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Presentation Topics
• Enterprise Planning
• Introduction to ERP
• Evolution
• Characteristics
• Architecture
• Advantages
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Plan to Perform
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Enterprise Planning
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Wide View of Enterprise Planning
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Evolution of ERP systems
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Evolution of ERP
ERP
Materials Extended
Planning
ERP
Order Entry ERP - II
Scheduling
Distribution
Forecasting Project Management
General Ledger
Capacity Knowledge Management
Accounting Planning Workflow Management
Shop Floor E-Commerce Customer Relationship
Control Management
Warehousing
Human Resource Management
Logistics
Portal Capability
Integrated Financials
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Characteristics of ERP Systems
• Modular Design
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Architecture of an ERP System
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Why implement an ERP System?
• Empower Employees
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Advantages of ERP Systems
• Cost Reduction
• Improved scalability
• Global Outreach
• E Commerce, E business
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Major Features of ERP (1)
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Major Features of ERP (2)
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Sometimes ERP - Implementation
Performance Falls Short of Expectations…
ne e
Zo nc
et a
rg rm
Ta rfo
Pre-ERP Expectations Corrective
Pe
Action
Must Be
Applied
le
Acceptab
nce
Performa Post-
Implementation Improvement objectives:
Realizations
Strategy enhanced and deployed
End to end processes
Pre-ERP Expectations:
Post Implementation Frustrations: continuously improved
People aligned and learning
Integrated business processes
Update legacy/customized ERP design and business processes Stakeholder value measured and
programs unaligned enhanced
Cross-functional efficiencies Manual processes work around system Enterprise Resource
Cost and time savings constraints Management leveraged and
Shareholder value enhanced Transactional complexity improved
Competitive advantage secured Limited managerial reporting Sustain benefits
Timely information Untimely information Optimize business connectivity
Financial benefits fall short of
expectations
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If the end comes without sufficient up
– front planning, you may hear what
we sometimes hear . . .
The
The goal
goal of
of a
a well
well planned
planned implementation
implementation is
is not
not to
to create
create heroes
heroes
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The Five Levers of Change in any
Organization
a te nt
ro
measurement
r
St ls
Alignment
le
Pro
p
Peo
ces
s
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ERP Implementation Lifecycle
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ERP Implementation Lifecycle -
Stage 1-Solution Inquiry
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Best Practices for
Stage 1- Solution Inquiry
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Best Practices for
Stage 1- Solution Inquiry
Other
COO
CTO
CFO
CIO
IT Director
CEO/President
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ERP Implementation
Lifecycle-Stage 2-ERP Approach
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Best Practices for
Stage 2- ERP Approach
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ERP Implementation Lifecycle -
Stage 3 - Package Selection
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Best Practices for
Stage 3- Package Selection
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ERP Implementation Lifecycle –
Stage 4 - Implementation Plan
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ERP Implementation Methodologies
• Modular Implementation
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Implementation Approach
• Organization Structure
• Map Organization • Design Specification
• Map Business Processes • Process Flow Diagrams
Design & • Define Functions and Processes
Customization • Function Model
• ERP S/w Configuration • Configuration Recording
• Build ERP System Modifications • Systems Modification
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Implementation Time
Size of
Business
Scope Of
Processes
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Best Practices for
Stage 4 - Implementation Plan
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ERP Implementation
Lifecycle - Stage 5 - Sandbox
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Best Practices for
Stage 5 - Sandbox
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ERP Implementation Lifecycle -
Stage 6 - Design & Deployment
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Best Practices for
Stage 6- Design & Deployment
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ERP Implementation Lifecycle -
Stage 7- ERP Integration
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Best Practices for
Stage 7- ERP Integration
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ERP Implementation Lifecycle -
Stage 8 - IT Infrastructure
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Best Practices for
Stage 8 - IT Infrastructure
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ERP Implementation
Lifecycle - Stage 9 - Operations
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Best Practices for
Stage 9 - Operations
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ERP Implementation Lifecycle -
Stage 10 - Extending the Enterprise
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ERP Implementation Lifecycle -
Stage 10 - Extending the Enterprise
Others
CTO
COO
CIO
CEO/President
IT Director
CFO
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Current Enterprise Applications
Environment
Combination of
standalone &
bespoke packages,
Mainly based on
Combination of 3%
integrated ERP
integrated and packages,
bespoke packages, 44%
11%
Combination of integrated
and standalone packages,
21%
Mainly based
on bespoke Mainly based on
applications, standalone packages,
14% 7%
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Enterprise/ERP Systems Usage
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ERP Implementation Quality
Information is Information is
targeted or generally available,
personalized for but managers need to
specific identify which
functions/managers, elements are
29% relevant, 44%
Other, 7%
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Top Ten Reasons
ERP Implementations Fail
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Top Ten Reasons
ERP Implementations Fail
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