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ERP

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Business blueprint remains starting point. ASP, two models: BPO and 'Safe Harbor' ... Approach BPR HR processes (the Business Blueprint) ... – PowerPoint PPT presentation

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Title: ERP


1
ERP
  • Speaker
  • Gijs Houtzagers
  • Date April, 13 2005
  • Time 10.00 11.45
  • Location Erasmus University, Rotterdam

2
Gijs Houtzagers
  • At this moment Director competence center
    PeopleSoft at Holland Casino
  • Before that international consultant, working
    for various consultancy companies, focused on the
    Human Resource component in information systems
    and ERP

3
Agenda
  • Introduction on ERP systems
  • What is ERP, who are the players
  • Future of ERP systems
  • What is the current situation at Holland Casino
    and how did we get there
  • Case An ERP system is being take over by a
    competitor
  • What are the consequences for the customer
  • What must he do and what not

4
Definition ERP
  • Integrated, automated dispatch of logistic,
    administrative and financial processes.
  • Purpose maximizing efficiency and economy.
  • Ambition B2B or Extended ERP

5
De essence of ERP
6
Porter
creation of Capacity
Reservation of Capacity
Allocation of Capacity
7
Advantages of ERP
  • Efficiency (data is put in once)
  • Abstract of coherence de consequences of local
    decisions become visible for corporate level
  • Speed (for instance for order data entry and
    handling)
  • Cost saving (for instance better management of
    stock)
  • insight in order conduct of customers and other
    marketing essentials

8
Disadvantages of ERP
  • Integration results in dependence of package and
    supplier
  • ERP is very critical the success of the
    implementation reflects directly in the success
    of the company (Atag)
  • Errors have major impact, they are felt
    throughout the whole system
  • inflexibility (you dont replace an ERP system
    very easily)
  • (often) difficult integration issues with
    applications of other suppliers

9
Parts of an ERP system
  • Distribution
  • Manufacturing, assemble to order engineer to
    order make to stock, process batch
  • Project industries en services
  • Service en maintenance
  • Sales
  • Procurement
  • Finance
  • HRM
  • CRM

10
Origin of ERP
  • Most based on production (MRP), later accounting
    was added
  • Human capital in mid 1990 seen as essential part
  • Exception PeopleSoft had HRM as base. Finance,
    SCM and CRM were later added

11
ERP systems in de 20th century
  • 5 power players SAP, PeopleSoft, Oracle, Baan
    and JDEdwards
  • Completely different architectures from open
    (PeopleSoft) to Closed (SAP)
  • Propriety development tools
  • Implementations expensive and tricky
  • New implementation method business blueprint

12
ERP systems in the 21th century
  • 2 power players SAP en Oracle
  • Strive after Services Oriented Architecture
    (integration)
  • Development tools Java
  • Implementation becomes easier by the use of
    migration tools
  • Business blueprint remains starting point
  • ASP, two models BPO and Safe Harbor

13
ERP systems Future
  • Battle for the mid market
  • 2 strategies specific product or scalability
  • Buying market share (recent take over of Retek
    (retail) by Oracle
  • Simplification of application management and ASP
  • Reduction in license fees

14
2003
15
2003 en 2004
16
2005 And further
17
Status PeopleSoft at HC in September 2002
  • Different PeopleSoft versions (7.5.2 en 7.5.0)
  • PeopleSoft HR is used as an archive
  • Numerous HR files and x-time data entry
  • Inefficient HR processes
  • Much customization in HR
  • At HR en ICT very few PeopleSoft skills
  • Different People Tools versions
  • Different Oracle versions (8.0.1 en 8.1.1)
  • Payroll process is not being managed by
    PeopleSoft en for 60 done by hand

18
A mess of initiatives and projects
19
Future vision HR 2002
20
Future vision HR 2003 and 2004
  • Strategy Integral application of HR instruments
    with a focus on business economics. HR must
    become the strategic partner for the board
  • Policies Implementation of competence management
    and integrate it with the appraisal process
  • Management of administration decentralisation of
    data entry, improving efficiency and increase of
    quality

21
The PeopleSoft projects
  • Finance, started on September, 1 2002, live
    April, 25 2003
  • EPM/budgetting started on February, 1 2003, live
    on August, 4 2003
  • HR, Started on December, 1 2002, phase 1 live on
    Jun, 16 2003, phase 2 (competence management, met
    360 feedback and Training management on
    November, 1 2003 and January, 1 2004
  • PeopleSoft payroll process, started on October, 1
    2002, live for testing September, 20 2003, live
    on January, 1 2004

22
Approach rerimplementation HR
23
BPR
24
BPR 2
25
Workflow
26
Letter generator
27
Functionality PeopleSoft HCM 8
28
Functionality PeopleSoft FSCM 8/ EPM 8
29
Approach BPR HR processes (the Business Blueprint)
  • Based on the existing processes reengineering by
    a small group of specialists
  • Mapping against PeopleSoft business model
  • Delegate informs HR management
  • Implementation using workflow
  • Offering of extra functionality for the users
  • Ongoing training and workshops for the users

30
Case
  • The Oracle take over of PeopleSoft en the
    reaction of Holland Casino

31
Oracle Strategy
  • Roll out of PeopleSoft 8.9 in 2005
  • Oracle e-business suite 12 in 2006 based on SOA
    (100 Java) PeopleSoft Enterprise 9 in 2006 (dead
    end)
  • PeopleSoft EnterpriseOne 8.12 in 2006
  • Components FUSION (data hubs en transaction dbs)
    in 2006. All 8.000 developers devoted to it
  • FUSION applications available in 2007. These
    contain minimal the same functionality as the
    Oracle apps of version 12, combined with the
    functionality of PeopleSoft 8.9 (or 9.0)
  • Migration in 2008, automated update

32
Scenarios
  • The rest assured scenario
  • The take it or leave it scenario
  • The Reality scenario

33
Time frame
34
Movements in the market
  • Next PeopleSoft FIN out Coda in
  • Medtronic PeopleSoft HR out SAP in
  • Tabcorp PeopleSoft FIN out Oracle in
  • Camelot has PeopleSoft Fin en HR selected, in 2e
    instance SAP FIN and HR
  • State Delaware PeopleSoft HR out Lawson in

35
Migration
  • EPM Fusion
  • HR Fusion
  • Fin -

36
What is the future offering?
  • Possible the same we have now but probable not
  • Other IT architecture
  • Other company strategy
  • Lot of risks (to early versions, lack of
    integration, no support for current
    customizations, knowledge of application can only
    be found with the product supplier)
  • A lot of costs

37
Is it possible to do nothing?
  • From an application point of view yes, however
  • Windows 2000 is supported until 2005
  • Oracle 8.7.2 is supported until 2005
  • PeopleSoft becomes divergent in the ICT
    department
  • Problems with new rulings (Wet Walvis,
    levensloopregeling, zorgstelsel).
  • Problems with interfaces with other applications

38
Direct consequences
  • No investments in PeopleSoft unless a necessity
    because of rulings.
  • There is a time frame you cannot keep the
    business locked up for too long a period of time.

39
Analyzing the environment
  • Use the network
  • Contacts with other customers, preferably in the
    US
  • Contacts with Partners
  • Give interviews
  • Attend members associations
  • Attend SAP EMEA (Sapphire)
  • Benchmarking with experiences
  • Consult Annalists (IDC, Gartner)
  • Mapping of risks

40
Consequences long term
  • New user interface
  • New functionality
  • New processes
  • Application development
  • A lot of risks

41
Routes
  • Following PeopleSoft/Fusion Oracle version 13
  • Oracle version 11.10/Fusion
  • SAP
  • Microsoft
  • Local products
  • Outsourcing risks (LogicaCMG, TomorrowNow)
  • Primary starting point Prove interface with
    current payroll of payroll in company

42
Next steps
  • Initial scoping sessions
  • Reduction of number of routes (4)
  • Calculation of costs
  • Fit-gap for functionality
  • Choice before January, 1 2006
  • Dependant of choice implementation in 2006 or
    2007

43
Provisional analysis PeopleSoft 8.9- Fusion
44
Provisional analysis Oracle 11.10- Fusion
45
Provisional analysis SAP
46
Provisional analysis local products
47
Decision making
  • Preparation by the competence center together
    with Purchasing
  • Tuning with ICT
  • Proposal to application owners (HR en FC)
  • Tuning with steering committee ICT
  • Proposal to the board

48
Advice
  • Make a decision, for your company, based on as
    many concrete elements as possible, include
    risks, functionality and costs
  • Manage the most major risk and look for the most
    simple solution

49
Mapping of risks
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