this site is individual site for ueh students of information management faculty this site provides some students resources of it courses such as computer network data structure and algorithm enterprise resource planning

– Or can they modify the software to fit the current business model?... What does ERP really cost?[r]

Foundation of ERP

1 What is ERP?

2 How can ERP improve a company's business performance?

3 How long will an ERP project take?

4 Will ERP fix my integration problems?

5 What will ERP fix in my business?

6 Will ERP fit the ways I do business?

7 What does ERP really cost?

8 When will I get payback from ERP—and how much will it be?

9 What are the hidden costs of ERP?

10 Why do ERP projects fail so often?

11 How do I configure ERP software?

12 How do companies organize their ERP projects?

13 Is a "single instance" of ERP better?

14 How difficult is it to upgrade ERP software?

15 Will service-oriented architecture (SOA) replace ERP?

16 How does ERP fit with e-commerce?

17 Can I use ERP to manage a network of foreign suppliers?

What is ERP?

• Enterprise Resource Planning

– Forget about Planning, Resource term

– Enterprise: true ambition

• Integrate all departments and functions

 a computer system

How can ERP improve a company’s

• Order history, Credit rating (Finance)

• Inventory level (Warehouse)

• Shipping schedule (Logistic)

How can ERP improve a company’s

business performance? (cont.)

• Different departments can see the same information and update it

• Reality:

– People don’t like to change

– ERP want to change

  so hard to pin down

– The reality is not so rosy

How long will an ERP project take?

• Short, 3 – 6 months

• Long, 1 – 3 years

• Important thing is

– Not how long

– But need to understand Why and How

Will ERP fix my integration

What will ERP fix in business?

• 5 major reasons:

– Integrate financial information

– Integrate customer order information

– Standardize and speed up manufacturing processes

– Reduce inventory

– Standardize HR information

Will ERP fit the ways I do

business?

• Two questions need to be clear:

– Can you change the business process to accommodate the software?

– Or can they modify the software to fit the current business model?

What does ERP really cost?

• Can not predict ERP cost, because:

– Number of divisions?

– Number of modules?

– Amount of integration?

– Ambition of the project?

• 63 companies are surveyed:

– Lowest: $400,000

– Highest: $300 million

  average: $15 million

What does ERP really cost?

No Size of ERP- system Number of users Cost (USD) Example

1 Large >500 >1.000.000 SAP, PeopleSoft, Oracle, Baan

2

Very big

51 – 500 101.000 – 1.000.000

JD Adwards, JBA, Intentia, IBS

3 Medium 10 – 50 20.000 – 100.000

Scala, Great Plans, Exact, Platinum, Solomon

4 Small 5 – 10 5.000 – 20.000 IRP, Lemon3, Accnet

5 Very small 1.500 – 5.000 Effect, Misa, e-Soft

When will I get payback from ERP?

And how much will it be?

• Optimizing the way things are done

• Belongs to ambition

• Veterans said:

– ERP is more a cost of doing business to

make the company operate more efficiently than something that offers dramatic

payback.

What are the hidden costs of ERP?

• Replacing your best and brightest persons

• Implementation teams can never stop

• Waiting for ROI

• Post-ERP depression

Why do ERP project fail so often?

• Human!?

• Customization make the software more unstable and harder to maintain

• Changing people’s habits easier than

customizing the software

How do I configure ERP software?

• Very hard and complex to do it

• Need IT team

How do companies organize their ERP

project?

• 3 commonly used ways of installing ERP

– The Big Bang

– Franchising strategy

– Slam dunk (embed system)

Is a “single instance” of ERP better?

Is a “single instance” of ERP better?

(cont.)

• Single instance if

– Have fairly commonplace business processes

– Have older systems that need to be replaced

– Have multiple ERP instances from a single vendor

• Integration layer if

– Have unique business processes that can’t be

change

– An existing investment is the best solution

– Want an environment in which it is easy to

integrate new application

How difficult is it to upgrade ERP software?

• Extremely difficult!

Will service-oriented architecture (SOA) replace ERP?

• An SOA is implemented via a

programming interface (API) that allows components to communicate with each other The most popular interface is the use of XML over HTTP, known as "Web services."

• No

How does ERP fit with e-Commerce?

• Not prepare for the e-commerce

• Need to build two channels of access

into ERP system:

– For customers (B2C)

– For supplier and partners (B2B)

• Requires careful planning for integrating ERP and e-Commerce

Can I use ERP manage a network of foreign suppliers?

• Business Intelligence