ERP Presentation

What are ERP the success factors?What are ERP the success factors?

Why are firms undertaking ERP Why are firms undertaking ERP projects?projects?

What is ERP?What is ERP?

How much does an ERP initiative cost?How much does an ERP initiative cost?

▪ “An initiative launched by organizations to better manage all enterprise-wide business processes using a common integrated database and shared data management applications and reporting tools.”

Definition

1) Integrate Financial Information: ERP ensures that there is aconsist and credible set of financial information since all of thefunctional areas use the same integrated system.

2) Integrate Customer Order Information: ERP provides a singleenvironment from the time the customer places an order untilthe customer receives the order – instead of having orderinformation spread across a number of distinct systems.

3) Standardize and Speed Up Manufacturing Processes: Manyorganizations have found it difficult to manage productionin the current “merger and acquisition” business environment.ERP ensures that a single standardized process is employedresulting in: increased productivity and reduced head count.

4) Reduce Inventory: ERP – along with new IT technologies – hasmade it possible to better manage both supplier side inventoryand retailer side inventories through real-time informationsharing with the firm’s value chain trading partners.

5) Standardize HR Information: ERP allows the firm to betterestimate and track what resources are required to support theirbusiness processes – thus optimizes the firm’s needed workforce.

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

HelpDesk

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard

CustomerBehaviorModeling

Sample PeopleSoft SystemSample PeopleSoft System

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

CRM ModulesCRM Modules

Sample CRM System

-----------------------Marketing,

Sales, Customer Support, and

Telemarketing

BillingOrder

Management

Inventory

Purchasing

Supply-Chain ModulesSupply-Chain Modules

Sample SCM System

----------------------Takes Orders, Fulfills Orders,

Manages Inventory

DemandPlanning

InventoryPlanning

EnterprisePlanning

BillingOrder

Management

Inventory

Purchasing

Supply-Chain ModulesSupply-Chain Modules

SCM often includes Planning Modules

to forecastSales Demand,

Inventory Demand,

Global LogisticsDemandPlanning

InventoryPlanning

EnterprisePlanning

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

Financial ModulesFinancial Modules

Sample Financials------------------------Receives feedsinto AR, AP, GL

to provide reports,Also manages

Assets

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard


Enterprise Data WarehouseEnterprise Data Warehouse Global Data

Repository-----------------------Holds data from

all corporate systems,

provides several ways to deliver

corporate reports, often

provides detailed

analytics, and detailed KPIs.

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard


Sample Flow of Data – Step 1Sample Flow of Data – Step 1

Initiate aMarketing Campaign

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Campaign generates Sales

Volumehandled by the Sales Channels

directly, or through

Telemarketing

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Sales Orderis captured

and processedby the

Order Capturemodule

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



CRM, through an interface, sends the Sales Orderto the Supply-

ChainOrder

Managementmodule

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Through integration, Inventory is

askedto pick/pack/ship

the Orderto the Customer

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Inventory will automatically

generate a sourcing request for more Product

as needed

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Additional Product processing (PO,

receipt, adjustments) will be controlled by

Purchasing,Paying for Product is handled by AP

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Shipped Orderswill be invoiced

through theBilling module

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Collecting payments on

invoices, past due balances, and feeswill be controlledby Receivables

(AR)

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Many modules send financial transactions

through to the General Ledger

for reporting

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



After shipping,Order

Managementwill keep CRM

updated to reflectCustomer activity

GeneralLedger

Payables

Receivables

AssetManagement

Expenses

BillingOrder

Management

Inventory

Purchasing

OrderCapture

SupportSelf-Service

CTIInterface

Support

On-LineMarketing

Marketing

Tele-marketing

Sales

OrderCapture

Self-Service

EnterpriseWarehouse

EnterpriseScorecard

CustomerScorecard



Periodically(perhaps Monthly)

data from all systems

is transferred to theData Warehouse

• The total cost of an ERP Implementation can vary significantly depending upon: 1) The Size and Geographical Distribution of the Company 2) The Size of the ERP Package (How Many Modules?) 3) The Addition of New Hardware to Support ERP 4) The Addition of New Systems Software to Support ERP 5) Consultants’ and Analysts’ Fees (Can be VERY Expensive) 6) Time Required for Implementation (Disruption of Business) 7) Training Costs (Both Time and Money)

• A large company may spend from $50 million to $500 million for an integrated ERP system.

• Meta group did a survey of the Total Cost of Ownership (TCO) of ERP (including hardware, software, consulting) at 63 companies (small through large) in a range of industries and found that the average cost was $15 million. The high was $300 million and the low was $400,000.

• Loss of Top Management Support: Commitment by the firm’s top management to the successful completion of the ERP project decreases over time.• Improper Cost Estimation: Ability of the firm to properly identify the TRUE cost and time commitments that will be required by the firm. MOST ERP projects experience cost overruns!• Realistic Expectations: The assumption that an ERP system will cure fundamental business problems that are not curable by any software application• Select Proper ERP Implementation: Executives do not take enough time for proper analysis of the ERP impact during the project planning phase. (Requirements?)• Cultural Impacts: People throughout the organization resist the changes made to business processes to support new ERP system.• Training Costs: Some firms under budget or skimp on employee ERP system training (People Costs)• IT Customization and Integration: The IT shop is bogged down in ERP integration

1) SAP- Market: 43%- Focus: Solutions with marketing, sales service, and analytics functionality

2) Oracle (PeopleSoft and J.D. Edwards)- Market: 22%- Focus: Products available for the entire market, including 21 vertical markets

3) Sage Group- Market: 5%- Focus: Windows-based ERP product – small business enterprises

How are SCM, CRM, and ERP integrated?How are SCM, CRM, and ERP integrated?

What are the “data points” for What are the “data points” for integratingintegratingSCM, CRM, and ERP?SCM, CRM, and ERP?

■ The close “coupling” or integration of these systems ensures you the businessperson will have the information you need to make timely decisions impacting the overall success of the organization!

Why is SCM, CRM, and ERP Important?

■ An organizational enterprise has many core business processes that must operate smoothly, efficiently, and effectively if the organization is to be successful.

■ An organization can only be competitive in their marketplace if there is a “seamless” and “timely flow of “quality” information between systems.

■ Since each system (e.g., SCM, CRM, ERP) typically relies on information as inputs into their system – it makes logical sense the systems need to be closely “coupled” together.

General Audience and Purpose of the Three Systems:

Data Points Where Three Systems Integrate:

Documents

ERP Presentation