NAME: SYED MUHAMMAD

TALIB

Introduction to ERP

History of organizational systems

Calculation systems
Functional systems
Integrated systems

Calculation systems

1950-80
Single purpose
Eliminate tedious human work
Examples: Payroll, General ledger,
Inventory
Technology used: Mainframes,
magnetic tapes, batch processing

A System/370 Model 145 (1970s)

removable-disk hard drives

Hard drives

A very nice-looking magtape-drive

Magtapes

Batch processing

Printer

800 lines/minute with 48 character

train, 136 columns with 6 or 8 lines
per inch spacing

Stack of Computer Printout Paper

Functional systems

1975-20??
Use computers to improve operations
Applications: Human resources, order
entry, manufacturing resource
planning
Technologies: Mainframes, PCs,
LANs

Minicomputer

Functional Systems

Typically contained within a

department
Islands of automation
Applications independently
developed and deployed
Driving force: availability of minicomputers

Functional system applications

Human resources System

Accounting and finance systems
Sales and marketing System
Operations management System
Manufacturing Systems

Human Resources

Recruiting
Compensation
Assessment
Development and Training
Planning

Accounting and Finance

General Ledger
Financial Reporting
Costing
Budgeting
Accounts Payable
Accounts receivables

Sales and Marketing

Lead tracking
Sales forecasting
Customer management

Operations

Order management
Inventory management
Customer service

Manufacturing

Inventory
Planning

Types of Organizational information Systems

Administrative systems
Scheduling / Transaction systems
Value oriented systems
Reporting and controlling systems
Analysis and information systems
Planning and decision support
systems

Problems with function based application

Sharing of data between systems

Data duplication
Data inconsistency
Applications that dont talk to one another
Limited or lack of integrated information
Isolated decisions lead to overall
inefficiencies
Increased expenses

Solution to disparate systems?

Integration
Consolidation
Right-sizing
Business Process Redesign
Enterprise wide system

ERP - Definition

ERP is a process of managing all

resources and their use in the entire
enterprise in a coordinated manner

ERP system: Definition

ERP is a set of integrated business

applications, or modules which carry
out common business functions such
as general ledger, accounting, or
order management

What is ERP?

Enterprise Resource Planning

Support business through optimizing,
maintaining, and tracking business
functions
Broken down into business processes
HRM
Distribution
Financials
Manufacturing

What makes ERP different

Integrated modules
Common definitions
Common database
Update one module, automatically
updates others
ERP systems reflect a specific way of
doing business
Must look at your value chains, rather
than functions

Benefits of ERP

Common set of data

Help in integrating applications for
decision making and planning
Allow departments to talk to each other
Easy to integrate by using processed
built into ERP software
A way to force BPR (reengineering)
Easy way to solve Y2K problem

Vendors

Difficulty in implementation

Very difficult
Extremely costly and time intensive
Typical: over $10,000,000 and over a
year to implement
Company may implement only
certain modules of entire ERP system
You will need an outside consultant

Common Pitfalls

Do not adequately benchmark

current state
Did not plan for major transformation
Did not have executive sponsorship
Did not adequately map out goals
and objectives
Highly customized systems to look
like old MRP systems

Q&A