THE ERP

Presenter’s Amany faroun Reham Hararah Manal Al-NablsiLeen Al-Khayat

Submitted To: Dr.Mohammad Obeidat

Agenda

•Full definition of ERP system•Goal of ERP•Why ERP?•Steps to implement an ERP system •Difficulty of implementation•Offices before and after ERP•The ERP Modules•Advantages & disadvantages of ERP•Costs of ERP •Conclusion

What is ERP ?

..E..An Enterprise is a group of people with a common goal, which

has certain resources at its disposal to achieve that goal.

..R..Resources included are money, and all other things that are

required to run the enterprise.

..P..Planning is done to ensure that nothing goes wrong.

In general ERP is :

“a business strategy and set of industry-domain-specific applications that build customer and shareholder communities value network system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes”(Source: Gartner’s Research Note SPA-12-0420).

Goal of ERP

The goal of our enterprise is simply to get, keep, and grow customers.GET • Acquire profitable customersKEEP• Retain profitable customers longer.• Win back profitable customers• Eliminate unprofitable customersGROW• Up sell additional products in a solution• Cross sell other products to customers• Reduce service and operations cost.

Why ERP?

•ERP offers solutions for all business functions

•Packages available for organizations of all sizes and types

•Global nature (multi currency)

Steps to implement an ERP system :

Definition and

analysisdesign

build

transaction

production

•Very complex

•Extremely costly and time intensiveTypical: over $10,000,000 and over a year to implement

•Company may implement only certain modules of entire ERP system

•You will need an outside consultant

Difficulty of implementation

Offices before ERP

Offices after ERP

• Financials• Production Management• HR Management• Sales & Marketing• Asset Management• Quality Management• Material Management• Event Planning

The ERP Modules

Asset Management

ERP modules

Quality Management

ERP modules

• FINANCIAL ACCOUNTING • CONTROLLING• INVESTMENT MANAGEMENT• CASH MANAGEMENT

Financials

ERP modules

Production Management

ERP modules

Sales & Marketing

•Developing strategies for market penetration for new products as well as increasing the share of the existing products.

• Reviewing & interpreting the competition & market information to fine-tune strategies.

• Selecting & deciding the right distribution channel for the product& implementing the right pricing & promotional policies.

• Coordinating marketing activities, obtaining leads for new projects ERP modules

HR Management

ERP modules

Advantages of ERP• Integration • Efficiency• Cost reduction• Less personnel• Accuracy

Disadvantages• Take time to implement• Security issues

Costs of ERP

• Direct costs..hardware

.. Software

..and people on the project

• Indirect costs..the total cycle life of ERP

..maintenance and upgrades

..increasing salaries and the on going production

Conclusion

•To successfully implement; a proper mix of people, processes and technology should be maintained

• Technology is an enabler, not the driver (it is there to assist the organization to achieve business goals)

THANKs for

Your atte

ntion

AQ&AQ&

References

•ERP Implementation FundamentalsRichard ByromOracle Consultant, Speaker and Authorhttp://www.richardbyrom.com

•http://projectmanagement.ittoolbox.com/documents/research/

•ERP demystified(second edition). Copy right 2008, Alexis leon