TIRTA ERP

TIRTA ERP
(TIRTA Enterprise Resource Planning)

Wildan Maulana
wildan.m@openthinklabs.com

© 2010, OpenThink Labs. All Rights Reserved

Let's Talk about ERP First


● What is an ERP System?
● Why implement an ERP system?
● How should ERP systems be implemented?


What is an ERP System – definitions
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
“a business strategy and set of industry-domain-
specific applications that build customer and
shareholder communities value network system by
enabling and optimising enterprise and inter-
enterprise collaborative operational and financial
processes”(Source: Gartner’s Research Note SPA-12-0420)


Historical system architectures
Historically, companies created “islands of
automation”. A hodge-podge of various systems
that operated or managed various divergent
business processes. Sometimes these systems
were integrated with each other and sometimes they
weren’t. Sometimes they were loosely interfaced
and sometimes they were more tightly interfaced.


What is an ERP – Key Characteristics
Integration
seamless integration of all the information flowing
through a company – financial and accounting,
human resource information, supply chain
information, and customer information.


Packages
Enterprise systems are not developed in-house
● IS life cycle is different
1.Mapping organisational requirements to the processes
and terminology employed by the vendor and
2.Making informed choices about the parameter setting.
Organisations that purchase enterprise systems
enter into long-term relationships with vendors.
Organisations no longer control their own destiny.


Best Practices
● ERP vendors talk to many different businesses within

a given industry as well as academics to determine
the best and most efficient way of accounting for
various transactions and managing different
processes. The result is claimed to be “industry best
practices”.
● The general consensus is that business process

change adds considerably to the expense and risk of
an enterprise systems implementation. Some
organisations rebel against the inflexibility of these
imposed business practices.


Some Assembly Required
Only the software is integrated, not the computing
platform on which it runs. Most companies have great
difficulty integrating their enterprise software with a
package of hardware, operating systems, database
management systems software, and
telecommunications suited to their specific needs.
● Interfaces to legacy systems
● Third-party bolt-on applications
● Best of Breed Strategy


Evolving
Enterprise Systems are changing rapidly
● Architecturally: Mainframe, Client/Server, Web-
enabled, Object-oriented, Componentisation
● Functionally: front-office (i.e. sales management),
supply chain (advanced planning and scheduling),
data warehousing, specialised vertical industry
solutions, etc.


Typical architectural components
Interaction Web Mobile Call Center
e-Mail
Channels Internet Wireless ICM/Telephony

Analytical Marketing Sales Customer Call Center
Applications Intelligence Intelligence Intelligence Intelligence

Business Marketing Sales eCommerce OSS HR
Applications

Installed Base Resources Territories Assignment Engine
CRM
Foundation Tasks Notes Calendar 1-to-1 Fulfillment

TCA Escalations Interaction History Universal Work Q
E-Business
Foundation Common Data and Object Models, Security, Interfaces, Globalisation

Tech Stack E-business Platform


Tech Stack - Internet Computing Architecture

Application
2 Tier Application

Application
Application

Application X
3 Tier
Databas
e
Application
Application
Browser
Java
Application Server
Browser


Why implement an ERP System?
● To support business goals
● Integrated, on-line, secure, self-service processes for
business
● Eliminate costly mainframe/fragmented technologies
● Improved Integration of Systems and Processes
● Lower Costs
● Empower Employees
● Enable Partners, Customers and Suppliers


How should we implement ERP
systems

Obtain the right mix of people, processes and
technology!!


How should we implement ERP
Systems?
● People
✔ Project Structure
✔ Should be aligned to processes
● Process
✔ Implementation Process (outlined in detail)
✔ Adapt your processes to those of the ERP.
● Technology
✔ Hardware
✔ Software
✔ Integrated Systems


Process
1. Definition and Analysis
● Hold discussions with various functional

personnel to establish the actual number of
systems operating at client site, what they are
used for, why and how often
● Produce the Project Scoping Document outlining

current situation, proposed solution and budgeted
time
● Challenge : REQUISITE EXPERTISE - No two

clients are the same


Process
2. Design
● Prepare various functional reports - specifies current

scenario and wish list
● Prepare Design document which specifies how the system

is going to work
● Prepare test scripts to be followed on system testing

● Map out the interface paths to various modules

Challenge : INFORMATION SHARING - Availability of staff


Process
3. Build
● Configure system as per set up document

specifications i.e. transfer conceptual model into
reality
● Test system to verify accuracy (preliminary tests)

Challenge : TECHNICAL ENVIRONMENT - System
functionality


Process
4. Transition
● Train users on their specific areas

● Assist in test data compilation and system testing by

users
● Finalise the Live system and captured opening

balances

Challenge : USER RESISTANCE Understanding and
acceptance
data preparation


Process
5. Production
● Official hand holding
● Effectiveness assessment
● Business and Technical Direction
recommendations


Technology
●
Technology is an enabler, not the driver (it is there
to assist the organisation to achieve business
goals)
●
It is a means to an end, not the end


Conclusion
● ERP systems provide a mechanism for
implementing systems where a high degree of
integration between applications is required
● The Business Case or Value Proposition for
implementation must be outlined
● To successfully implement a proper mix of people,
processes and technology should be maintained


The BI Questions


Business Intelligence Questions (1)
1.Finance & Sales :
● How much revenue do we generate by region, month,route, depot,
vehicle and product category ?
● Which product categories generate the highest revenue and is this
constant over time ?
● How does our performance compare to the total AMDK market ?
● Are we growing faster or slower than our competitors ?
● Reference :
● Finacial KPI, http://www.slideshare.net/thejupaul/financial-key-
performance-indicators?src=related_normal&rel=86961


2.Logistics & Purchasing
● How do our distributors score in terms of product
assortment, price, and delivery performance ?
● How can we further optimize our distribution costs ?
● How much cost we spend for our vehicles from
gasoline, maintenance cost and km dimensions


3.Customer Service
● How many complaints do we handle ?
● What kind of complaints do customers usually have ?
● What's the average case load by service rep ?


4. Marketing and Product Management
● How does the lifetime value of the 100 customers
compare to the bottom 100 ?
● How can we segment our customers based on RFM
(recency, frequency, monetary) analysis ?
● Do we have customer data that can be used to
indicate future profitability or churn ?
● Can we predict future revenues for a new customer
based on existing customer profiles and
characteristics such as zip code, age or gender ?


5. Human Resource Management


References
● Richard Byrom,ERP Implementation
Fundamentals


Q&A

Thanks! ^_^


TIRTA ERP

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