Erwin Moeyaert Belgium

1. EnterpriseRequirement Planning Business Intelligence Erwin Moeyaert Belgium

2. Agenda • What is an ERP System ? • Demo • What is Business Intelligence ? • Demo

3. What is ERP • Facilitates Company-wide integrated Information Systems Covering all functional Areas. • Performs core Corporate activities and increases customer service augmenting Corporate Image. • Organizes & Optimizes the data input methodologies systematically.

4. The Current Scenario • Islands of information • Difficult to get timely & accurate information • Heterogeneous Hardware & Software platforms & practices • Poor connectivity between different organizational locations • Sticking with obsolete technology • Resist to change • Lack of proven man-power to develop integrated software

5. Why ERP • 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

6. Definition Of ERP Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise

7. Evolution of ERP • 1960’s - Systems Just for Inventory Control • 1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement) • 1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.) • Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise) • 2000's – ERP II – Collaborative Commerce (Extending ERP to external business entities) • 2010 ERP via Internet facilities

8. 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

9. Integration of Information Systems IS messages IS messages Manufacturing Head Quarters Marketing/Sales • Local purchasing, invoice verification • Inventory management • Internal sales, shipping and billing • Profit/loss • Capacity utilization • Information Systems: • Project Mgmt • Inventory • Purchasing • Sales • Budget • Cash Management • Sales, shipping and billing • Purchasing of trading goods • Inventory Management • Customer service

10. Changes of Customer Information Change customer master data Please Accept my new order for 1000 more sets Schedule customer visit Prepare production Customer Representative Launch Workflow Increase credit limit Credit Manager Product Manager Sales Manager

11. Supply Chain • Raw Materials Suppliers • Processing Plants • Assembly Plants • Service Centers (warehouses) • Retail outlets

13. Integrated Supply Chain Control Profit/Loss Finance Capital Costs Balance sheet Procurement market Purchasing Production Sales. Machines Human resources Operating resources Managing Resources

14. Subsystems of ERP • Financial Accounting • Logistics and Warehousing • Sales & Marketing • Purchasing • Accounts Payable/Receivable • Bill Of Materials • Master Scheduling • Materials Requirement Planning • Capacity Requirements Planning • Shop Floor Control • Human Resources

15. Accounting • General Ledger • Financial Reporting • Costing • Budgeting • Accounts Payable • Accounts Receivables • Controlling • Investment Management • Cash Management

16. Accounting Processes • Operational management level • Production of transactions • Paychecks, invoices, checks, purchase orders

17. Management Control Processes Budgeting Analysis of allocations, expenditures, revenues Cash management Cash flow analysis What-if analysis Capital budgeting Investment management

18. ERP Financial Accounting Module External reporting Set by general accounting standards Legal requirements Includes accounts receivable subsystem Interfaces with cash management Monitors accounts and updates, handles payments, creates due date lists

19. Management Accounting Modules Information on variances between planned and actual data Key activities Cost center accounting Internal orders as a basis for collecting and controlling costs Activity-based costing of business processes Product cost controlling for profitability analysis Profitability analysis by market segment Profit center accounting of individual areas of organization

20. Sales and Marketing • Lead tracking • Sales forecasting • Customer management • Sales Order management • CRM – Customer Relationship Management

21. Sales Process Sales orders. Direct sales. Pre-sales. Rate applications: prices, discounts and price limit controls. Reserves of goods in warehouse for unprocessed orders. Delivery note. Automatic creation from pending order lines. Automation of the outgoing orders (according to stocks, with rules of priority by expiry, location, etc). Invoicing process for all types of invoicing: immediate, delivered goods, order completely delivered. Periodically, (weekly, fortnightly, monthly). Reports of orders, sales order supplied, delivery notes, invoices, orders not invoiced, details of invoicing

22. CustomerRelationship Management Provides sales force with management tools Sales activity Sales and territory management Contact databases Leads generation and monitoring customer visit reports Knowledge and information resource management CRM data accessible through data warehouse

23. Enterprise Database ------------------ Products Price New order Invoices Shipments Inventory Purchase order Filled orders Vendor list Payables ……………etc Listofvendors Update vendor list/rating Purchase order Product data Purchase order Received orders Update record Invoice, Dispatch Order released /Pending Receipt/Pending Payments Statements /Invoice Payable vendor receipt Payment data Payments Update dues/payable

24. Warehousing • Warehouses and storage bins • Stock products in multiple units • Personalized product attributes in the warehouse (color, size, quality description, etc.). • Lot and serial numbers. • Restocking control. • Traceability configurable by product • Movement among warehouses. • Physical inventory. • Inventory planning. • Continuous inventory.

25. Production Management Some of the major sub-systems of the production module are:- • Material and capacity planning • Quality management • Cost management • Configuration management • Engineering data management • Engineering change control • Tooling

26. Production Planning and Manufacturing Processes Operational-level processes Daily activities Purchasing Acquire correct quantity of raw materials and supplies Receiving Inspection of delivered products and processing Quality control Monitoring of receivables and identification of unacceptable deliveries Monitoring quality of production goods Inventory management Maintains appropriate levels

27. Material Resource Planning Processes: Identify stock needed Calculate lead time for stock Determine safety stock levels Assign most cost-effective order quantities Produce accurate purchase orders

28. Capacity Planning Evaluation of production capacity against production goals Requires manufacturing order information Creates time-phased plans for product and production area Production scheduling Estimates human resource needed

29. Human Resources • Recruiting • Compensation • Assessment • Development and Training • Planning • Payroll

30. ERP HR Modules Components HR Management Personnel records Resumes Benefits administration Links employee data to actual benefits Allows selection from group of benefits Payroll Paychecks, tax reports, accounting data Time and labor management Employee/Manager self service Travel reimbursement Personnel data and benefits changes Training class

31. Advantages Of ERP

32. Advantages Of ERP Package • Highly Graphics based User Interface. • Zero Down time/ planned down time. • Readymade solutions for most of the Problems. • Only Customization required. • Integration of all functions ensured. • ROI earlier than the software developed in-house. • Easy enterprise wide information sharing. • Suppliers and Customers can be on-line communication. • Knowledge transfer between industries guarantees innovation. • Automatic adaptation to new technology.

33. Embrace New Technologies

34. Internet/Intranet enabled

35. Electronic Data Interchange Transporters Banks Vendors Customs Retailers EDI Electronic Data Interchange

37. Data WarehousingBusiness Intelligence

38. Mountains of Data • From Operational Systems • ERP (Enterprise Resource Planning) • Sales/Order • Inventory • Customer Relationship Management (CRM) • Web Sites • Orders • Click-stream • External sources ( Nielsen NIS…)

39. What is BI? The process by which an organization manages large amounts of data, extracting pertinent information, and turning that information into knowledge upon which actions can be taken.

40. Benefits of BI • Improved performance based upon timely and accurate information • Elimination of guesswork • Expedited decision making • Early visibility of changes: • Customer buying patterns • Supply chain activity • Financial arrangements • “Single Version of the truth” • Accurate, timely data available to all levels of the organization

41. To Note: Although we call it Business Intelligence, the concepts and techniques are applicable to almost any organization including those in health care, biotech, education, government …

42. BI Activities BI applications include the activities of: • decision support, • query and reporting, • online analytical processing (OLAP), • statistical analysis, • forecasting, and • data mining.

43. BI Users • There are many different users who can benefit from business intelligence • Executives • Business Decision Makers • Information Workers • Line Workers • Analysts

44. Source Data Data Acquisition and Integration Data Warehouse BI Reporting Operational Application Predefined Reports Storage Group ODS User ADS Data MART Public Folders Interactive reports Metadata Repository OLAP Data Quality Repository Data Quality Database Metadata Database General View BI Actions

45. 2 - Data transfer from transaction system to data warehouse via Extract-Transform-Load (ETL) Tool (i.e. Talend) 3 - Data Output via Business Intelligence Tool (OLAP,Jasper Reports) 1 - Data Input via Applications to transaction databases Data Flow from Transaction to Warehouse Simplified Structure Necessary for Fast, Powerful Reports

46. Some Components In The BI Toolkit • Reports (Example) • Commonly needed data can be structured in a set of pre generated reports made available to large numbers of users • Flexibility can be given to users through ad-hoc querying and filters • Cubes (Example) • Multi-dimensional, allowing the user the view the data from multiple angles • Interactive, giving the user the ability to change what is viewable on the fly • Charts & Graphs (Example) • Graphical Representation of data • Commonly used in presentations and statistical analysis • Dashboards (Example) • Actively updating graphical displays that provides business users with updates on key metrics • Some dashboards provide drill through capability, allowing users to start with summary data and dive in to the details

47. Report Example

48. Cube Example

49. Chart/Graph Example

50. Dashboard Example