Enterprise Resource Planning - Presented by Rinkal Hirani Session 2

Session 2 Tangible and Intangible Benefits of an ERP Risks of ERP Risk Mitigation Technologies related to ERP

Tangible Benefits of an ERP Reduced Inventory costs Reduced Manpower costs Reduced Material costs Improved Sales and Customer service Efficient Financial Management

Intangible Benefits of an ERP Accounting Product and Process Design Production and Material Management Sales MIS Function

Risks of ERP People Issues Process Risks Technological Risks Implementation Risks Operation and Maintenance issues

People Issues Change management Internal staff adequacy Project team Training Employee re-location and re-training Staffing Top management support Consultants Discipline

Process Risks Program Management Business Process Reengineering Stage Transition Benefit Realization

Technological Risks Software Functionality Technological Obsolescence Application Portfolio Management Enhancement/Upgrades

Implementation Risks Project Size Length Implementation Time High Initial Investment Unreasonable Deadlines Insufficient Funding Interface Organizational Politics Scope Creep Unexpected Gaps Configuration Difficulties

Risk Mitigation Phased-out approach to migration Sufficient Training Legacy System planning Thorough testing Provide plenty of IT support Develop contingency plan

Technologies related to ERP Business Process Re-engineering (BPR) Data Warehousing Data Mining On-line Analytical Processing (OLAP) Product Life cycle Management (PLM) Supply Chain Management (SCM) Customer Relationship Management (CRM) ERP Security ERP Bolt-ons