Information Systems in Organizations Running the Business: Enterprise Systems (ERP)

What Is ERP? – The central feature of all ERP systems is a shared that supports multiple functions used by different business units. – ERP has expanded to encompass while also handling "front-office" functions such as sales force automation (SFA), marketing automation and ecommerce. – common ERP features include a to enable employees to quickly understand the business' performance on key metrics. – An ERP solution: – Improves financial with regulatory standards and reduces risk. – core business operations such as lead-to-cash, order-to-fulfillment, and procure-to-pay processes.

Wikipedia: ERP Enterprise resource planning (ERP) is a category of software. The fundamental advantage of ERP is that integrated myriad business processes saves.. and. ERP systems track business —cash, raw materials, production capacity— and the status of business : orders, purchase orders, and payroll. Most ERP systems incorporate. This means the software reflects the vendor's interpretation of the most effective way to perform each business process.

What is an ERP system? Business processes that span multiple functional areas Single System Single Database Many modules One copy of data Costs Benefits Risks Integration Partner Executive Support Change SAP, Oracle and Microsoft ?

Remember Swim Lane Diagram? Who does what and when?

Legacy Systems SalesWarehouse Accounting

What kind of non-value added work is created when inventory data or credit data is old? Does your customer view your organization as the “well oiled machine”?

Enterprise System Sales + Warehouse + Accounting How many copies of data do I have? How much better is my decision making with a single copy of all data? How much non-value added work do I eliminate when inventory and credit data are current? How much happier are your customers when they are dealing with the “well oiled machine”?

Can you define these terms? Estimate (Quote) Sales Order Order Fulfillment Invoice Payment Work Order Picking Ticket Packing Slip Purchase Order Item Receipt Vendor Bill Bill Payment Journal Entry Batch Real-Time Mass Update

Exercise On the following slide, identify all of the system interfaces: – What system needs to talk to what other system – One line per data flow

ERP Challenges Adoption – People HATE change! Configuration is extremely complex – Vanilla (config change only) vs. Customization Implementation is extremely complex Costs – Rohm and Haas spend $300 million over a period of three years – What else could they have done with $300 million? Risks – Mega-failures with ERP implementations in the mid-90s – Many companies went out of business as a result Internally focused – Need supply chain and customer relationship management too

Putting the Enterprise into the Enterprise System The biggest problems with implementing ERP systems are problems. Only a is equipped to act as the mediator between the imperatives of the technology and the imperatives of the business. In many cases, the system will enable a company to operate more than it did before. The system’s makes major modifications impracticable. When new information is entered in one place, related information is ___________ updated.

ERP Benefits A single database providing superior, real- time, data-driven decision making Standardizing business processes based on industry best practices – Force business process reengineering Reduced operating costs – Rohm and Haas saved $200 million/year

Leaders in the ERP Space SAP Oracle Microsoft Dynamics New cloud based ERP providers?

SAP ERPSAP CRMSAP SCM

9 Tips for Selecting and Implementing an ERP System Companies that tend to struggle the most [with ERP] are the ones that lack level involvement. Find an ERP system that is, with tools and features designed to solve your business requirements. Identify needs, allowing for sufficient time to develop and deliver training programs. The cost of the is not only writing and testing the code for initial implementation, but providing long-term support of the custom code and treating any customizations as exceptions every time you upgrade your software.

Making it Happen Executive Sponsor Driven by the business, not by IT Requires experts from all of the functional areas Top-tier Integration Partner Training, training, training Testing, testing, testing Don’t cut corners! – It could cost you a fortune – It could cost you your business