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Functional evaluation of enterprise information systems in cooperatives

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Analysing the evolution trend of ERP. Studying the SMEs sector by. Vendors. Enterprises. Analysing the ERPs by. Functionality. Aspects (eg. Selection criterias) of ... – PowerPoint PPT presentation

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Title: Functional evaluation of enterprise information systems in cooperatives


1
Functional evaluation of enterprise information
systems in co-operatives
  • by
  • Miklós Herdon Tünde Rózsa

2
Content
  • Objectives
  • National Economy Development Plan
  • Survey in the SME sector
  • Survey results
  • The situation in co-operatives
  • ERPs in co-operatives
  • New Hungary Rural Development Programme 2007-2013
  • Consequences and results

3
Objectives of our research
  • Analysing the evolution trend of ERP
  • Studying the SMEs sector by
  • Vendors
  • Enterprises
  • Analysing the ERPs by
  • Functionality
  • Aspects (eg. Selection criterias) of enterprises
  • SMEs in rural areas
  • Agri-food sector

4
National Economy Development Plan (2004-2005)
Number of supported projects
5
National Economy Development Plan (2004-2005)
Value of supported projects
6
Survey among SMEs
  • General questions for enterprises
  • Revenue, number of employee, sector, type of
    activity
  • Questions for information systems
  • Applied information system(s)
  • Type of searching (loging for) IS
  • Used modules
  • Selection criterias of IS
  • Advantages of used IS
  • Expectations
  • Investment, system and implementation cost (ROI)

7
Used modules
8
Function priorities
9
Priorities by functions
10
System selection impacts
Advertisment
Vendor
Recommendation
Internet
11
Selection priorities
12
The co-operatives
  • The farmers have problems in connection with
    marketing, sale and logistics in the agriculture
    sector.
  • The operation of processing integration systems
    is an efficient tool of improving the market
    situation.
  • Partnerships of Production and Sales (TÉSZ)
    representing 12 of the horticultural production
    output.

13
Mórakert Co-operative
  • Fundamental principles
  • The P.O. was established by the Danish and German
    model
  • Their essential aim is to assure the safety of
    market and sale for the producers.
  • This is how they hope to prevent the resident
    population from leaving the region, and build a
    secure financial background for the families.
  • Organization
  • The general assembly is the main body to make
    decisions.
  • The general assembly chooses the 7 person board
    of directors and the president of the board.
  • The internal audit is done by the 5 person board
    of supervisors and the auditor.
  • The managing director is in charge of sales and
    managing the staff.
  • Coperative organization
  • In the scope of self-management the P.O.
    coordinates the economic process from the
    purchasing to the selling.
  • The P.O. is a founding member of a national
    association called HANGYA Cooperation of
    Hungarian Acquisitions,
  • Members
  • At starting in 1995 there were 52 members.
  • Today the vegetable-fruit co-operative has more
    than 700 active members.

14
Processes in co-operatives
  • We can identify the following processes in TÉSZ
    (Co-operative)
  • Main processes
  • Supply process
  • Storing processes
  • Production processes
  • Sales processes
  • Other complementary processes
  • Financial
  • Accounting

15
Network structure
H.6
Shops Supermarkets
H.5
A Consumer network
B Consumer network

Export
Wholesale trade
H.4
Product flow
Trade integrator
Other palers in vegetable-fruit supply schain
Co-op. Co-op integration
H.3
Agri-logistic Integrated System
Other players
Co-op.
H.2
Co-op.
Processing plant
Artificial fertilizer supplier
Grain supplier
Farmer
H.1
Enterprise
Farmert
Farmer
16
Business process
Co-op. Co-op. Integration
Quality mangement
Operative Centre
Equipment
Planning delivery
Receiption
Quality
Farmer
Farmer
Storing
Capacity planning
Forcast
Sale
Farmer
Accesibility
Transport
Inventory management
Investment
Orders
Relations
Production
Barcode, Tracing
Reliability
Finance
Packing
Partner relations
Source Institue of Agricultural Logistic
Transport optimaziation, Forcasts, General
contracts
17
New Hungary Rural Development Programme 2007-2013
  • Vertical integration, partnerships and
    co-operation of producers.
  • Partnerships of Production and Sales (TÉSZ)
    representing 12 of the horticultural production
    output.
  • 200 producer groups with state recognition, and a
    membership of about 12,000 to 15,000 will be
    established in Hungary.
  • Further some 650 Procurement and Sales
    Partnerships (BÉSZ) have also been established in
    Hungary.
  • SME and Logistics Development.
  • FarmerNet Programme
  • Within the framework of this programme,
    agricultural producers are granted with supports
    for the purchase of IT equipment. Any registered
    producer with a farm size exceeding 2 ESU will
    have the opportunity to purchase small IT
    equipment (hardware)

18
Consequences and results
  • According to our survey the most Co-operatives
    havent used ERP system yet.
  • The most used systems are used for book-keeping.
    But based on our experience of other sectors (for
    example in trade sector) the ERP solutions are
    expected to spread.
  • In the future the ERP systems made for SMEs will
    be important resource. That is why this systems
    are used in our education programmes.
  • The agricultural informatics students have to
    learn ERP. In this subject based on their
    earlier studies (operating system, networking,
    database system, software development,
    information system development, etc) they work
    with ERP systems such as CSB, Inforcom and SAP.
  • University of Debrecen and SAP signed an
    agreement to start the UD-SAP Competence Centre.
  • We developed applications to support ERP
    selection and evaluate for SMEs (e.g. ROI
    calculators)
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