Slayt 1 - Ki??isel Sayfalarkisi.deu.edu.tr/mehmetali.ilgin/ERP.ppt · PPT file · Web...
Transcript of Slayt 1 - Ki??isel Sayfalarkisi.deu.edu.tr/mehmetali.ilgin/ERP.ppt · PPT file · Web...
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ERP ENTERPRISE
RESOURCEPLANNING
By İlhan SAĞER 2010503055
INDUSTRIAL ENGINEERING DEPARTMENT OF DOKUZ EYLUL UNIVERSITY
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WHAT IS AN ERP SYSTEM – DEFINITIONS
Simplistic DefinitionERP - Enterprise Resource PlanningDetailed Definition“a business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimising enterprise and inter-enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420)
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ERP – ENTERPRISE RESOURCE PLANNING
PLANNING the RESOURCES of an ENTERPRISE ERP is a way to integrate the data and processes of an organization
into one single system with modules that support core business areas such as manufacturing, distribution, financials and human resources.
ERP allows managers from most or all departments to look vertically and horizontally across the organization to see what they must see (information) to be productive in their managerial roles.
ERP captures data from historical activity and current operations . That data can be transformed into information that, along with external information, is useful in planning and controlling operations, and in developing business strategies.
ERP is evolving into a Multi-Module Application Software Package that automates inter-organizational business processes across the supply chain which involve business partners, suppliers, customers, and more.
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ERP STRUCTURETop Management
Mar
ketin
g
Sale
s
Man
ufac
turin
g
Logi
stics
Finan
ce &
Acc
ount
ing
Info
rmat
ion
Flow
Info
rmat
ion
Flow
Info
rmat
ion
Flow
Info
rmat
ion
Flow
Info
rmat
ion
Flow
Material & Product Flow
Figure 2-2 Information and material flows in a functional business model
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EVOLUTION OF ERP 1960s – Inventory Control 1970s – MRP (Material Requirement Planning).
This system helped in translating the master production schedule into requirements for individual units like sub assemblies, components and raw materials. MRP systems helped determine what to order, how much to order, when to order and when to schedule delivery.
1980s – MRPII (Manufacturing Resource Planning) MRPII supported efforts to optimize the entire plant production system by
supporting capacity planning, shop floor control, and distribution management activities. MRPII was further extended to support areas like Finance, Human Resources, Engineering, Project Management etc. As MRPII like systems were adopted by non manufacturing enterprises like banks and airlines to support cross-functional coordination and integration of business processes, the “M” no longer fit, thus the name ERP was coined.
1990s – ERP Today, ERP is the foundation system for domestic and global business
operations, supporting most or all functional areas in their daily operations. For some organizations, ERP is a source of competitive advantage.
21st century – ERPII ERPII is the name some now use to describe ERP like systems that are
evolving to support inter-organizational business processes across the supply chain.
–.
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System Primary Business Need (s) Scope Enabling TechnologyMRP Efficiency Inventory Management
and Production planning and control.
Mainframe computers, batch processing, traditional file systems.
MRPII Efficiency, Effectiveness and integration of manufacturing systems
Extending to the entire manufacturing firm (becoming cross functional).
Mainframes and Mini computers, real-time (time sharing) processing ,database management systems (relational)
ERPEfficiency (primarily back office), Effectiveness and integration of all organizational systems.
Entire organization (increasingly cross functional), both manufacturing and non-manufacturing operations
Mainframes, Mini and micro Computers, Client server networks with distributed processing and distributed databases, Data warehousing, and mining, knowledge management.
ERPII Efficiency, Effectiveness and integration within and among enterprises.
Entire organization extending to other organizations (cross functional and cross enterprise--partners, suppliers, customers, etc.)
Mainframes, Client Server systems, distributed computing, knowledge management, internet technology (includes intranets and extranets).
IRPEnterprise Suite, or whatever label gains common acceptance
Efficiency, Effectiveness and Integration within and among all relevant constituents on a global scale.
Entire organization and its constituents (increasingly global) comprising supply chain from beginning to end as well as other industry and government constituents
Internet, Web Service Architecture, wireless networking, mobile wireless, knowledge management, grid computing, artificial intelligence.
The Evolution of ERP
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WHY IMPLEMENT AN ERP SYSTEM? To support business goals
Integrated, on-line, secure, self-service processes for business
Eliminate costly mainframe/fragmented technologies
Improved Integration of Systems and Processes
Lower Costs Empower Employees Enable Partners, Customers and Suppliers
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TYPICAL ERP COMPONENTS
E-business PlatformTech Stack
CRMFoundati
on
WebInternet
Mobile Wireless e-Mail Call Center
ICM/TelephonyInteractionChannels
Common Data and Object Models, Security, Interfaces, Globalisation
E-Business Foundati
on
Marketing Sales eCommerceBusiness Applicati
ons
MarketingIntelligence
SalesIntelligence
CustomerIntelligence
Call CenterIntelligence
Analytical
Applications
Interaction HistoryUniversal Work Q
1-to-1 Fulfillment
Assignment Engine
EscalationsTCA
Installed Base
Tasks Notes
Resources
Calendar
Territories
OSS HR
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ERP TODAY Today’s focus seem more to be external as organizations look for
ways to support and improve relationships and interactions with customers, suppliers, partners and other stakeholders.
The focus of ERP in increasingly on Front-Office Applications and inter-organizational business processes, thus making it visible to “OUTSIDERS”
The increasing importance of E-Commerce and Globalization of business makes support of inter-organizational processes more important.
ERP Vendors SAP PeopleSoft Oracle Microsoft Business Solutions SSA Global
ERP vendor products reflect the evolving business needs of clients and the capabilities of IT, perhaps most notably internet related technologies.
ERP helps Organization to improve competitiveness increase profits prosper in the global economy.
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AN ERP SOFTWARE : SAP SAP’s founders had to develop their first software
package at night on their first customer’s computer Computers were not commonly available in 1972
The first software package was referred to by various names, including R, RF and R/1
Between 1978 and 1982, SAP developed a more integrated software package, called R/2 R/2 was still a mainframe computer package
By 1988, SAP had developed R/2 into an international software program and had sold 1,000 systems
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ERP VENDORS Consolidation is currently taking place in the
ERP software business PeopleSoft purchased ERP vendor J.D. Edwards in
2003 Oracle, after a long battle, acquired PeopleSoft in
2005 SAP and Oracle are now the two largest ERP
vendors Microsoft is challenging SAP and Oracle to sell ERP
systems to small- and medium-sized businesses
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ERPII—THE FUTURE OF ERP ERPII is a business strategy and a set of collaborative
operational and financial processes internally and beyond the enterprise
New multi-enterprise business models like Value Collaboration Networks, customer-centric networks that coordinate all players in the supply chain, are becoming popular as we enter the 21st century
These new business models reflect an increased business focus on external integration
There is movement away from Client-Server System to Internet Based Architecture
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NEW TECHNOLOGIES IN ERPII E-Commerce (Electronic Commerce) M-Commerce (Mobile & Wireless Technologies) C-Commerce (Collaborative Commerce) Middleware Enterprise Portal Technologies Web Services RFID Analytical Capabilities (Data Warehousing & Data Mining) CRM, SCM, SRM Knowledge Management Business Intelligence
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DIFFERENCE BETWEEN ERP & ERPII
Keys ERP ERPII
RoleTraditional ERP was concerned with optimizing an enterprise, Internal optimization.
ERP II systems are about optimizing the supply chain through collaboration with trading partners.
Domain ERP systems focused on manufacturing and distribution.
ERP II systems will cross all sectors and segments of business.
Function
As ERP systems cross sectors and segments, they will no longer be able to present all things to all people.
ERP II vendors to pick the industries in which they’re going to play, and focus on providing deep functionality for those users.
ProcessIn ERP systems, the processes were focused on the four walls of the enterprise.
ERP II systems will connect with trading partners, to take those processes beyond the boundaries of the enterprise.
ArchitectureOld ERP systems were monolithic and closed.
ERP II systems will be Web-based, open to integrate and interoperate with other systems that allow users to choose just the functionality they need.
DataInformation in ERP systems is generated and consumed within the enterprise.
In an ERP II system, that same information will be available across the supply chain to authorized participants.
Six key differences between ERP and ERP II Systems
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RETURNS FROM THE ERP INVESTMENT ERP eliminates redundant effort and duplicated data,
resulting in reduced personnel needs ERP systems can help produce goods and services more
quickly, resulting in increased sales volume An ERP system may be required to compete with
competitors who have effectively implemented ERP systems
ERP systems can reduce frustration resulting from the inability to get accurate and timely data
More accurate and timely data can improve external customer relations
The payoff from ERP systems can occur over many years, when other factors may also affect the company, making the return hard to calculate
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CONCLUSION Enterprise systems are evolving because organizations are
changing. To know what the future of ERP holds, one must look to the
changing environment of business and changing business needs.
Systems will evolve to meet the business needs. Based on current trends, these will be increasingly inter-organizational and global.
Inter-organizational systems (ERPII) will pose challenges beyond the ones faced with ERP because of the need to integrate the diverse systems of different organizations.
Global supply chains mean inter-organizational systems that span different cultures and countries. That will bring even greater challenges due to cultural differences, legal issues, and more.
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CONCLUSION ( CONT.) ERP systems provide a mechanism for
implementing systems where a high degree of integration between applications is required
The Business Case or Value Proposition for implementation must be outlined
To successfully implement a proper mix of people, processes and technology should be maintained