the role of erp for global businesses
TRANSCRIPT
THE ROLE OF ENTERPRISE RESOURCE PLANNING (ERP) FOR EFFECTIVENESS THE OF
GLOBALIZED BUSINESS BY
ASMAMAW MENGISTIEWashington DC, USA
Email – [email protected], 2010
IntroductionWhat is ERP System?•Definition of ERP:
“The ERP is an application that provides a unified system. The different data processes and sources from the different departments of an organization or institution are integrated in one comprehensive system with the ERP software.” Source: ERP 100 Success Secretes, Glen Godfrey2008, P. 55
•ERP refers to a view of a company and all its parts as connected whole, rather than small silos of activity.
IntroductionWhat is ERP Software? “… is a management system that integrates all the different aspects of the business,…”Source: Oracle Apps DBA, Banerjee Joyjeet, 2008.
It is a company-wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores.
•ERP relates to the integrated software infrastructure that supports the entire company business process.
Most Common Modules in ERP
Most Common Modules in ERP Manufacturing • Engineering, • Bills of material, • Work orders, • Scheduling, • Capacity, • Workflow management, • Quality control, • Cost management, • Manufacturing process, • Manufacturing projects, • Manufacturing flow
Most Common Modules in ERP Supply chain management • Order to Cash• Inventory, • Order entry, • Purchasing, • Product configuration, • Supply chain planning, • Supplier scheduling,• Inspection of goods, • Claim processing, • Commission calculation
Most Common Modules in ERP Financials • General ledger, • Cash management, • Accounts payable, • Accounts receivable, • Fixed assets
Most Common Modules in ERP Project management • Costing, • Billing, • Time and expense, • Performance units, • Activity management
Most Common Modules in ERP Human resources • Human resources, • Payroll, • Training, • Time and attendance, • Benefits
Most Common Modules in ERP Customer relationship management • Sales and marketing, • Commissions, • Service, • Customer contact, • Call-center support
Most Common Modules in ERP Access control • System Administrator• Management of user privileges• Developers and other Super Users
Product Name
Microsoft Dynamics
GP
Epicor NetSuite
Sage ERP MAS
Agresso Business World
Infor ERP
SyteLine
SAP Business One
Oracle E-Business Suite
Version 2010 9 2010 7.2 5.5.3 8.01.00 Release 12Price Range $10K-100K $4K -500K $10K-100K $15K-250K 300K+- $25K-100K $25K -
$250K$12K-$350K
User Range 25-500 1-1000+ 10-250 5-400 25-5000 5-350 25-1000 25-1000+
Multi Site Yes Yes Yes Yes Yes Yes Yes Yes Multi National yes Yes Yes Yes Yes Yes yes
Database Platform
MS SQL Server, IBM DB2, Other, Oracle, Proprietary`, Web Based (Saas)
MS SQL Server, Progress, Web Based (Saas)
MS SQL Server, Progress, IBM DB2, Other, Oracle, Proprietary`, Web Based (Saas)
MS SQL Server, Other, ODBC Compliant, Proprietary`
MS SQL Server, Oracle, Web Based (Saas)
MS SQL Server, Progress, IBM DB2, Other, Oracle, Proprietary`, Web Based (Saas)
MS SQL Server, Progress, IBM DB2, Other, Oracle, Proprietary`
MS SQL Server, Progress, IBM DB2, Other, Oracle, Proprietary`, Web Based (Saas)
Server OS
Mac OS, Linux, Windows, Unix, Novell Netware
Linux, Windows, Unix
Mac OS, Windows, Unix, Novell Netware
Windows WindowsLinux, Windows, Unix
Mac OS, Linux, Windows, Unix, Novell Netware
Mac OS, Linux, Windows, Unix, Novell Netware
ERP Application Software Comparison
Source:
WHAT IS GLOBALIZATION
What is Globalization?
WHAT IS GLOBALIZATIONGlobalization Defection:“Globalization refers to those processes that have made the world increasingly interconnected through important technological innovations in transport and communications, facilitating a spread of goods, services, information, capital, labor and knowledge across international boundaries worldwide.”Source: Globalization, Regional Development and Local Responses, Leendert de Bell, 2005
Business Drives for Globalization
• Pressure to exploit new markets• Lower manufacturing costs• Flexibility to ship products• improve customer service• Reduce time from order to fulfillment
Source: Aberdeen Group
Enterprise Resource PlanningERP and
Globalization
Problems of Distributed Applications System
Enterprise Resource PlanningERP
Financials
Fixed Asset
Manufacturing Receivabl
es
HRMPurchasin
g
Projects CRM
Marketing
LogisticsServices MGMT
BI
Supply Chain
Procurement
App. 3
App. 2
App. 1
App. 4
App. 5
Integrated ERP System
Enterprise Resource PlanningERP
Fixed Asset
PayablesReceivables
HRMPurchasin
gProjects
CRM
Marketing
Services MGMT
Procurement
Financial Accounting
Project MGMT
HRM
BIAnalytics
& Reporting
Logistics
Marketing
Service/Maintenan
ce
CRM
Quality MGMT
Supply ChainManufacturi
ng
Sales
Benefits of ERP System for Global Businesses
• The right people (authorized employees) get the right information at the right time and at the right place. (Particularly for global businesses there is no time and place restrictions).•
Enterprise Resource PlanningERP
Benefits of ERP System for Global Businesses
• Single source of truth – Data integrity• Easy for system control - Efficiency• Cost reduction which will result in increase in profit• Better and faster inventory management
Enterprise Resource PlanningERP
Benefits of ERP System for Global Businesses
• Real time operations • Integrated information of all parties (vendors, clients, employees, agents, distributors etc)• Integrated business operation locally and internationally• Process improvement with the use of workflows.• Paperless office environment
Enterprise Resource PlanningERP
What Drives ERP System Implementation for Global Businesses
• Globalization and virtualization• The knowledge economy• Rising customer expectation and business growth rate• Competition•
Enterprise Resource PlanningERP
ERP System Shortcomings for Global Businesses
• Higher initial investment• Integration complexity• Long term implementation phase• Mostly, single vendor dependency
Enterprise Resource PlanningERP