Erwin MoeyaertBelgium

Enterprise Requirement PlanningBusiness Intelligence

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AgendaWhat is an ERP System ?DemoWhat is Business Intelligence ?Demo

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What is ERP

Facilitates Company-wide integrated Information Systems Covering all functional Areas.

Performs core Corporate activities and increases customer service augmenting Corporate Image.

Organizes & Optimizes the data input methodologies systematically.

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The Current Scenario

Islands of informationDifficult to get timely & accurate informationHeterogeneous Hardware & Software platforms &

practicesPoor connectivity between different organizational

locationsSticking with obsolete technologyResist to changeLack of proven man-power to develop integrated

software

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Why ERPFor Management – to know what is happening in

the companyOne solution for better ManagementFor cycle time reductionTo achieve cost control & low working capitalTo marry latest technologiesTo shun the geographical gapsTo satisfy the customers with high expectationsTo be Competitive & for survival

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Definition Of ERP

Software solution that addresses all the needs of an enterprise with the process view of an organization to meet the organizational goals and integrate all the functions of the enterprise

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Evolution of ERP 1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement)

1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.)

Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise)

2000's – ERP II – Collaborative Commerce (Extending ERP to external business entities)

2010 ERP via Internet facilities

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ERP – Expectations

Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single data source across the organization

Software must be responsive Modular Flexible Easy to add functionalities Provide growth path

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Integration of Information Systems

Local purchasing, invoice verification

Inventory managementInternal sales, shipping

and billingProfit/loss Capacity utilization

Information Systems:Project MgmtInventory Purchasing SalesBudget Cash Management

Manufacturing Head Quarters Marketing/Sales

IS messages

Sales, shipping and billing

Purchasing of trading goods

Inventory Management

Customer service

IS messages

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Changes of Customer Information

Customer Representative

Change customer master data

Sales Manager

Schedule customer

visit

Credit Manager

Increase credit limit

Product Manager

Prepareproduction

Please Accept my new order for 1000

more sets

LaunchWorkflow

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Supply Chain

Raw Materials Suppliers

Processing Plants

Assembly Plants

Service Centers (warehouses)

Retail outlets

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Finance Balance sheetCapital Costs

Machines Operating resources Human resources

Purchasing Production Sales. Procurementmarket

Managing Resources

ControlProfit/Loss

Integrated Supply Chain

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Subsystems of ERP

Financial AccountingLogistics and WarehousingSales & MarketingPurchasingAccounts Payable/ReceivableBill Of MaterialsMaster SchedulingMaterials Requirement PlanningCapacity Requirements Planning Shop Floor ControlHuman Resources

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• General Ledger• Financial Reporting• Costing• Budgeting• Accounts Payable• Accounts Receivables• Controlling• Investment Management• Cash Management

Accounting

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Accounting Processes

Operational management level Production of transactions Paychecks, invoices, checks,

purchase orders

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Management Control Processes

BudgetingAnalysis of allocations, expenditures, revenues

Cash managementCash flow analysisWhat-if analysis

Capital budgetingInvestment management

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ERP Financial Accounting Module

External reportingSet by general accounting standardsLegal requirements

Includes accounts receivable subsystemInterfaces with cash managementMonitors accounts and updates, handles payments,

creates due date lists

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Management Accounting Modules

Information on variances between planned and actual data

Key activities

Cost center accounting Internal orders as a basis for collecting and controlling costsActivity-based costing of business processesProduct cost controlling for profitability analysisProfitability analysis by market segmentProfit center accounting of individual areas of organization

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Sales and Marketing

• Lead tracking• Sales forecasting• Customer management• Sales Order management• CRM – Customer Relationship Management

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Sales Process Sales orders.

– Direct sales.

– Pre-sales.

– Rate applications: prices, discounts and price limit controls.

– Reserves of goods in warehouse for unprocessed orders.

Delivery note.

– Automatic creation from pending order lines.

– Automation of the outgoing orders (according to stocks, with rules of priority by expiry, location, etc).

Invoicing process for all types of invoicing:

– immediate,

– delivered goods, order completely delivered.

– Periodically, (weekly, fortnightly, monthly).

Reports of orders, sales order supplied, delivery notes, invoices, orders not invoiced, details of invoicing

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Customer Relationship Management

Provides sales force with management tools

Sales activitySales and territory managementContact databasesLeads generation and monitoringcustomer visit reports Knowledge and information resource management

CRM data accessible through data warehouse

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Enterprise Database

------------------

ProductsPrice

New order

Invoices

Shipments

Inventory

Purchase order

Filled orders

Vendor list

Payables……………etc

List of vendors

Product data

Purchase orderReceived orders

Update record

Order released /Pending

Receipt/Pending Payments

Payable vendor receipt

Payment data

Update dues/payablePayments

Statements /Invoice

Invoice, Dispatch

Purchase orderUpdate vendor

list/rating

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Warehouses and storage binsStock products in multiple unitsPersonalized product attributes in the warehouse (color, size,

quality description, etc.).Lot and serial numbers.Restocking control.Traceability configurable by productMovement among warehouses.Physical inventory. Inventory planning. Continuous inventory.

Warehousing

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Some of the major sub-systems of the production module are:-

Material and capacity planningQuality managementCost managementConfiguration managementEngineering data managementEngineering change controlTooling

Production Management

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Production Planning and Manufacturing Processes

Operational-level processesDaily activities

Purchasing Acquire correct quantity of raw materials and supplies

Receiving Inspection of delivered products and processing

Quality control Monitoring of receivables and identification of unacceptable deliveries Monitoring quality of production goods

Inventory management Maintains appropriate levels

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Material Resource Planning

Processes:

Identify stock neededCalculate lead time for stockDetermine safety stock levelsAssign most cost-effective order quantitiesProduce accurate purchase orders

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Capacity Planning

Evaluation of production capacity against production goalsRequires manufacturing order informationCreates time-phased plans for product and production

areaProduction schedulingEstimates human resource needed

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• Recruiting• Compensation• Assessment• Development and Training• Planning• Payroll

Human Resources

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ERP HR ModulesComponents

HR Management Personnel records Resumes

Benefits administration Links employee data to actual benefits Allows selection from group of benefits

Payroll Paychecks, tax reports, accounting data

Time and labor managementEmployee/Manager self service

Travel reimbursement Personnel data and benefits changes Training class

Advantages Of ERP

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Advantages Of ERP Package

Highly Graphics based User Interface. Zero Down time/ planned down time. Readymade solutions for most of the Problems. Only Customization required. Integration of all functions ensured. ROI earlier than the software developed in-house. Easy enterprise wide information sharing. Suppliers and Customers can be on-line communication. Knowledge transfer between industries guarantees innovation. Automatic adaptation to new technology.

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Embrace New Technologies

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Internet/Intranet enabled

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TransportersTransporters

BanksBanks Vendors Vendors

CustomsCustoms Retailers Retailers

Electronic Data Interchange

EDIElectronic Data Interchange

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Data Warehousing

Business Intelligence

Mountains of Data

From Operational Systems ERP (Enterprise Resource Planning)

Sales/Order Inventory

Customer Relationship Management (CRM)

Web Sites Orders Click-stream

External sources ( Nielsen NIS…)

What is BI?

The process by which an organization

manages large amounts of data, extracting pertinent information, and turning that information into knowledge upon which actions can be taken.

Benefits of BI Improved performance based upon timely and

accurate information Elimination of guesswork Expedited decision making Early visibility of changes:

Customer buying patterns Supply chain activity Financial arrangements

“Single Version of the truth” Accurate, timely data available to all levels of

the organization

To Note:

Although we call it Business Intelligence, the concepts and techniques are applicable to almost any organization including those in health care, biotech, education, government …

BI Activities

BI applications include the activities of: decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

BI Users

There are many different users who can benefit from business intelligence Executives Business Decision Makers Information Workers Line Workers Analysts

MetadataRepository

MetadataDatabas

e

Data QualityRepository

DataQuality

Database

BI Reporting

Predefined Reports

Interactive reports

OLAP

DataWarehouse

ODS

ADS

DataMART

Data Acquisitionand

Integration

Source Data

Operational Application

User

Public Folders

Storage Group

General View BI Actions

Data Flow from Transaction to Warehouse

Simplified Structure

Necessary for Fast, Powerful

Reports

1 - Data Input viaApplications to transaction databases

2 - Data transfer from transaction system to data warehouse via Extract-Transform-Load (ETL) Tool (i.e. Talend)

3 - Data Output via Business Intelligence Tool (OLAP,Jasper Reports)

Some Components In The BI Toolkit Reports (Example)

Commonly needed data can be structured in a set of pre generated reports made available to large numbers of users

Flexibility can be given to users through ad-hoc querying and filters

Cubes (Example) Multi-dimensional, allowing the user the view the data from multiple

angles Interactive, giving the user the ability to change what is viewable on

the fly

Charts & Graphs (Example) Graphical Representation of data Commonly used in presentations and statistical analysis

Dashboards (Example) Actively updating graphical displays that provides business users

with updates on key metrics Some dashboards provide drill through capability, allowing users to

start with summary data and dive in to the details

Report Example

Cube Example

Chart/Graph Example

Dashboard Example

Multi-Dimensional Databases

Measures Any quantitative expression Some are designated as Key Performance Indicators (KPI) Appropriate to the business process.

Dimensions How we describe the measures:

Product/Customer/Region/Time These are the “By’s “What were our Customer Sales by Product Line by Region by

Quarter for the past two years?”.

OLAP

What is OLAP ?

On-Line Analytical Processing Ad-hoc reports Slice & Dice Drill-down (hierarchies) Drill-through (details)

Multi-Dimensional Databases

TimeJanuary

April

March

February

May

February

Margin

Measures

UnitsSales $

Cost

ProductsStrong Cola

Paper Towel

Beef Stew

$6,745

Beef Stew

Margin

“For Beef Stew, show me the margin for February”

OLAP: An Example

BI FutureOne of the fastest growing segments of ITLess likely to be outsourcedMay exist in business units rather than ITKnowledge/understanding of the organization is

the key

Jobs

Economical Jobs Data Analyst

Business Analyst

Functional Analyst

Marketing Analyst

IT Jobs Report Developer

Data Modeler

ETL Developer

Data Architect

Data Warehouse Designer

Data Warehouse Developer

Data Warehouse Administrator

Database Administrator

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