Name: Roll No: Department: Section:: Madhusmita Mishra 1006247081 M.B.A (First Year) "B"
Name: Roll No: Department: Section:: Madhusmita Mishra 1006247081 M.B.A (First Year) "B"
Name: Roll No: Department: Section:: Madhusmita Mishra 1006247081 M.B.A (First Year) "B"
planning
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Typical Architectural Component 4 Why implement an ERP system? 5 How should we implement ERP system? 6 Importance of ERP 9 Disadvantages of ERP 9 ERP Expectations and Options 10 Building ERP solutions using internal and external Sources 11
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Facilitates company-wide integrated information systems, covering all functional areas. Performs core corporate activities and increases customer service augmenting Corporate Image.
Definitions
A business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes.
Sometimes these systems were integrated with each other and sometimes they werent. Sometimes they were loosely interfaced and sometimes they were more tightly interfaced.
Packages Enterprise systems are not developed in-house IS life cycle is different
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Mapping organizational requirements to the processes and terminology employed by the vendor and
Organizations that purchase enterprise systems enter into long-term relationships with vendors. Organizations no longer control their own destiny.
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 organizations rebel against the inflexibility of these imposed business practices.
Contd. (2)
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
Evolution of ERP
1970s - MRP Material Requirement Planning (Inventory with material planning & procurement). 1980s - MRP II Manufacturing Resources Planning (Extended MRP to shop floor & distribution Management.). Mid 1990s - ERP Enterprise Resource Planning (Covering all the activities of an Enterprise). 2000 onwards ERP II Collaborative Commerce (Extending ERP to external business entities).
Contd. (3)
Contd. (4)
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 weve learned one thing from Y2K compliance, its that upgrading 100s or 1000s 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, its downloaded automatically. Even some web tools use plug in that load windows components as opposed to IC architecture. These can be as difficult to uninstall as typical windows applications.
Contd. (5)
Improved Integration of Systems and Processes Lower Costs Empower Employees Enable Partners, Customers and Suppliers
Contd. (6)
People
Project Structure Should be aligned to processes
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. Here Phasing and Scoping is also important. 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.
Contd. (7)
3. Build
Configure system as per set up document specifications i.e. transfer conceptual model into reality. Test system to verify accuracy (preliminary tests).
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.
5. Production
Official hand holding. Effectiveness assessment. Business and Technical Direction recommendations.
Technology
Technology is an enabler, not the driver (it is there to assist the organization to achieve business goals).
Contd. (8)
Importance of ERP
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. For Management to know what is happening in the company. One solution for better Management. For cycle time reduction. To achieve cost control & low working capital. To marry latest technologies. To shun the geographical gaps. To satisfy the customers with high expectations. To be Competitive & for survival.
Disadvantages of ERP
An island of Information that is it provides large information. Difficult to get timely & accurate information.
Cont d. (9)
Poor connectivity between different organizational locations. Sticking with obsolete technology. Resist changing. Lack of proven man-power to develop integrated software.
ERP Expectations
Integrating all the functions. Integrating the systems running in all the locations. Transparency of information using a single data source across the organization.
Software must be responsive Modular Flexible Easy to add functionalities Provide growth path
Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the inhouse IT department.
OPTION 2 - BUY
Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc.
Contd. (10)
Lack of adequate & qualified manpower. Not driven with clear focus on expectations, time & cost. Poor software project management. Lack of seriousness with the Management & the IT Team. High employee turnover. Lot of schedule gaps during Project execution. Normally project life is more.
Preparation Phase
Formation of Apex & Steering committees Functional & IT team formation Training on ERP functions & features Scope finalization
Contd. (12)
GAP analysis
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.
Contd. (13)