Enterprise Resource Planning

OBJECTIVE
• Develop the understanding of integrated
business processes
• Application of information Technology to
execute integrated business processes for
competitive advantage
• Enterprise Business Systems
Enterprise Resource Planning

• A business organization.

• Complex, living system, continuously

changing.

• The enterprise actually operates as a

complex system, with many parts that
interact to function as a whole.
 Definition Of ERP

Business solution that addresses all the needs

of an enterprise with the process view of an
organization to meet the organizational goals
and integrate all the functions of the
Enterprise.
 Objective of The ERP

• Facilitates Company-wide integrated Information

Systems Covering all functional Areas.
• Performs core Corporate activities and increases
customer service augmenting Corporate Image.
• Organizes & Optimizes the data input methodologies
systematically.
• To have a fully harmonised online system, which
can integrate with Back Office
• To introduce proper systems and processes which
will not be man dependent
continued……………
 Objective of The ERP

• To ensure full security by introducing adequate controls,

checks and balances.
• To minimize data redundancy by eliminating duplicate
entries.
• To enable the organizations to provide its customers a
more value added service.
• To create a flexible system so that future needs and
changes in the business flow can be easily incorporated
 Enterprise System
• Integrates business processes and
information from entire enterprise
• Helps coordinate the operation of business
functions
• ERP systems are software packages that
can be used for the core systems
necessary to support enterprise systems
Enterprise Systems Value Chain

• Enterprise systems facilitate value chain

management
• The value chain is the system of
activities that transform inputs into
outputs valued by the customer
• The goal of an organization is to add the
greatest value with the lowest costs
thereby increasing competitive
advantage
 Value
Chain and
System
 The Value of Systems Integration
• One of the values provided by an enterprise
system is the coordination of value activities in
the value chain.
• The system performs this coordination by
sharing data across business processes.
• In the following slides we describe what life
would be like without integrated systems and
then how enterprise systems solve some of
those problems.
 Enterprise Integration

Enterprise integration is concerned with facilitating

information, control, and material flows across
organizational boundaries by connecting all the
necessary functions and heterogeneous functional
entities in order to improve communication,
cooperation, and coordination within this enterprise
so that the enterprise behaves as an integrated whole,
therefore enhancing its overall productivity,
flexibility, and capacity for management of change.
 GettingIndustry
to Class
ERPIndustry
II
A Sector Q

ERP Declared
“Dead”
Industry X

EAS
ERP II
Industry
Extended Segment
ERP Z

ERP Functionality
Deepens Technology
MRP II Infrastructure

Functionality
MRP Widens Increasing External Connectivity
 ERP II

ERP II is an application and deployment strategy

that expands out from ERP functions to achieve
integration of an enterprise’s key domain-specific,
internal and external collaborative, operational and
financial processes. (Gartner)
What
an application and
ERP II Where
deployment strategy
within the enterprise,
for collaborative,
and between the enterprise
operational and
and key external
financial processes
partners and markets

traditional ERP vendors

in conjunction
Who with extensions When
with collaboration
(integrated or BOB)

migration from existing ERP

to provide deep, vertical-
vendors and integration with
specific functionality coupled
other enterprise-centric
with external connectivity
business applications
Why How
 How
ERP ERP II Evolves From
ERP ERP
II
Value chain participation/
Enterprise optimization Role c-commerce enablement

Manufacturing
and distribution Domain All sectors/segments

Manufacturing, sales and Cross-industry, industry

distribution, and finance Function sector and specific
processes industry processes

Internal, hidden Process Externally connected

Web-aware, Web-based, open,

closed, monolithic Architecture componentized

Internally generated and Internally and externally

consumed Data published and subscribed
 Recommendations
• Don’t count on a single vendor to meet all of your
domain and collaborative requirements.
• Make the ERP elements of “integration” and
“domain specificity” key components of your strategy.
• Strive for seamless process enablement rather than general
point application solutions.
• Although there will be some degree of best-of-breed, evaluate
TCO to determine how much.
• Evaluate past successes/failures, compare to other
user experiences and don’t make the same
mistakes twice.
 ERP Implementation Best
Practices

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 Best Practices of ERP
Implementation
• A Business Strategy aligned with Business
Processes
• Top-Down Project Support and commitment
• Change Management
• Extensive Education and Training
• Data Clean up and Data Integrity
• Implementation is viewed as an ongoing process

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 Best Practices of ERP
Implementation
• A Business Strategy aligned with Business
Processes
– Business strategy that will give you a competitive
advantage
– Analyze and map your current business processes
– Develop your objectives
– Evaluate your business strategy and ERP plan before
you commit to software acquisition and installation.

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 Best Practices of ERP
Implementation
• Top-Down Project Support and
commitment
– CEO1
• support implementation costs
• champion the project, and
• demand full integration and cooperation.
– Most knowledgeable and valuable staff2

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 Best Practices of ERP
Implementation
• Change Management
– Changes in business procedures, responsibilities,
work load.1
– As a result, ERP implementations are times of high
stress, long hours, and uncertainty.1
– Mid-level managers must2
• facilitate continual feedback from employees,
• provide honest answers to their questions, and
• help resolve their problems.

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 Best Practices of ERP
Implementation
• Extensive Education and Training
– General education about the ERP system for everyone.
– Massive amount of end users training before and during
implementation.
– Follow-up training after the implementation.
– 10 to 15% of total ERP implementation budget for
training will give an organization an 80% chance of a
successful implementation.

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 Best Practices of ERP
Implementation
• Data Clean up and Data Integrity
– Clean-up data before cut-over.1
– “Near enough is no longer good enough.”2
– To command trust, the data in the system must
be sufficiently available and accurate.3
– Eliminate the old systems, including all
informal systems.3

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 Best Practices of ERP
Implementation
• Implementation is viewed as an ongoing
process
– Ongoing need for training and software support
after implementation.
– Ongoing need to keep in contact with all system
users and monitor the use of the new system.
– Ongoing process of learning and adaptation that
continually evolves over time.

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