1 / 20

Enterprise Resource Planning (ERP) Enterprise Systems (ES)

Enterprise Resource Planning (ERP) Enterprise Systems (ES). BCIS 485 College of Business New Mexico State University. Knowledge workers.

josiah
Download Presentation

Enterprise Resource Planning (ERP) Enterprise Systems (ES)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Enterprise Resource Planning (ERP)Enterprise Systems (ES) BCIS 485 College of Business New Mexico State University

  2. Knowledge workers • Thomas Davenport, Harvard University, says this is the skill set people should have to be effective using today's technologies in the business environment.  • Technical skills. • Knowledge of enterprise software and software tools for analysis and presentation. • Analytical skills. • Understand statistical models, assumptions and constraints in order to interpret analyses. • Knowledge of data. • What data are available and how to get it. • Knowledge of business.  • What are the business' goals are. • How data analysis may help achieve goals. • Communication/partnering skills.  • Coordinate and work with others to combine knowledge and skills. • Communicate effectively.

  3. Timeline of software development

  4. IT & ERP • History of information technology (IT) and its impact on the development of ERP systems • Some engineers for IBM started SAP in the early 1970s. • They didn’t have a computer. They used their client’s mainframe to begin developing software. • 1983: The company I worked for rented mainframe processing time. One PC was used by two departments: transportation and marketing. Computer-generated reports were distributed weekly and monthly. No one had a computer on his/her desk, only a terminal linked to a mainframe computer (which would fill this room). • Computer hardware has gotten cheaper and more powerful every year since the 1950s but it wasn’t until the early 1990s that IT could provide the processing and storage capacity an ERP system needs. • Database management systems have also evolved since the 1970s.

  5. MRP & MRP II • Manufacturers invested a lot of money in developing software to help handle the complexities of material requirements planning (MRP) and to integrate different production activities. • Before a company can produce a product it must procure the raw materials for manufacturing this product. • MRP takes into consideration raw materials already on hand and what is planned for production then generates a list of materials required (what needs to be purchased and when). • MRP II added production planning and scheduling.

  6. ERP took integration further • ERP took the integration concept further. • Data is stored in a central database that enables each functional area to work with current, up-to-date data. • Historically, business functional areas tend to be isolated; sometimes referred to as functional silos. People sometimes take action without being aware of the impact on other parts of the business. ERP enables information to flow between fucntional areas, providing horizontal integration.

  7. Benefits of information integration • Lack of integration creates problems • Inefficiencies • Time spent trying to get information • Time spent storing duplicate data • Inconsistent data • Keeping the same data in more than one location makes data accuracy more difficult • Inability to access data in a timely manner

  8. Integration across functional areas • Information is centralized and available to each functional area. SRM = supplier relationship management VENDORS/SUPPLIERS CRM = customer relationship management CUSTOMERS Accounting/Finance Sales/ Marketing Supply Chain Mgt Human Resources Information System/Central Database

  9. ERP Implementation • Business process re-egineering • This can be an opportunity to change processes and become more efficient. • This can create tension and resistance from employees. • Good change management is necessary. • SAP’s best practices approach • Though there are hundreds of customization settings in SAP, this is different from what “customization” has typically meant to software companies. • SAP modules built on “best of breed” practices.

  10. Impetus for ERP Implementation • IT now offers the computing resources needed at a reasonable cost. • During the 1990s the “Y2K problem” gave companies the opportunity to implement ERP while fixing the Y2K problem. • Y2K problem = Legacy (old) programs and databases stored years in a two-digit format. • Sarbanes-Oxley Act of 2002 • Tighter control of accounting and financial records and reports. • Multinational corporations • Currency differences • Regulation differences

  11. ERP Implementation Costs • Summary taken from article in CIO (see full article) about a survey about ERP software • Total cost of the average ERP implementation? • SAP = $16.8 million • Oracle = $12.6 million • Microsoft = $2.6 million • Tier II average: $3.5 million (Tier II includes companies besides the industry leaders.) • How long did it take? • SAP = 20 months • Oracle = 18.6 months • Microsoft = 18 months • Tier II average: 17.8 months • Satisfied with the result? • SAP = 73% • Oracle = 62% • Microsoft = 69% • Tier II average: 70%

  12. Overview of modules in ERP/ES • Business functions • Accounting/Finance • Human Resources • Sales/Marketing • Supply Chain Management • Procurement • Production • Distribution • Business processes • Forecasting demand/planning • Procurement • Production • Sales order processing • Integration • An ERP system you have used: Banner

  13. ERP supports business functions – Sales & Marketing • Sales/Marketing • Market products • Take sales orders • Customer relationship management • Sales forecasting • Advertising

  14. ERP supports business functions – Supply Chain Management • Supply Chain Management • Purchase goods and raw materials • Receive goods and raw materials • Logistics (moving products and raw materials) • Production scheduling • Manufacture • Plant maintenance

  15. ERP supports business functions – Accounting & Finance • Accounting/Finance • Financial accounting • Cost allocation and control • Planning and budgeting • Cash flow management • Financial analysis

  16. ERP supports business functions – Human Resources • Human Resources • Recruit and hire • Training • Payroll • Benefits • Government/regulation compliance

  17. ERP – Data input/output

  18. Technology evolution: Client/server architecture Remote access to centralized data on the database server. Browser-based applications.

  19. Now and the future… • Internet and browser-based interfaces • Database technology now provides the capacity for vast amounts of data to be stored. • Business intelligence / data analytics • Organizations want to take advantage of their data to help identify patterns or relationships and to aid decision-makers.

  20. Videos about ERP and SAP • Introduction to ERP & SAP • http://www.youtube.com/watch?v=EO2Df1p_tcw • Introduction to SAP • http://www.youtube.com/watch?v=I1fAcjEIEEM&p=1A70F57584733F6C&playnext=1&index=30 • SAP Business One (ERP for small to medium-size companies) • http://www.youtube.com/watch?v=zE9tmAcDaH4 • http://www.youtube.com/watch?v=WEcWutvYg5A • Tips for selecting ERP software for a business • http://www.youtube.com/watch?v=BCucG-1jUBY

More Related