BDT T4

1
OM
IS

Organizational
WE ARE
BUSINESS
Decision Making
Enterprise Relationship Planning (ERP)
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Enterprise Resource Planning (ERP)
What is ERP?
Why are firms undertaking ERP projects?
How much does an ERP initiative cost?
What are ERP the success factors?
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Enterprise Resource Planning (ERP)
Definition
? An initiative launched by organizations to
better manage all enterprise-wide business
processes using a common integrated database
and shared data management applications and
reporting tools.
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ERP Business Benefits

• Integrate Financial Information ERP ensures that
  there is aconsist and credible set of financial
  information since all of thefunctional areas use
  the same integrated system.
• Integrate Customer Order Information ERP
  provides a singleenvironment from the time the
  customer places an order untilthe customer
  receives the order instead of having
  orderinformation spread across a number of
  distinct systems.
• Standardize and Speed Up Manufacturing Processes
  Manyorganizations have found it difficult to
  manage productionin the current merger and
  acquisition business environment.ERP ensures
  that a single standardized process is
  employedresulting in increased productivity and
  reduced head count.
• Reduce Inventory ERP along with new IT
  technologies hasmade it possible to better
  manage both supplier side inventoryand retailer
  side inventories through real-time
  informationsharing with the firms value chain
  trading partners.
• Standardize HR Information ERP allows the firm
  to betterestimate and track what resources are
  required to support theirbusiness processes
  thus optimizes the firms needed workforce.

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On-LineMarketing
Sample PeopleSoft System
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
HelpDesk
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
CRM Modules
Marketing
OrderCaptureSelf-Service
Tele-marketing
Sales
OrderCapture
CTIInterface
Sample CRM System ----------------------- Marketin
g, Sales, Customer Support, and Telemarketing
Support
SupportSelf-Service
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Supply-Chain Modules
Billing
OrderManagement
Sample SCM System ---------------------- Takes
Orders, Fulfills Orders, Manages Inventory
Inventory
Purchasing
DemandPlanning
InventoryPlanning
EnterprisePlanning
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Supply-Chain Modules
SCM often includes Planning Modulesto
forecast Sales Demand, Inventory Demand, Global
Logistics
Billing
OrderManagement
Inventory
Purchasing
DemandPlanning
InventoryPlanning
EnterprisePlanning
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Financial Modules
Sample Financials ------------------------ Receive
s feedsinto AR, AP, GLto provide reports,Also
manages Assets
Receivables
GeneralLedger
Payables
AssetManagement
Expenses
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Enterprise Data Warehouse
Global DataRepository ----------------------- Hol
ds data from all corporate systems, provides
several ways to deliver corporate reports, often
provides detailed analytics, and detailed KPIs.
EnterpriseWarehouse
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 1
Marketing
OrderCaptureSelf-Service
Initiate a Marketing Campaign
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 2
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
Campaign generates Sales Volume handled by the
Sales Channels directly, or through Telemarketing
GeneralLedger
Inventory
CTIInterface
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 3
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Sales Order is captured and processed by
the Order Capture module
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 4
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
CRM, through an interface, sends the Sales
Orderto the Supply-Chain Order Management module
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 5
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Through integration, Inventory is asked to
pick/pack/shipthe Order to the Customer
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 6
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Inventory will automatically generate a sourcing
request for more Product as needed
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 7
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Additional Product processing (PO, receipt,
adjustments) will be controlled by
Purchasing, Paying for Product is handled by AP
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 8
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Shipped Orders will be invoiced through
the Billing module
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 9
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Collecting payments on invoices, past due
balances, and fees will be controlled by
Receivables (AR)
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 10
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Many modules send financial transactions through
to the General Ledger for reporting
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 11
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
After shipping, Order Management will keep
CRM updated to reflect Customer activity
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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On-LineMarketing
Sample Flow of Data Step 12
Marketing
OrderCaptureSelf-Service
Receivables
Billing
OrderManagement
Tele-marketing
Sales
OrderCapture
GeneralLedger
Inventory
CTIInterface
Periodically (perhaps Monthly) data from all
systems is transferred to the Data Warehouse
Support
Payables
Purchasing
SupportSelf-Service
AssetManagement
EnterpriseWarehouse
Expenses
EnterpriseScorecard
CustomerScorecard
CustomerBehaviorModeling
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Enterprise Resource Planning (ERP)

• The total cost of an ERP Implementation can vary
  significantly depending upon
• 1) The Size and Geographical Distribution of
  the Company
• 2) The Size of the ERP Package (How Many
  Modules?) 3) The Addition of New Hardware to
  Support ERP
• 4) The Addition of New Systems Software to
  Support ERP
• 5) Consultants and Analysts Fees (Can be
  VERY Expensive)
• 6) Time Required for Implementation
  (Disruption of Business)
• 7) Training Costs (Both Time and Money)
• A large company may spend from 50 million to
  500 million for an integrated ERP system.
• Meta group did a survey of the Total Cost of
  Ownership (TCO) of ERP (including hardware,
  software, consulting) at 63 companies (small
  through large) in a range of industries and found
  that the average cost was 15 million. The high
  was 300 million and the low was 400,000.

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Factors Impacting ERP Success

• Loss of Top Management Support Commitment by
  the firms top management to the successful
  completion of the ERP project decreases over
  time.
• Improper Cost Estimation Ability of the firm to
  properly identify the TRUE cost and time
  commitments that will be required by the firm.
  MOST ERP projects experience cost overruns!
• Realistic Expectations The assumption that an
  ERP system will cure fundamental business
  problems that are not curable by any software
  application
• Select Proper ERP Implementation Executives do
  not take enough time for proper analysis of the
  ERP impact during the project planning phase.
  (Requirements?)
• Cultural Impacts People throughout the
  organization resist the changes made to business
  processes to support new ERP system.
• Training Costs Some firms under budget or skimp
  on employee ERP system training (People Costs)
• IT Customization and Integration The IT shop is
  bogged down in ERP integration

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Top ERP Vendors
1) SAP- Market 43- Focus Solutions with
marketing, sales service, and analytics
functionality 2) Oracle (PeopleSoft and J.D.
Edwards)- Market 22- Focus Products
available for the entire market, including 21
vertical markets3) Sage Group- Market 5-
Focus Windows-based ERP product small
business enterprises
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Connected Corporation
(Integrated SCM, CRM, and ERP)
How are SCM, CRM, and ERP integrated?
What are the data points for integratingSCM,
CRM, and ERP?
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The Connected Organization
Why is SCM, CRM, and ERP Important?
An organizational enterprise has many core
business processes that must operate smoothly,
efficiently, and effectively if the
organization is to be successful.
An organization can only be competitive in
their marketplace if there is a seamless and
timely flow of quality information between
systems.
Since each system (e.g., SCM, CRM, ERP)
typically relies on information as inputs
into their system it makes logical sense the
systems need to be closely coupled together.
The close coupling or integration of these
systems ensures you the businessperson will
have the information you need to make timely
decisions impacting the overall success of the
organization!
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The Connected Organization
General Audience and Purpose of the Three Systems
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The Connected Organization
Data Points Where Three Systems Integrate
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Any Questions?