Erp presentation
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The document discusses various options for building enterprise resource planning (ERP) solutions, including developing a custom solution internally or externally, or purchasing a commercial off-the-shelf package. It provides details on the steps involved in each option such as selecting software, conducting a gap analysis, customizing or parameterizing the software, training users, and post-implementation support. Key factors for success include top management support, clear requirements, strict schedules, and user involvement.
![BPR & ERP Just automating the existing business practices will not help ERP to achieve the anticipated results because, OO + NT = EOO Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup BPR and ERP will give way to implement new systems and the long pending improvements in the existing systems BPR may be time consuming but the scope can be restricted & controlled by the Management Business Process Re-engineering http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-12-320.jpg)
![ERP – Options OPTION 1 – MAKE [Using Internal resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the in-house IT department OPTION 2 - BUY Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc. OPTION 3 – MAKE [using External resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a software solution provider Enterprise Resource Planning http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-14-320.jpg)
![ERP Product selection Phase ERP Team formation for selection Appointment of Consultants [if needed] Scoping study Product selection Implementation partners selection Hardware/Communication cost estimation Tailor-made ERP solutions http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-21-320.jpg)
![ERP product acceptance - options Adapting directly, all the functions available in the ERP Product [Applicable for startup companies] 2. Change the way the firm does the business to fit the product [Compromising] 3. Customize the ERP product to suit the business Processes. [Customization] Tailor-made ERP solutions http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-25-320.jpg)
![Implementation Phase Conference Room Pilot [Parallel run] Resolving the Parallel run issues Training the end users Live run Tailor-made ERP solutions http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-28-320.jpg)
![Post-Implementation Phase Regular monitoring Tuning [hardware/software] for patching the performance issues Maintenance Tailor-made ERP solutions http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-29-320.jpg)
![Points of Concern Software development vendor selection Requirement/scope finalization [high chances of retaining the islands as it is] Less chances of Value addition Not time tested Chances of Prolonged project duration http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-39-320.jpg)
![The following traits should be considered while selecting the software vendor for building the ERP application Technical expertise Domain knowledge Adequate manpower Project management skills Long existence in the field Extra skills [e-biz & workflow] Software Vendor Selection http://www.open-source-erp-site.com](https://image.slidesharecdn.com/erppresentation-111218003752-phpapp01/85/Erp-presentation-40-320.jpg)
Erp presentation
- 1. E nterprise R esource P lanning (ERP) SOSE! SITE Open Source ERP http://www.open-source-erp-site.com http://www.open-source-erp-site.com
- 2. Presentation - Flow ERP – General Concepts ERP based applications - Options Building ERP solutions using Internal Sources Adapting Tailor-made ERP Solutions Developing ERP applications using External Sources Brainstorming on the Options http://www.open-source-erp-site.com
- 3. ERP General Concepts http://www.open-source-erp-site.com
- 4. ERP – General Concepts What is ERP? The Current Scenario Why ERP? Definition Evolution Expectations BPR & ERP BPR – The Steps Enterprise Resource Planning http://www.open-source-erp-site.com
- 5. What is ERP? facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image ERP is a solution, which Enterprise Resource Planning http://www.open-source-erp-site.com
- 6. The Current Scenario Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software Enterprise Resource Planning http://www.open-source-erp-site.com
- 7. Information Islands B http://www.open-source-erp-site.com
- 8. Why ERP? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival Enterprise Resource Planning http://www.open-source-erp-site.com
- 9. ERP - Definition “ Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform” Enterprise Resource Planning http://www.open-source-erp-site.com
- 10. Evolution of ERP 1960’s - Systems Just for Inventory Control 1970’s - MRP – Material Requirement Planning (Inventory with material planning & procurement) 1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgnt.) Mid 1990’s - ERP – Enterprise Resource Planning (Covering all the activities of an Enterprise) 2000 onwards – ERP II – Collaborative Commerce (Extending ERP to external business entities) Enterprise Resource Planning http://www.open-source-erp-site.com
- 11. ERP – Expectations Integrating all the functions Integrating the systems running in all the locations Transparency of information using a single data source across the organization Software must be responsive Modular Flexible Easy to add functionalities Provide growth path Enterprise Resource Planning http://www.open-source-erp-site.com
- 12. BPR & ERP Just automating the existing business practices will not help ERP to achieve the anticipated results because, OO + NT = EOO Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup BPR and ERP will give way to implement new systems and the long pending improvements in the existing systems BPR may be time consuming but the scope can be restricted & controlled by the Management Business Process Re-engineering http://www.open-source-erp-site.com
- 13. BPR - Steps Business Process Re-engineering http://www.open-source-erp-site.com Step 1 Step 2 Step 3 Understand Simplify/Improve Automate Understand the existing systems associated with all the functionalities Draft & frame the possibilities & ways to simplify or Improve or eliminate the processes Implement with the help of ERP
- 14. ERP – Options OPTION 1 – MAKE [Using Internal resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the in-house IT department OPTION 2 - BUY Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc. OPTION 3 – MAKE [using External resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a software solution provider Enterprise Resource Planning http://www.open-source-erp-site.com
- 15. Building ERP solutions using Internal Sources http://www.open-source-erp-site.com
- 16. ERP – Building using Internal resources – The Facts Lack of adequate & qualified manpower Not driven with clear focus on expectations, time & cost Poor software project management Lack of seriousness with the Management & the IT Team High employee turnover Lot of schedule gaps during Project execution Normally project life is more Frequent change in the scope with the approval of the Management http://www.open-source-erp-site.com
- 17. Tailor-made ERP Solutions http://www.open-source-erp-site.com
- 18. Tailor-made ERP solutions About this option Execution Phases ERP product selection phase Product selection - Parameters Preparation Phase ERP product acceptance - Options Gap Analysis Production Phase Implementation Phase Post-Implementation Phase Pitfalls & Points of Concern Critical Success factors Tailor-made ERP solutions http://www.open-source-erp-site.com
- 19. About Generalized off the shelf application s/w packages Modules based on rich functionalities for all business functions User tested with lot of installations No lead time requirement for software development Tuned for more users/networks with adequate & in- built security Parameterized for flexibility Can sit on latest hardware & software platforms Upgradation of functionalities with version control Tailor-made ERP solutions http://www.open-source-erp-site.com
- 20. Execution phases ERP product selection Preparations Production Implementation Post-Implementation Tailor-made ERP solutions http://www.open-source-erp-site.com
- 21. ERP Product selection Phase ERP Team formation for selection Appointment of Consultants [if needed] Scoping study Product selection Implementation partners selection Hardware/Communication cost estimation Tailor-made ERP solutions http://www.open-source-erp-site.com
- 22. Product Selection - Parameters Reputation of the ERP product No.of installations in the geographical vicinity % of the overall functional availability Customization possibilities After sales support Your investment plan & budget Implementation partner’s track record Tailor-made ERP solutions http://www.open-source-erp-site.com
- 23. Technology Support Costs 5 Strategic Requirement Levels Functionality Goal: To select the Most Suitable Software Package Solution Vendor ERP Product selection Criteria http://www.open-source-erp-site.com
- 24. Preparation Phase Framing ERP Implementation Strategies Formation of Apex & Steering committees Functional & IT team formation Training on ERP functions & features Scope finalization GAP analysis Action plan to resolve the gaps Tailor-made ERP solutions http://www.open-source-erp-site.com
- 25. ERP product acceptance - options Adapting directly, all the functions available in the ERP Product [Applicable for startup companies] 2. Change the way the firm does the business to fit the product [Compromising] 3. Customize the ERP product to suit the business Processes. [Customization] Tailor-made ERP solutions http://www.open-source-erp-site.com
- 26. GAP Analysis This is the process to identity the gaps by mapping the expectations of the company with the capabilities of the ERP product Results of Gap Analysis Directly Supported Workaround suggested Extension required Change in business process – suggested Not full supported Manual – not under the scope of ERP Tailor-made ERP solutions http://www.open-source-erp-site.com
- 27. Production Phase Installing the software & hardware Tuning the software to meet the customization needs Master & Control data arrival as per the Product data structures Location & people specific roles & rights allocation for module access & security Tailor-made ERP solutions http://www.open-source-erp-site.com
- 28. Implementation Phase Conference Room Pilot [Parallel run] Resolving the Parallel run issues Training the end users Live run Tailor-made ERP solutions http://www.open-source-erp-site.com
- 29. Post-Implementation Phase Regular monitoring Tuning [hardware/software] for patching the performance issues Maintenance Tailor-made ERP solutions http://www.open-source-erp-site.com
- 30. Pitfalls & Points of concern Costly comparing to custom-built options Lot of hidden costs Chances of cost & time overrun are high The Level of customization/Indianization Compulsion to pay for redundant modules/features Vigorous involvement of all during implementation Non-availability of special practices like Customer Complaint, Logistics Linking historical data – offline & painful The requirement of Change Management is a must Dependency on outsiders is high IT department – Poor grip on the Implemented systems Tailor-made ERP solutions http://www.open-source-erp-site.com
- 31. Critical Success Factors Tailor-made ERP solutions The firm & optimistic approach of the Management on adapting the ERP product driven methodologies on customization on monetary commitments The dedicated Team Good Training Strict adherence to the Project schedules Right technical infra-structure Change Management http://www.open-source-erp-site.com
- 32. Custom-built ERP Solutions using external resources http://www.open-source-erp-site.com
- 33. Building ERP using Ext.sources About this option The Principle! The Steps Why? Points of Concern Software Vendor selection Critical Success factors http://www.open-source-erp-site.com
- 34. About Here the whole package is designed & built by keeping a specific enterprise & its business Practices in mind by incorporating the improvements/additions with due integration without compromising or changing the current way of doing the business and providing flexibility to accommodate your business fluctuations Custom-Built ERP solutions http://www.open-source-erp-site.com
- 35. The Principle! Custom-Built ERP solutions The best as seen elsewhere, need not be the the best for you. What is your best is what can be successfully implemented http://www.open-source-erp-site.com
- 36. Custom-Built ERP solutions The Steps Software vendor selection Detailed study by the vendor Scope & platform finalization Freezing the commercials Development Hardware addition/upgradation Old master/transaction data migration Parallel run with Integration & connectivity check Implementation Maintenance http://www.open-source-erp-site.com
- 37. Custom-Built ERP solutions Why? Very economical while comparing the cost of implementing tailor-made ERP solutions Less prone for hidden-cost hits The company can opt for its choice of Hardware, Software & communication platforms based on the skill availability The company and the software vendor have the direct relationship during the project execution. The proximity would be high & convenient. IT department has good control over the Project What is required only would be considered under the scope – No redundancy http://www.open-source-erp-site.com
- 38. Why? - Cont. The requisite flavor of E-Biz & work-flow components can be embraced towards value edition The existing practices & applications can be tuned and linked with the proposed package Maintenance & improvements are easy & less costlier. Even IT team can maintain the setup after getting the source code http://www.open-source-erp-site.com
- 39. Points of Concern Software development vendor selection Requirement/scope finalization [high chances of retaining the islands as it is] Less chances of Value addition Not time tested Chances of Prolonged project duration http://www.open-source-erp-site.com
- 40. The following traits should be considered while selecting the software vendor for building the ERP application Technical expertise Domain knowledge Adequate manpower Project management skills Long existence in the field Extra skills [e-biz & workflow] Software Vendor Selection http://www.open-source-erp-site.com
- 41. Custom-Built ERP solutions The Critical Success Factors Clear Vision & support of the Management Capabilities of the software development vendor Scope & Expectations finalization towards meeting the ERP concepts Strict implementation schedules & periodical monitoring The involvement of the IT & functional teams http://www.open-source-erp-site.com
- 42. Planning Collaborative Product Lifecycle Management Design Partners Beyond ERP http://www.open-source-erp-site.com Enterprise Connectivity Key Process Integration via ERP Supply Chain Management Customer Management Supplier Collaboration Consumers and Channels
- 43. Thank You SOSE! SITE Open Source ERP http://www.open-source-erp-site.com http://www.open-source-erp-site.com