2. Agenda
• What is an ERP System?
• Why implement an ERP system?
• How should ERP systems be implemented?
• Conclusion
• Questions and Answers
3. What is an ERP System – definitions
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“a business strategy and set of industry-domain-
specific applications that build customer and
shareholder communities value network system by
enabling and optimising enterprise and inter-
enterprise collaborative operational and financial
processes”(Source: Gartner’s Research Note SPA-12-0420)
4. Historical system architectures
Historically, companies created “islands of
automation”. A hodge-podge of various systems
that operated or managed various divergent
business processes. Sometimes these systems
were integrated with each other and sometimes
they weren’t. Sometimes they were loosely
interfaced and sometimes they were more tightly
interfaced.
5. What is an ERP – Key Characteristics
Integration
seamless integration of all the information flowing
through a company – financial and accounting,
human resource information, supply chain
information, and customer information.
6. Packages
Enterprise systems are not developed in-house
• IS life cycle is different
1. Mapping organisational requirements to the processes and
terminology employed by the vendor and
2. Making informed choices about the parameter setting.
• Organisations that purchase enterprise systems enter
into long-term relationships with vendors.
Organisations no longer control their own destiny.
What is an ERP – Key Characteristics
7. Best Practices
• ERP vendors talk to many different businesses within a
given industry as well as academics to determine the
best and most efficient way of accounting for various
transactions and managing different processes. The
result is claimed to be “industry best practices”.
• The general consensus is that business process
change adds considerably to the expense and risk of
an enterprise systems implementation. Some
organisations rebel against the inflexibility of these
imposed business practices.
What is an ERP – Key Characteristics
8. Some Assembly Required
Only the software is integrated, not the computing
platform on which it runs. Most companies have great
difficulty integrating their enterprise software with a
package of hardware, operating systems, database
management systems software, and telecommunications
suited to their specific needs.
• Interfaces to legacy systems
• Third-party bolt-on applications
• Best of Breed Strategy
What is an ERP – Key Characteristics
9. Evolving
Enterprise Systems are changing rapidly
• Architecturally: Mainframe, Client/Server, Web-
enabled, Object-oriented, Componentisation
• Functionally: front-office (i.e. sales management),
supply chain (advanced planning and
scheduling), data warehousing, specialised
vertical industry solutions, etc.
What is an ERP – Key Characteristics
10. Typical architectural components
E-business Platform
Tech Stack
CRM
Foundation
Web
Internet
Mobile
Wireless
e-Mail
Call Center
ICM/Telephony
Interaction
Channels
Common Data and Object Models, Security, Interfaces, Globalisation
Common Data and Object Models, Security, Interfaces, Globalisation
E-Business
Foundation
Marketing
Marketing Sales
Sales eCommerce
Business
Application
s
Marketing
Intelligence
Sales
Intelligence
Customer
Intelligence
Call Center
Intelligence
Analytical
Application
s
Interaction History Universal Work Q
1-to-1 Fulfillment
Assignment Engine
Escalations
TCA
Installed Base
Tasks Notes
Resources
Calendar
Territories
OSS HR
11. Tech Stack - Internet Computing
Architecture
Database
Database
X
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Application
Browser
Browser
Browser
Browser
Java
Java
Application Server
Application Server
Application
Application
Application
Application
2 Tier
3 Tier
12. Why implement an ERP System?
• To support business goals
– Integrated, on-line, secure, self-service
processes for business
– Eliminate costly mainframe/fragmented
technologies
• Improved Integration of Systems and Processes
• Lower Costs
• Empower Employees
• Enable Partners, Customers and Suppliers
13. How should we implement ERP
systems
Obtain the right mix of people, processes and
technology!!
14. How should we implement ERP
Systems?
• People
– Project Structure
– Should be aligned to processes
• Process
– Implementation Process (outlined in detail)
– Adapt your processes to those of the ERP.
• Technology
– Hardware
– Software
– Integrated Systems
15. Process
1. Definition and Analysis
• Hold discussions with various functional personnel
to establish the actual number of systems
operating at client site, what they are used for, why
and how often
• Produce the Project Scoping Document outlining
current situation, proposed solution and budgeted
time
Challenge : REQUISITE EXPERTISE - No two
clients are the same
16. Process
2. Design
• Prepare various functional reports - specifies
current scenario and wish list
• Prepare Design document which specifies how
the system is going to work
• Prepare test scripts to be followed on system
testing
• Map out the interface paths to various modules
Challenge : INFORMATION SHARING -
Availability of staff
17. Process
3. Build
• Configure system as per set up document
specifications i.e. transfer conceptual model into
reality
• Test system to verify accuracy (preliminary tests)
Challenge : TECHNICAL ENVIRONMENT -
System functionality
18. Process
4. Transition
• Train users on their specific areas
• Assist in test data compilation and system testing
by users
• Finalise the Live system and captured opening
balances
Challenge : USER RESISTANCE Understanding
and acceptance
data preparation
20. Technology
• Technology is an enabler, not the driver (it is there
to assist the organisation to achieve business
goals)
• It is a means to an end, not the end
21. Conclusion
• ERP systems provide a mechanism for
implementing systems where a high degree of
integration between applications is required
• The Business Case or Value Proposition for
implementation must be outlined
• To successfully implement a proper mix of people,
processes and technology should be maintained
23. Speaker Information
Name : Richard Byrom
e-mail : richard@richardbyrom.com
Web Site : http://www.richardbyrom.com
Editor's Notes
#1:Me and where I am from
This presentation has been put together based on my experiences I have had whilst implementing systems over the last 8 years and it is my hope that by relating some of these experiences to you I can help you implement your systems more effectively.
#3:Point 1
Enterprise means organisation wide
Resource refers to all the resources at your disposal – customers
Planning means looking at the long term view rather than just current and
#11:Move from 2 tier two three tier architecture.
Simplified Deployment
Other advantages of this architecture become apparent when we look at application deployment.
In client server environments, you would need to install the application on each desktop. If you add new users, you need to install the application. If you want to upgrade.... you need to install the application.
If we’ve learned one thing from Y2K compliance, it’s that upgrading 100’s or 1000’s of desktops is a challenge best avoided.
The true, three-tier architecture avoids this pitfall.
By storing the application on the middle tier, the ICA requires you to upgrade only the servers. Clients upgrade themselves. As soon as the browser detects that a new application version exists, it’s downloaded automatically.
Even some “web” tools use plug ins that load windows components as opposed to IC architecture. These can be as difficult to uninstall as typical windows applications.
#12:Point 1
There must be a value proposition, return on investment, total cost of ownership.
Point 2-4
Often these can be part of your business goals as well.
#13:It’s all really about control, it’s about aligning your people process and technology so that they master the raging waters of your high volume transactional system.
People who have experienced
Process You have to row in a certain way
Technology You have to have a decent boat
