Mostafa Mahmoud Ibrahim

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An ERP Overview
Mostafa Mahmoud Ibrahim ITI, Software
Engineering free_noble_at_yahoo.com
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Contents

• Definition.
• ERP Legacy.
• ERPs elements and subsystems.
• How can ERP system improve a business system?!
• What does drive ERP approach?!
• ERP implementation.
• ERP vendors.
• ERP pros cons.
• Summary.

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Definition

• An ERP is a company-wide computer software
  system, and functions of a business from shared
  data stores.
• An ERP system has a service-oriented architecture
  with MODULAR hardware and software units and
  "services" that communicate on a local area
  network.
• Enterprise Resource Planning software, or ERP,
  doesn't live up to its acronym.

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ERP Legacy

• The advent of E-Business and the need to leverage
  multiple sources of information within an
  enterprise.
• Back-office enterprise software has its roots in
  the 1960s and 1970s.
• MRP, short for Material Requirements Planning,
  was developed in the early 1960s at IBM.
• MRP II, the next generation of manufacturing
  software.
• ERP, the enhancement of these before

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ERPs Elements And Subsystems
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How Can ERP System Improve A Business System?!

• A single software program that serves the needs
  of people in finance along with human resources
  and in the warehouse.
• Integrated software program that runs off a
  single database so that the various departments
  can more easily share information and communicate
  with each other.
• No lounging (Imagine a customer order TRIP out of
  an ERP System).
• Interconnectivity (for example, to get into the
  warehouse's computer system).

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What Does Drive ERP Approach?!

• Business
• Customer Satisfaction.
• Business Development - new areas, products,
  services.
• Ability to face competition.
• Efficient processes required to push the company
  to top gear.
• IT
• Present Software does not meet business needs.
• Legacy systems difficult to maintain, Y2K Problem
  , Euro currency.
• Obsolete hardware/software difficult to maintain.
  

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ERP Implementation

• Producing ERP software systems are typically
  complex and usually impose significant changes on
  staff work practices.
• It is desirable and highly advised to hire
  outside consultants who are professionally
  trained to implement these systems.
• Three types of services that are provided by of
  an ERP vendor or of third-party consulting
  companies, these firms typically provide three
  areas of professional services consulting,
  customization and support.
• ERP systems are modular, so they don't all need
  be implemented at once. It can be divided into
  various stages, or phase-ins.
• The length of time to implement an ERP system
  depends on the size of the business, the number
  of modules, the extent of customization, the
  scope of the change and the willingness of the
  customer to take ownership for the project.

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ERP Implementation (Cont..)

• The typical project is about 14 months and
  requires around 150 consultants, a small project
  (e.g., a company of less than 100 staff) may be
  planned and delivered within 3-9 months however,
  a large, multi-site or multi-country
  implementation may take years.
• Main success factor of an ERP implementation,
  Data Migration, which comes almost as the last
  phase implementation requires.
• Identifying the data to be migrated
• Determining the timing of data migration
• Generating the data templates
• Deciding on migration related setups
• Deciding on data archiving

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ERP Implementation (Cont..)

• It is therefore crucial that organizations
  perform a thorough business process analysis
  before selecting an ERP vendor and setting off on
  the implementation track.
• Neglecting to map current business processes
  prior to starting ERP implementation is a main
  reason for failure of ERP projects.
• Configuring an ERP system is largely a matter of
  balancing the way you want the system to work
  with the way the system lets you work.
• Configuration Tables A configuration table
  enables a company to tailor a particular aspect
  of the system to the way it chooses to do
  business.

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ERP Vendors
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ERP Pros Cons

• ERP advantages
• INTEGRATION among different functional areas to
  ensure proper communication, productivity and
  efficiency.
• Design engineering (how to best make the
  product).
• Order tracking, from acceptance through
  fulfillment.
• Tracking the three-way match between purchase
  orders (what was ordered), inventory receipts
  (what arrived), and costing (what the vendor
  invoiced).
• Eliminates the problem of synchronizing changes
  between multiple systems.
• Permits control of business processes that cross
  functional boundaries.
• Provides top-down view of the enterprise (no
  "islands of information").
• Reduces the risk of loss of sensitive data by
  consolidating multiple permissions and security
  models into a single structure.
• Some security features are included within an ERP
  system .

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ERP Pros Cons (cont..)

• ERP disadvantages
• Customization of the ERP software is limited.
• Re-engineering of business processes to fit the
  "industry standard" prescribed by the ERP system
  may lead to a loss of competitive advantage.
• ERP systems can be very expensive (This has led
  to a new category of "ERP light" solutions)
• Many of the integrated links need high accuracy
  in other applications to work effectively. A
  company can achieve minimum standards, then over
  time "dirty data" will reduce the reliability of
  some applications.
• The blurring of company boundaries can cause
  problems in accountability, lines of
  responsibility, and employee morale.
• Resistance in sharing sensitive internal
  information between departments can reduce the
  effectiveness of the software.
• The system may be too complex measured against
  the actual needs of the customers.
• ERP Systems centralize the data in one place.
  This can increase the risk of loss of sensitive
  information in the event of a security breach.

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Summary

• ERP, the business management
• modular system, mainly represents
• the INTEGRATION the powerful
• dynamic internal COMMUNICATION.
• ERP come to existence as a more mature IT
  management system gradually after other old
  mates.
• ERP approach has been adopted to achieve customer
  dealing flexibility, internal management
  consistency competitive ability.
• Fortunately, being MODULAR is a main aspect of
  ERP implementation, however, the process still
  complex requires unhurried decision.
• Consultants third-party staff are usually
  outsourced.

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Detailed Information Is Available Thank You.
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