Download - ERP
Topic Presentation:
Group members:Haseem Uz ZamanJawaria HameedMahrukh SheikhMaryam Khan BalochRabab RizviSaroosh Zahid
Thursday, April 13, 2023
E.R.P.
What is an E.R.P.?
Enterprise Resource Planning
“A process or approach which attempts to consolidate all of a company's departments and functions into a single computer system
that services each department's specific needs.”
During the 1960’s, Inventory Control was the main focus.
ERP term first employed by research firm Gartner Group (1990) as extension of MRP
ERP= MRP II + Other Functions
In the 1980's the concept of MRP-II evolved.
ERP systems had a boost in sales in the ‘90s due to the Y2K problem
ERP II-next generation ERP systems
A Brief History of E.R.P.
Why Make the Transition?
Inventory Reduction
Improved Cash Management
Increased Revenue and Profits
Reduced Transportation and Logistics Costs
Reduced Information Technology (IT) Costs
What drives an ERPBUSINESS
Customer satisfactionBusiness development-new areas, products and servicesAbility to face competitionEfficient processes to push the company to top gear
ITPresent software does not meet business needsLegacy systems difficult to maintain, Y2K problem and Euro CurrencyObsolete hardware/software-difficult to maintain
Five major reasons why companies undertake ERP
Integrate Financial Information Integrate customer order information Standardize and speed up
manufacturing processes Reduce inventory Standardize HR
information
Modules Of an ERPCustomer Relationship Management Manages the enterprise's relationship with its customers
Human Resource ManagementStreamlines the management of human resources and
human capitals.
Finance and management Gather financial data from various functional departments
Supply chain management Includes the controlling the direction of resource movement
Sales Implements functions of order placement, scheduling etc
Marketing ERP marketing module supports lead generation, mailing campaign and more.
The six main steps of an ERP project:
• Vendor Selection
• Business Strategy Formation
• Application Configuration
• Testing and End-user Acceptance
• Training
• Rollout
Implementing Enterprise Resource
Planning
ERP systems Implementation Project Organization
The Benefits of ERP Visibility on all operations and future path.
Paperless work environment
Performs ‘what if’ scenarios and analysis
Ability of the Company to Optimize Newer Technologies and
Products
Y2K Compliant Systems without Rewriting Legacy Code
Consolidation and Centralization of Corporate Data
Abundance of Tools and Services
More benefits… Identifying faults and planning improvements
Creates a plan automatically that guarantees there will be no violation of
resource constraints
Provides an ideal platform to perform businesses globally and regionally.
Support and Upgrades from Vendors; better Inventory management
Training
Integration and testing
Customization
Data conversion
Hidden Costs of ERP
Calculating Return on Investment (ROI)
Obtaining Support from Major Executives
and Third Parties
Major Business Process Reengineering (BPR)
ERP Is Cost Prohibitive
Scope Creep
Difficulty of Training End Users
ERP Challenges
Extended ERP
Inclusion of Sales-force Automation Applications
and Supply Chain Management Software
Outsourcing ERP
How ERP Is Evolving
Market Leaders
•SAP and Oracle are the top two ERP vendors
•SAP rank highest by capturing 32%-39% of the market
Market Leaders
Large non-government – most use ERP, Large government – very few use ERP, Medium non-government – 20% approx. Medium government – 5% approx. Small non-government and small government –
near to none.
ERP’s used locally Jaffer Brothers, Mobilink, Shell, IBA, Tapal, Unilever, PIA,
UBL, Civil Aviation, Siemens etc.
Local Perspective
Interview with Jaffer Brothers• ERP uses a single database. Did the database ever crash? And do
you have any backups?
“I have never seen one crash. But we have strong Disaster Recovery Management Plans in place in case of any disaster such as bomb blast, natural calamities, viruses and other network problems.”
• Are people resistant to the new ERP systems? How do you overcome that challenge?
“People are reluctant to use new ERP solutions, which is a natural human behavior. Now for this we have two tools:
• Incentive (Push) approach• Stick (Pull) approach”
Facts on ERP61.25% of ERP implementation projects fail.
50% of ERP software projects are terminated somewhere along the implementation process.
75% are rated poor by the users (of those that are implemented and reached the operational phase)
6% out of 500 companies felt that there ERP systems were effective.
Among 63 companies surveyed the average TCO was $15 million
Questions.