GROUP 2

AN OVERVIEW
OF ENTERPRISE
1. AN 0VERVIEW OF ENTERPRISE
2. INTEGRATED MANAGEMENT
INFORMATION
3. BUSINESS MODELING
4. ERP FOR SMALL BUSINESS
5. ERP FOR MAKE TO ORDER
COMPANIES
6. BUSINESS PROCESS MAPPING FOR
ERP MODULE DESIGN
7. HARDWARE ENVIRONMENT AND ITS
SELECTION FOR ERP IMPLEMENTATION
AN OVERVIEW
OF
ENTERPRISE
Enterprise refers to a for-profit business started and run
by an entrepreneur.

 Entrepreneurs usually start an enterprise – with the

associated risks – to make a profit, and for one of
several reasons.

Problem-solving. They see a particular issue that they

feel they can solve. Exploit ideas. They have a new idea
or product they believe will be successful. Filling a gap.
They see a gap in the market they believe they can fill.
Competitive pricing. They believe they can produce
something on the market cheaper and offer it at a lower
price. Knowledge-based. Where they believe they can
TYPES OF ENTERPRISE
Sole Proprietorship These can include ‘trade’
business, such as painters and decorators, or the
owners of a single retail unit. And, in the modern
era, many online businesses can fall into this
category, from smaller enterprises selling
products to larger ones with a website and app

Partnership Partnerships usually consist of a

small number of individuals who share ownership
and decision-making (as well as profits).
Private Limited Companies (Ltd.) This sort of free enterprise
has been legally incorporated and will have its own legal
identity. It will have a set of shareholders who shoulder a
limited amount of liability for any debts the enterprise incurs.
Those shareholders will appoint directors to oversee overall
operations and decisions of the business, though the relevant
managers will oversee the day to day operations.

Public Limited Companies (PLC) Often confused with private

limited companies, PLCs differ in that shares in the enterprise
can be sold to the general public. To do this, they have to meet
certain regulatory and legal criteria regarding the business’s
financial health, transparency of their accounts, how long they
have been trading, and more. Being able to sell public shares
can be useful in raising funds for things like expansion
 INTEGRATED
MANAGEMET
INFORMATION
Your business has a lot of moving parts: from accounting
and payroll to production and distribution. Every activity
within the company and each piece of data gathered
externally from customers, suppliers and business partners
must be recorded. To make informed decisions, your
entire company needs access to that data — but how can
you manage it all while still handling day-to-day tasks?

Enterprise resource planning (ERP) software helps

companies of any size consolidate information to
streamline operations. A fully integrated ERP system
aggregates all of your data in one database, allowing you
to manage and automate business processes across the
organization from within a single platform.
 IntegratedERP solutions are incredibly comprehensive,
with functionality that runs the gamut from human
resources (HR) to manufacturing. In this article, we’ll
explore the pain points these systems can solve; the
benefits and features of using fully integrated ERP
software; and special considerations for businesses in the
chemical manufacturing and distribution industries.

What Is Integrated ERP? An integrated ERP system

allows every aspect of your business to be controlled from
a single application, so data flows seamlessly through the
company — and down to your financial statement.
Integrating information and processes increases efficiency
and enables informed decision-making.
ERP systems offer separate modules for each of your
company’s departments and functions. What distinguishes
integrated from non-integrated software is that in a fully
integrated solution, these modules are linked, automatically
gathering data from both internal and external sources and
centralizing it within a unified database. Workflows are
streamlined; manual, redundant data-entry is eliminated;
accuracy is improved; and everyone can find the data they
need when they need it.

What’s more, teams and departments can communicate with

each other, access information and execute business processes
without interfering with each others’ work. Sales staff can
view inventory data; marketing can access sales reports; and
executives see a clear, holistic picture of the company.
BUSINESS
MODELING
 BUSINESS MODELING
 A business model is a company's core strategy for
profitably doing business.
 A business model is a strategic plan of how a company
will make money. The model describes the way a
business will take its product, offer it to the market, and
drive sales.
 A primary component of the business model is the
value proposition. - it is a description of the goods or
services that a company offers and why they are
desirable to customers or clients.
 EVALUATING SUCCESSFUL BUSINESS MODELS
One way analysts and investors evaluate the success of a
business model is by looking at the company's gross profit.
Gross profit is a company's total revenue minus the cost of
goods sold (COGS).
 Comparing a company's gross profit to that of its main
competitor or its industry sheds light on the efficiency and
effectiveness of its business model.
 The two primary levers of a company's business model
are pricing and costs.
 A company can raise prices, and it can find inventory at
reduced costs. Both actions increase gross profit
 TYPES OF BUSINESS MODELS
RETAILER
A retailer is the last entity along a supply chain.
They often buy finished goods from manufacturers or
distributors and interface directly with customers.
Example: SM, Puregold, 7-eleven Manufacturer
A manufacturer is responsible for sourcing raw materials
and producing finished products by leveraging internal
labor, machinery, and equipment.
 A manufacturer may make custom goods or highly
replicated, mass produced products.
Example: Monde Nissin, Ginebra San Miguel ,
Unilever Philippines.
 Fee-for-Service

•Instead of selling products, fee-for-service business

models are centered around labor and providing services.
•A fee-for-service business model may charge by an
hourly rate or a fixed cost for a specific agreement.
 •Fee-for-service companies are often specialized, offering
insight that may not be common knowledge or may
require specific training.
Example: membership organization
Subscription

Subscription-based business models strive to attract clients in

the hopes of luring them into long-time, loyal patrons.
This is done by offering a product that requires ongoing
payment, usually in return for a fixed duration of benefit.
Example: Spotify

Premium

Premium business models attract customers by introducing them to

basic, limited-scope products.
Then, with the client using their service, the company attempts to
convert them to a more premium, advance product that requires
payment.
Example: Youtube
BUNDLING
If a company is concerned about the cost of attracting a single
customer, it may attempt to bundle products to sell multiple
goods to a single client.
 Bundling capitalizes on existing customers by attempting to
sell them different products. This can be incentivized by
offering pricing discounts for buying multiple products.
MARKETPLACE
Marketplaces are somewhat straight-forward: in exchange for
hosting a platform for business to be conducted, the
marketplace receives compensation. Although transactions
could occur without a marketplace, this business models
attempts to make transacting easier, safer, and faster.
 Example: Lazada Philippines, Shopee Philippines,
Zalora Philippines
Affiliate
 Affiliate business models are based on marketing and the broad reach of a
specific entity or person's platform.
Companies pay an entity to promote a good, and that entity often receives
compensation in exchange for their promotion. That compensation may be
a fixed payment, a percentage of sales derived from their promotion, or
both.
Example: social media influencers

Razor Blade
 Aptly named after the product that invented the model, this business
model aims to sell a durable product below cost to then generate high-
margin sales of a disposable component of that product.
 • Razor blade companies may give away expensive blade handles with
the premise that consumers need to continually buy razor blades in the
long run.
Example: HP (printers and ink) , Playstation (sony)
Reverse Razor Blade
 Instead of relying on high-margin companion products, a reverse razor
blade business model tries to sell a high-margin product upfront. Then, to
use the product, low or free companion products are provided. This
model aims to promote that upfront sale, as further use of the product is
not highly profitable.
Example : Apple
Franchise
 The franchise business model leverages existing business plans to
expand and reproduce a company at a different location.
Example: Domino's Pizza , Jollibee
Pay-As-You-Go
 •Instead of charging a fixed fee, some companies may implement a pay-
as-you-go business model where the amount charged depends on how
much of the product or service was used.
 •The company may charge a fixed fee for offering the service in addition
to an amount that changes each month based on what was consumed.
ERP FOR
SMALL
BUSINESS
ERP FOR SMALL BUSINESS
Enterprise resource planning (ERP)
 • is software that companies use to organize
daily operations.
 •It’s a cost-effective solution that enables the
flow of transactional data from multiple sources
and the management of ongoing business
processes like accounting, human resources,
sales, marketing, and data security.
FEATURES OF A SMALL BUSINESS ERP SYSTEM
An ERP software usually contains customizable features
that you may pick and choose from. Smaller businesses and
startups should only pick the features they really need to save
money.
1. Human Resources Management
This feature automates payroll processing, tracks time and
attendance, and manages employee records like performance
reviews, payroll benefits, and scheduling. Self-service HR
functionalities allow employees to request time off or view
their attendance records.
 2. Financial Management
It tracks income and expenses through recorded transactions
and account structures in order to forecast profit and loss.
 3. Inventory Management
This feature allows businesses to record information on items
they build, store, buy or sell. Keep up-to-date stock records to
avoid running out of items or buying items unnecessarily.
 4. Customer Relationship Management (CRM) It manages
customer contact info, order histories, invoices, and quotes.
 5. Supply Chain Management
This manages the flow of goods and services from raw
material acquisition to delivery of the finished product to
the customer.
 6. Analytics and Reporting
 These features measure key performance indicators (KPIs) like
income (Accounts Receivable) and expenses (Accounts
Payable), top-performing products, or open orders over a set
period of time.
ERP FOR MAKE
TO ORDER
COMPANIES
Assemble-to-order or build-to-order
stocked parts or buy-to-order parts, then built based on
order demand and usually shipped from job.
Example :Manufacturer of personal computers
Configure-to-order
the buyer specifies the components needed for the product
and often engineering change revisions occur.
Example : smartphone, appliances, furniture, clothing
Engineer-to-order
designing and manufacturing one-off orders for the
customer, often times these are called Project Jobs
Custom manufacturing
the creation of standard and custom products provided in
time to meet shipping deadlines
 BUSINESS
PROCESS TO
MAPPING FOR
ERP MODULE
DESIGN
BUSINESS PROCESS MAPPING
Business Process Mapping is a framework used
to create visual representations of business
processes. Business process maps reveal the
relationship between operational steps and
inputs to produce an end-product or service .
Define Current State Business Processes
The first step in determining where you want to
be is to understand where you are. Knowing
how your business currently operates and having
business practices clearly documented is
important for several reasons.
Define Future State Business Processes
Once you have visual representation of the current
processes, you can identify delays, bottlenecks, and other
inefficiencies. Then, you can create a future state process
map that eliminates these issues.
Evaluate Technology Requirements to Guide ERP
Software Selection
Technology requirements needed to achieve the future
state should be ranked by priority/business value and
compared to various ERP vendor offerings to find a
solution that best covers all of your organization’s current
and future needs. From there, you can consider
integration, customization, and configuration
requirements to fine-tune the system to your unique
needs.
 HARDWARE
ENVIRONMENT AND
IT’S SELECTION FOR
ERP
IMPLEMENTATION
 Hardware Environment and its Selection for ERP
Implementation
Any ERP implementation attracts expenditure on account of
 1. Operating System (OS)
 2. Data base Management for hosting the system.
 3. Network especially when the system is rolled out at different
locations.
4. Licensing with ERP packages

Hosting OS
• Unless a system is implemented from scratch, it may be a better
option to integrate the chosen ERP system with existing OS of the
organization, which will reduce upfront expenditure of
implementation.
• The important consideration is that whether the preferred ERP
system is compatible with current hosting platform.
 • Robust and scalability of existing platform.
 • In the OS sector (for mainframe and server segment various flavors
of UNIX (IBM, HP, Solaris etc.) are in offer
• Microsoft windows and Linux OS is also used to run some open
source ERP package but yet to be popular for commercial applications.
Supporting Database
 • Most popular players of database market are Oracle, IBM, Microsoft
and Sybase, constituting about 90% of market share.
 • If the existing platform of database does not belong to mainstream
offering, it may be prudent to explore an alternative.
 • There are exceptions, such as an organization selecting QAD
solution, may consider use of "Progress" RDBMS with which this
package is most compatible.
 • Another important factor relating to ERP platform is whether the
ERP system to be hosted in house or hosted remotely.
 • If hosted remotely, all upfront cost relating to hardware, OS and
RDBMS are eliminated. The vendor may then charge an additional
hosting cost periodically.
 THANK
YOU