The presentation is for anyone who want to understand what an ERP is? how to select an ERP Product? and how to implement ERP in an organization
This presentation is specially useful for senior management team members like CEO, CFO and Director Operations who make strategic decisions for the organization.
Learn the Fundamentals of XCUITest Framework_ A Beginner's Guide.pdf
What Is ERP And How To Go About It
1.
2. What Is ERP?
Why ERP?
General Perception
Ground Realities
Product Or Development?
Which ERP?
ERP Cost
How To Do It?
3.
4. What Is ERP?
Enterprise Resource Planning
Integration Of Business Management Practices
& Modern Technology
Enterprise Wide Standard Business Controls & Ops.
Enterprise Wide Integrated Information Systems
5. What Is ERP?
Module Consist Of Programs For A Business Process
Some ERP Applications Are Independent Of Database
ERP Has Controlled Data Base Model / Schema & Tables
Basic ERP For All Standard Business Operations
Industry Specific Solution
Business Intelligence (BI)
6.
7. Functions Of Enterprise
Engineering
Sales Design
Human resources
Inventory Enterprise Production
Planning
Finance Controlling
Quality Maintenance
legal
8. Why ERP ?
CHALLENGES
• Highly Competitive Markets
• Continually Changing Business Environment
• Need To Reduce Operating Costs
• Need To Integrate Operations
• Within Company
• Between Dispersed Operations
• Between Alliance Partners
• Increase Enterprise Financial Efficiency
• Increase Operational Efficiency
• Improve Customer Service & Response Time
9. Why ERP ?
Eliminate Duplication Of Uniform SOP & Controls
Work Across The Board
Efficient Customer Response Timely & Reliable
Competitive Bidding Documentation
Efficient Inventory & Stock Increased Transparency &
Control Responsibility
Shop Floor Optimization & Enterprise Wide Uniform
Production Planning Reporting
Reduce Errors & Mistakes Preventive Approach Rather
Improved & Consistent Than Reactive Approach
Quality Control Facilitates Strategic Planning
Efficient Invoicing & Ageing Accurate & Real time Access To
Control Data For Timely Decisions
Enterprise Wide Standard
Discipline
10.
11. General Perception
ERP Is Very Expensive
High Failure Ratio
ERP Is Just To Impress Customers
ERP Will Make Employees Redundant & Jobless
ERP Means More Work & Procedures
ERP Slows Down The Organization
ERP Is Just For Manufacturing Organizations
ERP Is The Sole Responsibility Of The Management
ERP Is Just For The Managers & Decision Makers
ERP Is Just For The ERP Implementation Team
One ERP Package Will Suit Everybody
ERP Package Will Take Care Of Everything
12. One ERP Package Suits Everyone & Will Take Care Of Everything
13.
14. Ground Realities
ERP Implementation Is NOT AN IT PROJECT
ERP Implementation Is NOT BPR
50-60% Change & 40-50% Technology
Complete & Dedicated Management Support
Serious Organization Change
Fear Of Change
Effects Everyone In The Enterprise
Change In Roles & Responsibilities
Change In SOP
Ownership By All Stake Holders
Close Coordination & Collaboration
Quick Management Decisions
Require Quality Time From Everyone Involved
Intensive Training
Hardware & Technology Selection & Setup
Program Or Project ?
15. Ground Realities
Top Issues Organizations Face During Enterprise Resource Planning
Organization Change 16%
Internal Staff Adequacy 8%
Project Team 7%
Training 7%
Prioritization/Resource Allocation 6% People 62%
Top Management Support 6%
Consultants 5%
Ownership (of benefits to others) 4%
Discipline 2%
Program Management 8%
Process Reengineering 4%
Stage/Transition 2%
Process 16%
Benefit Realization 1%
Software Functionality 4%
Application Portfolio Management 3% Technology 9%
Enhancements/Upgrades 2%
Data 2%
Reporting 1%
Knowledge Assets 3%
Note: Rounded percentages; not all categories are shown as bars
16.
17. Product Or Development ?
In House Development Off The Shelf Product
Long Time To Deploy Short Time To Deploy
Highly Flexible Limited Flexibility
Poor Or No Adaption Of Adaption Of Best Practices
Best Practices Homogenous Reporting
Inefficiencies Automated Inefficiencies Eliminated
Lack Of Documentation Better Documentation
18.
19. Which ERP ?
Proprietary Products Open Source Products
Bann Adempiere Foundation
Fujitsu Glovia International BlueErp LedgerSMB
IFS
Dolibarr OFBiz
J.D. Edwards
MicroSoft Dynamics ERP5 Openbravo
NETSUITE Fedena OpenERP
Oracle eBusiness Suite GNU Enterprise Opentaps
Peoplesoft HeliumV Postbooks
Ross Enterprise
JFire SQL-Ledger
SAGE
SAP Kuali Tryton
WebERP
Some Of The ERP Products
20. ERP Cost
ERP Software
User Based License – One Time Upfront Cost
Software Maintenance – Yearly Recurring Cost 17 – 22%
Hardware
Acquisition – One Time Upfront Cost
Maintenance – Yearly Recurring Cost
Data Communication
Depends On Locations & Data Volume
Setup –Upfront One Time
Service – Monthly Recurring Cost
Training – Technical & Operations
Implementation Cost – Outsourced Or In-house Team
Customization – Depends On Situation
Incentives, Rewards & Celebrations
22. How To Do It ?
Program Or Project ?
A Program Is A Group Of Related Projects Managed
In A Coordinated Way To Obtain Benefits And
Control Not Available From Managing Them
Individually
23. How To Do It ?
ERP Implementation Is A Program
First Project – Ground Work
Second Project – Selection Of Product & Technology
Data Volume Estimation
Transaction Volume Estimation
Estimation Of Number & Type Of Users
Coverage Footprint & Road Map
Third Project
Hardware Sizing
Disaster Recovery & Business Continuity
Sourcing & Procurement
Installation Of Software & Hardware
Testing & Upgrade / Update
24. How To Do It ?
Fourth Project
Existing ICT Infrastructure & Gap Analysis
Revamping / Upgrade Of ICT Infrastructure
Work Stations, Servers, Network etc.
Sizing For Data Communication
Network & Remote Connectivity
Network & Data Security
Fifth Project – OCM
Sixth Project – Training Need Analysis & Logistics
Seventh Project – ERP Implementation
Multiple Teams
Mini Projects
25. How To Do It ?
Ground Work
Questions To Ask Without Any Product In Mind
Why You Want ERP?
What Are The Management Expectations?
Differentiate Between Must Haves & Nice To Have
Clearly Define The Objective(s) & Expectations
Integrated On Line Real Time Information Systems
Improve Logistics Or Reduce Time To Deliver By 40%
Cut Down Time For Order To Manufacture Cycle By 20%
Reduce Inventory Cost By 20% - 40%
Reduce Receivable Ageing From Over 90 To 45 Days
Control Credit Limits For Single Distributor Working With
Multiple Business Units
26. How To Do It ?
Ground Work
Discovery Mission - Document As Is Processes
Document Gaps Between As Is and Objectives
Know & Document “What We Want”
Business Needs & Objectives
Future Business Plan & Vision For At Least 5 Years
Priorities
Organizational Readiness
Is BPR Required ?
Prepare Comprehensive RFP
Evaluate ERP Products For Best Fit
Most Importantly Who Will Implement?
Outsource To Implementation Partner
Do It Yourself With In House Team
27. How To Do It ?
Well Thought Of Strategy
Strategy & Methodology
Big Bang Or Phased
Roll Out For Global Program
Implementation Methodology
PMI Framework
AIM By Oracle
ASAP By SAP
Common Components Of Implementation Methodology
Program / Project Charter
Team Structure, Roles & Responsibilities
Strategies & Governance Standards
Program Management & Project Plans
Stake Holder Identification & Analysis
As Is, To Be & Fit Gap Analysis
Risk & Issue Management
Technology Infrastructure Design & Deployment
Training Programs & Logistics
Data Preparation, Mapping & Conversion
Quality Gates & Reviews
Steering Committee Formation & Meetings
28. How To Do It ?
Typical Team
Program Director
Project Manager(s)
Solution Architect
Technology Experts From IT – Certified On Selected Technology
Application Administrator
DBA
Security Expert
Network & Communication
Development Team
Functional Experts / Consultants – IT & Non IT
Certified On Respective Module / Technology
Relevant Educational Background
Relevant Industry Experience
Integration Manager
OCM Team & Change Agents
Subject Matter Experts From Business
Power Users Or Super Users From Business
29. How To Do It ?
Proprietary Methodologies
AIM By Oracle
Application Implementation Methodology
Phases Of AIM
Definition
Operations Analysis
Solution Design
Build
Transition
Production
Ready Made Templates Including Project Plan
Guide Lines & Instructions
Software Tool
30. How To Do It ?
Proprietary Methodologies
ASAP By SAP
Accelerated SAP Methodology
ASAP And Global ASAP
Phases Of ASAP
Program / Project Preparation
Business Blue Print
Realization
Final Preparation
Go Live & Support
Continuous Improvement
Ready Made Templates Including Project Plan
Guide Lines & Instructions
Software Tool
31. How To Do It ?
Typical Emotional Curve
I will
What will Looking for adopt a
the future a new new
hold for identity? identity
I will just
me? I can’t and new
wait and
stand this behaviors.
see…
anymore!
100%
Maybe I
will try and
change...
“Valley of tears”
DENIAL RESISTANCE EXPLORATION
Initiation & Planning Execution Closing Time
Decision Announcement Implementation profits in productivity
losses in productivity
32. How To Do It ?
Time Cost
Quality
Scope
Typical Triple Constraint For Any Program Also Applies To ERP Programs