1. Enterprise Information Systems and ERP systems
Jing Shao

2. What is ERP System
Letter meaning: Enterprise Resource Planning Systems
Resource: All resources in an organization, including:
capital, equipment, material, intelligence, and so on.
What and how to Plan
Definition : ERP systems is a software solution that addresses the enterprise needs. It takes the process view of an organization to meet the organizational goals and tightly integrates all functions in that organization.

3. Why Enterprise Have to Use ERP Systems
Problems in enterprise information system
1. Data exchange blocks;
Software applications built to run on different operating systems cannot be connected to run together on the same operating system. We need to re-entry data from one system to another system in order to exchange information, thus leading to data inconsistency;
2.   Stove-piped operations and stove-piped systems;

4. Why Enterprise Have to Use ERP Systems
Problems in enterprise information system
(continue…)
Authorization;
It is not always the cast that the more communication, the better organizational performance
business process reengineering.
Examine the business process, question the necessity step by step Q1 Q2
Price and demand curve
Optimistic Q3
Expect
Pessimistic P1 P2 P3
Analyze the
purpose
of those processes
Reengineering steps
Old processes

5. Solution Integrated enterprise information systems ======ERP System
It is a set of communication channels in a business organization, combined together in such a way as to form one network by which information is gathered and disseminated.
======ERP System
Widely integrated information systems covering all functional areas. It integrates database, applications, interfaces, tools, and business process reengineering ( BPR ).

6. ERP Working Theory ERP system Server Network Departments
Customers
ERP system
Server
Network
(data exchange)
Departments
Suppliers

7. What ERP Systems Can Offer to an Enterprise? – Benefits
ERP creates value through
1. integrating activates across a firm,
2. Implementing best practices for each business process
3. Standardizing processes within organizations
4. Creating one-source data
5. Providing on-line access to information
---facilitate better organizational planning,
communication, and collaboration.

8. Advantages and Disadvantages
Factor
Pro
Con
System Integration
Improved understanding
Less flexibility
across users
Data Integration
Greater accuracy
Harder to make corrections
Best Practices
More efficient methods
Imposition of how people do their work
Less freedom and creativity
Cost of computing
More efficient system planned
Changing needs
Under budgeted training expense
Hidden costs of implementation

9. ERP Modules Reasons of designing ERP systems in Modules
1. Obtain specific functionality
2. Cost
3. Implement the system in bits rather
than bring entire massive system online
at one time

10. Degree of module used by companies
M o d u l e s
Module
Degree of module used by companies
Financial and Accounting
91.5%
Materials management
89.2%
Production Planning
88.5%
Order entry
87.7%
Purchasing
86.9%
Financial Control
81.5%
Distribution/logistics
75.4%

11. Market Trend and Vendors
60 percent of Fortune 500 companies had adopted ERP systems before 2000.
The market spending was $13.4Billion in 2003
The predicted market spending is $15.8 Billion in 2008
Vendors:
over fifty vendors, such as SAP, Oracle, Baan, and J.D. Edwards

12. Ways to Developing ERP System
Method
Advantages
Disadvantages
Develop in-house
Best fit with organizational needs
Most difficult to develop, most expensive, Slowest
In house system with vendor supplements
Gain commercial advantages combined with organizational fit
Difficult to develop, Expensive, slow
Best-of-breed
Theoretically gain best of all systems
Difficult to link modules, slow, potentially inefficient
Customized vendor system
Retain flexibility while keeping vendor expertise
Slower, usually more expensive
Selected vendor modules
Less risk, relatively fast, least expensive
If expand, long run time and cost higher
Full vendor system
Fast, less expensive, efficient
Inflexible
Application service provider
Least risk, least cost, fastest, least subject to vendor change
At the mercy of the provider, no control, and subject to price increases

13. ERP System Selection Risks
The cost, time, and risk of an ERP project depends on following factors:
Project management ability;
Experience with this type of environment;
Experience with the programming environment;
Experience with the language or system used;
Familiarity with modern programming practices;
Availability of critical equipment, software, and programming language;
Completeness of project team;
Personnel turnover;
Relative control of project manager over project team.

14. Questions from Last Discussion
How the business processes are modeled in ERP systems ?
2. How ERP system installed in an organization? Is it simple replace old separated operation systems or it can be combined with old systems?
3. How to combine ERP system with business process?

15. Measurement of ERP Project
• Intangible factors
increases in market share
improved customer service
better corporation image
employee satisfaction
supply chain integration
ability to support e-business operation
• Hidden outcomes
change how people do their jobs
• The changing nature of information technology
high dynamic technology and long-term project for implementing ERP

16. ERP Project Management
Cost
time
Tool – Critical Path Method
Right system

17. Critical Success Factors in ERP
1. Clear understating of strategic goals
2. Commitment by top management
3. Excellent implementation project management
4. Great implementation team
5. Successful coping with technical issues
6. Organizational commitment to change
7. Extensive education and training
8. Data accuracy
9. Focused performance measures
10. Multisite issues resolved

18. Open Source ERP Reasons of Choosing open source ERP
1. cost
2. Free redistribution
3. Available source code
Available providers
There are about 20 vendors providing open source ERP systems. For example:
1. Open MFG
2. FISTERRA
3. ERP 5
4. Compiere

19. Compiere Open Source ERP
Architecture
Compiere is a 100% pure Java solution based on Oracle database technology, and it is working on database independence.
client application component is written entirely in Java
The application server component is implemented in Java based on J2EE technology using the JBoss server infrastructure.
Application client --- network application server
HTML network ---- application server

20. Functionality Business processes rather than traditional
departments drive Compiere's design.
Seven Modules:
quote-to-cash, requisition-to-pay, partner relationship management, supply chain management, performance analysis, web store

21. Quote-to-Cash

22. Requisition-to-Pay

23. Customer relations management

24. Partner Relations Management

25. Supply Chain Management

26. Performance Analysis

27. Web Store

28. Thank You