ERP TALK ON ENTERPRISE

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					TALK ON ENTERPRISE RESOURSE PLANNING

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AGENDA
•WHAT IS THIS ERP? •EVOLUTION OF ERP •ERP & BPR •GOING ERP WAY. •ERP SOFTWARE MARKET •ERP VENDOR SLECTION DIFFICULTIES. •SAP R/3 •ERP IMPLEMENTATION ISSUES. •BENEFITS •FUTURE TRENDS •ERP LIFE CYCLE •PITFALLS •BARRIERS TO BENEFIT.

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ERP IMPLEMENTATION IN AN ORGANISATION BRINGS TO GETHER DIFFERENT BUSINESS FUNCTIONS,DIFFERENT PERSONALITIES,PROCEDURES,IDEOLOGIES AND PHOLOSOPHIES IN TO ONE PLATFORM WITH AN AIM TO POOL KNOWLEDGE BASE TO EFFECTIVELY INTEGRATE & BRING WORTHWHILE AND BENEFICIAL CHANGES THROUGHOUT THE ORGANISATION BY EVALUATING “AS IS “ SITUATION AND DECIDING WOULD BE SITUATION.

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•ERP IS A FULLY INTEGRATED BUSINESS MANAGEMENT SYSTEM COVERING FUNCTIONAL AREAS OF AN ENTERPRISE LIKE LOGESTIC,PRODUCTION,FINANCE ACCOUNTING & HUMAN RESOURCES. •ERP IS GLOBAL ,TIGHTLY INTEGRATED CLOSED LOOP BUSINESS SOLUTION PACKAGE. •ERP IS ONE DATABASE , ONE APPLICATION & ONE USER INTERFACE FOR THE ENTIRE ENTERPRISE

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•ERP SYSTEM IS A PACKAGED BUSINESS SOLUTION THAT IS DESIGNED TO AUTOMATE AND INTEGRATE BUSINESS PROCESSES ,SHARE COMMON DATA AND PRACTICES ACROSS THE ENTERPRISE AND PROVIDE ACCESS TO INFORMATION IN A REAL TIME ENVIRONMENT •IN TRADITIONAL SYSTEM -TRANSACTIONS ARE BUILT AROUND THE STRONG BOUNDARIES OF SPECIFIC FUNCTIONS WHEREAS IN ERP , TRANSACTION IS A PART OF INTER-LINKED PROCESSES THAT MAKES UP THE BUSINESS.

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ERP

• INFORMATION SYSTEM TO SUPPORT THE FUNCTIONAL UNITS OF AN ENTERPRISE • IT BRINGS NEW CULTURE,COHESION & VIGOR TO THE ORGANISATION • NO NEED TO CHASE THE INFORMATION,CHECK COMPLIANCE TO RULES OR CONFORMANCE TO BUDGET. • ORGANISATION MAY BE MULTIPLANT,MAULTILOCATION, GLOBAL OPERATION SPANNING THE CONTINENTS • LEAD TO SIGNIFICANT COST SAVINGS BY CONTINUOUSLY MONITORING THE ORAGNISATIONAL HEALTH. • FUNDAMENTALLY ERP INTEGRATES THE DIFFERENT PROCESSES NECESSARY IN A BUSINESS IN TO CENTRALIZED POOL THAT FACILITATES DATA SHARING AND ELIMINATES REDUNDANCY.

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ERP
•IT IS AN INTEGRATED SUIT OF APPLICATION SOFTWARE MODULES PROVIDING OPERATIONAL,MANAGERIAL AND STRATEGIC INFORMATION FOR IMPROVING PRODUCTIVITY,QUALITY AND COMPETITIVENESS. •ERP PROVIDES TIMELY AND ACCURATE PRODUCTION ORIENTED INFORMATION FOR LONG-RANGE PLANNING AND DAY–TO–DAY OPERATIONAL PLANNING & CONTROL. •ERP MAY BE CUSTOMISED ACCORDING TO THE ORGANIZATION’S PROCESS THROUGH THE ERP’S TOOL SET.WORKFLOW CAN BE SETUP TO AUTOMATE APPROVAL PROCESSES THROUGH CHAINS OF COMMANDS.ONCE INSTALLED , THE USER ONLY ENTERS DATA AT ONE POINT,AND THE INFORMATION IS TRANSFERRED THROUGH PROCESSES TO OTHER MODULES.

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ERP
•PERFORMS CORE ACTIVITIES & INCREASING CUTOMER SERVICES THEREBY AUGMENTING THE CORPORATE IMAGE. •AUTOMATIC INTRODUCTION OF LATEST TECHNOLOGY LIKE EFT,EDI,INTERNET,INTRANET,VIDEO CONFERENCING,E-COMMERCE, E-BUSINESS ETC. •PROVIDES DSS,EIS,DATA MINING ETC.

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•RESEARCH IN TO U.S. FORTUNE 1000 COMPANIES FOUND THAT OVER 60% HAVE IMPLEMENTED AN ERP SYSTEMS •A REPORT BY COMPUTER ECONOMICS INC. STATED THAT THAT 76% OF MANUFACTURERS,35% OF INSURANCE AND HEALTH CARE COMPANIES & 24% OF FEDERAL GOVERNMENT AGENCIES ALREADY HAVE AN ERP SYSTEM OR ARE IN THE PROCESS OF INSTALLING ONE.

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WHY ERP?
•GLOBALIZATION AND SHORTEN PRODUCT CYCLE •UNPRECEDENTED LEVELS OF COMPETITION •BEST BUSINESS PRACTICES IN THE INDUSTRY. •CONTINUOUS DESIGN IMPROVEMENTS, MANUFACTURING FLEXIBILITY, SUPER EFFICIENT LOGESTIC CONTROL AND BETTER MANAGEMENT OF ENTIRE SUPPLY CHAIN OUTSIDE. •AGGRESSIVE COST CONTROL INTIATIVES. •NEED TO ANALYSE COSTS/REVENUES ON A PRODUCT OR CUSTOMER BASIS •FLEXIBILITY TO RESPONE TO CHANGING BUSINESS REQUIREMENT. •MORE INFORMED MANAGEMENT DECISION MAKING. •CHANGING IN WAYS OF DOING BUSINESS.

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FACTORS THAT MAKES ERP EFFECTIVE
•ESTABLISH THE NEED AND SET THE STAGE FOR ERP •SET PERFORMANCE MEASURES AND REVIEW THEM •ASSESS VALUE TO THE COMPANY •VIEW ERP AS AN INTEGRATED PROCESS

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EVOLUATION OF ERP
• EVOLVED FROM THE MATERIALS REQUIREMENT PLANNING(MRP) SYSTEMS OF THE 1970’S AND MANUFACTURING RESOURSES PLANNING(MRP2) SYSTEMS OF THE 1980’S • MRP SYSTEMS AIMED TO BRING DOWN THE LARGE INVENTORY LEVELS. • GLOBAL COMPETITION OF NINETIES HAD MOVED TOWARDS AGILE MANUFACTURING OF PRODUCT , CONTINUOUS IMPROVEMENT OF PROCESSES & BPR • CALLED THE INTEGRATION OF MANUFACTURING WITH OTHER FUNCTIONAL AREAS INCLUDING ACCOUNTING,MARKETING, FINANCE & HR DEPARTMENT • ERP IS SUCH INTEGRATED INFORMATION SYSTEMS BUILT TO MEET THE INFORMATION SYSTEMS AND DECISION NEEDS OF AN ENTERPRISE SPANNING ALL THE FUNCTIONS OF THE MANAGEMENT.
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EVOLUATION OF ERP
•MRP II, WHICH IS A COMPANY- WIDE MANAGEMENT SYSTEM AIMING AT LOWERING COSTS AND INVENTORIES & INCREASING PRODUCTIVITY AND CUSTOMER SERVICES, IS A MANAGEMENT CONCEPT WHILE ERP IS ITS TECHNICAL SUBSET. •WHILE ERP CAN BE IMPLEMENTED IN ISOLATION , THE COMPLETE BENEFIT CAN BE GAINED IF THE ENTIRE REENGINEERING PROCESS IS FOLLOWED.

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BUSINESS PROCESS
• A COLLECTION OF ACTIVITIES THAT TAKES ONE OR MORE KINDS OF INPUT AND CREATES AN OUTPUT THAT IS OF VALUE TO THE ORAGNISATION. • A PROCESS IS SIMPLY A STRUCTURED,MEASURED SET OF ACTIVITIES DESIGNED TO PRODUCE A SPECIFIED OUTPUT FOR A PARTICULAR CUSTOMER OR MARKET.IT IMPLIES A STRONG EMPHASIS ON ‘HOW’ WORK IS DONE WITHIN AN ORGANISATION , IN CONTRAST TO A PRODUCT FOCUS EMPHASIS ON ‘WHAT’?

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BUSINESS PROCESS
•TO FACILITATE AN EFFECTIVE IMPLEMENTATION, BUSINESS PROCESS ENGINEERING NEEDS TO BE INTIATED FOR THE PURPOSE OF “GAP ANALYSIS” TO DETERMINE WHAT CHANGES ARE NEEDED IN THE COMPANY OR IN THE ERP SYSTEM.

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ERP & BPR
•BPR IS FUNDAMENTALLY RETHINKING AND RADICAL REDESIGN OF PROCESSES TO ACHIVE DRAMATIC CHANGE. •BPR IS REINVENTING AND NOT ENHANSING. •BUSINESS PROCESS REENGINEERING IS A FORMAL TECHNIQUE TO RE-ASSESS THE EXISTING PROCESSES AND DEVISE NEW PROCESSES. • ERP IMPLEMENTS THE ORGANISATIONAL PROCESES TO REENGINEER THE BUSINESS PROCESSES BEFORE ITS INTRODUCTION. • OR DE-ENGINEERING I.E DERIVING CORE BUSINESS PROCESS CHANGE FROM ERP PACKAGES.
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Preparing the organization for ERP
•ERP IN AN ORGANISATION IS A MAJOR TASK WITH FAR-REACHING IMPLICATIONS •ERP IS HIGH-END MISSION CRITICAL APPLICATION WITH SIGNIFICANT INVESTMENTS IN HARDWARE,SOFTWEARE NETWORK. •CULTURE FOR COMPUTING IS A MUST. •ERP NEEDS MOSTLY CUSTOMISATION RATHER THAN SOFTWARE BUILDING. •CUSTOMISATION CAN BE DONE MUCH FASTER & BETTER BY A “DOMAIN EXPERT”. •SIEMENS,TELCO AND MEHINDRAS HAVE DECIDED TO TURN THEIR IS DEPARTMENT IN TO SEPARATE COMPANY.
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PEOPLE MUST FEEL EMPOWERED AND ENCOURAGED TO INITIATE CHANGES IN THE SYSTEM FOR ENHANCED EFFECTIVENESS AND THE PROCESS TO REQUEST THIS CHANGES MUST ALSO BE SIMPLE & WELL UNDERSTOOD.

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GOING THE ERP WAY
•ERP IS AN OPPORTUNITY FOR BUSINESS RE-ENGINEERING. ORGANIZATION GETS THE OPPORTUNITY TO RESTRUCTURE AND REORGANISE PEOPLE AND DEPARTMENTS TO MEET NEW CHALLENGES AND GLOBAL COMPETITION.AS SUCH , IT CALLS FOR ATTITUDINAL CHANGES WHICH WILL HELP IN A SMOOTH TRANSITION,LEARNING BEST PRACTICES, AND ADOPTING THEM INTO THE BUSINESS.THESE CHANGES WILL REAP GOOD PROFITS IN A SHORT TIME.

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GOING THE ERP WAY
•ERP SOFTWARE IS TESTED AND USED IN MANY ORGANISATIONS IN DIFFERENT SITUATIONS ACROSS BOUNDARIES.IN MOST CASES ERRORS ARE ON ACCOUNT OF INCORRECT DATA,POOR UNDERSTANDING,OR IMPROPER TUNING OF THE PACKAGE.ONE CAN’T ENTER TRANSACTIONS UNLESS ALL CROSS BUSINESS RULES HAVE BEEN FULLY DEFINED.THIS WILL ENSURE DISCIPLINE IN THE WORKING OF THE ENTIRE ORGANISATION.

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GOING THE ERP WAY •ONCE DATA IS ACCEPTED,IT WILL FURNISH THE RIGHT INFORMATION AT ALL LEVELS AT ALL PLACES •IT IS POSSIBLE TO IMPLEMENT THE ERP PACKAGE IN THREEBROAD SEGMENTS-MANUFACTURING,FINANCE AND DISTRIBUTION.HOWEVER SOME PACKAGE,LIKE SAP,DO NOT ALOW SUCH AN APPROACH & WILL CALLS FOR BUILDING BRIDGES FROM & TO LEGACY SYSTEMS AND , CAN IN SOME CASES BECOME A COSTLIER SITUATION. •ERP IS TOOL TO SUPPORT BUSINESS AND THEREFOR CLOSE LINKAGE TO BUSINESS MUST BE REVIEWED AND MONITORED TO ENSURE THAT THE REQUIRED INFORMATION IS MADE AVAILABLE TO THE RIGHT PEOPLE AT THE RIGHT COST AND IN THE RIGHT FORMAT SO AS TO GAIN COMPETITIVE EDGE IN THE ERA OF GLOBAL COMPRTITION.IT IS OBSERVED THAT,WHEN A BUSINESS CROSSES BOUNDARIES OF THE NATION AND BECOMES MULTINATIONAL,IT HAS NO OTHER OPTION BUT TO USE ERP SO AS TO STANDARDIZE OPERATIONS WORLDWIDE.

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ERP SOFTWARE MARKET

• IT IS ABOVE 65 BILLION USD LEADING GLOBAL PLAYERS ARE 1. SAP R/3 FROM SAP CORPORATION 2. ORACLE APPLICATIONS FROM ORACLE CORPORATION 3. BaaN IV FROM BaaN SOFTWARE 4. PEOPLE- SOFT FROM PEOPLESOFT 5. MFG/PRO FROM QAD CORPORATION 6. MARSHAL FROM RAMCO (INDIAN COMPANY) 7. MAMIS FROM MASTEK (INDIAN COMPANY) 8. CIMPRO FROM DATA LOGIX 9. BPCS FROM BUSINESS PLANNING & CONTROL SYSTEMS 10.JD EDWARDS 11.LAWSON 12.SCOOPSOFT 13.MAPICS XA(LEGACY APPS) FROM MARCAN CORPORATION 14.PRISM (PROCESS INDUSTRY) FROM MARCAN CO. 15.SYSTEM 21 FROM JBA
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ERP VENDOR SELECTION DIFFICULTIES
• TIME
ERP SELECTION EXERCISE CAN CONSUME ENORMOUS TIME AND MANPOWER IN IDENTIFYING EVALUATION CRITERIA & GENERATING INFORMATION ON ALTERNATIVES. • COST • FINDING OBJECTIVE DATA • LACK OF STRUCRED EVOLUTION PROCESS • THE DECISION ONCE MADE IS NOT EASY TO REVESE • PRODUCT EVALUATION REQUIRES ANALYSIS ON 1. FUNCTIONALITY 2. TECHNICAL ARCHITECTURE 3. COST 4. COST/BENEFIT ANALYSIS 5. EASE OF IMPLEMPLENTATION 6. SERVICE & SUPPORT 7. ABILITY TO EXECUTE 8. FUTURE ROAD MAP 9. TECHNICAL TREND 10. VENDORS VISION
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ERP-AS A SOFTWARE SOLUTION
THE ERP SOFTWRAE CAN BE EITHER CUSTOM DEVELOPED OR CAN BE BOUGHT AS PACKAGE
PARAMETER CUSTOM DEVELOPED PACKAGE SOLUTION

FUNCTIONAL SPREAD FUNCTIONAL SOPHISTICATION

MEDIUM

HIGH

MEDIUM

HIGH

SCOPE FOR BPR

MEDIUM

HIGH

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ERP-AS A SOFTWARE SOLUTION
PARAMETER CUSTOM DEVELOPED PACKAGE SOLUTION

TECHNOLOGY

HIGH

HIGH

TIME

HIGH

MEDIUM

COST

HIGH

MEDIUM

TRAINNING

MEDIUM

MEDIUM

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ERP-AS A SOFTWARE SOLUTION
PARAMETER CUSTOM DEVELOPED PACKAGE SOLUTION

IMPLEMENTATION EASE

MEDIUM

MEDIUM

PROVENNESS

LOW

HIGH

MAINTENANCE & SUPPORT

LOW

HIGH

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CAPABILITIES

TIME FIRSTWAVE
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SECONDWAVE

NEXTWAVE
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THE POTENTIAL OF ERP SYSTEM CAN BE CLASSIFIED UNDER THREE GROUPS: INTEGRATE,OPTIMISE, AND INFORMATE •INTEGRATE IS WHERE A COMPANY IS ABLE TO INTEGRATE THEIR DATA AND PROCESSES INTERNALLY AND EXTERNALLY WITH CUSTOMERS & SUPPLIERS •OPTIMISE BENEFITS INCLUDES THE STANDARDISATION OF BUSINESS PROCESSES INCORPORATING BEST BUSINESS PRACTICE. •INFORMATE IS THE ABILITY TO PROVIDE CONTEXT RICH INFORMATION TO SUPPORT EFFECTIVE DECISSION MAKING.

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SAP R/3 (SYSTEMS,APPLICATIONS & PRODUCTS in DATA PROCESSING)
•IMPLEMENTED AT MAJOR COMPANY LIKE TATA’S,MAHINDRA’S, RIL’S, KIRLOSKAR’S,SIEMEN’S,HP,LG,P&G ETC. •STARTED BY A TEAM OF THREE EX-IBM ENGINEERS IN 1972, SAP-AG IS A 30YEAR OLD GERMAN BASE COMPANY. •32% MARKET SHARE WORLDWIDE •FOURTH- LARGEST INDEPENDENT SOFTWARE SUPPLIER IN THE WORLD •MORE THAN 10000 INSTALLATIONS WORLDWIDE IN OVER 90 COUNTRIES •FORTUNE 500 COMPANIES HAVE ENDORSED SAP SO WELL THAT 10 OF THE TOP 10 COMPANIES,EIGHT OF THE TOP 10 COMPANIES WITH HIGHEST PROFITS, AND SEVEN OF THE TOP 10 COMPANIES WITH HIGHETS ROI USE SAP R/3.
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SAP R/3
• IT HAD PHENOMENAL FUNCTIONALITY BY WAY OF VARIOUS MODULES LIKE 1. SD (SALES & DISTRIBUTION) 2. MM (MATERIALS MANAGEMENT) 3. PP/PI (PRODUCTION PLANNING-PROCESS INDUSTRY) 4. FICO (FINANCIAL ACCOUNTING & CONTROL) 5. PM (PLANT MANAGEMENT) 6. PC (PROCESS CONTROL) 7. QM (QUALITY MANAGEMENT) 8. SAP-HR (HR FUNCTION) ETC..
• SAP R/2 RELEASE IN 1979 & FLAGSHIP PRODUCT SAP R/3 RELEASED IN 1992.

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SAP R/3
•AVAILABLE FOR ALL LEADING OS PLATFORMS SUCH AS VMS,UNIX, OS/400,MVS,WINDOWS-NT ETC. •RDBMS SOFTWARE LIKE ORACLE,INFORMIX AND MORE RECENTLY MS-SQL SERVER. •SUPPORTS DISTRIBUTED COMPUTING TO INTEGRATE DIVERSE HARDWARE AND , SOFTWARE. •USES STANDARD PROTOCOLS LIKE MESSAGE SWITCHING, REMOTE PROCEDURE CALLS(RPC) ETC. •INTEGRATES STANDARD WORK FLOW SOFTWRAE LIKE LOTUS NOTES,INTERFACES WITH EDI,E-MAILS AND DESK TOP SOFTWRAES LIKE MS WORD & MS-EXCEL. •ROBUST , STRONG & MATURE PRODUCT •INCLUDES THE BEST BUSINESS PRACTICES,GLOBALACCOUNTING NORMS,CURRENCIES,TRADING PRACTICES & MULTILINGUAL SUPPORT -AROUND IN 14 LANGUAGES. •SPENDS 10 % OF ANNUAL BUDGET ON R&D
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SAP R/3
•REPORTED REVENUES OF DM 6 BILLION PA & AROUND 62 PERCENT INCREASE YEARLY

•NETWEAVER AND THE UNDERLYING ENTERPRISE SERVICES ARCHITECTURE(ESA) ARE A MAJOR PART OF SAP’S MESSAGE FOR UPGRADATION OF EXSITING R/3 CUSTOMERS TO THE mySAP PRODUCT LINE. NETWEAVER TAKES IN TO CONSIDERATION ALL THE ASPECTS ASSOCITED WITH INTEGRATION – PEOPLE,PROCESS AND INFORMATION INTEGRATION -EXISTING SAP R/3 CUSTOMERS CAN USE NETWEAVER. THE MAJOR VENDOR OF ERP SYSTEMS IS SAP WITH APPROXIMATELY 50% OF THE MARKET IN U.S.A.IT WAS DETERMINED THAT 9 OUT OF THE TOP 12 IT USERS WERE SAP CUSTOMERS AND 45% OF THE TOTAL LIST WERE ALSO SAP USERS.
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EIGHT REASON TO USE SAP
1. 2. 3. 4. 5. 6. 7. 8. GLOBAL BASIS FASTER SPEED FLEXIBILITY FOR CHANGES (BUSINESS & IT) AGILITY EXTENDED SUPPLY CAHIN MANAGEMENT REACH NEW OPPORTINITY KNOWLEDGE SHARING CREATIVITY FOCUS

VISIT SAPFANC.COM FOR INTERACTION WITH OTHER SAP FANS TO GET EXPOSURE TO SAP MARKET & “TIPS AND TRICKS” IN SAP SOFTWARE

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“WE CAN NOW CLOSE OUR BOOKS OF ACCOUNT AND BALANCESHEET WITHIN 15 DAYS OF THE PERIOD ENDING AS COMPARED TO THREE-AND-A-HALF MONTHS PRIOR TO THE SAP IMPLEMENTATION” …. GLEN MARK PHARMACEUTICALS LIMITED

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ERP IMPLEMENTATION
CRITICAL SUCCESS FACTOR OF IMPLEMENTATION
TOP MANAGEMENT COMMITMENT •DRIVING & SUPPORTING THE PROJECT •PROVIDING THE NECESSARY RESOURCES •SETTING REALISTIC EXPECTATION •MONITORING THE PROGRESS & BRINGING IN SERIOUSNESS •EMPOWERING PEOPLE TO USHER IN CHANGE •RESOLVING POLICY & RESORCE CONFLICTS •IMBIBING TRUST IN THE SYSTEM END USER INVOLVEMENT ONGOING EDUCATION & TRAINNING METICULOUS DATA MANAGEMENT USER EXPECTATION MANAGEMENT

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BENEFITS OF ERP
•COMMON REPOSITORY •IMPROVED CAPACITY UTILIZATION •INFORMED MANAGEMENT DECISION MAKING •INCREASED PRODUCTIVITY ACROSS THE BOARD •IMPROVED CUSTOMER SERVICES AND RETENTION •DEFINING MATRICS,MEASURING & BENCH MARKING •WORKING CAPITAL REDUCTION•IMPROVED FINANCIAL MANAGEMENT •ENTERPRISE EXTENSION TO EMBRACE ENTIRE SUPPLY CHAIN •BREAKDOWN OF BUREAUCRATIC AND POLITICAL INTERDEPENDENSE . •TRANSPARNCY •OVERALL ORGANISATIONAL LOOK-A-HEAD CAPABILITY AND CONTROL AS OPPOSED TO FUNCTIONAL CONTROL. •READYMADE FUNCTIONALITY •WELL TESTED
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BENEFITS OF ERP
•HIGH LEVEL OF DOCUMENTATION •BASED ON BEST PRACTICES & STANDARDISED IMPLEMENTATION OF THE SAME. •SEAMLESS FLOW OF INFORMATION ACROSS THE MODULES. •AVOIDING REINVENTING THE WHEELS •MAKES ORGASNISATION IT DRIVEN •PROVIDES INTEGRATED WORKING ENVIRONMENT •REDUCE DATA DUPLICATION AND REDUNDANCY •INTEGRATION WITH MESSAGING GROUPWARE SOLUTION •DATA STANDARDIZATION ACCURACY ACROSS THE ENTERPRISE •ON-LINE/REAL TIME INFORMATION THROUGHOUT ALL THE FUNCTIONAL AREAS OF AN ORGANISATION

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BENEFITS OF ERP
•INFORMATION ENTERED ONCE IN A SYSTEM •BEASED ON RELIABLE FILE STRUCTURE •PROVIDES FUNCTIONALITY TO INTERACT WITH OTHER MODULES •PROVIDES TOOLS FOR ADHOC INQUIRES.
•THE ANALYSIS AND REPORTING THAT CAN BE USED FOR LONG TERM PLANNING •EASE OF EXPANSION/GROWTH AND INCREASED FLEXIBILITY. •FASTER.MORE ACCURATE TRANSACTION •HEADCOUNT REDUCTION •CYCLE TIME REDUCTION •IMPROVED INVENTORY/ ASSET MANAGEMENT •FEWER PHYSICAL RESOURCES/BETTER LOGISTIC •INCREASED REVENUE.

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ERP LIFE CYCLE
STAGE-1 STAGE-2 STAGE-3 STAEG-4 ERP READINESS ASSESSEMENT PREPARING THE ORGANISATION FOR ERP ERP FEASIBILITY STUDY PROCESS MODELLING AND DOCUMENTING THE ‘AS IS’ PROCESSING AND ‘TO BE ‘ PROCESSING (ALONGWITH BPR) DETAILED PLAN FOR ERP IMPLEMENTATION (INCLUDES ERP SOFTWRAE SELECTION,SELECTION OF IMPLEMENTATION PARTNER, IMPLEMENTATION TECHNOLOGY –’BIG BANG’ OR ‘MODULAR IMPLEMENTATION’ AND THE FINAL AND PRECISE EXTENT OF IMPLEMENTATION. DETAILED IMPLEMENTATION INCLUDING DEVELOPMENT.QUALITY ASSURANCE & PRODUCTION SYSTEM. ….CONTD..
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STAGE-5

STAGE-6

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ERP LIFE CYCLE
STAGE-7 STAGE-8 STAGE-9 PREPARING TO ‘GO LIVE’ INCLUDING DATA MIGRATION. GOING LIVE PERFORMANCE ASSESSEMENT,DOCUMENTATION, AND FUTURE PLAN.

GO-LIVE

FUTURE PLAN

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READINESS

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PITFALLS

• LONG IMPLEMENTATION TIME-TYPICALLY 12-18 MONTHS. • COMMUNICATION GAP • INABILITY OF MOST APPLICATIONS TO SUPPORT CONTINUOUS IMPROVEMENT AND CHANGE MANAGEMENT. • INABILITY TO TAKE ADVANTAGE OF SHARED EXPERIENCES. • INADEQUATE TRAINNING & DOCUMENTS

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PITFALLS
•MANY ERP PROJECTS HAVE RUN IN TO ROUGH WEATHER OR HAVE EVEN FAILED,NOT BECAUSE OF ERP CONCEPT OR ERP SOFTWARE PACKAGE BUT PRIMARILY DUE TO LACK OF APPROPRIATE APPROACH. A TYPICAL ENTERPRISE WIDE IMPLEMENTATION REQUIRES SKILLS OF VARIED DIMENSIONS SUCH AS FUNCTIONAL AND BUSINESS KNOWLEDGE, SOFTWARE PROJECT MANAGEMENT,DATA BASE & NETWORK MANAGEMENT,STRATEGIC CONSULTING,EDUCATION & TRAINNING, TECHNICAL CONSULTING LIKE PROPER HARDWARE EAVALUTON ETC. •ADDITIONAL FACTOR THAT IS CONTRIBUTING TO FAILED IMPLEMENATION INCLUDES LACK OF MANAGEMENT COMMITMENT, FAILURE TO INCLUDE KEY PERSONNEL ON THE PROJECT TEAM, POORLY WRITTEN OR INCOMPLETE NEEDS ANALYSIS REPORT, AND ISSUES SUCH AS POLITICAL INTRIGUE,CONFLICT,HIDDEN AGENDAS AND PEOPLE ISSUE.
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BARRIERS TO BENEFIT REALISATION

LACK OF DISCIPLINE LACK OF CHANGE MANAGEMENT INADEQUATE TRAINING POOR REPORTING PROCEDURES INADEQUATE PROCESS ENGINEERING MISPLACE BENEFIT OWNERSHIP INADEQUATE INTERNAL STAFF POOR PRIORITISATION OF RESOURCES

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BARRIERS TO BENEFIT REALISATION

POOR SOFTWRAE FUNCTIONALITY INADEQUATE ONGOING SUPPORT POOR BUSINESS PERFORMANCE UNDER PERFORMED PROJECT TEAM POOR APPLICATION MANAGEMENT UPGRADES PERFORMED POORLY CONTD..
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BARRIERS TO BENEFIT REALISATION

IT CAN BE OBSERVED FROM THIS DATA THAT LIMITED BENEFIT ATTAINMENT FOR ERP IMPLEMENTATION HAD LITTLE TO DO WITH LACK OF SOFTWARE FUNCTIONALITY OR MAJOR TECHNICAL ISSUES , BUT WERE PREDOMINATELY PEOPLE ISSEUES.

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ERP IS THE NEED OF THE HOUR AND IS THE ONLY ANSWER PRESENTLY TO IMPROVE BUSINESS PROCESSES AND COMPETITIVENESS.

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FUTURE TRENDS IN ERP
•WEB-ENABLED ERP •COMPONENT ERP •INTEGRATION WITH SUPPLY CHAIN & E-COMMERCE

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LOOK FOR ‘WHAT IT CAN DO?’ BEFORE ‘WHAT IT SHOULD DO?’

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WHAT ERP DOES NOT DO IS TO FULFILL ALL WISHES.

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