ENTERPRISE RESOURCE PLANNING

ERP

SEQ

Objectives To Be Achieved Part – I What is Enterprise Resource

Planning Origin of the Term Emerging ERP vendors ERP System Implementation Mechanics▪ Phase-I - The Chartering Phase ▪ Phase-II - The Project Phase ▪ Phase-III - The Shakedown Phase ▪ Phase-IV - The Onward and Upward Phase ▪ Customization VS Configuration

Part – II ERP System Selection Methodology The Funnel Technique 3D Decision Support Tool

SEQ

Objectives To Be Achieved !!!

What is an ERPWho are the

UsersWhere to Use itWho Makes itBrief of the ERP

systemsWhat it has to do

with the Pak Army

PART 1

What is ERP? ERP is a term usually

used in conjunction with ERP software or an ERP system which is intended to manage all the information and functions of a business , company or Org from shared data stores or data bank

Origin of the Term

Around 1980, MRP (Material Requirement Planning)

Manufacturing Resource Planning (or MRP2)

Finally the generic concept Enterprise Resource Planning (ERP) in end 80s

ERP II -- A term coined in the early 2000s

A Basic ERP System

To be considered an ERP system, a software package providing both payroll and accounting functions

ERP Potentials Ideally, ERP delivers multiple database

sys that contains all data for the various software modules addressing areas such as: Command & Con Sys Access control Financials Project management Human resources Customer relationship management Manufacturing Supply chain management Data services

Emerging ERP VendorsYr 2005

Vendors Revenue

Millions $

Market Share

%

SAP 1949 30.33

Oracle Applications 1374 21.38

The Sage Group 1121 17.44

Microsoft Dynamics 916 14.25

SSA Global Technologies

464 7.22

PART 2

Broadly what all is req in this:

1. A proper ERP product2. A competent project team. 3. A hardware on which one will

be installing the ERP configurations (a server type platform)

Broadly what all is req in this:

1. A proper ERP product2. A competent project team. 3. A hardware on which one will

be installing the ERP configurations (a server type platform)

ERP SYSTEM IMPLEMENTATION MECHANICS

4 Phase Approach:

1. The Chartering Phase 2. The Project Phase 3. The Shakedown Phase 4. The Onward and Upward

Phase

4 Phase Approach:

1. The Chartering Phase 2. The Project Phase 3. The Shakedown Phase 4. The Onward and Upward

Phase

IMPLEMENTATION MECHANICS

Chartering Phase

▪ Decision to change over to ERP by Org / firm’s exectives.

▪ Determine the need of this change and start of change process progressively in the org.

▪ ERP Implementation Team Formation and assured aval of resources.

▪ Decision to change over to ERP by Org / firm’s exectives.

▪ Determine the need of this change and start of change process progressively in the org.

▪ ERP Implementation Team Formation and assured aval of resources.

Chartering Phase

▪ Selection of Methodolgy to take on the proj and requisite vendor.▪ Centeralized Apch▪ De- Centeralized Apch▪ Centeralized setups with ensured De-

Centeralized con ▪ Utilizing the concept of “ Best

Practices ”

▪ Determine the lvl of services req from the sel vendor.

▪ Contract concl

▪ Selection of Methodolgy to take on the proj and requisite vendor.▪ Centeralized Apch▪ De- Centeralized Apch▪ Centeralized setups with ensured De-

Centeralized con ▪ Utilizing the concept of “ Best

Practices ”

▪ Determine the lvl of services req from the sel vendor.

▪ Contract concl

Chartering Phase

Project Phase

Identification of Areas as well as Data req to be put on ERP.

Demo of Scale Down Model Hardware infrasture

installation. Development and Deployment

of Software modules. Dry Tests Application of Checks and

counter Checks.

Identification of Areas as well as Data req to be put on ERP.

Demo of Scale Down Model Hardware infrasture

installation. Development and Deployment

of Software modules. Dry Tests Application of Checks and

counter Checks.

Project Phase

Shake Down Phase

Trg of Users (Master Trainers / Indl Users)

Trial Basis running on selected venues / areas

Opening up of all connected venues (while parralel non ERP sys will continue)

Trg of Users (Master Trainers / Indl Users)

Trial Basis running on selected venues / areas

Opening up of all connected venues (while parralel non ERP sys will continue)

Shake Down Phase

Removal of bugs and discrepencies.

System’s course tuning and fine tuning exercises are conducted.

Sys Applications are redefined if req.

“ Here we go “ stage.

Removal of bugs and discrepencies.

System’s course tuning and fine tuning exercises are conducted.

Sys Applications are redefined if req.

“ Here we go “ stage.

Shake Down Phase

The Onward and Upward Phase

User’s feed back Dis-continuation of parralel Non-

ERP systems Customization as per user’s

requirements. Activation of “After Sales

Protocols” User’s problems and solutions

are seeked. Benefit assessment is made

User’s feed back Dis-continuation of parralel Non-

ERP systems Customization as per user’s

requirements. Activation of “After Sales

Protocols” User’s problems and solutions

are seeked. Benefit assessment is made

The Onward and Upward Phase

Don’t Go for Zero-Based techniques by asking for a complete new sys.

For example, if Pak Army needs a C4I ERP sys, intl bench mk of any developed country’s army can be utilized as the same is time tested with min lvl of bugs.

Don’t Go for Zero-Based techniques by asking for a complete new sys.

For example, if Pak Army needs a C4I ERP sys, intl bench mk of any developed country’s army can be utilized as the same is time tested with min lvl of bugs.

The Concept of Best practices

The Concept of Customization VS Configuration

Customization is always optional, whereas some degree of configuration (e.g., setting up cost/profit centre structures, organisational trees, purchase approval rules, etc.) may be needed before the software will work at all.

Configuration is available to all customers, whereas customization allows individual customer to implement proprietary "market-beating" processes.

Customization is always optional, whereas some degree of configuration (e.g., setting up cost/profit centre structures, organisational trees, purchase approval rules, etc.) may be needed before the software will work at all.

Configuration is available to all customers, whereas customization allows individual customer to implement proprietary "market-beating" processes.

The Concept of Customization VS

Configuration

Configuration changes tend to be recorded as entries in vendor-supplied data tables, whereas customization usually requires some element of programming and/or changes to table structures or views.

Configuration changes tend to be recorded as entries in vendor-supplied data tables, whereas customization usually requires some element of programming and/or changes to table structures or views.

The Concept of Customization VS

Configuration

The effect of configuration changes on the performance of the system is relatively predictable and is largely the responsibility of the ERP vendor. The effect of customization is unpredictable and may require time-consuming stress testing by the implementation team.

The effect of configuration changes on the performance of the system is relatively predictable and is largely the responsibility of the ERP vendor. The effect of customization is unpredictable and may require time-consuming stress testing by the implementation team.

The Concept of Customization VS

Configuration

PART 3

The options are many and this, in reality, creates a problem for the company who has to make a decision.. . . .

The options are many and this, in reality, creates a problem for the company who has to make a decision.. . . .

ERP SYSTEM SELECTION METHODOLOGY

An ERP system selection Methodologyis a formal process for selecting an Enterprise Resource Planning (ERP) system. Maj existing methodologies include: Kuiper's Funnel Method 3D Decision Support Tool

An ERP system selection Methodologyis a formal process for selecting an Enterprise Resource Planning (ERP) system. Maj existing methodologies include: Kuiper's Funnel Method 3D Decision Support Tool

ERP SYSTEM SELECTION METHODOLOGY

This is a questioning technique, or rather a structure to use the technique within, that keeps you "on track" as you guide your prospect towards your service or product offering once you have uncovered the needs. The technique relies on you using the prospects own words back to them and you must take notes.

This is a questioning technique, or rather a structure to use the technique within, that keeps you "on track" as you guide your prospect towards your service or product offering once you have uncovered the needs. The technique relies on you using the prospects own words back to them and you must take notes.

THE FUNNEL TECHNIQUE

1. STEP ONE The first step is to motivate the prospect

2. STEP TWO Now you have them relaxed, you can begin to probe for information

3. STEP THREE Once you have started to gather information and uncovered the "hot buttons" you use open leading questions to pin point specific areas

4. STEP FOUR Now you summarize using their words and information, so as to get their commitment of your understanding of the situation or their needs - "Well, Mr. Prospect, you have outlined a substantial organization to me

1. STEP ONE The first step is to motivate the prospect

2. STEP TWO Now you have them relaxed, you can begin to probe for information

3. STEP THREE Once you have started to gather information and uncovered the "hot buttons" you use open leading questions to pin point specific areas

4. STEP FOUR Now you summarize using their words and information, so as to get their commitment of your understanding of the situation or their needs - "Well, Mr. Prospect, you have outlined a substantial organization to me

THE FUNNEL TECHNIQUE

A properly designed Decision Support System (DSS) is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.

A properly designed Decision Support System (DSS) is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.

3D Decision Support Tool

LASTPART

Truth be told

The

implementation

will be like open

heart surgery

while the patient

is still alive and

working.

Truth be told

The

implementation

will be like open

heart surgery

while the patient

is still alive and

working.

ERP Implementation

An ERP

implementati

on is like a 9

month root

canal.

An ERP

implementati

on is like a 9

month root

canal.

ERP Implementations

ERP in an Org

is some thing

like “ Thinking

Different “

ERP in an Org

is some thing

like “ Thinking

Different “

ERP Implementations

It’s a Future

Vision of

World

Processes

It’s a Future

Vision of

World

Processes

ERP implementations Analogies

Own Audit ……Objectives are Achieved or Not !!!

What is an ERPWho are the

UsersWhere to Use itWho Makes itBrief of the ERP

systemsWhat it has to do

with the Pak Army

Any Question, Please