Topic 2:

The development of
ERP systems
LECTURER:THS. BÙI XUÂN HUY
Learning objectives
After completing this chapter, you will be able to:
 Identify the factors that led to the development
of ERP systems
 Describe the distinguishing modular
characteristic of ERP software
 Pros and cons of implement an ERP systems
Summarize ongoing developments in ERP

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Learning content
Evolutions of Information Systems
 ERP categories
 ERP for midsized and smaller companies
Vendor Selected
 The role of consultants. Choosing vendors.
 Deployment & Hosting Decisions
Type of PROJECT
 The significance and benefits of ERP software and systems
 Questions about ERP
 Review
3
The evolution of Information
system
Integrated information systems – ERP (not
feasible until 1990)

Technology

ERP
syste
m

Reengineering Development
of company of vision 4
 5
The evolution of Information

Netscape 0.9
spreadsheet software
relations database
system

Moore laws
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The evolution of information
system
Data models

7
The evolution of information
system
Data models

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The evolution of information
system 1969 by
Data models
E. F. Codd

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The evolution of information
system
Spreadsheet software

1980
10
The evolution of Information
system
Early attempts to share resource

telecommunication Client-server architecture

- More powerful
- Less expensive
- Scalability
DBMS
1980s

- Fast computer
- Networked access
-Advanced database technologies

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The evolution of Information
system
 The manufacturing roots of ERP
o 1960s-1970s
o Inventory tracking systems
o MRP software (material requirements
planning)
o EDI -> SCM (electronic data interchange)

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The evolution of Information
system
 Silos system

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The evolution of Information
system
 Silos system
o Does take more the time
o Increases the chance for data entry errors

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The evolution of Information
system
File system
o Reduces the probability of errors
o Time lag -> up to date data
o But creates problems in timely and accuracy
in information sharing.

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The evolution of Information
system
Management’s Impetus to Adopt ERP
o 1980s->1990s : hard economic time ->
downsize and reorganize -> silos is gone

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The evolution of Information
system

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Learning content
Evolutions of Information Systems
 ERP categories
ERP for midsized and smaller companies
 The role of consultants. Choosing vendors.
 Deployment & Hosting Decisions
Type of PROJECT
 The significance and benefits of ERP software and systems
 Questions about ERP
 Review

18
ERP categories
Tier I
• For Enterprise more than $ 750 million in Annual Revenue
• SAP S4/HANA, Oracle Fusion, Infor Cloud Suit
Upper tier II
• For Small and Midsize enterprise $250-$750 million in AR
• Microsoft Dynamics, IFS Cloud, Sage X3
Lower tier II
• For Small to Midsize enterprise $10-$250 million in AR
• NetSuit, Abas
Tier III
• Aptean, ECI, ASC
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Learning content
Evolutions of Information Systems
 ERP software emerges: SAP and R/3
ERP for midsized and smaller companies
 The role of consultants. Choosing vendors.
 The significance and benefits of ERP software and
systems
 Questions about ERP
 Review

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ERP for midsized and smaller
companies
2000, ERP vendor refocused on midsized
company.
 Why??

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Criteria for determining small
and medium enterprises

Điều 3 NĐ 56/2009 NĐ-CP

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 Criteria for determining small
and medium enterprises

Nguồn: 1) Doanh nghiệp vừa và nhỏ, APEC, 1998; 2) Định nghĩa doanh nghiệp vừa
và nhỏ, UN/ECE, 1999; 3) Tổng quan về doanh nghiệp vừa và nhỏ, OECD, 2000

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 Criteria for determining small
and medium enterprises

Nguồn: 1) Doanh nghiệp vừa và nhỏ, APEC, 1998; 2) Định nghĩa doanh nghiệp vừa
và nhỏ, UN/ECE, 1999; 3) Tổng quan về doanh nghiệp vừa và nhỏ, OECD, 2000

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 Why SMEs Say No or Yes to
ERP?

Nguồn: PCWorld VN

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Learning content
Evolutions of Information Systems
 ERP software emerges: SAP and R/3
ERP
 Vendor selectedfor midsized and smaller companies
 The role of consultants. Choosing vendors.
 Deployment & Hosting Decisions
Type of PROJECT
 The significance and benefits of ERP software and systems
 Questions about ERP
 Review
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 Vendor Select

Organizations implement Microsoft & SAP had a strong focus on reporting and analytics
functionality
Business Intelligence is a function that many organizations are implementing

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 THE ROLE OF CONSULTANTS.
CHOOSING VENDORS
Các vấn đề doanh nghiệp thường Tình hình vượt ngân sách
gặp khi triển khai ERP của các dự án ERP
120%

27%
100% 98%

80%
16%
65%
60%

40%
Vượt 15% Vượt hơn 50%
20%

0%
Thời gian kéo dài Vượt ngân sách Nguồn: Panorama Group

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THE ROLE OF CONSULTANTS.
CHOOSING VENDORS

Nguồn: Panorama Group

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 THE ROLE OF CONSULTANTS.
CHOOSING VENDORS

Nguồn: Panorama Group

32
Deployment & Hosting
Decisions

Nguồn: Panorama Group

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Nguồn: Panorama Group

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Nguồn: Panorama Group

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Learning content
Evolutions of Information Systems
 ERP software emerges: SAP and R/3
ERP for midsized and smaller companies
 The role of consultants. Choosing vendors.
 Deployment & Hosting Decisions
Type of PROJECT
The significance and benefits of ERP software and systems
 Questions about ERP
 Review

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Type of IT Project
 Digital business Type of Project
transformation Digital business tranform ERP implement Technology enabled

 ERP implementation
Technology – enabled
30%
34%

business improvement

36%
Nguồn: Panorama Group

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 People , Process, Technical

Nguồn: Panorama Group

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Nguồn: Panorama Group

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Put it all together

Nguồn: Panorama Group

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The significance and benefits
of ERP software and systems
 ERP allows easier global integration
ERP integrates people and data while
eliminating the need to update and
repair many separate computer systems
 ERP allows management to actually manage
operations, not just monitor
them

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 Question about ERP
(discussion in your thesis)
 How much does an ERP system cost?
Should every business buy an ERP package?
 Is ERP software inflexible?
 What Return Can a Company Expect from Its ERP Investment?
 How Long Does It Take to See a Return on an ERP Investment?
 Why Do Some Companies Have More Success with ERP Than
Others?
 The Continuing Evolution of ERP?
(based on analysis of Panorama Reports reports from 2021 to
2023)

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Review

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