ERP

Annotations:

• ERP architecture is often driven by the ERP vendor.

1. ERP package - different implementation in every organization

1. Logical

   Annotations:

   • focuses on supporting the requirements of the end users
2. physical

   Annotations:

   • focus on efficiency: cost, response time, etc.

1. Better for unstructured data and collaboration

   Annotations:

   • http://www.webopedia.com/TERM/S/structured_data.html
2. Linking a company with external partners and stakeholders
3. Focus on market and customers
4. Disruptive technology

1. share structured or transaction data

   Annotations:

   • http://www.webopedia.com/TERM/S/structured_data.html
2. integrate the functional silos of an organization into enterprise application
   1. Integration of the Business Process
3. Adaptive technology
   1. focus on data sharing, system integration, business process change, and improving decision making
4. e-business web site implementation will be part of ERP implementation

1. Benefits
   1. Integration of data and applications across functional areas of the organization
   2. Improvements in maintenance and support as IT staff is centralized
   3. Consistency of the user interface across various applications means less employee training, better productivity and cross-functional job movemnts
   4. Security of data applications is enhanced due to better controls and centralization of hardware, sofware and nerwork
2. Limitations
   1. Complexity of installing, configuring and maintaining the system increases
   2. Consolidation of IT hardware, software and people can be cumbersome
   3. Data Conversion and transformation from an old system to a new one can be tedious and complex process
   4. Retraining of IT staff and end users of the new system can produce resistance and reduce productivity

1. Benefits
   1. Agility to change for growth and maintaining market share
   2. Share information across functional areas helps COLLABORATION between employees
   3. Improving efficiency by linking and exchanging information in real-time with supply-chain
   4. Better customer service due to quicker information flow across depamrments
   5. Efficiency of B Processes are enhanced due to the re-engineering of business processes
2. Limitations
   1. Retraining employees - time and cost
   2. Change of business roles and department boundaries can create upheaval and resistance to the new system

1. Vanilla

   Annotations:

   • when the company chooses not to modify or customize the system, but instead to change business practices to fit the system
   1. Reason why to implement vanilla
   2. Implementations options

      Annotations:

      • 1.Full (vanilla) all modules from a single vendor 2.Internal  module modifications  from a single vendor. 3.Best of breed – modules from different vendors. 4. Internal module modifications from multiple sources. 5.In-house development 6.In-house development supplemented by some vendor products 7.Application service vendor.(ASP)
2. Chocolate

Annotations:

• –Integration defined as the sharing of data and data elements directly with the ERP system without data redundancy.

1. Understanding transactional and reporting needs
2. Relational Data Base
   1. Selection of the relational DB

1. Governance

   Annotations:

   • Governance should outline and define committees and workgroups that are responsible for the different components of the implementation, their interaction and decision making
2. Roles
   1. Owners
   2. Project Executive
   3. Steering Committee
   4. Application Steward
   5. Chairperson
   6. Project Management Office
   7. Project Terms
   8. Project Teams
   9. Project Team Leads
   10. Cross Functional Team
   11. MEETINGS
       1. Project Sponsor
       2. Steering Committe
       3. Project Management Office
       4. Module or Project Leads
       5. Project Team Status
       6. Issues
       7. Cross functional module
       8. DB planning

Annotations:

• •Benefits –A single-system instance is easier to maintain and support. –Assessing organizational change along with modifying the system to meet the needs of the business will help to minimize risk. •Drawbacks –If a system is modified, each modification will need to be analyzed in light of the upgrade to see if it needs to be incorporated in the upgrade or removed. –An upgrade can sometimes turn into a re-implementation, which requires more resources and time.

1. Vendor Research

   Annotations:

   • •First step is to identify a short list of vendors who will help to shape business requirements. •Identifying and researching all aspects of a vendor package will assist companies in determining the total cost of ownership. •An exhaustive list of vendors is important for a successful implementation. • •Ask department managers and subject matter experts for their input in vendor selection. •Including end-users will help with change management and also help to gain trust for later in the implementation. •Consider the following for vendor selection. –Other businesses using the vendor –The vendor’s financial position –The vendor’s implementation philosophy and support issues –The hardware and software infrastructure used to support the ERP –The vendor’s direction and currency of software –The vendor’s release and upgrade strategies –The vendor’s user-base involvement in defining future functional changes The vendor’s development and maintenance resources
   1. SAP, Oracle/Peoplesoft, Microsoft, Lawson, SSA Global, Epicor
2. High level Vendor
3. Needs and Requirement assesment (business requierements)
   1. Identification and documentation of user and system requirements - BPR

      Annotations:

      • •Two major documents are often a result: –Data and functional flow of departmental or business processes. –Table or description of functions in each department and the level of importance of each function. – •Identifying vendor system functionality based on documented processes will help to purchase a system based on facts.
4. Request for bid to vendor system
   1. RFB or RF proposals (RFP)

      Annotations:

      • •Expensive and time-consuming process for both the company and vendor, but it can yield significant software savings when done right. • •RFB should always include. –Type of ERP system the company wants with specific functionality –Specified hardware and software infrastructure –Training requirements –Any specific contract issues required by the company
5. Analysis and Selection of vendor

   Annotations:

   • •Office staff will need to evaluate functionality. • •IT staff will evaluate the technology requirements. • •Contract staff will need to evaluate the contract and pricing of the system. • •No vendor will meet all requirements so vendor discussions and negotiations should focus on the best fit for the business. • •Develop and analyze the total cost of ownership (TCO).
6. Vendor Negotiation

   Annotations:

   • •Talks should center on the products included in the purchase and maintenance terms of each product. • •Professional services for the implementation or installation can be included or bid separately. • •Contract life cycle management will need to be addressed during contract talks. • •Things every ERP contract should have: –All deliverables must be clearly identified with delivery dates associated. –Ensure that you, the customer, have acceptance authority. –Identify those responsible on both sides for contract management and who has the authority to authorize changes to the contract. •A quality manager or contract monitor appointed by the program manager will have primary responsibility for making sure both sides abide by the terms and conditions of the contract. • •Changes should only be made when necessary due to unforeseen circumstances, mutually beneficial reasons, or unintended mistakes. • •Communicating progress keeps all involved and will also help to maintain momentum. • •It is best to over-communicate during this phase.
7. Purchase system
8. COST of ERP

   Annotations:

   • •The software installation has so many variables and total cost will depend on: –The number of divisions it will serve –The number of modules installed –The amount of integration that will be required with existing systems –The readiness of the company to change –Ambition of the project

Annotations:

• An ERP system will require a powerful set of servers for development, testing, and production environments

Annotations:

• –A set of operating instructions and logic called programs that control and direct the computer hardware to perform its functions.

Annotations:

• –Servers. High-end multiprocessor systems, several gigabytes of main memory and several terabytes of secondary storage –Clients. People accessing ERP systems (e.g., end-users, IT support staff, and developers) –Peripherals. Print servers, printers, back-up power supply equipment, and networking hardware

Annotations:

• –System Software. Operating system platform (e.g., Microsoft Windows Server, Linux, and Sun Solaris) –Database Management System (DBMS).   (SAP/R3 works with IBM-DB2, Oracle, Microsoft SQL) Application Software. Project management software, development software, remote access software, and automated software for monitoring system traffic, virus protec