ASIA-Module 1

A Business Function or Goal

- An organization has two choices when implementing ERP: change business processes to match the software's functionality or modify the ERP software. - The consequences of selecting either option have a long-term impact on the organization in terms of its bottom line and the performance of its employees, customers, and other stakeholders. - Vendors assert that they have embedded the "best practices or leading practices" of a business process in their software. - ERP system "as-is" (aka. vanilla implementation), disruptions will occur with the functioning of the organization.

business process reengineering

- It is best to make it clear to clients and users that processes will need to be changed, adjusted, or adapted as the ERP system is implemented.

ERP Vendors

- among ERP vendors has become fierce, and mergers and acquisitions have become the latest trend. The key ERP vendors (i.e., SAP, Oracle, Microsoft, and Infor) are likely to hold on to their 46 percent of the ERP applications market.

Logical Architecture

- focuses on supporting the requirements of the end users.

Change Management

- is essential because it prepares an organization for changes to how its business is done.

Business process management (BPM)

- is the understanding, visibility, and control of business processes. - BPM has a prescribed process or methodology that should be followed to help an organization document their business processes and understand where they are being used throughout their business. - The initial stage of BPM is to create an "as-is" process map that defines the current process. - The as-is process is then used as a baseline for determining where the process may be improved.

Web enabled

- meaning that they work using Web clients, making them accessible to all of the organization's employees, clients, partners, and vendors from anytime and anyplace, thereby promoting the BUs' effectiveness.

Change Management

- was historically always thought of as important, but it was rarely funded or staffed appropriately.

Project Management

-the glue that holds the project together.

3 Levels of ERP Implementation

1. Functional 2. Technical 3. Organizational

2 Types of Architecture

1. Logical Architecture 2. Physical Architecture

ERP Components

1. Server (Hardware) 2. Software (Operating System) 3. Company Processes (procedures and policies) 4. Database 5. People (end users and IT staff)

3 Levels of Management

1. Strategic 2. Middle or Mid-management 3. Operational

ERP Components Integration

1. User 2. ERP 3. Database 4. Operating System Components 5. Hardware Infrastructure

False (is not a onetime)

ERP implementation is a onetime implementation. It requires a continuous cycle of product release and support.

1990's

Enterprise Resource Planning - Mainframe client-server systems using fourth generation database software and package software.

2000's

Extended ERP or ERP-II - Client-server systems using Web platform, open source with integration to fifth generation applications like SCM, CRM, SFA.

1960's

Inventory Management & Control - Mainframe legacy systems using third generation software- (Cobol, Fortran)

1970's

Materials Requirements Planning (MRP) - Mainframe legacy systems using third generation software - (Cobol, Fortran)

1980's

Materials Requirements Planning (MRP-II) - Mainframe legacy systems using fourth generation database software and manufacturing applications.

Vanilla or as-is

Most purchased ERP systems today are minimally modified to protect the investment in the system.

Project Management Triangle

Resources Time Scope

ERP Vendors

SAP ORACLE INFOR MICROSOFT LAWSON EPICOR

INFOR

This company is the world's third-largest provider of enterprise software, with approximately $2.1 billion in revenue.

EPICOR

This company provides enterprise software solutions for midmarket companies around the world. The company claims to have solutions to a variety of needs, whether a customer is looking for a complete end-to-end enterprise software solution or a specific application.

True

True or False - An ERP package can have a very different implementation er.

True

True or False A good understanding of ERP technology and its implementation process can significantly improve efficiency and effectiveness of the organization's business processes.

True

True or False For an ERP system to be implemented successfully, project management must provide strong leadership, a clear and understood implementation plan, and close monitoring of the budget.

True

True or False The process of designing ERP system architecture is slightly different from other IT architectures. Whereas other IT architectures are driven by organizational strategy and business processes, if purchased, ERP architecture is often driven by the ERP vendor.

True

True or False The purchasing and contract discussions about integrating ERP system should then start with that vendor.

System's Architecture

a blueprint of the actual ERP system and transforms the high-level ERP implementation strategy into an information flow with interrelationships in the organization.

Business Process

a series of tasks or activities grouped to achieve a business function or goal.

e-Business systems

are better for sharing unstructured data and collaboration, ERP are better for sharing structured or transaction data; also, e-Business focus was on external integration (interorganizational), while ERP systems' initial focus was on internal data integration.

Enterprise Resource Planning (ERP) Systems

are comprehensive software applications that support critical organizational functions.

ERP systems

are the mission-critical information systems in today's business organization. They replace an assortment of systems that typically existed in those organizations (e.g., accounting, finance, HR, transaction processing systems, materials planning systems, and management information systems).

Enterprise Resource Planning (ERP) Systems

are the specific kind of enterprise systems to integrate data across and be comprehensive in supporting all the major functions of the organization.

Physical architecture

focuses on the efficiency (cost, response time, etc.) of the system.

Operational Level

functions are highly structured and resources are predefined

Strategic Level

functions are highly unstructured and resources are undefined

Microsoft Dynamics (MD)

is a comprehensive business management solution built on the Microsoft platform.

business process

is a group of activities or tasks that are coordinated for achieving a business goal.

SAP

is the recognized leader among ERP vendors, claiming the largest current market share.

business process reengineering

it is often the case that current business processes will need to be changed to use the functionality of an ERP system fully.

Basic Goal of ERP

like any other information system, is to serve the organization by converting data into useful information for all the organizational stakeholders.

Capability Maturity Model

model has five levels of organizational capability, with level one being the least capable and level five the most capable.

Project Methodology

needs to be documented, reviewed, and fully understood by everyone involved in the project once objectives are outlined.

Lawson

provides industry-tailored software solutions that include enterprise performance management, distribution, financials, human resources, procurement, retail operations, and service process optimization.

Mid-management Level

somewhere in between depending on the hierarchy and organizational size.

Oracle

the first software company to develop and deploy 100 percent Internet-enabled enterprise software across its entire product line, which includes databases, business applications, and application development and decision support tools.

As-is Process

used as a baseline for determining where the process may be improved.