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Enterprise resource planning
Enterprise Resource Planning (ERP) systems integrate internal and external management of business processes and information across an entire organization by combining all departments into a single database that can be accessed by all employees. ERP II systems extend this integration to external partners and customers, allowing information to be shared more easily over the internet to globalize business operations and enable free flow of information. Key advantages of ERP II include greater flexibility in integrating functions between departments and industries, a more web-friendly application that facilitates information exchange, and increased user participation through simplified interactions.
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Overview of ERP, its definition, functions, and the consolidation of planning efforts.
Key components related to CRM and SCM, along with identification of ERP stakeholders.
Major ERP components: Finance, HR, Manufacturing, and Logistics with visuals before and after ERP.
Identify ERP vendors and rationale for ERP adoption focusing on data integration and standardization.
Details on implementation timelines, associated total costs of ownership, and benefits realization.
Identifies hidden costs and challenges of ERP implementation, focusing on training and ROI.
Advantages including integration, efficiency, reduced errors, and improved service and quality.
Discusses potential risks and barriers during ERP implementation including costs and time.
Outlines best practices including aligning business strategy, top-down support, and training.
Managing data integrity, continuous training requirements, and understanding implementation as a process.
Details on distinct phases involved in ERP implementation from concept initiation to maintenance.
Introduction to ERP II systems, their architecture, and the shift from traditional ERP to enhanced external collaboration.
Advantages of ERP II over traditional ERP including flexibility, web-based access, and addressing multiple industries.
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Enterprise resource planning
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- 2. Enterprise Resource Planning THEPRACTICE OF CONSOLIDATING AN ENTERPRISE’S PLANNING, MANUFACTURING, SALES AND MARKETING EFFORTS INTO ONE MANAGEMENT SYSTEM. COMBINES ALL DATABASES ACROSS DEPARTMENTS INTO A SINGLE DATABASE THAT CAN BE ACCESSED BY ALL EMPLOYEES. ERP AUTOMATES THE TASKS INVOLVED IN PERFORMING A BUSINESS PROCESS.
- 3. Customer Relationship Management SupplyChain Management
- 4. How Do ERPSystem Work ?
- 5. ERP Stakeholders • Creditors •directors • employees • government • Owners • Suppliers • unions • The community from which the business draws its resources.
- 6. ERP Components FINANCE HRMANUFACTURING AND LOGISTICS
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- 9. Who are ERPvendors
- 10. Why ERP? To integratefinancial data To standardize manufacturing processes. To standardize HR information.
- 11. ERP Project andTime • Real transformational ( 1 to 3 years ) • Short implementations (3 to 6 months) The important thing is not to focus on how long it will take but to understand why you need ERP and how you will use it to improve your business
- 12. Total Cost ofOwnership of ERP From 63 companies surveyed showed : • The average TCO was $15 million . • The average TCO per user was $53,320. • It took 8 months after the system was in to see any benefits. • but that the median annual savings from the system was $1.6 million per year.
- 13. Hidden Costs of ERP Training Integrationand testing Data conversion Data analysis Consultants Replacing best and brightest staff after implementation Implementation teams can never stop Waiting for ROI (Return on Investment)
- 14. Benefits of ERPSystems
- 15. Benefits of ERPSystems Improving integration, flexibility. Fewer errors. Improved speed and efficiency. More complete access to information. Lower total costs in the complete supply chain. Shorten throughput times. Sustained involvement and commitment of the top management.
- 16. Benefits of ERPSystems Reduce stock to a minimum Enlarge product assortment Improve product quality Provide more reliable delivery dates and higher service to the customer Efficiently coordinate global demand, supply and production
- 17. Risks with ERPImplementation Expensive (can costs 100 thousands to millions of dollars) Time-consuming (can take months to years) Great risk for the organization Transfer of Knowledge Acceptance with the company
- 18. Best Practices andwhat ERP holds for the Future
- 19. ERP Implementation Biggest IT projectthat most companies ever handle. Changes the entire company. Has repercussions in all departments and divisions of the organization. It is essential that all the key players understand the scope of the project. This is an IT-RelatedProject.
- 20. Best Practices of ERP Implementation ABusiness Strategy aligned with Business Processes Top-Down Project Support and commitment Change Management Extensive Education and Training Data Clean up and Data Integrity Implementation is viewed as an ongoing process
- 21. A Business Strategyaligned with Business Processes • Business strategy that will give you a competitive advantage • Analyze and map your current business processes • Develop your objectives • Evaluate your business strategy and ERP plan before you commit to software acquisition and installation.
- 22. Top-Down Project Supportand commitment • CEO(chief executive officer) • support implementation costs • champion the project. • demand full integration and cooperation. • Most knowledgeable and valuable staff
- 23. Change Management • Changesin business procedures, responsibilities, workload. • As a result, ERP implementations are times of high stress, long hours, and uncertainty. • Mid-level managers must • facilitate continual feedback from employees. • provide honest answers to their questions. • help resolve their problems.
- 24. Extensive Education andTraining • General education about the ERP system for everyone. • Massive amount of end users training before and during implementation. • Follow-up training after the implementation. • 10 to 15% of total ERP implementation budget for training will give an organization an 80% chance of a successful implementation.
- 25. Data Cleanup andData Integrity • Clean-up data before cut-over. • Near enough is no longer good enough. • To command trust, the data in the system must be sufficiently available and accurate. • Eliminate the old systems, including all informal systems
- 26. Implementation is viewedas an ongoing process • Ongoing need for training and software support after implementation. • Ongoing need to keep in contact with all system users and monitor the use of the new system. • Ongoing process of learning and adaptation that continually evolves over time.
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- 29. Is it Aconceptual framework for next-generation enterprise system?
- 30. • The developmentof Enterprise Systems (ES) have progressed through almost fifty years in a constant interaction between changing business requirements, technological and organizational maturity and software vendors capabilities.
- 31. ERP II ERP IIsystems is a new concept introduced by Gartner Group in 2000 in order to label the latest extensions of the ERP-systems.
- 32. • solution forbuilding of complex information systems in large and medium-sized companies • ERP II makes it easy to integrate all business information in a unified information environment and automate processes in finance sales customer relationship management procurement inventory management and production the business logic of the system provides inopportunity to generate standard reports
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- 35. A Revolutionary Change •Technology • Technology goals aligned with internal business processes and those of diverse partners, customers, suppliers, and distributors. • Business Process • Implementation cannot be made without a change of business processes. • People • ERP II implementation success depends on the business community’s cultural acceptance of the system.
- 36. ERP to ERPII • The most apparent change from ERP to ERP II is a change in focus from one that is totally enterprise- centric and preoccupied with internal resource optimization and transactional processing to a new focus on process integration and external collaboration. ERP II application deployment strategies relates to information that is exchanged between two or more businesses over the Internet.
- 37. • Such asystem can quickly, accurately and consistently operate an entire organization. It delivers information in an instant to the people who need it. It manages the access to that information by establishing security roles and ratings that define which employees can use certain pieces of information. It also addresses the issue of multiple office locations by making the solution web-based, so employees can access the system no matter where they may be. • Businesses are utilizing the Internet more and more. It is no longer just a tool for e-mail, research and single transaction commerce. It is quickly becoming a tool for globalizing a business – a tool that allows an organization to tie together its employees, its suppliers and its customers. It enables the free flow of information and the next generation of solution will be built upon it.
- 38. • ERP IIsupports work through client application and through the web client on desktops and portable devices which provides several advantages you get access to all system functions by the internet and interaction efficiency with affiliates partners and customers will significantly increase you can easily integrate 1c ERP 2.0 with any information system Enterprise Portal specialized software a shop or bank.
- 40. Advantages of ERPII • it has many advantages over most extant ERP systems which typically address Finance and Administration issues with an emphasis on serving logistics, supply chain, and warehousing functions.
- 41. Advantages of ERPII • allows demonstrably greater flexibility with respect to integrating functions between departments and even industries.
- 42. Advantages of ERPII system is a much more “Web-friendly ”application that makes better use of the Internet, especially as a means for support.
- 43. Advantages of ERPII • brings to the feast is that it can engender increased user participation, because it should simplify dealings among site owners and potential buyers. • In turn, that can eliminate a large percentage, if not all, of the difficulties that used to result from the exchange of insufficient or incorrect communications.
- 44. • Thousands ofimplementations of solutions based on : • Distribution professional services • Food industry • Chemical industry • Consumer goods industry • Engineering industry • many other sectors
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