IIT 13- Enterprise Apps - ERP(Session 4)

7/29/2019 IIT 13- Enterprise Apps - ERP(Session 4)

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Presented By:

Deepali Bhardwaj


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IIT- Business Information Systems 3

Transaction Processing Systems Business Transactions

Record of events that occur as part of doing business, such asa sale, purchase, deposit, refund, transfer, payment, etc.

Transaction Processing Systems Perform and record daily, routine transactions,

necessary to conduct business

such as a sale, purchase, deposit, refund, transfer, payment,

etc. Tasks, resources, goals are predefined and structured

Example: Sales order processing, payroll, etc

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Types of Transaction Processing Batch processing

On-line processing

Real-time processing

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Business Information Systems TPSAnd MIS

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Enterprise Applications Architecture

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Enterprise applicationsautomate processes that

span multiple businessfunctions andorganizational levels andmay extend outside theorganization.



Enterprise Applications

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SCM SRM CRM

ELM ERP PLM

EAM CPM BIW

SCM: Supply Chain Management SRM: Supplier Relationship ManagementCRM: Customer Relationship Management ELM: Employee Lifecycle ManagementERP: Enterprise Resource Management PLM: Product Lifecycle managementEAM: Enterprise Asset Management BIW: Business Intelligence ManagementCPM: Corporate Performance Management



Enterprise Application Suites

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ERP

SCM CRM

PLC

Consists of various groups of Products or components


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Enterprise Application Suites

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Each product consists ofmodules

Each module is specialized and

connected Entities are shared and data istransferred


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Potential Of Enterprise Applications Enterprise integration

Better decision making

Standardising Systems and Procedures across the

Enterprise Transparency

Best global management practices

Global IS Infrastructure

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Enterprise Resource Planning (ERP) Software application with a centralized database that

you can run your company on and manage companysresources

Suite of integrated software modules and a commoncentral database

Resolves problem of fragmented, redundant data setsand systems

ERP includes analytical tools to use captured data toevaluate overall performance

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ERP Systems

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ERP Software Built around thousands of predefined business

processes that reflect best practices

To implement, firms:

Select modules they wish to use

Map business processes to software processes

Use softwares configuration tables for customizing

Some ERP products:

Oracle Peoplesoft, SAP, SSA Global(BaaN),

Microsoft (Great Plains)

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What problems was BSEencountering as it expanded?



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Good to have management commitment but poorplanning of time allocation led to problems in the dayto day operations

Management decision to extensively customize SAPwhen little knowledge of the product existed

Weak project planning and execution

Converting and cleansing data not planned well

Testing not completed

Training not planned well too early so needed retraining

Delayed decision to upgrade SAP

Management factors responsiblefor these problems



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ERP Customization vs Configuration Difference between Configuration and Customization:

Configuration is the normal set-up of the software, such as

parameters, fields, and workflows. Do not require changes

to the source code. Customization, on the other hand, requires changes to the

source code and also requires a higher level of technical

sophistication.

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ERP Customization vs Configuration

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Customization process

Lack of SAP skills

Poor testing process

Organization factors responsiblefor these problems



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New technology

Certain features not supported

Technology factors responsiblefor these problems



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Potential Of Enterprise Applications Enterprise integration

Operational efficiency

Better decision making

Standardising Systems and Procedures across theEnterprise

Transparency

Best global management practices

Global IS Infrastructure

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Must Remember Levels of customization

Lose leverage of best practices

High cost of management

ERP roll-out transition from old system to newsystem

Training

Focus on change management

Long run ROI

Post-ERP depression (because of performancedegradation)

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If you had been in charge of SAPsERP implementations, what wouldyou have done differently?

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Hidden Costs of ERP Implementation Training Integration and testing

Customisation

Data conversion

Consultants Replacing your best and brightest staff

System may suffer from weakest link problem due toinefficiency of one department affecting others

ROI takes much longer

Post-ERP depression (because of performance degradation)

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Some StatisticsA study of 63 Fortune 500 companies by META

group revealed:

Average time taken for implementation: 23 months

Average Total Cost of Ownership(TCO): US$ 15 M

US$ 300 M for the largest and US$ 400K for thesmallest organization

Drop in business performance in atleast 1 in 4 cases

Drop in performance lasted between 3-9 monthsafter going live

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Some Statistics Other studies reveal:

1/3rd implementation fail to achieve businessbenefits because its was considered an automation

program and not change management program Only 10% ERP projects implemented in time and on

budget

Systems Integration and Change Management

represent 80% of the TCO H/W and S/W represent 20% of TCO

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Documents

IIT 13- Enterprise Apps - ERP(Session 4)