ERP systems

Enterprise System Software

Enterprise Systems are large-scale organizational systems (people, processes and IT) built around packaged enterprise system software Packaged application software that integrates data, processes and IT Impound deep knowledge of business practices, influence process design within client companies Generic products that must be configured, customised and integrated with other IS to meet business needs

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Attributes of Successful Management with information

Management oriented/directed Business drive/justified Integrated Common data flows Heavy planning element Flexibility and ease of use Distributed systems INFORMATION AS A RESOURCE

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ERP defined..

Enterprise resource planning (ERP) software is a set of applications that automate finance and human resources departments as well as handle jobs such as order processing and production scheduling. ERP vendors have expanded into applications such as supply-chain management, customer relationship management, and industry verticals

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ERP Systems

ERP systems are packaged software systems that

Automates and integrates business processes Shares common data and practices across the entire enterprise Produces and accesses information in a real-time environment

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Enterprise Resource Planning Perspective..1..

Information as a vital resource Information as a cementing force Information as an integrator of various business processes Information acting as a competitive weapon

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ERP Perspective ..2..

Erratic shifts in orders up and down supply chains Focus is on Enterprise Wide management Concern is on various tasks/Functions. Understanding of customer needs Evolving business plans Managing resources Managing value addition Monitoring and controlling of tasks Fulfilling customers need Assesses Cost Implications

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ERP perspective..3..

New Philosophy For Enterprise wide Management Excellent Systems Framework For Managing Manufacturing and other systems Encompass All Resources Design / Production / Assembly Quality / Maintenance /Technology Finance / Manpower Storage / Handling /Transport

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Marketing / Service Information / Knowledge

ERP perspective ..4..

Accounting oriented information system for identifying and planning enterprise wide resources needed to take, make, ship and account for customer orders As an enabler to quickly access information and integrate different functions.

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Characteristics of ERP systems..

Includes business management software that enables finance and human resources in a completely integrated fashion Enables high levels of integration across business functions and units Provides for widespread sharing of data from a single information repository Drives extensive business transformation and change management efforts Requires high levels of implementation effort and support

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ERP Functionality
Finance
-General Ledger -Accounts Receivable -Accounts Payable -Procurement -Fixed Assets -Treasury Mgmt -Cost Control -Grant Management

Human Resources
-HR/Benefits Administration -Payroll -Self-service HR

e-Business
-eProcurement - Employee Self Service - e-Recruiting/e-Hiring - e-Filing - Citizen Access - Web-enabled transactions - e-Commerce

Transaction Engine
Core software that manages transaction flow among applications and handles tasks like security and data integrity

Decision support software that lets senior executives and other users analyze transaction data to track business performance

Data Analysis

Customer Relationship Mgt Supply Chain Mgmt

Planning, scheduling and fulfillment applications that address all procurement requirements across the enterprise -Consistent user experience - Personalization of services - Realtime access- enterprise info

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ERP Building blocks

Financial Accounting Treasury Controlling Enterprise Controlling Investment Management Production Planning Materials Management Plant Maintenance & Service Management Quality Management Project System Sales & Distribution Human Resources Management

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Issues with ERP Systems

Implementation

Critical success factors Process models

Achieving benefits Knowledge transfer Cultural issues

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Motivation for ERP

Process Improvement Common Platform

Cost Reduction Strategic Decision Making

Data Visibility

Customer Responsiveness

Infrastructur e

Capabilit y

Performance Outcome

ERP benefits ..1..

Streamlines or eliminates inefficient manual processes Eliminates disparate stand-alone systems Provides integrated, enterprise-wide common tools, processes and systems Establishes a backbone structure that can be leveraged to handle all operational processes Integrates and increases control of budgeting, planning and financial management processes

ERP benefits ..2..

Provides enterprise-wide reporting and decision support Presents opportunity for re-engineering with industry best practices and templates Presents opportunity to lever vendors future investment in enhanced functionality Incorporates new functionality and technology - provides a springboard to eBusiness