PHASES OF ERP IMPLEMENTATION
Initiation – develop business case, project scope,
and implementation strategy
Planning – establish implementation team,
determine goals and objectives, establish
metrics
Analysis and process design – analyze and
improve existing processes, map new processes
to be adopted by the system
PHASES OF ERP IMPLEMENTATION
Realization – install a base system, customization,
and test the system
Transition – replace the formal system with the
new system, data conversion
Operation – monitor and improve system
performance, provide continued training and
technical support
ERP Systems -- Implementation
The success of an ERP solution depends on how quick the benefits can be reaped
from it.
The first step in ensuring a good fit between the organization and the new information
technology that will be used, is for managers to ask and find concise answers as to
the nature of the type of information technology being used in their industry. For
example,
• What type of strategies are being used by industry leaders to increase value? What
type of information systems are being used and how?
• What type of changes to the industry are being predicted, and how are firms
already successfully managing information technology pertaining for these upcoming
changes?
• What are the strategic opportunities to be gained by introducing an ERP system
and are these opportunities applicable to the organization in question?
• Will new systems need to be developed to meet the needs of the industry or are
current software applications adequate?
ERP Systems - The Future
The Internet represents the next major technology enabler,
which allows rapid supply chain management between
multiple operations and trading partners. Most ERP systems
are enhancing their products to become "Internet Enabled''
so that customers worldwide can have direct to the
supplier's ERP system. ERP systems are building in the
Workflow Management functionally which provides a
mechanism to manage and control the flow of work by
monitoring logistic aspects like workload, capacity,
throughout times, work queue lengths and processing times.
Roles and Responsibilities
Marriage of IT and Business:
Business IT
Right idea seeded in a Quality product on-time and
ready organization on-budget
Project Ownership Infrastructure
Keeping things running
Provide business
resources Provide technical resources
Manage the project
Technical implementation
PROJECT MANAGER’S
RESPONSIBILITIES
Project manager responsible
for:
Identifying cost categories
Estimating costs
Managing expenditures
Not responsible for:
Doing a $20M project for $10M
APPLICATION CATEGORIES
ACCOUNTING: Accounting systems help organizations manage their financial
transactions. At its core, it will have a general ledger, accounts receivable, accounts payable, and payroll.
BUSINESS INTELLIGENCE:Business intelligence, as a term, gained
widespread adoption in the late 90’s. However, the technology has existed in some shape or form since
the 60’s. It is used to analyze and report business data to help companies make smarter business
decisions. Core functions include analytics, data mining, reporting etc.
CUSTOMER RELATIONSHIP MANAGEMENT: A CRM
application is used to manage interactions with prospects, customers, clients, and/or partners. It tracks
activity across all departments: marketing, sales and service. Core applications closely align with these
departments. They include sales force automation, marketing automation, and service and support. CRM
aims to increase customers, revenue, and customer satisfaction.
APPLICATION CATEGORIES
HUMAN RESOURCE:Modern HR systems help organizations manage traditional HR
activities such as personnel tracking and benefits administration, as well as new strategic HR initiatives like talent
management, employee evaluation, and learning management.
INVENTORY MANAGEMENT:An inventory management program helps
companies track up-to-date information about their product supply. Its aim is to maintain optimum stock levels so
that companies avoid depreciation of inventory and overspending, and ultimately maximize profits.
MANUFACTURING:we wouldn’t have enterprise resource software if it wasn’t for
manufacturing resource planning system. Today, it’s at the core of many well-known ERP systems. Other
manufacturing applications and/or modules include manufacturing execution systems (MES), bill of materials
(BOM), product lifecycle management and more
SUPPLY CHAIN MANAGEMENT(SCM) application tracks goods as they
move from manufacturing facilities to distribution centers to retail stores. Common applications include: supply
chain planning to adjust inventory as demand changes; supplier management to monitor performance of
suppliers; warehouse management to track placement of goods within a warehouse, and others.
Core Sub System of ERP
•Sales and Marketing
•Master Scheduling
•Material Requirement Planning
•Bill of Materials
•Purchasing
•Shop Floor Control
•Accounts Payable / Receivable
•Logistics
ERP & BPR
• in-depth business process re-engineering (BPR)
study to be done before taking up ERP
• BPR brings out deficiencies of the existing
system
• BPR attempts to maximize productivity through
re-structuring and re-organizing the human
resource as well as the divisions and departments
in the organization
Example of an ERP System
Finance &
Accounts
Production & Centralized ERP Database
Shipping
Material Management Software & Servers
Human
Resource
