Download - Kroenke Emis5 Inppt Ce09
CE9-2
Study Questions
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Q1: What is the purpose of ERP systems?
Q2: What are the elements of an ERP solution?
Q3: How are ERP systems implemented?
Q4: What types of organizations use ERP?
Q5: How do the major ERP vendors compare?
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Q1: What Is the Purpose of ERP Systems?
• Primary purpose: integration of purchasing, human resources, production, sales, and accounting data into a single system.
• Allows real time global updates whenever a transaction happens.
• Enable critical business decisions using latest data.
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Pre-ERP Information System: Bicycle Manufacturer
Does not include accounting Five non-integrated databases
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Some Questions Procedures Need to Answer or Resolve
• How does sales department determine an order is “large”? By dollars? By volume?
• Who approves customer credit (and how)?
• Who approves production capacity (and how)?
• Who approves schedule and terms (and how)?
• What actions to take if customer modifies an order?
• How does management obtain oversight on sales activity?
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Q2: What Are the Elements of an ERP Solution?
• ERP Application programs
• ERP Business process procedures
• ERP Databases
• ERP Training and Consulting
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True ERP Have Application that Integrate: (http://www.erpsoftware360.com/erp-101.htm)
• Supply chain (procurement, sales order processing, inventory management, supplier management, related activities)
• Manufacturing (scheduling, capacity planning, quality control, bill of materials, and related activities)
• CRM (sales prospecting, customer management, marketing, customer support, call center support)
• Human resources (payroll, time and attendance, HR management, commission calculations, benefits administration, and related activities)
• Accounting (general ledger, accounts receivable, accounts payable, cash management, fixed asset accounting)
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ERP Solution Components
• ERP Application Programs• Configurable vendor applications
• ERP Databases• Trigger
– Computer program within the database that keeps database consistent when certain conditions arise.
• Stored Procedure– Enforces business rules
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ERP Solution Components (Cont’d)
• ERP Business Processes and Procedures– Adapt to predefined, inherent processes
and procedures, or design new ones?• ERP Training & Consulting
– Training to implement
– Top management support, preparing for change, dealing with resistance
– Training to use
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Example of SAP Ordering Business Process Blueprint
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Example of SAP Ordering Business Process Blueprint (cont’d)
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Q3: How Are ERP Systems Implemented?
Major tasks in implementation of an ERP application
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Magnitude of ERP Implementation
SAP blueprint contains over a thousand
process models
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ERP Projects
• Few organizations develop their own ERP software
• Daunting and expensive:
– Multi-year projects, millions of dollars, and hundreds of employees, consultants and vendor personnel.
SAP ERP databases contain over 15,000 tables!
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Q4: What Types of Organizations Use ERP?
ERP Use by
Industry
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International ERP
• Worldwide consolidation of financial statements on a timely basis
• Inherent ERP procedures adaptable to many cultures
• Multiple currencies and languages, manage international transfers of goods in inventories, work with international supply chains
• http://advice.Cio.Com/puneesh/deploy_erp_to_improve_globalization_efficiency_of_your_organization
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Q5: How Do the Major ERP Vendors Compare?
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ERP Market Leaders
• ERP market mature with only 2.2% to $24 billion in 2012.
• Consolidation of vendors is likely, with smaller vendors falling out entirely.
• Top 10 vendors own 64% of market share and top five own 55% of market share.
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SAP
• Classic SAP uses thick-client, client-server architecture.
• SAP HANNA Enterprise Cloud– Used as ERP solution by itself, or integrated with
existing SAP installation.
• Big problem– Providing cloud benefits to existing customers
without disrupting organization with a nearly new ERP installation
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Oracle
• Deep base of technology, high-quality technical staff
• Never known to create easy-to-use products
• Fully featured, expensive products with superior performance
• Classic Oracle ERP products designed according to SOA principles, adaptable and customizable
• ERP Cloud Service as SaaS
• Well positioned to use the cloud to expand market share.
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Infor
• Grew by acquisitions
• Sells many ERP products for many different industries
• Products vary in purpose, scope, and quality
• Serves midrange, higher-end small companies and lower-end large companies
• Infor Business Cloud (SaaS) or bare-bones offered as IaaS.
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Sage
• ERP software for small and midsized businesses, in construction and real estate, and nonprofit organizations
• Sage 100 - very small firms
• Sage 300 - larger small companies
• Sage 500 - midsized businesses with advanced requirements needing customization, configuration, and optimization.
• Sage ERP X3 - midsized international organizations
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Microsoft Dynamics
• AX, Nav, GP, Solomon, and Dynamics CRM.
• AX and Nav have the most capabilities;
• GP more limited, easier to use.
• Microsoft supposedly outsources maintenance of Solomon code to support existing customers.
• Dynamics CRM extensible to enable use for ERP and CRM.
• CRM product online as SaaS, no full ERP implementation in the cloud.
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Active Review
Q1: What is the purpose of ERP systems?
Q2: What are the elements of an ERP solution?
Q3: How are ERP systems implemented?
Q4: What types of organizations use ERP?
Q5: How do the major ERP vendors compare?
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