Introduction to erp
- 2. History of organizational systems • Calculation systems • Functional systems • Integrated systems
- 3. Calculation systems • 1950-80 • Single purpose • Eliminate tedious human work • Examples: Payroll, General ledger, Inventory • Technology used: Mainframes, magnetic tapes, batch processing
- 4. A System/370 Model 145 (1970’s)
- 6. Hard drives
- 7. A very nice-looking magtape-drive
- 8. Magtapes
- 10. Printer 800 lines/minute with 48 character train, 136 columns with 6 or 8 lines per inch spacing
- 11. Stack of Computer Printout Paper
- 12. Functional systems • 1975-20?? • Use computers to improve operations • Applications: Human resources, order entry, manufacturing resource planning • Technologies: Mainframes, PC’s, LAN’s
- 13. Minicomputer
- 14. Functional systems • Typically contained within a department • Islands of automation • Applications independently developed and deployed • Driving force: availability of mini- computers
- 15. Functional system applications • Human resources System • Accounting and finance systems • Sales and marketing System • Operations management System • Manufacturing Systems
- 16. Human Resources • Recruiting • Compensation • Assessment • Development and Training • Planning
- 18. Accounting and Finance • General Ledger • Financial Reporting • Costing • Budgeting • Accounts Payable • Accounts receivables
- 20. Sales and Marketing • Lead tracking • Sales forecasting • Customer management
- 22. Operations • Order management • Inventory management • Customer service
- 26. Types of Organizational information Systems • Administrative systems • Scheduling / Transaction systems • Value oriented systems • Reporting and controlling systems • Analysis and information systems • Planning and decision support systems (From Business Process Engineering by A.W. Scheer)
- 28. Problems with function based application • Sharing of data between systems • Data duplication • Data inconsistency • Applications that don’t talk to one another • Limited or lack of integrated information • Isolated decisions lead to overall inefficiencies • Increased expenses
- 29. Solution to disparate systems? • Integration • Consolidation • Right-sizing • Business Process Redesign • Enterprise wide system
- 30. Integrated systems or Enterprise Resource Planning System
- 31. ERP - Definition • ERP is a process of managing all resources and their use in the entire enterprise in a coordinated manner
- 32. ERP system: Definition • ERP is a set of integrated business applications, or modules which carry out common business functions such as general ledger, accounting, or order management
- 33. What is ERP? • Enterprise Resource Planning • Support business through optimizing, maintaining, and tracking business functions • Broken down into business processes – HRM – Distribution – Financials – Manufacturing
- 34. What makes ERP different • Integrated modules • Common definitions • Common database • Update one module, automatically updates others • ERP systems reflect a specific way of doing business • Must look at your value chains, rather than functions
- 35. Benefits of ERP • Common set of data • Help in integrating applications for decision making and planning • Allow departments to talk to each other • Easy to integrate by using processed built into ERP software • A way to force BPR (reengineering) • Easy way to solve Y2K problem
- 36. Vendors
- 37. Difficulty in implementation • Very difficult • Extremely costly and time intensive • Typical: over $10,000,000 and over a year to implement • Company may implement only certain modules of entire ERP system • You will need an outside consultant
- 38. Common Pitfalls • Do not adequately benchmark current state • Did not plan for major transformation • Did not have executive sponsorship • Did not adequately map out goals and objectives • Highly customized systems to look like old MRP systems
- 39. Survey of ERP implementations Done by ittoolbox.com in 2004
- 40. Overview • 375 IT and business professionals • 52% anticipate budget increases for new ERP implementations/new modules • SAP and PeopleSoft/J.D. Edwards were cited as the most popular ERP packages • 46% indicated that the main challenge to successful ERP implementations was inadequate definition of requirements and resistance to change
- 41. How would you characterize your budget for new ERP implementations/new modules deployments for 2004 compared to your budget in 2003?
- 42. Who is directly responsible for determining your ERP implementations/new modules deployments?
- 43. Who are the other key decision- makers/influencers in decisions to add new ERP packages/new modules?
- 44. Do you currently have an ERP package?
- 45. If your answer is "Yes", which ERP package(s) do you currently use?
- 46. Are you considering adding new modules to your existing ERP package?
- 47. If your answer is "Yes", which modules are you planning to add?
- 48. If you plan to deploy a new ERP package and/ or add modules to your existing packages, when would this implementation take place?
- 49. Who do you partner with for new ERP implementations and additions of new modules?
- 50. What do you see as the main challenges to successful ERP implementations within your organization?
- 51. For more details… • http://projectmanagement.ittoolbox.co m/documents/research/