1 Enterprise Resource Planning Dr. Djamal Ziani. 2 CHAPTER 5 ENTERPRISE SYSTEMS ARCHITECTURE.
Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should...
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Transcript of Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should...
![Page 1: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/1.jpg)
Chapter 7 Enterprise Resource Planning (ERP)
![Page 2: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/2.jpg)
Objectives
After studying the chapter, students should be able to..•Explain definition of Enterprise Resource Planning (ERP)•Identify potential benefits of ERP for businesses•Describe characteristics of ERP•Identify ERP implementation • Explain how understanding of ERP contribute the businesses create management innovation.
![Page 3: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/3.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP• ERP Implementation• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 4: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/4.jpg)
Contents
• What is ERP?
• ERP Modules• Potential Benefits of ERP• ERP Implementation• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 5: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/5.jpg)
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What is ERP?
• Enterprise Resource Planning (ERP) systems: Large, integrated, computer-based business transaction processing and reporting systems. (Bozart ^ Handfield: 415)
• ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operation into a single, tightly integrated package using a common database.
“Integration” is the key word for ERP implementation.
![Page 6: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/6.jpg)
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What is ERP?
ERP system model
![Page 7: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/7.jpg)
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Organization: Before & After ERP
What is ERP?
![Page 8: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/8.jpg)
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ERP evolution
What is ERP?
![Page 9: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/9.jpg)
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Characteristics of ERP•Integration•Packages•Assembly Requirement•Best Business Practice•Evolving System
What is ERP?
ERP packages
![Page 10: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/10.jpg)
Contents
• What is ERP?• ERP Modules
• Potential Benefits of ERP• ERP Implementation• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 11: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/11.jpg)
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ERP modules1.Finance and accounting2.Sales and marketing3.Production and materials management4.Human resources
ERP Modules
![Page 12: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/12.jpg)
12Organizational data flows
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![Page 13: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/13.jpg)
13Organizational data flows description
![Page 14: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/14.jpg)
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1. Finance and accounting- financial accounting, investment management, cost control ,treasury management, asset management, etc- providing consistent financial data updated in real time - linking operational results with the financial effects of those result
ERP Modules
![Page 15: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/15.jpg)
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2. Sales and marketing- supporting customer-related activities such as order processing, product configuration, delivery quotation- allowing for profitability analysis (sales module)- reserving inventory for specific customer- billing, invoicing, rebate processing, etc.
ERP Modules
![Page 16: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/16.jpg)
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3. Production and materials management- handing all types of manufacturing processes– M2S, M2O- interfacing with CAD program- allocating resources - scheduling and monitoring production- material management refer to supply chain related activities i.e. purchasing, inventory and warehouse functions, JIT delivery.
ERP Modules
![Page 17: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/17.jpg)
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4. Human Resources- covering all personnel management tasks; workforce planning, employee scheduling, training and development, etc.- providing database of personnel- maintaining salary and benefit structure
ERP Modules
![Page 18: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/18.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP
• ERP Implementation• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 19: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/19.jpg)
Potential Benefits of ERP
Internal Benefits1. Integration of a single source of data
2. Common data definition
3. A real-time system
4. Increased productivity
5. Reduced operating costs
6. Improved internal communication
7. Foundation for future improvement
![Page 20: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/20.jpg)
Potential Benefits of ERP
External Benefits
1. Improved customer service and order fulfillment
2. Improved communication with suppliers and customers
3. Enhanced competitive position
4. Increased sales and profits
![Page 21: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/21.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP• ERP Implementation
• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 22: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/22.jpg)
ERP Implementation
ERP Implementation1. Analysing business processes2. Choosing the module to implement3. Aligning the level of sophistication4. Finalizing delivery and access5. Linking with external partners
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23Major developers of ERP software
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ERP Implementation
Best-of-Breed Approach•Company can pick and choose the modules from different vendors– the best-of-breed approach
![Page 25: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/25.jpg)
ERP Implementation
Areas Implementation Practices
Project Management
link implementation teams to both the technical (IS) and functional departments
Change Management
redesigned jobs call for higher levels of skills and accountability
Technology Excellence
rely heavily on the ERP package as the majority of their application configuration
ERP Implementation areas(APQC Best-Practice Report)
![Page 26: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/26.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP• ERP Implementation• New Development in ERP
• Major Challenges to ERP Implementation
• Summary
![Page 27: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/27.jpg)
New Developments in ERP
• Availability of web-based and wireless ERP systems or so called “On-Demand ERP”
• Adoption of easy-to-install ERP systems
• Linkage to other software systems, e.g., supply chain management system, e-commerce, customer relationship management system
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ERP-SAP
ERP-SAP: linkage to other software systems
New Developments in ERP
![Page 29: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/29.jpg)
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ERP-Microsoft
ERP-Microsoft: linkage to other software systems
New Developments in ERP
![Page 30: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/30.jpg)
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ERP- ORACLE
ERP-Oracle: linkage to other software systems
New Developments in ERP
![Page 31: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/31.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP• ERP Implementation• New Development in ERP• Major Challenges to ERP Implementation
• Summary
![Page 32: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/32.jpg)
Major Challenges to ERP Implementation (1)• Limitations of ERP technical capabilities• Inconsistency with existing business
processes• Costs - implementation (hardware,
software, training, consulting) and maintenance
• Impact on organizational structure (front office vs. back office, product lines, etc.)
• Changes in employee responsibilities
![Page 33: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/33.jpg)
Major Challenges to ERP Implementation (2)• Flexibility of software system upgrades
• Implementation timelines
• Availability of internal technical knowledge and resources
• Education and training
• Implementation strategy and execution
• Resistance to change
![Page 34: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/34.jpg)
Contents
• What is ERP?• ERP Modules• Potential Benefits of ERP• ERP Implementation• New Development in ERP• Major Challenges to ERP
Implementation• Summary
![Page 35: Chapter 7 Enterprise Resource Planning (ERP). Objectives After studying the chapter, students should be able to.. Explain definition of Enterprise Resource.](https://reader033.fdocuments.us/reader033/viewer/2022061517/5697bfac1a28abf838c9b67f/html5/thumbnails/35.jpg)
Summary