1. Defining the Purpose of ERP
Paulo de Matos
SYSPRO Business Development Executive

2. Why the need for ERP systems
Functional areas are interdependent
Each requires data from the others
Enterprise Resource Planning (ERP) programs: Core software used by companies to coordinate information in every area of business
Help manage company-wide business processes
Use common database & shared management reporting tools
Allows all functional areas to share a common, INTEGRATED database
Allows accurate, real-time information to be available
Modular

3. Primary Purpose of ERP
Money $$$ (Economic Theory)
Facilitation of trade (Exchange)
Store of Value (Wealth)
Measure or Index (Price, Worth)
“The delivery vehicle for a company to be able to get its goods and services to market.”

4. Paulo de Matos SYSPRO Business Development Executive
Benefits of ERP
Paulo de Matos
SYSPRO Business Development Executive

5. Benefits of ERP Systems
Elimination of redundant data and communications lags
Data integration (data entered once into ONE database & then used throughout the organization)
More efficient business processes that cost less than those in unintegrated systems
Easier global integration (integrates people & data while eliminating the need to update and repair many separate computer systems)
Allows management of operations, not just monitoring
Use of best (right) practice
Can reduce costs & improve operational efficiency

6. Management Factors for ERP
Paulo de Matos
SYSPRO Business Development Executive

7. Management Factors for ERP…
Companies had unintegrated IS that supported only the activities of individual functional areas
Silos of information limits the exchange of information
Functional model led to top-heavy and overstaffed organizations incapable of reacting quickly to change
Companies shift focus from a functional focus to a business process focus
Development of a vision of integrated IS
Y2K issues
Compliance with the Sarbanes-Oxley Act of 2002
Requires internal controls on all information

8. Management Factors for ERP…
Figure 2-2 Information and material flows in a functional business model (Source: Monk and Wagner 2013)
Marketing
Sales
Manufacturing
Logistics
Finance & Accounting
Information Flow
Top Management
Material & Product Flow

9. Management Factors for ERP
Figure 2-3 Information and material flows in a process business model (Source: Monk and Wagner 2013)
Suppliers
Customers
Top Management
Finance & Accounting
Accounts Payable
Accounts Receivable
Marketing & Sales
Procurement
Logistics
Manufacturing
Information Flow
Supplies
Storage & Shipping
Conversion
Material & Product Flow

10. Technological Factors for ERP
Paulo de Matos
SYSPRO Business Development Executive

11. Technological Factors
Software enhancements (DBMS; EDI) support integration
Manufacturing software developed during the 1960s and 1970s
Evolved from simple inventory-tracking systems
To…
Material requirements planning (MRP) software
A software based production planning & inventory control system used to manage manufacturing processes
MRPII (Manufacturing Resource Planning) systems
ERP systems (1990 ->)
Materials planning
Order entry
Distribution

12. Paulo de Matos SYSPRO Business Development Executive
The Evolution of ERP
Paulo de Matos
SYSPRO Business Development Executive

13. The Evolution of ERP…
ERPII
2010

14. The Evolution of ERP
"ERP II" was coined in 2000 in an article by Gartner Publications entitled ERP Is Dead – Long Live ERP II. 
It describes web-based software that provides real-time access to ERP systems to employees and partners (such as suppliers and customers). The ERP II role expands traditional ERP resource optimization and transaction processing.
ERP II leverages information in the resources under its management to help the enterprise collaborate with other enterprises. 
ERP II is more flexible than the first generation ERP. Rather than confine ERP system capabilities within the organization, it goes beyond the corporate walls to interact with other systems.
ERPII
2010

15. Business Processes, Functions & ERP
Paulo de Matos
SYSPRO Business Development Executive

16. Business Functions vs. Processes
Business functions: Activities specific to a functional area of operation
Business process: Collection of activities that takes one or more kinds of input and creates an output that is of value to a customer (internal or external). Looks at organization from customer’s perspective.
Integrated data leads to more efficient business processes
Integrated IS: Systems in which functional areas share data. Better integration leads to improvements in communication, workflow, and success of company

17. Functional Areas
Most companies have four primary functional areas of operation:
Marketing and Sales
Supply Chain Management (SCM)
Finance and Accounting
Human Resources (HR)
SCM consists of the procurement, manufacturing and logistics functions

18. Functional area of Operation Supply Chain Management (SCM)
Functional Areas of Operation
Functional area of Operation
Marketing & Sales
Supply Chain Management (SCM)
Accounting & Finance
Human Resources
Business Functions
Marketing of a Product
Purchasing goods & raw materials
Financial accounting of payments from customers & to suppliers
Recruiting & hiring
Taking sales orders
Receiving good & raw materials
Cost allocation & control
Training
Customer support
Transportation & logistics
Planning & budgeting
Payroll
Customer relationship management
Scheduling production runs
Cash-flow management
Benefits
Sales forecasting
Manufacturing goods
Government compliance
Advertising
Plant maintenance
Figure 1-1 Examples of functional areas of operation
(Source: Monk and Wagner, 2013)

19. Functional area responsible for input
Business Processes
Input
Functional area responsible for input
Process
Output
Request to purchase computer
Marketing & Sales
Sales order
Order is generated
Financial help for purchase
Accounting & Finance
Arranging financing in-house
Customer finances through the computer company
Technical support
24-hour helpline available
Customer’s technical query is resolved
Fulfilment of order
Supply Chain Management (SCM)
Shipping & delivery
Customer receives computer
Figure 1-2 Sample business processes related to the sale of a PC (Source: Monk and Wagner, 2013)

20. Material Order Process Customer Order Process
Business Process Example
Sales
Function
Accounting
Production
Purchasing
Logistics
Material Order Process
Customer Order Process
Figure 1-3 Example of a process view of business
(Source: Monk and Wagner, 2013)

21. Paulo de Matos SYSPRO Business Development Executive
Business Process Management or Modeling for ERP Selection, Implementation and Maintenance
Paulo de Matos
SYSPRO Business Development Executive

22. Business Process Management (BPM) or Modeling
Role in Implementation
Role in ERP System Selection
On-going Role?
Further Uses – ISO, Standard Operating Procedures (SOP), On-boarding, Change Management
“Business Process Management or Modeling (SYSPRO Process modeling – SPM) should be your go-to framework for ERP systems selection and implementation.”

23. Challenges in Implementations
Excessive customisation
Dilemma of internal integration
Poor understanding of business implications and requirements
Lack of change management
Poor data quality
Misalignment of IT with business
Hidden costs
Limited training
Lack of top management support