Presented at May, 21st

by
Mmtaz Copur
Andreas Reichert
for
ITTM-class
SS 2004
ERP
Enterprise Resource Planning
Manufacturing
applications
Inventory +
supply appl.
Financial
applications
Central
database
Sales +
delivery appl.
Service
applications
HR
management
applications
Reporting
applications
Managers and
stakeholders
Employees
Customers
Agenda
What is ERP?
Why ERP?
ERP-architecture
ERP-content
ERP-suppliers
Introducing ERP
What is ERP?
ERP(Enterprise Resource Planning Systems) comprises of a
commercial software package that promises the seamless
integration of all the information flowing through the
company - financial, accounting, human resources, supply
chain and customer information.
T.J. Davenport
Harvard Business Review
July-Aug., 1998
Why ERP?
In 1970s extensive computing was introduced in firms
to control and monitor operations and financials
Financial and accounting systems typically introduced
first
Additional needs created additional solutions
Problem: Added modules used inconsistent processes,
conflicting assumptions and redundant data
Why ERP?
More problems:
Year 2000
Mergers & Acquisitions
Customer orientation
Cost control
ERP-architecture
Source: Thomas H. Davenport. Putting the Enterprise into the Enterprise System,Harvard
Business Review, J uly, August 1998, p.124.
Manufacturing
applications
Inventory +
supply appl.
Financial
applications
Central
database
Sales +
delivery appl.
Service
applications
HR
management
applications
Reporting
applications
Managers and
stakeholders
Employees
Customers
ERP-architecture
Central database ist developed relational
Relates information regarding operational entities
2 ways of handling data:
Proprietary: access to data just through ERP
Open database architecture: access to data through
different applications
ERP-content
ERP-content
8 major data files concerning logistic operations:
Customer file
Product file
Supplier file
Order file
Bill-of-Materials file
Purchase order file
Inventory file
History file
ERP-content
Customer file
Information describing the firms customers
Helpful when multiple devisions of the firm serve the
same customer
Product file
Information describing products and services offered
Maintenance is increasingly challenging due to shorter
life cycles and more frequent price changes
ERP-content
Supplier file
Lists firms suppliers for material and services
Order file
All open orders that are in some stage of processing or
fulfillment by the firm
Must accept orders from multiple sources, e.g. EDI,
Internet, and internal order entry
ERP-content
Bill-of-Materials file
Describes how raw materials are combined for finished
products
Purchase order file
Roughly comparable to order file except that it contains
records of purchase orders that have been placed on
suppliers
Purchase order may be for raw material to support
product or for MRO supplies necessary to support
operations
ERP-content
Inventory file
Records physical inventory or quantity of product that is
available
History file
Documents firms oder and purchase history to facilitate
management reporting, budget and decision analyses
ERP-content
Manufacturing
applications
Inventory +
supply appl.
Financial
applications
Central
database
Sales +
delivery appl.
Service
applications
HR
management
applications
Reporting
applications
Managers and
stakeholders
Employees
Customers
3 modules support the supply chain activity
Includes raw materials aquisition, production and customer
order fulfillment
Modules incorporate the transactions and processes that
initiate the entire range of supply chain activities
ERP-suppliers
5 companies cover 50% of total ERP-market revenue:
SAP 25.1 %
Oracle 7.0 %
Peoplesoft 6,5 %
SAGE 5,4 %
Microsoft Business Solutions 4,9 %
Others 51,1 %
New license software revenue: 5$ billion (2002)
Source: Gartner Dataquest (J une 2003)
http://www.directionsmag.com/press.releases/index.php?duty=Show&id=7319
ERP-suppliers
Several points to analyze before the decission for one
supplier:
Are all functional aspects of the company covered?
Are all business functions and processes integrated?
Are all latest IT-trends covered?
Does the supplier have customizing and implementing
capabilities?
Do I have enough reserves, when will be the ROI?
Introducing ERP
Ensure the management is behind you
Ensure enough financial funds
Identify core project team, project manager, analysts and
specialists for all functional areas
Evaluate and select ERP package
Evaluate implementation partner
Make an implementation plan
Present plan to management and employees
Introducing ERP
Define requirements
Check whether you have desired hardware
Analyze existing processes
Fine tune processes to be in line with those of ERP
defined
Prototype and present
Refine prototype and freeze specifications
Introducing ERP
Topics involved:
Project planning
Business and operational analysis
Business requirements mapping to software
Module configuration
System modification and interfaces
Data conversion
Custom documentation
End user training
Acceptance testing
implementation
Post implementation support
Introducing ERP
Implementation schedule
Organization
structure
Design specification
Process flow
diagramms
Function model
Systems
modification
Map organization
Map business processes
Define functions and
processes
Build ERP system
modifications
2. Design &
customization
Project organization
chart
Work teams
Project initialization
Evaluation of processes,
requirements
1. Detailled
discussions
Deliverables Tasks Phase
Introducing ERP
Implementation schedule
Reconciliation report
Conversion plan
execution
Run trial production
Maintain systems
4. Production /
go live
Testing environment
report
Customization test
report
Implementation
report
Create go live-plan &
documentation
Integrate applications
Test ERP customization
Train users
3. Implemen-
tation / Prepare
to go live
Deliverables Tasks Phase
Thank you for your attention.
Questions?