1. Enterprise Resource Management(ERM) & ERM Checklist
Lecture 9
Enterprise Resource Management(ERM) & ERM Checklist

2. Learning Objectives Preview What is an Enterprise resource Management?
What is an ERM checklist?
How do this list helps an organization to manage their resources.

3. Preview
One of the toughest challenge facing any company considering an Enterprise Resource Planning (ERP) implementation is managing expectation of software modifications vs. business process reengineering.
An excellent way for an ERP system implementation to fail is to expect the software to be drastically changed to reflect the current business processes.
The best advice to a company that expects the new ERP system to look exactly like its old business system is to stop, save its money, and stay with the old system.
Add the cost to purchase the new system plus the cost of modifying it to the cost and frustration of attempting to implement this mess.
It is essential during the selection phase that the key business processes for your company are reflected in the system selected.

4. Preview
commercial off-the-shelf software has been programmed to reflect identified industry best practices and these best practices can be used as a catalyst for changing the internal business processes.
If every company purchasing the system changes its processes to match the software, then how will the enterprise distinguish itself for competitive advantage?

5. Preview
There must be room in the implementation for the examination of the current business processes and the recommendation of improved business processes. This must be done in the context of the overall company’s strategy. This provides the context for the needed changes in both business rules and technology.
the main ERP focus is on planning but reality is that planning is only one piece of effectively managing the business.

6. Preview
Many companies have embarked on major projects to implement ERP systems with very little to show in the way of actual results.
The reason many of these companies have failed to realize the full benefits of Enterprise Resource Planning is because most organizations are not organized correctly to benefit from the new information tools provided by ERP.

7. Preview
Many of the companies attempting implementation of enterprise-wide systems have run into difficulty because the organization is not positioned for integration.
Departments work to their own sets of objectives. Measurements are functional not global. People are specialists not generalists. Information is spread on many systems and platforms. Systems are often fragmented and there are very few people who have an enterprise-wide view or understanding of the organization

8. ERP is only part of the challenge facing most organizations today.
Preview
It is not good enough to just plan the resources required to run the enterprise. These resources need to be managed as well.
ERP is only part of the challenge facing most organizations today.

9. What is an Enterprise Resource Management
Enterprise Resource Management (ERM) more accurately describes all planning, control, and management functions required to effectively operate the enterprise.
Is your company really ready for an integrated ERM system?

10. What is an ERM Checklist?
The organizational ERM assessment checklist provides a simple and practical reference to determine if a company is ready for the competitive business environment of today and its positioning for tomorrow.
To score your organization on these criteria, review the question and mark your organization’s status on a scale of 0 (not at all) to 4 (completely).

11. ERM Checklist

12. ERM Checklist

13. ERM Score

14. ERM Checklist Observation
This organizational assessment checklist has been developed to aid enterprises in determining if their organization is ready for ERM.
For each of these criteria score an enterprise on a scale of 0 to 4. A score of 0 is where there is no evidence of the characteristic and a score of 4 is where the enterprise is fully compliant.
By critically examining and developing a current score for enterprise, help to determine the readiness of organization to be effective in the implementation of ERM.
If an organization scores 90 points or higher then that organization is well on its way to successfully integrating these sophisticated ERP tools into its business.
If an organization scores less than 90 points this survey will help to pinpoint the areas to target for improvement to get an organization positioned for full utilization of ERP to achieve improved business results.

15. ERM Checklist Observation
In many of the characteristics described in this chapter the first step is adequate education and training.
This is not to say that the educational background of current employees is deficient or lacking. Having a common educational experience that focuses on cross-functional integrated enterprise concepts provides a common framework from which the enterprise can build
The education provides the insight for the affected personnel about the vision of the desired business process and why the company desires to move from where it is today to that vision of the future, while providing insights about consequences in other functional areas.

16. Review Questions
What is an Enterprise resource Management?
How does an ERM checklist helps an enterprise?
What could be the consequences of ERM checklist score on ERM implementation?