Group1 ERP TECHNOLOGY Merged

Chapter 2
ERP
Technology
Group 1
• Caranto, Regie
• Barsana, Edwardo
• Genaro, Ria Elyza
Evolution of ERP Architecture
• The evolution of ERP systems closely followed the

spectacular developments in the field of computer
hardware and software systems.
• During the1960s most organizations designed, developed

and implemented centralized computing systems, mostly
automating their inventory control systems using inventory
control packages
Relational Database Management Systems
• The software used to store, manage, query, and retrieve data stored in
a relational database is called a relational database management
system (RDBMS). The RDBMS provides an interface between users and
applications and the database, as well as administrative functions for
managing data storage, access, and performance.
• The simple yet powerful relational model is used by organizations of

all types and sizes for a broad variety of information needs. Relational
databases are used to track inventories, process ecommerce
transactions, manage huge amounts of mission-critical customer
information, and much more. A relational database can be considered
for any information need in which data points relate to each other and
must be managed in a secure, rules-based, consistent way.
Database Normalization
• Database Normalization is organizing non structured data in to

structured data. Database normalization is nothing but organizing
the tables and columns of the tables in such way that it should
reduce the data redundancy and complexity of data and improves
the integrity of data.
• Normalization is the process of organizing data in a database.

This includes creating tables and establishing relationships
between those tables according to rules designed both to protect
the data and to make the database more flexible by eliminating
redundancy and inconsistent dependency.
Structured Query Language(SQL)
*retrieving subsets of information from within relational

database management systems (RDBMSes) -- this information
can be used for transaction processing, analytics applications
and other applications that require communicating with a
relational database.
*SQL queries and other operations take the form of

commands written as statements and are aggregated into
programs that enable users to add, modify or retrieve data
from database tables.
ERP Data
ERP system store three main types of data: master data,
transaction data, and configuration data.
Master Data is relatively permanent data collected on entities in the business.

• Examples of master data reflecting the four groupings include data
describing employees, inventory items, departments, and licenses.
Transaction Data are the records of day-to-day business events.
• Examples of transaction data include purchase orders, sales invoices, and
payroll disbursements.
Configuration data is a type of data enables a company to tailor a particular
aspect of the ERP system to the way it chooses to do business.
• For example, an organization can select its fiscal year end, default currency,
and default language from various options allowed by the ERP system.
Configuration
• An advantage of ERP software is that it is inherently flexible—customers have
choices as to how the software works. Because of this flexibility.
• ERP vendors can sell the same package to many companies by

accommodating configuration options in operations, allowing them to
expand their market and cut unit costs.
• Configuration is the process of selecting parameters that enable a company

to tailor a particular aspect of the system to the way it chooses to do
business.
• System integrators or members of the project team with knowledge of the

ERP system will configure the system during implementation.
Configuration
• To illustrate configuration, a screenshot of NetSuite, a popular cloud-based ERP vendor
for small to medium-sized enterprises (SMEs), is shown in Figure 2-8.
Customization
• Issues often arise that fall outside the bounds of what the ERP software will allow a company to do
through configuration. These issues include: A missing field, A missing form, The need to link two
tables that are not currently linked, A missing step in a workflow, A missing piece of functionality.
These issues would typically involve customization by someone with programming expertise.
• Customization is the process of fitting the ERP software to the specific needs of the organization by
adding code to the ERP software.
• Customization is typically done when all attempts to find a solution through configuration have been
exhausted. Since customization involves employing experienced programmers, which costs money
and takes time, it should be kept to a minimum.
• For instance, SAP is written in a programming language called ABAP (Advanced Business Application
Programming). Companies that need to customize their SAP solution will need to hire experienced
ABAP programmers to write the code.
• Larger companies are more prone to customize their ERP systems than are smaller companies— most
likely because of three reasons: 1) they have the technical expertise to program and maintain the
code, 2) they have the monetary resources to fund customizations, and 3) their operations are more
complex or unique, thus warranting a deviation from standard ERP code.
Best of Breed
• companies will “mix and match” modules from various enterprise software
vendors, in what is called a best of breed approach to ERP implementation.
• For example, a retail and distribution company’s ERP landscape might include
PeopleSoft for HR, SAP for all other core modules, warehouse management
from a niche vendor that provides warehouse management solutions only (as
opposed to a full ERP solution), and a cloud-based CRM solution.
• Some companies may choose best of breed because they are looking for lower-
cost solutions, and niche software vendors can often provide this.
• They employ this approach in order to obtain (what they consider to be) the
overall best combination of systems that will set them apart from their
competitors. Generally speaking, if the company chooses this route, it’s best to
only purchase best of breed solutions that support competitive business
practices.
• Modules from various vendors will have to “talk to each other.” Sometimes this
is easily done, but other times companies must develop or purchase
middleware. Middleware is software that facilitates sharing data and business
logic across systems and requires a certain degree of IT
System Landscape
A system landscape must be in place before the ERP software and database can be implemented. A
system is an ERP software and related component installation on a server or servers. This is referred
to as an instance. The "layout" or "architecture" of the servers is referred to as the system landscape.
Companies will acquire several servers and install the ERP system and database many times to
complete a system landscape.
The generic ERP system landscape is separated into at least three systems:
- Development (DEV)
- Quality assurance (QA)
- Production (PRD)
Separate environments, on the other hand, may indicate that:

1. There is a difficulty with the design, execution, or administration of global operations
2. The system will be extremely expensive and fragmented fast
3. Another system change is imminent.
Cloud Computing
Web-based computing arose from the early 2000s internet boom and the earlier development of the
web browser. The data and program code are hosted in a data center, while end users access
applications via a web browser under this computing approach. Many ERP businesses rethought and
redeveloped their systems as a result of the huge increase in cost of ownership, simplicity of use, and
convenience of web-based computing, just like they did when client-server architecture replaced
mainframes.
Companies pay a vendor or service provider for software, infrastructure, and maintenance on a
regular basis (typically monthly) in cloud computing. Because the recurring payments are known in
advance, this remote delivery approach, known as software as a service (SaaS), makes it easier to
budget for the ERP system. Negotiating a service level agreement (SLA) with the service provider is
critical in SaaS. The SLA must explicitly state what is being supplied, how and by whom the service
level will be monitored, and what consequences will be imposed if the service level is not reached (for
example, 99.6 percent uptime measured by standard X, else Y; downtime not to exceed Z in a certain
number of months). When it comes to outsourcing a mission-critical program like an ERP system, the
SLA is everything.
Cloud Computing
The factors for deciding between cloud and on-premise ERP solutions are shown in the figure below.
Cloud vs. On-Premise ERP Solution: How to Choose?

Cloud ERP On-Premise ERP
Company does not want to invest or support an IT Company already has an ERP system in house
infrastructure for the ERP system; prefers to make
predictable periodic payments
Upgrades and enhancements are the responsibility of Company needs a high- degree of customization and
the cloud-based vendor; customizations are security is a concern
automatically carried forward in an upgrade
Company is in growth mode, but still wants to match Company is well- established and can confidently make
internal costs against fluctuating business conditions a five-year commitment to an ERP software investment
Company wants to be up and running quickly with Company is prepared to undergo a lengthy
minimal implementation time implementation process
Company has multiple sites or many geographic Company has multiple sites across geographic locations
locations, but does not want to build or support remote and has a supporting network infrastructure
access to an existing network
Cloud Computing
Cloud ERP On-Premise ERP
Company may not have the resources and technical Company employs an experienced IT staff to maintain
expertise in house for on-premise ERP the ERP system
Company core competence is not maximum network Maintaining an ERP system may not be a company’s
performance and security core competence but it will make it a priority
Company is not able to meet its desired uptime Company is able to meet its desired uptime
Source: Sage Software Inc.

Mobility
ERP companies have recently pushed for mobile computing, or mobility, which refers to the
capacity to access data and information from a computer anywhere and at any time. The
emergence of faster and smarter phones and tablets, which a growing number of
organizations are distributing to their employees as regular work productivity tools, has
spurred the expansion of mobility. Tablets and smartphones will get smarter and cheaper as
the number of options increases, and mobile operating systems will grow.
A systematic strategy to mobility should address security considerations as well. Mobile

devices are vulnerable to a wide range of dangers, including weak technological controls and
consumer security practices.
Mobile operating systems and applications may potentially be out of date. Although
application developers may upgrade their software to address security flaws, it is up to
carriers to test and distribute the fixes, which may take some time. These and other security
concerns should be thoroughly considered before deploying mobile devices for usage with
ERP systems.
EXPLORE AND SHARE 1 ERP SOFTWARE
NetSuite is the most trusted cloud-based ERP

software in the world, integrating all key business
processes into a single system -- financials,
inventory, sales, CRM, eCommerce, and
marketing.
• Founder: Evan M. Goldberg

• Founded: 1998
Rooms Features Privacy & Safety For Developers
Hang out
anytime,
anywhere
Messenger makes it easy and fun to stay close
to your favorite people.
Group 2
**********
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Chats …
REPORTES AND THEIR TOPICS
Melissa L. Pontejos
• Introduction
• Business Process
• Common Problems
ERP and Business

with Business Process
Marynel Orapa
•
Reengineering
Factors for
Reengineering Success
Business Process
Process Redesign
Improvement
Christine Jean Pulga Presented by Group 2

Improvement Model
• Process in Need of
Change
• Stakeholders for
Business Process
Transformation
Chats … Introduction …
This topic summarizes the body of knowledge surrounding business

process reengineering and business process improvement.
Melissa L. Pontejos
• Introduction
• Common Problems To help the students recognize issues with processes that can wreak
with Business Process havoc on productivity, efficiency, and customer value.
Marynel Orapa
• Business Process To identify steps that today's competitive companies take to
Reengineering overcome these problems.
• Factors for Reengineering
Success
• Business Process Improvement
Christine Jean Pulga

Model
• Process in Need of Change
• Stakeholders for Business Process
Transformation Aa
Chats … Business Process …
It can be defined as "series of activities" that are linked

together to convert inputs into a product or service output.
Melissa L. Pontejos
• Introduction
• Common Problems It can be simple, or complex based on the number of steps or number
with Business Process of systems involved and they can be short or long running, the latter
involving multiple dependencies.
Marynel Orapa
Reengineering Formal processes are documented and have well-defined steps.
Success
Informal processes are those that have been developed organically by
employees and may not be written down.
Model
Transformation Aa
Chats … Criteria …
Cost efficiencies
Melissa L. Pontejos Customer Satisfaction and Differentiation

• Introduction
• Common Problems Standardization
Value-added Activities
Marynel Orapa
• Business Process 1. It accomplishes something the customer cares about and is willing
Reengineering to pay for
Success
2. It converts, or physically changes, an input to an output
Christine Jean Pulga 3. It is imperative that it is done right the first time.

Model Improved Agility and Speed
Transformation Aa
Chats … Common Problems with …
Business Processes
Authority Ambiguity
Melissa L. Pontejos Bottlenecks

• Introduction
• Common Problems
with Business Process Cycle time
Data duplication
Marynel Orapa
Reengineering Handoffs
Success
• Business Process Improvement Intermediaries
Christine Jean Pulga Manual Steps

Model
Transformation Aa
Chats … Common Problems with …
Business Processes
Old ways
Melissa L. Pontejos
• Introduction
• Business Process Paper Records
• Common Problems
Quality Control
Marynel Orapa
Reengineering Rework
Success
• Business Process Improvement Role Ambiguity

Segregation of Duties Violations
Model
Transformation Aa
Chats … Business Process Reengineering …
1980s Hammer’s Research
Melissa L. Pontejos
• Introduction Reengineering the Corporation: A
• Business Process 1990s
• Common Problems Manifesto for Business Revolution
Marynel Orapa What is Business Process Reengineering (BPR)?

Reengineering
Success
The fundamental, radical redesign of business processes that an
organization undertakes to achieve breakthrough performance
in key measures of cost, quality, speed, and service.
Model
Transformation Aa
Two ways to accomplish Business Process Reengineering (BPR)

Melissa L. Pontejos
• Introduction
• Common Problems
Clean Slate involves starting over from scratch
Reengineering 1 and completely redesigning a process.
Marynel Orapa
Reengineering
“as is” The current process being analyzed
Success
learning process to create a vision for the
“to be”
future design of the new business process
Model
Transformation Aa
Melissa L. Pontejos
• Introduction
• Common Problems
Marynel Orapa
Reengineering
Success

Model
Transformation Aa
Melissa L. Pontejos
• Introduction
• Common Problems Advantages Disadvantages
can result in unique processes costly
Marynel Orapa encourages a free flow of ideas time consuming

• Business Process other company can't copy the design might not work with ERP
Reengineering
• Factors for Reengineering design system
Success

Model
Transformation
Aa
Two ways to accomplish Business Process Reengineering (BPR)

Melissa L. Pontejos
• Introduction
• Common Problems
Technology Enabled The technology enables the
Reengineering 2 reengineering
Marynel Orapa
Reengineering
• Factors for Reengineering Constrained The information system’s design
Success “constrains” the process design
• Business Process Improvement Reengineering

Model
Transformation
Aa
Melissa L. Pontejos
• Introduction
• Common Problems Advantages Disadvantages
the system provides a roadmap design can be copied
for transformation
Marynel Orapa
• Business Process design is feasible limited system evolution
Reengineering
• Factors for Reengineering fewer overhead cost not unique
Success

Model
Transformation
Aa
Chats … Factors for Reengineering Success …
Scaling up and down
Melissa L. Pontejos Thinking outside the functional box

• Introduction
• Common Problems Looking at other companies for similar solutions to similar processes
Marynel Orapa Recognizing that a process is just one aspect of success

Reengineering Delivering sooner rather than later
Success
• Business Process Improvement Considering the competition
Christine Jean Pulga Remembering the employee

Model
Transformation
Aa
Chats … Business Process Improvement …
In which involves gradual improvement to business

processes over time. Whereas BPR is radical and
Melissa L. Pontejos revolutionary, BPI is incremental and evolutionary.
• Introduction
• Common Problems
Marynel Orapa
Reengineering
Success

Model
Transformation
Aa
Chats … Business Process Improvement Model …
The BPI involves identifying critical business processes, as well
as their sub-processes, throughout the organization.
Melissa L. Pontejos
• Introduction
• Business Process Processes might be simple or complex and can be identified by
• Common Problems assessing departmental activity and job descriptions.
Marynel Orapa
• Business Process Compile
Continuous Identify goals
Reengineering process
Improvement and objectives
• Factors for Reengineering inventory
Success
Christine Jean Pulga Analyze and Define and

Improve the
measure the understand the
• Business Process Improvement process
process process
Model
• Stakeholders for Business
Process Transformation Aa
Chats … Business Process Improvement Model …
Walkthrough
Melissa L. Pontejos is a term used to describe how a company would test a new process.
• Introduction The revised procedure may be piloted in a single firm location,
• Business Process single region or single consumer group.
• Common Problems
It should also be accessible to answer questions and help individuals
Marynel Orapa who need it.
Reengineering Business Process Management
Success
is a continuous action with a beginning, middle, and end. Rather than
thinking of process improvement as a project with a deadline, think of it
as a continuous improvement process. On a regular basis, To assess the
Model
new process’s success, a team should collect data on its performance.
Chats … Process in Need of Change …
Processes in Need of Change

Melissa L. Pontejos
• Introduction
Businesses should keep the “Three Cs” in mind when it
• Common Problems
with Business Process comes to customer, core, and competition.
Marynel Orapa
Reengineering
Customers find it simple to do business with a company, thus they
Success return; Processes that are critical to the company’s success should be
• Business Process Improvement as efficient as possible.

Model
Melissa L. Pontejos Customer-Facing Processes
• Introduction
• Common Problems
Companies should consider the impact that processes have on
customer-perceived value. Focus groups or surveys can yield data
on responsiveness, accuracy, assurance, and empathy.
Marynel Orapa
Reengineering
Success
• Business Process Improvement To measure the value of a process, companies should
compare current levels of process performance to customer
Christine Jean Pulga expectations.
Model
Core Competency Processes
Melissa L. Pontejos
Core competencies are considered a firm’s “bread and butter”.
• Introduction
• Common Problems
with Business Process The study of core competencies forms the heart of business strategy.
Marynel Orapa
• Business Process Core competencies vary by company, location, and industry, but
Reengineering benchmarking is an important tool for companies to measure their
• Factors for Reengineering performance.
Success
Companies use benchmarking to measure and compare their

Christine Jean Pulga processes against strong competitors that have the same core
• Business Process Improvement competency as they do.
Model
High Volume, Low Margin Processes
Melissa L. Pontejos
• Introduction Usually, a symptom of operating in a highly competitive mark
• Business Process activities are et with considerable price pressure.
• Common Problems
Suppliers in this type of market are usually poorly

Marynel Orapa
differentiated and offer a commodity product.
Reengineering
• Factors for Reengineering High Revenue
Success
The high sales volume generates substantial revenue and thus is

Christine Jean Pulga extremely important to the company’s cash flow. However, this revenue
• Business Process Improvement does not necessarily translate to profit or large profit margins.
Model
Efficient and Controlled
Melissa L. Pontejos The low profit margin increases the need for efficiency and magnifies
• Introduction the detrimental impact of defects.
• Common Problems
with Business Process Capital intensive
Marynel Orapa
The need for efficiency requires capital assets and sophisticated
Reengineering
production facilities.
Success
• Business Process Improvement Inventory Costs
Christine Jean Pulga The high volume might drive up inventory storage costs
if production and purchasing are not synchronized.
Model
High Defect, High Reward Processes
Melissa L. Pontejos
• Introduction Quality defects have significant costs associated with them, some of
• Business Process the most obvious being money, time, resources, and lost reputation.
• Common Problems
Marynel Orapa Each time a process incurs an error or defect, costly

• Business Process material and labour that would otherwise be committed
Reengineering to other revenue-generating activities are wasted.
Success
Quality assurance, on the other hand, means trying to identify and fix
Christine Jean Pulga the root cause of defects in the first place.
Model
High Skill, Time Intensive Processes

Melissa L. Pontejos
• Introduction
• Common Problems Time intensive processes that consume highly skilled
with Business Process workers are expensive.
Marynel Orapa
Reengineering Companies will try to aggressively control these
• Factors for Reengineering processes, employing technologies or simplifying the
Success
process, to empower the same people to perform the job
faster or to use lower-paid workers to perform the
process or part of the process.
Model
High Complexity, Specialized Resource Processes

Melissa L. Pontejos
• Introduction
• Business Process Businesses tend to embrace complexity and the market’s need for
• Common Problems complex solutions.
Marynel Orapa Processes may require highly paid specialists, and growth
• Business Process may be difficult due to scale issues. BPR can focus on
Reengineering reducing complexity in an effort to replace complex
• Factors for Reengineering activities with simpler ones
Success
KISS can help businesses avoid riskier activities that threaten the
likelihood of success.
Model
Processes Built around Obsolete or Changing Technology

Melissa L. Pontejos
• Introduction
• Business Process Keeping legacy systems will trap companies into less-than-optimal
• Common Problems
business processes and obsolete business models.
Marynel Orapa
• Business Process Companies should look to design new business process
Reengineering models around their strategic value propositions.
Success
Advantages include flexibility and scalability, standardization of

processes and a more user-friendly interface.
Model
Chats … Stakeholders for Business Process Transformation …
Planning for BPI and BPR should include an analysis of the
impact to key stakeholders. Failure to do so can cause a company
Melissa L. Pontejos to quickly lose valuable time, support, and money. They could
also lose reputation—arguably the hardest thing to win back.
• Introduction
• Common Problems Customers
Processes that focus on the relationship with the customer help with
Marynel Orapa customer satisfaction, retention, and profitability.
Reengineering
Employees
Success
Some employees fill a day no matter how much (or how little) they
Christine Jean Pulga have to do. If their time is not dedicated to value-added activities,
• Business Process Improvement their employer gains less output. Some people are “self-starters” who
Model will invent and create more ways to do things.
Information Technology Staff
Melissa L. Pontejos
The IT team has a strong ability to contribute to the project’s
• Introduction success by assisting with various tasks. These are the people
who will be in charge of the IT infrastructure that will
• Common Problems
with Business Process support new systems.
Marynel Orapa Executive Suite

Reengineering Business process change initiatives need a high-level sponsor of
• Factors for Reengineering sufficient stature to underscore the importance of the project.
Success
Sponsors must be willing to confront difficulties and objections

Christine Jean Pulga and stake their reputation on the project’s success. The higher the
• Business Process Improvement rank of sponsors, the less likely objections from employees will
Model
• Process in Need of Change detail the projects.
Business Partners
Melissa L. Pontejos Business partners are often wary of any interference in their
• Introduction relationship with the firm.
• Common Problems
with Business Process Business partners may also have to enact their own changes to
avoid any adverse effects caused by the necessary disruptions
Marynel Orapa
• Business Process Suppliers
Reengineering
Success
• Business Process Improvement Suppliers may be able to effect greater accuracy and efficiency in
their own operations – and potentially pass those savings along to
their customers. If a new process can provide better information to
suppliers, it could help reduce over-production and over-charging
Model
by up to 50%.
Other Interested Parties
Melissa L. Pontejos Internal controls within companies can be designed to better

• Introduction support security and privacy requirements from laws and
• Business Process regulations such as HIPAA and the Sarbanes-Oxley Act of 2002.
• Common Problems
Shareholders, Creditors, regulatory bodies and the general
Marynel Orapa investing public all benefit when companies have a strong
internal control structure.
Reengineering
Success

Model
Chats … Example of ERP System …
Oracle NetSuite ERP

Melissa L. Pontejos
• Introduction
• Common Problems
Marynel Orapa
Reengineering
Success

Model
Transformation Aa
Chats …
Melissa L. Pontejos
• Introduction
Thank You
Thank You
• Common Problems
Marynel Orapa
•
Reengineering
Factors for
Reengineering Success
Business Process
Improvement
Everyone!
Everyone!
Improvement Model
• Process in Need of
Change
• Stakeholders for
Business Process
Transformation
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ERP Life Cycle: Planning and
Packaging Selection
Group 4:
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Balsomo Mendoza Mingcay

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Objectives Introduction Planning

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My playlist • Identify factors that affect an organization’s readiness for ERP;

• Describe activities that take place in the planning stage of the
ERP life cycle;
• Recognize the various cost components of an ERP system; and
• Describe activities that take place in the package selection
stage of the ERP life cycle.
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An organization typically uses its ERP system for ten to thirteen years
My playlist before retiring it and implementing something new. Then, the life cycle starts
all over again.
* Planning
* Package selection
* Implementation
* Operation and maintenance
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• An ERP system can be one of the most expensive investments a company

My playlist will ever make.
• Proper planning is imperative to the success of the ERP project.
• Poor planning can lead to missed opportunities, costly mistakes, or even

failure, depending upon how massive the problems are and how long they
continue.
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The following sections outline tasks are:

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1. Organizational Readiness for ERP
• One of the first tasks that should be conducted during the planning stage is
determining whether the company is ready to embark upon an ERP
implementation.
• The first question should be: “Is this the right time for change?”
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2. Project Team
My playlist
• The project team plays a crucial role in the success of the ERP project and
should be given wide discretion to make most of the important day-to-day
decisions regarding implementation.
• The team’s composition should consist of key process owners, end users,
managers, and IT staff spanning functional boundaries, locations, and
organizational levels of the company.
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3. Project Manager and Program Manager

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•The selection of a project manager (PM) is critical to the success or failure of
the initiative, since this person is responsible for the managing the day-to-day
operations of the ERP project and the project team.
•The project manager reports directly to the program manager, who is the
person in charge of all ERP projects across the company (if there are more).
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4. Executive Sponsor and Steering Committee

My playlist
• Research has consistently shown that executive leadership is one of the most
important ingredients to an ERP project’s success. A high-level sponsor should
rally support, distribute resources, and delegate management of the
implementation.
• The committee comprises the company’s top management, senior consultants,

project manager(s) and program manager.
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Project Charter
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• The project charter is a high-level document, the purpose of which is to get
the project “green-lighted” by the executive sponsor and board of directors.
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6. Scope Statement
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• The scope statement is written after the project charter and provides detail
about what is included (and excluded) in the project.
• The focus of scope management is to define and control what is, and is not,
included in the project scope statement.
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7. Business Case
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• A business case outlines the business need for an ERP system and the
expected resulting benefits.
• The detailed business case should be grounded in business case rationales,

or high-level reasons why a company undertakes an ERP implementation.
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Business case rationales for ERP systems include:

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• Technology Rationale
• Competitive Rationale
• Strategy Rationale
• Business Process Rationale
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8. ERP Benefits
My playlist
• The basic methodology for ERP benefits realization simply involves taking
baseline measurements early in the planning process, comparing them to
projected measurements, and calculating the difference.
• Quantifiable measurements are known as business metrics, and they are

used to track and assess the efficacy of specific business processes.
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9. ERP Costs
My playlist
• ERP costs are much easier
to quantify than benefits,
since the majority of costs
require documented outlays
of cash.
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Typically, an ERP system’s price tag depends on the:

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• Number of end users
• Vendor tier being deployed
• Project Scope
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10. Software License Costs

My playlist • Purchasing ERP software involves licensing expenses that govern its use.
There are several ways to license ERP software, including named users,
heavy versus casual users, concurrent users, and subscription-based.
• Named user license

• Professional license
• Casual user license (or Employee license)
• Concurrent user license
• Subscription-based license
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11. Database and Other Software Costs

My playlist
• The database license cost is usually based on the number of simultaneous
users that will log in to the system or the number or type of database servers
required.
• The company may also need to purchase operating system software as well
as identity and access management (IAM) software for administering rights
and attributes to manage, enforce, and monitor user entitlements and access
activities to the ERP system.
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12. IT infrastructure Costs and Hardware

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• Successful ERP system operation demands a solid IT infrastructure to run on.
Infrastructure components include servers, storage systems, network
components, wiring, cooling and power, and redundancy measures.
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13. Implementation Costs

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• The general rule of thumb is that the ratio of services to software costs is
approximately 3:1 for a “consultant light” implementation, meaning for every $1
spent on the software, the customer should plan to spend $3 on the implementation.
For a “consultant heavy” implementation, the ratio could reach 10:1.
• To estimate internal cost, project planners often calculate the number of full-time
equivalents (FTE), which is a measure of how many full-time employees would be
needed to accomplish the work performed.
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14. Maintenance and Support Costs

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• Generally, ERP system vendors charge an annual maintenance fee in the
range of 18 to 25 percent of the software contract value, or the license costs
minus any discounts.
• A maintenance contract entitles the customer to receive software corrections,

patches, fixes, and new releases.
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• The process of choosing an ERP system should never be rushed.

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• The end goal is to pick an ERP system that best meets the company’s
requirements out of the hundreds of choices available.
• Before beginning package selection, the organization should form an ERP

selection team. This team will include members of management, functional
experts, and end users from various departments and business units in the
company.
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The following sections outline key steps for selecting an ERP system.
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1. Requirements Analysis
• The detailed analysis companies go through to determine all the technical

and operational functionalities they need and desire in an ERP system is called
requirements analysis.
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2. Market Survey
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• Before choosing an ERP package, the selection team should perform a
market survey to determine which vendors’ systems might be possible
candidates.
• ERP vendors can be identified from any number of sources, including

websites, industry magazines, and trade exhibits.
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3. Short Listing
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• If possible, the selection team needs to narrow down the list to three to four
vendors, simply due to the time and manpower it takes to evaluate each one.
• When analyzing this information, the selection team needs to identify “deal
breakers,” which are missing requirements.
• Any ERP system not fulfilling a predetermined core requirement should be

eliminated at this stage.
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4. Request for Proposal

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• The requirements document forms the basis for preparing the request for
proposal (RFP), which is sent to the short-listed vendors so they can indicate
what requirements their solution meets.
• The RFP will also ask for other important information such as the cost of the
solution, reference sites, financial viability of the vendor, and its local
presence.
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5. Demo Days
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• Demo days are when ERP vendors must “walk the walk and talk the talk.”
• The demo should consist of a walkthrough of key business processes using the
vanilla software, or non-customized software.
• Demo days are also the time to evaluate each vendor’s technical
capabilities.
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6. Fit/Gap Analysis
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• The methodology used to compare the company’s business requirements with
what the ERP systems under consideration offer is known as a fit/gap
analysis.
• “Fits” are where the ERP system matches the company’s required
functionality.
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• “Gaps” are where there is a mismatch between the ERP system and the
My playlist company’s required functionality. The more functionality “gaps,” the less
attractive a system is to the customer.
• However, it should be noted that process “gaps” could be an opportunity to

reengineer the process to best practices.
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7. Reference Visits
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• A reference visit allows the selection team to see each system under
consideration implemented in a real-world environment with live data and
actual users versus what has been seen in a demo conducted by the vendor’s
sales team.
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8. Vendor Negotiations
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• Before commencing negotiations, the customer should make sure that all
information collected thus far from demos, reference visits, and fit/gap analysis has
been painstakingly analyzed.
• The steering committee and legal department are primarily responsible for
negotiating the purchase of the ERP system and implementation services.
• It has been said that the price of ERP software is “firmly written in Jell-O.” ERP
vendors expect their customers to negotiate for the best ERP deal.
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9. Integration Partner Negotiation

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• The proposal with the integration partner should clearly define what activities
are the consultant’s responsibilities and what activities are the customer’s.
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• There are four stages of the
ERP life cycle.
My playlist • This chapter discusses the first

two stages: planning and
package selection.
• Planning for ERP involves

making sure that there is a strong
business case before proceeding.
• Benefits to be realized should

Finishing... be documented and all cost
components considered.
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• The organizational structure
should be established for the
project including the steering
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project manager.
• The project manager’s job is

crucial, as this person is involved
in the daily supervision of the
project.
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• The project charter and scope
statement should together firmly
outline the goals of the project
My playlist and detail the deliverables and
project milestones.
• The selection team should

perform its due diligence and
gather enough information about
each package being considered
before it makes a final decision.
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• Package selection activities
include market surveys,
requirements analysis, reference
My playlist visits, software demonstrations,
and fit/gap analysis.
• The culmination of all this work

is to come to mutually beneficial
agreements with the vendor and
integration partner and form
partnerships that are
advantageous for both parties.
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SAP Business One
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CHAPTER 4
ERP AND PROCESS

MAPPING
PRESENTED BY GROUP #3
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ICEBREAKER !
PASS THIS CAMERA

Pass this Camera
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Systems Diagrams
IMPORTANCE OF SYSTEMS Is a graphical
WHY DO WE NEED representation
TO KNOW
DIAGRAMS of a system,
HOW TOwhichREADisSDs?
a group
“A
• To get PICTURE
your point across • toof extract
parts that are connected
information from them
QUICKLY and CONCISELY. c and work
and interpret together.
what that information
IS WORTH A
• To GIVE YOUR AUDIENCE means.
THOUSAND
AN EASIER TIME thinking • to be able IN
USED to BUSINESS
draw SDs toTO: capture
WORDS
systematically ”
and logically •ideas and interpretations
describe of a
business processes
about a problem that has •complex situation.
to assess internal control
SLIDESMANIA.COM
been illustrated. procedures

• to evaluate, design, or
change information systems.
THE PROCESS MAP
1900 1921 1980
The earliest known The process chart The process chart
process-oriented was rapidly morphed into an
systems diagram, integratedc into SD method known
the process chart, the field of as a process map,
was developed in industrial which was
the early 1900s to engineering, developed by
SLIDESMANIA.COM
find a faster way where it was General Electric in

to lay bricks. used by the 1980s to assist
companies such them in improving
as Procter & their manufacturing
Gamble. processes.
COSTUMER
Cross-functional
THE PROCESS MAP

flowcharts
INTERNAL
ENTITY SUPPLIER
Swim lane
diagrams
A process
This map is adivides
SD technique graphical
a BUSINESS PARTNER
technique
process that
into documents
a series of steps, or
inputs, outputs,
activities, activities,
and identifies theand
role
decision points
responsible in order
for each to A
step. COSTUMER SERVICE
REPRESENTATIVE
SLIDESMANIA.COM
effectively
ROLE is thetell theresponsible
party reader the for EXTERNAL
ENTITY
step-by-step
an procedures
activity in the process. for a PURCHASING
specific business process. MANAGER
“AS IS” PROCESS MAP
It goes without saying that c
AS IS describes the current
state of your processes,
including its strengths and
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weaknesses.
https://cdn-images.visual-paradigm.com/tutorials/developasistobebpm_screenshots/20160307/09-modified-bpd.png
“TO BE” PROCESS MAP
Is a visual representation of
the redesigned process, c
which is more efficient and

effective. This future-state
process is developed to
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reflect changes that need to

be made to the process.
https://cdn-images.visual-paradigm.com/tutorials/developasistobebpm_screenshots/20160307/12-updated-to-be-process-diagram.png
Process Map Symbols
and Descriptions
< PHASE >
An ovalthe
Often,
Decisionsashould
Activities
Directional
When are both
points
arrows
visual
process designate
depicted
process may
are
appeal
map in themultiple
process
involve
depicted
connecting
of
spansthe trigger
mapmaps
multiple
with
symbols
is
to
withtherectangles.
diamonds.
show anprocess
sub-processes
the
marginalized,
pages, thatand
Every
Processes
flow of need
data,
on-page
off-page any maytermination
process has
toconnectors,
beisvisually
involve
information,
connector a
or
used.
points.
series
separated
choices
physicalof
represented
These There
steps
to as
that
goods.
connectors that may
result
circles,
are be
them.
in used
are multiple
helpcross-referenced
distinguish transform inputs
Phases
different
to
termination
into outputs.
should
outcomes.
reduce
using page points
be numbers.
labeled
clutter. These if denote
to decisions
circles are exist
eachcross-in
sub- OFF-PAGE
ON-PAGE
PROCESS PHASE
ACTIVITY
DECISION POINT
START/STOP
CONNECTOR
FLOW LINE
the process.using the same letters of the
process.
referenced
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alphabet.
Benefits of
Process Mapping
❑
❑ Highlighting
Identifying
Determining
Understanding
Orientingas
Serving
Planning and
responsible
whether
an
workflow
for training
integral
the where
“as
new
ERP inefficiencies
is”
parties,
part
employees
measures
internal
systemof the
the
by
such
points
of
controls
or retraining
company’s
performance
definingin
as the
are
policies
bottlenecks,
existing
theprocess
inare
“asthe
employees.
appropriate
and
at process
is” which
procedures
excessive
they
and
business or
handoffs,
are
potentially
dictating
documentation.
involved,
process where
and duplicate
and
they
developing
their
should
clarifying work,
theimpact
be. new
and
changeson
unproductive
upstream
performanceandutilization
measures
downstream of
forresources
activities
the “to be”
.
necessary to transform the
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process
current process into a more
efficient, streamlined “to be”
process.
https://c.tenor.com/MS1ODyOutpQAAAAM/100percent.gif
Gathering Information for the Process Map
• is used when the preparer personally knows the process. He or she can draw a preliminary
process map and then ask others who are knowledgeable about the process to give their input
Self- on its completeness and accuracy. This method is typically faster than the other methods
generated
method because it involves less people. However, its usefulness is limited to the process knowledge
possessed by the analyst.
• in which each person involved in the process c is interviewed separately and sequentially. After the
interviews, the process map is circulated to those interviewed so they can review its
One-on-one completeness and accuracy. This method works well if the interviewer has good questioning and
interview
method listening skills. It is also helpful if the interviewer has some knowledge of the process in question.
SLIDESMANIA.COM
• is usually more effective than the other two methods. In this method, everyone involved in the
process is asked to participate together as a group to generate the process map. When everyone
Group has to agree on the way the process works, the outcome is typically more accurate. Additionally,
interview the high degree of participation that this method requires increases the ownership that the
method
group feels regarding the process map, and more importantly, the process itself.
Steps for Drawing Process Maps
Process maps portray activities in sequential order and can be drawn horizontally or
vertically. Horizontal process maps represent time from left to right, whereas vertical
maps represent time from top to bottom.
c
SLIDESMANIA.COM
Example of Horizontal Process

Maps
Example of Vertical Process

Maps
STEPS FOR CREATING
PROCESS MAPS INCLUDE
THE FOLLOWING:
Use active verbs for activity descriptions
Identify
Organize
Ask the
questions
Determine thetrigger,
the roles which
process
within map
the denotes
so thatinthe
decision
participating
suchHave as
Write
Agree a“enter,”
adefined
on “inspect,”
description
the purpose
level ofof or
for
detail
the “input.”
data,
to be
Identify
start
Capture
symbols.
the of
activities
process. the
the move
Label scope
process.
information
These (beginning
either
the For
about to
decision
roles horizontal
which
the
are and
systems
right,
outcomes
shown as
Do not
Activities combine
such as completely
“send” and “receive” can
mapping
information,
displayed.
ending)
maps,
orwith
ERP“yes”
down, the of
modules
or or a process
the or
trigger,
up. process
Avoid and
physical explain
designated
supportlines the flow
and
that on
label it
with
process
move the
it at
an
and
to
bands across
separate/unrelated
generally be “no”
or or
excluded similar.
down the
steps
because Put
page
in an decisions
and are
activity.
these
to
the
oval,
note
the those
process
top
should
their
left. participating.
offlow
names beline.
each page.
placed
within Avoid
in the
activity the
toporswim
in the swim lane of the role
activities are represented by theorganize
called swim lanes. Swim making
lanes the
process
mistake
lane
decision
decision.all the
activities ofway
symbols.
intomaking
to the
groups the scope
left.
based on too
who
intoisa
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flow lines (that is, the flow of data

broad.
responsible for the
rectangle means thatvarious
the data/ steps
within the processhas
information/goods beingbeenmapped.
sent by a
sender and received by the recipient).
Process Mapping Roles
Process Map Facilitator
Process Owner
Maintains
Knows
Tests theresponsibility
the
Executes
Promotes process
“to be”focuses
process
recommendations
and for the
intimately
and
the proper
and
helps
and
completion
provides
determine
implements
discussions ofchanges
new process
knowledge and
metrics
and steps
for
such
provides itsand
as
an newhas
expertise. Subject Matter Expert
authority
evaluation.
procedures
unbiased,overandthe process,
systems.
objective itsview.
point of Process Implementer
interfaces, and the changes that will
take place. Process Evaluator
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Process Map Example – Electric City
Steps for Drawing the
Electric City Process Map
1. IDENTIFY THE SCOPE c
2. IDENTIFY THE ROLES
3. IDENTIFY THE TRIGGER

SLIDESMANIA.COM
4. FINALIZING THE PROCESS

For instances, at high level, manufacturers
engage in exactly the same process:
▪ INBOUND LOGISTICS - Firms buy goods and services

from their upstream supply chain.
c
▪ INTERNAL LOGISTICS – Firms process these things to
add value to them.
▪ OUTBOUND LOGISTICS - Firms sell things to their

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customers.
Extensions to the Electric City Process Map
c
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Advance Process Map Example-Fit Gear
c
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INFOR | GLOBAL
ERP SOLUTIONS
CHAIRMAN:CHARLES PHILLIPS
Infor was founded in June 2002 under the name

Agilsys in Malvern, Pennsylvania. With 1,300
customers to start and a focus on enterprise
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software, the company was constructed through a

series of acquisitions led by private equity backers
Golden Gate Capital and Summit Partners.
https://upload.wikimedia.org/wikipedia/commons/thumb/7/7a/Infor_logo.svg/1200px-Infor_logo.svg.png
USER EXPERIENCE
● EASY NAVIGATION
● VISUAL APPEARANCE
● PERSONALIZATION
SLIDESMANIA.COM
Thank you!
c
SLIDESMANIA.COM

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Chapter 2

• The evolution of ERP systems closely followed the

• During the1960s most organizations designed, developed

• The simple yet powerful relational model is used by organizations of

• Database Normalization is organizing non structured data in to

• Normalization is the process of organizing data in a database.

*retrieving subsets of information from within relational

*SQL queries and other operations take the form of

Master Data is relatively permanent data collected on entities in the business.

• ERP vendors can sell the same package to many companies by

• Configuration is the process of selecting parameters that enable a company

• System integrators or members of the project team with knowledge of the

Separate environments, on the other hand, may indicate that:

Cloud vs. On-Premise ERP Solution: How to Choose?

Source: Sage Software Inc.

A systematic strategy to mobility should address security considerations as well. Mobile

NetSuite is the most trusted cloud-based ERP

• Founder: Evan M. Goldberg

Log In Forgotten Password?

ERP and Business

Christine Jean Pulga Presented by Group 2

This topic summarizes the body of knowledge surrounding business

Christine Jean Pulga

It can be defined as "series of activities" that are linked

Melissa L. Pontejos Customer Satisfaction and Differentiation

• Business Process Improvement

Melissa L. Pontejos Bottlenecks

Christine Jean Pulga Manual Steps

Christine Jean Pulga

Marynel Orapa What is Business Process Reengineering (BPR)?

Two ways to accomplish Business Process Reengineering (BPR)

Christine Jean Pulga

Marynel Orapa encourages a free flow of ideas time consuming

Christine Jean Pulga

Two ways to accomplish Business Process Reengineering (BPR)

Christine Jean Pulga

Christine Jean Pulga

Melissa L. Pontejos Thinking outside the functional box

Marynel Orapa Recognizing that a process is just one aspect of success

Christine Jean Pulga Remembering the employee

In which involves gradual improvement to business

Christine Jean Pulga

Christine Jean Pulga Analyze and Define and

Processes in Need of Change

Christine Jean Pulga

Melissa L. Pontejos Customer-Facing Processes

Companies use benchmarking to measure and compare their

Suppliers in this type of market are usually poorly

The high sales volume generates substantial revenue and thus is

Marynel Orapa Each time a process incurs an error or defect, costly

High Skill, Time Intensive Processes

High Complexity, Specialized Resource Processes

Processes Built around Obsolete or Changing Technology

Advantages include flexibility and scalability, standardization of

Marynel Orapa Executive Suite

Sponsors must be willing to confront difficulties and objections

Melissa L. Pontejos Internal controls within companies can be designed to better