 22. Operations Order managementInventory management Customer service
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- 26. Types of Organizationalinformation Systems Administrative systems Scheduling / Transaction systems Value oriented systems Reporting and controlling systems Analysis and information systems Planning and decision support systems (From Business Process Engineering by A.W. Scheer)
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- 28. Problems with functionbased application Sharing of data between systems Data duplication Data inconsistency Applications that don’t talk to one another Limited or lack of integrated information Isolated decisions lead to overall inefficiencies Increased expenses
- 29. Solution to disparatesystems? Integration Consolidation Right-sizing Business Process Redesign Enterprise wide system
- 30. Integrated systems or Enterprise Resource Planning System
- 31. ERP - DefinitionERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner
- 32. ERP system: DefinitionERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
- 33. What is ERP?Enterprise Resource Planning Support business through optimizing, maintaining, and tracking business functions Broken down into business processes HRM Distribution Financials Manufacturing
- 34. What makes ERPdifferent Integrated modules Common definitions Common database Update one module, automatically updates others ERP systems reflect a specific way of doing business Must look at your value chains, rather than functions
- 35. Benefits of ERPCommon set of data Help in integrating applications for decision making and planning Allow departments to talk to each other Easy to integrate by using processed built into ERP software A way to force BPR (reengineering) Easy way to solve Y2K problem
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- 37. Difficulty in implementationVery difficult Extremely costly and time intensive Typical: over $10,000,000 and over a year to implement Company may implement only certain modules of entire ERP system You will need an outside consultant
- 38. Common Pitfalls Donot adequately benchmark current state Did not plan for major transformation Did not have executive sponsorship Did not adequately map out goals and objectives Highly customized systems to look like old MRP systems
- 39. Survey of ERPimplementations Done by ittoolbox.com in 2004
- 40. Overview 375 ITand business professionals 52% anticipate budget increases for new ERP implementations/new modules SAP and PeopleSoft/J.D. Edwards were cited as the most popular ERP packages 46% indicated that the main challenge to successful ERP implementations was inadequate definition of requirements and resistance to change
- 41. How would youcharacterize your budget for new ERP implementations/new modules deployments for 2004 compared to your budget in 2003?
- 42. Who is directlyresponsible for determining your ERP implementations/new modules deployments?
- 43. Who are theother key decision-makers/influencers in decisions to add new ERP packages/new modules?
- 44. Do you currentlyhave an ERP package?
- 45. If your answeris "Yes", which ERP package(s) do you currently use?
- 46. Are you consideringadding new modules to your existing ERP package?
- 47. If your answeris "Yes", which modules are you planning to add?
- 48. If you planto deploy a new ERP package and/or add modules to your existing packages, when would this implementation take place?
- 49. Who do youpartner with for new ERP implementations and additions of new modules?
- 50. What do yousee as the main challenges to successful ERP implementations within your organization?
- 51. For more details…http://projectmanagement.ittoolbox.com/documents/research/