Enterprise Information Systems and ERP systems

1. Enterprise Information Systems and ERP systems Jing Shao

2. What is ERP System Letter meaning:Enterprise Resource Planning Systems Resource: All resources in an organization, including: capital, equipment, material, intelligence, and so on. What and how to Plan Definition : ERP systems is a software solution that addresses the enterprise needs. It takes the process view of an organization to meet the organizational goals and tightly integrates all functions in that organization.

3. Why Enterprise Have to Use ERP Systems -------Problems in enterprise information system 1. Data exchange blocks; Software applications built to run on different operating systems cannot be connected to run together on the same operating system. We need to re-entry data from one system to another system in order to exchange information, thus leading to data inconsistency; 2.Stove-piped operations and stove-piped systems;

4. Why Enterprise Have to Use ERP Systems -------Problems in enterprise information system (continue…) • Authorization; • It is not always the cast that the more communication, the better organizational performance • business process reengineering. • Examine the business process, question the necessity step by step Q1 Q2 Price and demand curve Optimistic Q3 Expect Pessimistic P1 P2 P3 Analyze the purpose of those processes Reengineering steps Old processes

5. Solution Integrated enterprise information systems It is a set of communication channels in a business organization, combined together in such a way as to form one network by which information is gathered and disseminated. ======ERP System Widely integrated information systems covering all functional areas. It integrates database, applications, interfaces, tools, and business process reengineering ( BPR ).

6. ERP Working Theory Customers ERP system Server Network (data exchange) Departments Suppliers

7. What ERP Systems Can Offer to an Enterprise? – Benefits ERP creates value through 1. integrating activates across a firm, 2. Implementing best practices for each business process 3. Standardizing processes within organizations 4. Creating one-source data 5. Providing on-line access to information ---facilitate better organizational planning, communication, and collaboration.

8. Advantages and Disadvantages

9. ERP Modules Reasons of designing ERP systems in Modules • 1. Obtain specific functionality • 2. Cost • 3. Implement the system in bits rather than bring entire massive system online at one time

10. M o d u l e s

11. Market Trend and Vendors • Market: • 60 percent of Fortune 500 companies had adopted ERP systems before 2000. • The market spending was $13.4Billion in 2003 • The predicted market spending is $15.8 Billion in 2008 • Vendors: • over fifty vendors, such as SAP, Oracle, Baan, and J.D. Edwards

12. Ways to Developing ERP System

13. ERP System Selection Risks • The cost, time, and risk of an ERP project depends on following factors: • Project management ability; • Experience with this type of environment; • Experience with the programming environment; • Experience with the language or system used; • Familiarity with modern programming practices; • Availability of critical equipment, software, and programming language; • Completeness of project team; • Personnel turnover; • Relative control of project manager over project team.

14. Questions from Last Discussion • How the business processes are modeled in ERP systems ? • 2. How ERP system installed in an organization? Is it simple replace old separated operation systems or it can be combined with old systems? • 3. How to combine ERP system with business process?

15. Measurement of ERP Project •Intangible factors increases in market share improved customer service better corporation image employee satisfaction supply chain integration ability to support e-business operation •Hidden outcomes change how people do their jobs •The changing nature of information technology high dynamic technology and long-term project for implementing ERP

16. ERP Project Management • Cost • time Tool – Critical Path Method • Right system

17. Critical Success Factors in ERP • 1. Clear understating of strategic goals • 2. Commitment by top management • 3. Excellent implementation project management • 4. Great implementation team • 5. Successful coping with technical issues • 6. Organizational commitment to change • 7. Extensive education and training • 8. Data accuracy • 9. Focused performance measures • 10. Multisite issues resolved

18. Open Source ERP Reasons of Choosing open source ERP 1. cost 2. Free redistribution 3. Available source code Available providers There are about 20 vendors providing open source ERP systems. For example: 1. Open MFG 2. FISTERRA 3. ERP 5 4. Compiere

19. Compiere Open Source ERP Architecture • Compiere is a 100% pure Java solution based on Oracle database technology, and it is working on database independence. • client application component is written entirely in Java • The application server component is implemented in Java based on J2EE technology using the JBoss server infrastructure.

20. Functionality Business processes rather than traditional departments drive Compiere's design. Seven Modules: quote-to-cash, requisition-to-pay, partner relationship management, supply chain management, performance analysis, web store

21. Quote-to-Cash

22. Requisition-to-Pay

23. Customer relations management

24. Partner Relations Management

25. Supply Chain Management

26. Performance Analysis

27. Web Store

28. Thank You