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ERP (Enterprise Resource Planning)

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Title: ERP (Enterprise Resource Planning) Author: Keith R. Shafer Last modified by: Keith R. Shafer Created Date: 11/3/2003 5:03:52 AM Document presentation format – PowerPoint PPT presentation

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Title: ERP (Enterprise Resource Planning)


1
ERP(Enterprise Resource Planning)
2
Introduction
  • An ERP system is a very useful tool for refining
    a businesses processes. A properly implemented
    ERP system can help a company improve its
    effectiveness and up its profit. There are many
    parts in an ERP system, all of which are designed
    to work together.

3
Objectives
  • Give a general definition of what an ERP system
    is and what it does.
  • Inform you about ERP standards
  • Give examples of businesses using ERP systems
  • Talk about outsourcing ERP applications

4
What is an ERP system?
  • ERP systems are accounting-oriented information
    systems for identifying and planning the
    enterprise-wide resources needed to take, make,
    distribute and account for customer orders.

www.hyperdictionary.com
5
What is an ERP system?(cont)
  • Though ERP is specifically designed around an
    enterprise, resource planning is usable by any
    company or business regardless of size.

6
Are there any standards?
  • Unable to find any world wide standards.
  • Companies/businesses create their own standards
    according to their company.

7
Are there any standards?(cont)
  • Policies and standards and the associated forms
    continue to improve through additions and
    revisions
  • UFL regularly performs updates to its ERP system
    to keep it current and efficient

http//www.ufl.edu
8
What kind of company can benefit from an ERP
system?
  • There are many companies and businesses that can
    benefit from utilizing an ERP system

9
Moret, Ernst Young management consultants
  • Moret, Ernst Young management consultants is a
    large Dutch management and computer consulting
    firm
  • Grew very rapidly in recent years
  • Needed a more efficient way to keep track of
    recruits and new hires

Enterprise Resource Planning (ERP)
10
The MacManus Group
  • The MacManus Group is a global communication firm
    that developed and maintained a myriad of
    customized financial and human resource systems.
  • In 1996 the firm was growing so rapidly these
    systems were no longer sufficient.

11
The MacManus Group(cont)
  • needed a high degree of functionality and
    integration to improve responsiveness both to
    customers and to its own business units
  • The MacManus Group decided to purchase software
    from Peoplesoft

Enterprise Resource Planning (ERP)
12
Sybase Inc.
  • Sybase Inc is a developer of database, middleware
    and desktop-to-enterprise tools
  • They needed a method to reach their corporate
    goal to provide customers with an open,
    adaptable information systems architecture that
    enables the development and delivery of complete
    information solutions that facilitate rapid
    business change

13
Sybase Inc.(cont)
  • Sybase Inc incorporated a software developed by
    PeopleSoft
  • PeopleSofts software seemed perfect to show the
    power of the new Sybase SQL server

14
The federal government
  • Half of all U.S. federal, state and local
    government agencies still rely on such systems,
    and about 70 percent of those are looking to
    implement ERP in the next five years

Feds, States Lean on ERP as E-Gov Pillar
15
The federal government(cont)
  • As citizens become more web-savvy, an increasing
    demand for online governmental services is
    expected
  • People are demanding easier access to
    governmental information

Enterprise Solutions (ERP) for Government
16
The federal government(cont)
  • ERP is an end-to-end solution that can enable
    governments to reduce costs and help you
    streamline your administrative processes while
    maintaining a high level of citizen satisfaction

Enterprise Solutions (ERP) for Government
17
Governments
  • Every week, the governor of Minnesota gets
    13,000 e-mails from the public
  • 75 percent of Australians file income taxes
    online
  • Brazilians vote electronically in all national
    and local elections

ERP Integration Enterprise Portals e-Government
comes of Age
18
Governments(cont)
  • Enterprise portals allow governments to extend
    knowledge management and business processes in
    previously unimaginable ways
  • U.S. General Services Administration implemented
    its GSA Advantage! trading portal and saw an 80
    percent costs reduction

ERP Integration Enterprise Portals e-Government
comes of Age
19
Governments(cont)
  • Integrates legacy systems from formerly
    incompatible silos
  • Enables groups to organize and share information
    from different applications
  • Reduces costs and errors associated with manual
    processes for tagging and indexing with
    integrated search, categorization and
    auto-indexing tools

ERP Integration Enterprise Portals e-Government
comes of Age
20
Governments(cont)
  • Simplification of information access through
    single sign-onto network applications
  • Reduction of training and support costs through
    use of common look and feel interfaces

ERP Integration Enterprise Portals e-Government
comes of Age
21
Governments(cont)
  • Increase in revenues by slashing transaction
    processing and overhead costs, boosting
    efficiency
  • Provision of the highest levels of security to
    enable departments and agencies to collaborate
    and share data seamlessly and safely

ERP Integration Enterprise Portals e-Government
comes of Age
22
Governments(cont)
  • Ability to scale to accommodate growing numbers
    of users to meet even the heaviest traffic loads
  • These key functions serve to provide the user of
    the e-government system endless usability and
    scalability.

ERP Integration Enterprise Portals e-Government
comes of Age
23
Spice of the science club
24
Four main components for starting an e-government
portal process
  • Portal architecture
  • Portal services
  • Portal foundation
  • Integration tools

25
Portal architecture
  • Enterprise portals can be built on intranet,
    extranet or internet web sites
  • Though every portal is a web site, not every web
    site is a portal
  • its basic building blocks are portal services, a
    portal foundation and integration tools

ERP Integration Enterprise Portals e-Government
comes of Age
26
Portal services
  • A personalized presentation layer gives legacy
    systems one look and feel
  • The portal site should have access to all of your
    processes and along with tools to gather,
    organize, refine and disperse data without the
    user needing to know where it came from

ERP Integration Enterprise Portals e-Government
comes of Age
27
Portal foundation
  • The system has to have secure and continuous
    availability.
  • Users get access to all designated enterprise
    applications and information with a single
    sign-on.
  • The sign-on has several levels of access control.

ERP Integration Enterprise Portals e-Government
comes of Age
28
Portal foundation(cont)
  • The different levels have the capability of
    meeting the requirements for top secret
    clearances.

29
Integration tools
  • Integration tools, along with adapters and
    integration servers, ensure effective data
    transfer and enable companies to accelerate
    time-to-market by eliminating the need for
    extensive hand-coding, providing reliable
    connections between mainframe and legacy systems

ERP Integration Enterprise Portals e-Government
comes of Age
30
Key security features
  • An 128-bit encrypted Secure Socket Layer (SSL)
    that meets the most stringent security standards
  • Encryption of all communications between a
    users browser and the portal, regardless of
    physical location, and the ability to store data
    in encrypted form

ERP Integration Enterprise Portals e-Government
comes of Age
31
Key security features(cont)
  • Levels of accountability to match transaction
    importance, with protection ranging from auditing
    to requiring digital signatures
  • Enforcement of workflow security checks and
    balances-for example, providing rules to ensure
    that if one person requests a check, a person
    must approve disbursement

ERP Integration Enterprise Portals e-Government
comes of Age
32
Key security features(cont)
  • Integration with other security frameworks, such
    as Lightweight Directory Access Protocol (LDAP),
    VeriSign and Entrust

ERP Integration Enterprise Portals e-Government
comes of Age
33
Incremental transition
  • Develop a first release of your portal quickly
  • Pilot the portal to a limited audience
  • Implement lessons learned to add features
  • Deploy the portal in stages to larger and more
    diverse audiences

34
Give me a big smile ?
35
ERP outsourcing
  • What is ERP outsourcing?
  • Why would a company outsource?
  • What are the possible negative impacts of
    outsourcing?

36
What is ERP outsourcing?
  • ERP outsourcing is the use of another company,
    especially one specialized in ERP processes and
    procedures, to help improve some or all
    structures of a company.

37
Why would a company outsource?
  • With a predictable monthly payment, a company
    can solve all of the problems of running an
    application.
  • Outsourcing can be a strategic, competitive
    move.

ERP outsourcing Can it meet market demands?
38
What are the possible negative impacts of
outsourcing?
  • such organizations built their reputations on
    upscale IT handholding that could and did
    take over entire data centers including staff.

ERP outsourcing Can it meet market demands?
39
Two major arguments of the outsourcing decision
  • Transaction Cost Theory (TCT)
  • Resource Based Theory (RBT)

40
Transaction Cost Theory (TCT)
  • Organizations compare the production and
    transaction costs for internal and external
    provision.

Rethinking ERP-Outsourcing Decisions
41
Resource-Based Theory
  • Organizations evaluate their own IS resources
    and capabilities in comparison to the market,
    giving consideration to their strategic
    potential. The discovery of deficits within the
    company leads to consideration of market
    utilization with regard to complimentary
    resources and capabilities.

Rethinking ERP-Outsourcing Decisions
42
Outsourcing propositions
  • There are 6 propositions that should help shape a
    businesses structural model

43
Proposition 1
  • The more firm specific the knowledge is to
    perform the tasks within an IS function, the
    higher the risks associated with outsourcing the
    function

Rethinking ERP-Outsourcing Decisions
44
Proposition 2
  • The higher the risks associated with outsourcing
    an IS function, the less this function will be
    outsourced

Rethinking ERP-Outsourcing Decisions
45
Proposition 3
  • The higher the degree of special technological
    knowledge to perform the tasks within the IS
    function, the higher is the perception of
    internal knowledge deficits compared to external
    service providers.

Rethinking ERP-Outsourcing Decisions
46
Proposition 4
  • The higher the perception of internal knowledge
    deficits compared to external service providers
    in performing the tasks within an IS function,
    the more this function will be outsourced

Rethinking ERP-Outsourcing Decisions
47
Proposition 5
  • The higher the risks associated with outsourcing
    an IS function the lower will be the strength of
    proposition 4.

Rethinking ERP-Outsourcing Decisions
48
Proposition 6
  • Ways of risk reduction will lower the strength
    of proposition 1.

Rethinking ERP-Outsourcing Decisions
49
Phases and tasks in the lifecycle of an ERP system
  • The four phases of the ERP system lifecycle
  • Acquisition
  • Implementation
  • Stabilization
  • Operation and Improvement

50
Acquisition phase
  • Define specification
  • Select ERP package

Rethinking ERP-Outsourcing Decisions
51
Implementation phase
  • Define target concept, including a detailed
    description of the business processes to be
    supported
  • Install IT-infrastructure and ERP-software
    package
  • Configure and possibly modify the ERP package
    also documentation

Rethinking ERP-Outsourcing Decisions
52
Implementation phase(cont)
  • Build interfaces to other systems data
    conversion
  • Test and rectify errors
  • Train end-users
  • Roll out and switching to productive operations

Rethinking ERP-Outsourcing Decisions
53
Stabilization phase
  • Rectify errors in ERP system or
    IT-infrastructure
  • Modify business routines
  • Improve systems performance
  • Repeat training or provide additional training

Rethinking ERP-Outsourcing Decisions
54
Operation and Improvement Phase
  • Implement updates or new releases
  • Support users and provide delta training
  • Operate ERP-system (IT-infrastructure and
    ERP-Basis)
  • Continuous process improvement and respective
    system tailoring

Rethinking ERP-Outsourcing Decisions
55
Knowledge categories in the lifecycle of the ERP
system
  • IS-Infrastructure and ERP basic knowledge
  • Programming knowledge
  • ERP-Functionality knowledge
  • Legacy-system knowledge
  • Best practice knowledge
  • Business Process knowledge
  • Usage knowledge

56
IS-infrastructure and ERP basic knowledge
  • Knowledge of technical tasks in the ERP lifecycle
  • Learned through training

57
Programming knowledge
  • Knowledge of the language the ERP system is
    written in
  • Needed to modify the ERP system
  • Learned through handbooks and courses

58
ERP-functionality knowledge
  • This knowledge refers to the functionality
    available in ERP software packages that reflects
    the reference processes depicted in the software

Rethinking ERP-Outsourcing Decisions
59
Legacy-system knowledge
  • This refers primarily to individually customized
    applications
  • Data is often converted or the systems work
    together

60
Best-practice knowledge
  • best standard procedure for business processes
    and the appropriate organizational structure

Rethinking ERP-Outsourcing Decisions
61
Business process knowledge
  • This knowledge includes the unique manner in
    which business processes are performed within an
    individual firm.

Rethinking ERP-Outsourcing Decisions
62
Usage knowledge
  • This category consists of the knowledge
    regarding the correct use of the ERP
    applications.

Rethinking ERP-Outsourcing Decisions
63
Knowledge categories
  • All are required for an efficient ERP system

64
What we covered
  • Definition of an ERP system and what it does
  • Discussed what I discovered about ERP standards
  • Gave examples of some businesses who use ERP
    systems and how
  • Discussed outsourcing ERP applications

65
Im Done ?
  • Please feel free to ask questions
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