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BA 7301 ENTERPRISE

RELATIONSHIP PLANNING

UNIT 1: INTRODUCTION

Prepared and presented by,N. Ganesha Pandian,Assistant professor,

Madurai School of management.

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CONTENTS Overview of enterprise systems Evolution of ERP Risks and benefits Fundamental technology Issues to be consider in planning design And implementation of cross functional

integrated ERP systems

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OVERVIEW OF ENTERPRISE SYSTEMS Enterprise resembles a group of people with a

common goal. It has certain resources at its disposal to achieve the goal.

Enterprise system (ES) is an ideology of planning and managing the resources of an entire organization in an efficient, productive and profitable manner, and is manifested in the form of configurable information system packages.

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INTEGRATED INFORMATION SYSTEM Information system is a set of people,

procedures and resources that collects, transforms and disseminates information in an organization.

“An Information system (IS) can be organized combination of people, hardware, software, communication networks; and data resources that stores and retrieves, transform and disseminate information in an organization”

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ELEMENTS OF INTEGRATED INFORMATION SYSTEM

People Procedure Data

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FUNCTIONS OF INTEGRATED INFORMATION SYSTEM

Collect data Store and process data Present information to

managers/users

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BUSINESS MODELING Business modeling is the activity of representing

processes of an enterprise, so that the current process may be analyzed and improved

Business modeling (creation of business model) is considered as the first activity in any ERP project

A business model describes the rationale of how an organization creates, delivers and captures value.

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ENTERPRISE RESOURCE PLANNING Enterprise resource planning systems (ERP)

are management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company

These typically include manufacturing, logistics, Distribution, inventory, shipping, invoicing and accounting

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CONTD… ERP is the technological backbone of e-

business, an enterprise-wide transaction framework with links into sales order processing, inventory management and control, production and distribution planning and finance.

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EVOLUTION OF ERP Before year 1960 : business has to

depends on classical inventory management of scientific inventory control

In Year 1960 : The concept of ERP was limited to the fact that organizations want to integrate functions and department s to increase revenue

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Year 1970: the focus shifted to material requirement – Material requirements planning systems developed

Year 1980: MRP II (materials requirement planning II) included areas such as project management, shop floor and distribution management

Year 1990: Enterprise wide inter functional co-ordination and integration

Year 2000: Extended ERP came into market which offers extended services

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OBJECTIVES OF ERP Business Integration Flexibility Better analysis and planning

capabilities Use of latest technology

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Feature of ERP

Accommodating variety

Database creation

Supply chain management

Resource management

Seamless integration

Integrated management information

Integrated data model

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ERP STRUCTURE Two-tier Architecture Three-tier ArchitectureAny ERP Architecture has to designed for

three basic functional areas:1. Database 2. Clients3. Application components

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ELEMENTS OF ERP

Repository

GUI Driver RDBMS

Logic server

DB driver

Operating system(UNIX,NT)

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RISKS OF ERP Risk is a problem that has not yet

happened but which could cause some loss or threaten the success of project if it did

Types of risks:1. People risks2. Process risks3. Technology risks

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PEOPLE RISKS People – employees, management, implementation

team, consultants and vendors

Risks related to people:

1. Change management

2. Internal staff adequacy

3. Training

4. Employee relocation and re-training

5. Top management support

6. Discipline

7. Resistance to change

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PROCESS RISKS

Programme management Business process reengineering Stage transition Benefit realization

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TECHNOLOGICAL RISKS Software functionality Technological obsolescence Application portfolio management Enhancement /upgrades

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BENEFITS OF ERP Reduction of lead time On-time shipment Reduction in cycle time Improved resource utilization Better customer satisfaction Improved supplier performance Increased flexibility Decision making capability

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LIMITATIONS OF ERP Expense and time in implementation Difficulty implementing change Difficulty integrating with other

systems Risks in using one vendor Risk of implementation failure

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FUNDAMENTAL TECHNOLOGIES IN ERP

ERPTechnolog

y

Customer relationship manageme

nt (CRM)

Business Intelligenc

e

Supply chain

management (SCM)

Data warehousi

ng

Business Process re-engineerin

g

Product life cycle

management

Online analytical processing

(OLAP)

Data Mining

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BUSINESS INTELLIGENCE The term Business Intelligence (BI)

represents the tools and systems that play a key role in the strategic planning process of corporation

Business intelligence systems gather data from multiple sources and process by means of advanced analytics and reporting supporting decision making

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DATA WAREHOUSING “A data warehousing is subject oriented

integrated non-volatile, time varying collection of data in support of its decision making process”

Characteristics:

1. Subject oriented2. Integrity3. Time variant 4. Non - volatile

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DATA MINING Data mining or Knowledge Discovery in

Database (KDD), is the nontrivial extraction of implicit, previously unknown and potentially useful information from data.

This encompasses a number of different technical approaches, such as clustering, data summarization, learning classification rules, finding dependency networks, analyzing changes and detecting anomalies

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ONLINE ANALYTICAL PROCESSING (OLAP) Online analytical processing (OLAP) is a

method of analyzing data in a multi-dimensional format, often across multiple time periods, with the aim of uncovering the business information concealed within the data

OLAP defined as “The dynamic synthesis, analysis and consolidation of large volumes of multidimensional data”

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BUSINESS PROCESS RE-ENGINEERING (BPR) Business process re-engineering is a fundamental

rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed and service.

BRP defined as “ BRP encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human and organizational dimensions.

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PRODUCT LIFE CYCLE MANAGEMENT (PLM) PLM is a strategic business approach

that applies a consistent set of business solutions in support of the collaborative creation, management, dissemination and use of product definition information across the extended enterprise and spanning from product concept to end of life

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SUPPLY CHAIN MANAGEMENT (SCM) Supply chain management is the

systematic, strategic co-ordination of the traditional business functions and tactics across these business functions within a particular company and across business within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as whole.

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CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CRM (Customer relationship

management) is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create value for the company and the selective customers to create superior value for the company and the customers

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PLANNING AND DESIGN ISSUES1. Use of external consultants 2. Supplier relationship management 3. Business measures4. User training5. Project size6. Length implementation time

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CONTD…7. High initial investment 8. Unreasonable deadlines9. Insufficient funding10. Interface11. Organizational politics 12. Unexpected gaps13. Configuration difficulties

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IMPLEMENTATION ISSUES Expense and time in implementation Difficulty implementing change Customization Difficulty integrating with other systems Risks in using one vendor Risk of implementation failure Management reporting needs Technological challenges

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THANK YOU