---ENTERPRISE SYSTEMS IN ORGANIZATIONS---

Management
-categorized into three levels
strategic, middle or mid-management, and operational.

strategic level (unstructured)- functions are highly unstructured (CEO)

- quantitative requirements are much less but more quality

Mid-management (semi-structured)- somewhere in between depending on the hierarchy

(supervisors)

operational level (structured)- functions are highly structured and resources are
predefined (managers, employees)

Business units - integrate personnel from the various functional units to work
together together on a variety of projects.
- dynamic suborganizations created and eliminated

---WHAT IS AN ERP?---

Enterprise resource planning (ERP)

- enterprise systems that integrate data across the organization

ERP systems
- comprehensive software applications that support critical organizational
functions.

Web enabled
- work using Web clients making them accessible to all of the organization’s
employees, clients, partners, and vendors

ERP system’s goal

- to make information flow be both dynamic and immediate increasing the usefulness
of the information

ERP system
- acts as a central repository eliminating data redundancy and adding flexibility.
- mission-critical information systems in today’s business organization.

Reasons companies choose to implement ERP systems

*increase supply chain efficiency

*increase customer access to products and services
*reduce operating costs
*respond more rapidly to a changing marketplace
*extract business intelligence from the data
data integration
-clean data can be entered once into the system and then reused across all
applications.\

---EVOLUTION OF ERP---
1960s and 1970s - most organizations designed silo systems for their departments.
mid-1970s - systems saw their expansion to the manufacturing area to assist plant
managers in production planning and control. material requirements planning (MRP)

material requirements planning (MRP) systems

- planning the product or parts requirements according to the master production
schedule.

1980s - manufacturing resources planning (MRP II) version was introduced

- optimizing manufacturing processes

---BUSINESS PROCESS AND ERP---

Business process
- a series of tasks or activities grouped to achieve a business function or goal.

---ERP SYSTEM COMPONENTS---

key components of ERP implementation

*hardware - servers and peripherals

*software - operating system, database
*database -
*information - organizational data
*process - business process, procedures
*people - users and IT staff

---ERP ARCHITECTURE---

System architecture
- a blueprint of the actual ERP system

ERP architecture
- helps the implementation team build the ERP system for an organization.

Two types of architectures for an ERP system

*logical architecture - focuses on supporting the requirements of the end users

*physical architecture - focuses on the efficiency of the system

*Presentation logic
*Business logic
 *Data

--- E-BUSINESS AND ERP ---

E-Business
- focus was on external integration(interorganizational)
- technology focus has been on linking a company with its external partners and
stakeholders
- is a disruptive technology

---LIMITATIONS OF ERP---

ERP SYSTEM LIMITATION

*cost
*time
*people

System benefits and limitations of ERP systems

• Integration of data and applications across functional areas of the organization
• Maintenance and support of the system improves
• Consistency of the user interface across various applications means less employee
training,
• Security of data and applications is enhanced
• Complexity of installing, configuring, and maintaining the system increases
• Consolidation of IT hardware, software, and people resources can be cumbersome
• Data conversion and transformation from an old system to a new system can be an
extremely tedious
• Retraining of IT staff and personnel to the new ERP system can produce resistance

The business benefits and limitations of ERP systems

• Increasing agility of the organization in terms of responding to changes
• Sharing of information across the functional departments means employees can
collaborate easily with each other
• Linking and exchanging information in real time with its supply chain partners
can improve efficiency
• Quality of customer service is better and quicker as information flows both up
and down
• Efficiency of business processes are enhanced due to business process
reengineering
• Retraining of all employees with the new system can be costly and time consuming.
• Change of business roles and department boundaries can create upheaval and
resistance to the new system.
• Reduction in cycle time in the supply chain from procurement of raw materials to
production,

---BUSINESS PROCESS MANAGEMENT---

Business process management

-the understanding, visibility, and control of business processes.
-represents a discrete series of activities or tasks
BPM
-similar to other process improvement disciplines, such as Lean Six Sigma

---ERP LIFE CYCLE---

ERP SYSTEM LIFE CYCLE

-requires a continuous cycle of product release and support.

three levels of ERP implementation

*functional
*technical
*organizational.

---ERP IMPLEMENTATION STRATEGIES---

chocolate implementation
-implementation with considerable modifications to the ERP software package

“vanilla” implementation
-ERP systems that are minimally modified

--- OPERATIONS AND POST-IMPLEMENTATATION ---

Going live (“Go-live”)

- one of the most critical points in a project’s success.

Stabilization
-is the time from Go-live to about 90 days after

Five areas of stabilization

1. Training for end users
2. Reactive support
3. Auditing support to make sure data quality is not compromised by new system
4. Data fix to resolve data migration and errors that are revealed by audits
5. New features and functionalities to support the evolving needs of the
organization

---PROJECT MANAGEMENT---

Project management
-is the glue that holds the project together.
-must provide strong leadership, a clear and understood implementation plan,

project manager role

-the single most important role in an ERP system implementation.

---ROLE OF CONSULTANTS---

Capability Maturity Model

-help organizations understand and assess that ability

---CHANGE MANAGEMENT---

change management role

- prepares an organization for changes to how its business is done.

---BUSINESS PROCESS REENGINEERING---

business process
-group of activities or tasks that are coordinated for achieving a business goal.

software leasing or Software as a Service (SaaS)

-model for outsourcing for many companies that do not want to invest large amounts
of money on in-house ERP implementations.

---ERP VENDORS---

ERP market tiers

Tier I - includes large vendors like SAP, Oracle, and Microsoft, who provide
support for large companies;

Tier II - includes vendors supporting the midsize companies;

Tier III - vendors support small companies.

small companies (less than 30 users)

midsize companies(less than 100 users)

SAP
-Founded in 1972
-largest current market share.
-headquartered in Walldorf, Germany,

ORACLE
-the first software company to develop and deploy 100 percent Internet-enabled
enterprise software across its entire product line,
INFOR
-the world’s third-largest provider of enterprise software,

LAWSON
-Founded in 1975
-provides industry-tailored software solutions that include enterprise performance
management

SSA GLOBAL
-acquired Baan in 2004 and doubled the company’s size globally.

EPICOR
-provides enterprise software solutions for midmarket companies around the world.