ERP (Enterprise Resource Planning) IS 553: Final Presentation Jae Chung

Table of Contents 3.Abstract 4.Historical Background 5.Description: Overview 6.Description: Components 7.Description: Benefits 8.Usage Guide 9.Market Analysis 10.Notes on System Development

Abstract: What is an ERP My presentation is on ERP (Enterprise Resource Planning) Definitions (DMOZ Open Directory Projects) –ERP: is a complete enterprise wide business solutions that attempts to integrate all departments and functions in a company into a single computer system. –ERP system: is a collection of software modules for business areas such as marketing and sales, field service, manufacturing, HR, finance, accounting, and etc. Five main sections in this presentation –Historical Background –Description of ERP (Overview, Components, Benefits) –Usage Guide –Market Analysis –Notes on System Developments

Historical Background s EOQ (Economic Order of Quantity) concerned with inventory control s MRP (Material Requirement Planning) concerned with production line s MRP-II (Manufacturing Resource Planning) concerned with management of factory floor and distribution activities 4.Problem: side effect of MRP-II and departmental computing era (LAN) 5.Emergence of ERP brought “balance to the force” some trend of ERP Integration of information Expanding to all areas of business and other sectors Other Enterprise software Constantly evolving

Description: Overview Overview of ERP Collection of software components that addresses specific business functions Provide a common framework for other enterprise applications Caveats: Integration, BPR and implementation Basic Principles/Philosophy Integration of information Maintenance of information (standard, integrity of data, updates, etc.) Transaction of information (BPR, B-B, strategic advantages)

Description: Components Components Summary Hardware –(Servers, Network devices, OS Platform) Relational Database –(data warehouse, reporting, analytic, SQL interface) Application Software –(Modular architecture, N-tier distributed architecture) Distribution –(Gateways, adapters, batch, multiprocessing, straight through processing) Web Service Interface –(Web server, XML, SOAP) Web Browser –(Client browser) User

Description: Benefits BenefitsDescription OperationalAutomate basic and repetitive operations Standardize data name, type and schemes Improve business process by streamlining multiple processes and eliminating inefficient processes Increase overall efficiency and productivity by as a result of integration of processes ManagerialImprove planning of human and physical resources Improve management of inventory and production line Improve monitoring and control of products, customers, and financial information IT Infrastructure Replace aging, non-integrated legacy systems Reduction in cost associated with maintaining legacy systems Increase overall stability by mitigating risks associated with legacy systems Increase flexibility with new standards and conforming to the current best practices Increase IT staffs knowledge in current technology and general morale StrategicImprove scalability of the system for future growth (add new products, lines of business, accommodate merger and increases in transactions) Better equipped to provide competitive and strategic planning Better equipped to build business innovation and faster delivery of new product to market OrganizationalFacilitating business processes and learning Empowerment of staffs by creating more self-serviced opportunities though a user friendly interface Greater focus by employees on core business activities, Improvement in customers service and marketing efforts

Usage Guide Five Key Success Factors User Acceptance Outline benefits and costs Unwavering upper management support Beware of project timeline Adequate IT staffs and users When to UseWhen to Avoid Integrate Business ProcessesBusiness processes cannot be changed Long term benefits are primary aims Short term cost is more critical Strategic advantagesCorporate culture will not allow big changes Timeline is critical and does not provide such luxury It works, so why fix it?

Market Analysis Past Depression in 2000, 30% decrease in ERP market Today SAP: R/3 system version 4.6 Oracle: version 11i, o PeopleSoft Enterprise version 8.x –JD Edwards: ERP 8.x Sage and MBS Future Gartner predicts 4.5 growth in ERP market through 2007 VendorRevMSVendorRevMS SAP SAP % People Soft (2) Oracle % Oracle PeopleSoft % McKesson Sage % J D Eds. (2) MBS % Misys J D Eds % BaaN (5) GEAC JBA SSA (5)

Notes on System Development Summary Increase in complexity –Developers must understand multiple systems and requires different skill sets Changes in Perspective / Encapsulation layer –IT staffs are now closer to the business processes and problems Faster delivery –Shortens overall time frame to deliver an enterprise system