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7/31/2019 B. Session8 Large Scale Integrated Applications v2
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Executive MBAEMBA 103 Information Management
SESSION 8:
Large Scale Integrated Applications
JP Kawalek
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Purpose
To consider the current status of modern business
technologies To identify the future of integrated applications thatcross functions and organisations To demonstrate the ease and accessibility of the newtechnologies, juxtaposed with its huge organisational
impact To consider the implementation implications of largescale integrated applications
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HumanBusinessProcesses
SoftwareFunctionality
BackendDatabasestructure
Stock control
PurchasingLedger AccountsHRResource PlanningCRM
Services Services
Enterprise Resource Planning has beenconcerned with integration of internalfunctions.
ERP2 integrate the internal with suppliers and
customers across the supply chain.
ERP and its relationship with the domain of
Information Systems
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What is an ERP?
Serves as the information backbone for a given
organisation Standard software that automates some key aspectsof
the basic processes of an organisation
Addresses standard business functions
finance, manufacturing, logistics, accounting, humanresources, etc.
Eliminate islands of automation
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An example
Sends pick towarehouse
Adjusts inventory
Updates Accounts
Requisitions
part
Place order
Enter data
One time
At one placeAt the source.
For use
In many placesAt many timesReal time
FinancialsHuman ResourcesSales and
Distribution
ManufacturingMaterials ManagementLogistics
Reporting
Typical modules
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One Integrated Database, held on one or more servers
Releases P.O. atReorder Point
Posts to demand
forecast
Sends pick towarehouse
Adjusts inventoryDebits OPTAR
Requisition
s part
Updatesconfiguration
data
Arrangestransportation
Ships carcass
Initiates
maintenance action
Updates costaccounting
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SAP is the world leading ERP provider.
SAP is the company name and the product name
Systems Applications and Products in Data Processing Founded in 1972 in Mannheim, Germany
Worlds third largest independent software vendor
Global market leader in collaborative, inter-enterprisebusiness solution
Trades on the Frankfurt and New York stockexchanges
Employs nearly 44,000 staff
More than 12 million users worldwide
121,000 installations worldwide
46,100 customers in 120 countries
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Open Source nearest equivalent is OFBIZ
See http://ofbiz.apache.org/
As in any ERP, it integrates the key functions of anorganisation (sales, order processing, purchasing, accounts,manufacturing, HRM, CRM, marketing, project management,workflow, facilities management etc), e.g.https://www.bizwizzz.com:8602/accounting/control/main
Includes a web-shop for sales across supply chain (B2B and
B2C) e.g.http://www.bizwizzz.com:8604/ecommerce/control/main
Utilises the Universal Data Model (UDM)
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Quick tour of OFBIZ ERP
Below are some screen dumps for reference.
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ERP2Crossing the traditional organisational
boundaries
Web shop integrates B2C, or certain types B2B transactionsB2B matures as the integration of the databases occurThere is great potential in developing universal data models
that can be used up and down the supply chain, which is theultimate in the integration of IT across the organisations
involved.
The UDM, as implemented by OFBIZOFBIZDataModel.pdf- UniversalDataModel.GIF
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Gaining competitive advantage via supply
chain management
Dell pioneered the mail order approach to selling PCs
In 1993, Compaq cuts prices to drive Dell out of the market.Dell experiences $65 million in losses.
Dell implemented based on the following principles:
mass customization
just-in-time marketing
electronic orders & shipments e-collaboration with major buyers
reduction in testing period
monitoring of productivity & returns on investments
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Supply Chain (cont.)
In 1996, Dell began selling computers via its web site.
In 2001, Dell made over $4 million in computer web sales/
day.
Becomes leader in Customer Relationship Management
(CRM)
Online tracking of orders & shipments Viewer approved configurations and pricing
Customized home web pages for clients.
Increased communication with suppliers.Around 2002, Dell becomes the number onePC seller in the world and is a leader inmanagement & profitability.
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Supply Chain
By introducing a new business model, one can change themanner in which business is done.
To implement this model on a large scale, one needs to buildsuperb supply chain management.
Another major success factor in Dells plans was theimprovements made in its logistics system along the entire
supply chain.
Improved communications and customer service, which arepart of Dells CRM program, are the cornerstones of its success.
Dell was using e-Commerce with its business partners.
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Estimated time line for implementing OFBIZ
Software could be implemented in as little as 3 hours. Adaptations to the software might last months, to make it fit for
purpose. Updating the data, and integrating with business processes wouldprobably take about 1 year for an SME.
It is not the technology that presents the challenge, it is the other
stuff hence, in recent years there has been a greater focus on, e.g.(i) processes, analysing efficiencies, effectiveness, integration, controlstructures etc,(ii) change management, helping people work differently(iii) intervention in a wider sense, rather than just focused on thetechnology.
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Oops! Where Did All The Money Go?
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ERP implementations
A full-blown implementation in a large organizationcan exceed 100 million
An average implementation costs 10 million andtakes months to complete
More than 70% of companies experience some degreeof implementation failure
Success28%
Challenged49%
Failed23%
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Management of Change
Holistic change management needed: not just technologychange
Needs senior project sponsor/CEO Inadequate IT & project (change) management skills in-
house to succeed?
Implementation team members must be good
ControlControl of suppliers?IS competency?Requires BPR driven rather than IT
technologists in control?Tricky to manage consultants, particularlyif they are from more than one company
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Critical Success Factors(1) Top management support(2) Project team competence(3) Interdepartmental co-operation(4) Clear goals and objectives(5) Project management(6) Interdepartmental communication(7) Management of expectations
(8) Project champion(9) Vendor support
(10) Careful package selection
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Lecture Learning Task
Consider the value to your client organisation, of an
ERP Web-shop Supply Chain integration (e.g. via ERP2)
Justify your answer.